diff --git a/.dockerignore b/.dockerignore
index 528c0ed9793a..523279722d29 100644
--- a/.dockerignore
+++ b/.dockerignore
@@ -1,6 +1,7 @@
 *
 !docker/prover/prover-entry.sh
 !docker/local-node/entrypoint.sh
+!docker/local-node/zkstack
 !docker/external-node/entrypoint.sh
 !docker/contract-verifier/install-all-solc.sh
 !etc/test_config
@@ -25,7 +26,6 @@ keys/setup
 !contracts/
 !setup_2\^26.key
 !setup_2\^24.key
-!setup_compact.key
 # It's required to remove .git from contracts,
 # otherwise yarn tries to use .git parent directory that
 # doesn't exist.
@@ -42,9 +42,15 @@ contracts/.git
 !bellman-cuda
 !prover/data/
 !.github/release-please/manifest.json
+!zkstack_cli
+!chains
+!usr/local/bin
+!usr/local/bin/zkstack
 
 !etc/env/file_based
 !etc/env/dev.toml
 !etc/env/consensus_secrets.yaml
 !etc/env/consensus_config.yaml
 !rust-toolchain
+!ZkStack.yaml
+!docker-compose.yml
\ No newline at end of file
diff --git a/docker/local-node/Dockerfile b/docker/local-node/Dockerfile
index fce2cd9a8218..6a87500e0706 100644
--- a/docker/local-node/Dockerfile
+++ b/docker/local-node/Dockerfile
@@ -28,8 +28,7 @@ RUN cargo install sqlx-cli --version 0.8.0
 
 # Copy required packages while preserving the folders structure from the repo
 # It's required because these packages use relative paths to the SDK
-# Copy `zk` tool
-COPY infrastructure/zk /infrastructure/zk
+
 # Copy `local-setup-preparation` tool
 COPY infrastructure/local-setup-preparation /infrastructure/local-setup-preparation
 # Copy dev configs
@@ -38,29 +37,34 @@ COPY etc/env /etc/env
 COPY etc/test_config /etc/test_config
 # Copy all the L1 contracts so they can be deployed
 COPY contracts /contracts/
-
+COPY core/ /core
 # Set `ZKSYNC_HOME` to the root (required for `zk` tool)
 ENV ZKSYNC_HOME=/
 # Set `LOCAL_SETUP` variable to modify `zk` tool behavior
 ENV ZKSYNC_LOCAL_SETUP=true
 # Disable all checks
 ENV ZKSYNC_ACTION=dont_ask
-
+# Env in Docker
+ENV IN_DOCKER=1
 # Build all the required TS packages
 
-# Build `zk` tool
-RUN cd /infrastructure/zk && yarn && yarn build && cd /
 # Build `local-setup-preparation` tool
-RUN cd /infrastructure/local-setup-preparation && yarn && cd /
+# RUN cd /infrastructure/local-setup-preparation && yarn && cd /
 # Build L1 contracts package (contracts themselves should be already built)
 RUN cd /contracts/l1-contracts && yarn && cd /
 # Same for L2 contracts
 RUN cd /contracts/l2-contracts && yarn && cd /
+# Same for L1-da contracts
+RUN cd /contracts/da-contracts && yarn && cd /
 
-# Copy the ZK tool binary
-COPY bin/zk /bin/zk
+# Copy the ZK stack tool Library
+COPY zkstack_cli /zkstack_cli
+# Copy the configs for chain
+COPY chains/era /chains/era
 # Copy package json (which gives us yarn workspace - and makes commands more similar to what we normally run)
 COPY package.json /
+# Copy rust toolchain (so the compilation can be done with correct nightly)
+COPY rust-toolchain /
 
 # Copy DAL - needed to setup database schemas.
 COPY core/lib/dal core/lib/dal
@@ -71,4 +75,58 @@ RUN mkdir /etc/env/l1-inits && mkdir /etc/env/l2-inits
 # setup entrypoint script
 COPY ./docker/local-node/entrypoint.sh /usr/bin/
 
+COPY ./docker-compose.yml /docker-compose.yml
+COPY ./ZkStack.yaml /ZkStack.yaml
+
+# Install Docker
+RUN apt-get update && apt-get install -y docker.io
+
+# Configure Docker repository
+# RUN apt-get update && \
+#     apt-get install -y ca-certificates curl gnupg && \
+#     mkdir -m 0755 /etc/apt/keyrings && \
+#     curl -fsSL https://download.docker.com/linux/debian/gpg | gpg --dearmor -o /etc/apt/keyrings/docker.gpg && \
+#     echo "deb [arch=$(dpkg --print-architecture) signed-by=/etc/apt/keyrings/docker.gpg] https://download.docker.com/linux/debian $(. /etc/os-release && echo "$VERSION_CODENAME") stable" | tee /etc/apt/sources.list.d/docker.list > /dev/null && \
+#     apt-get update && \
+#     apt-get install -y docker-compose-plugin && \
+#     \
+#     # Install Foundry for zkSync
+#     curl -L https://raw.githubusercontent.com/matter-labs/foundry-zksync/main/install-foundry-zksync | bash
+
+# Persist environment variables
+# ENV PATH=$HOME/.foundry/bin:$PATH
+# ENV LIBCLANG_PATH=/usr/lib/llvm-14/lib
+ENV COMPOSE_PROJECT_NAME=my_project_name
+ENV GITHUB_WORKSPACE=my_github_workspace
+
+# Install additional dependencies
+RUN apt-get update && apt-get install -y \
+    clang llvm-dev libclang-dev \
+    ca-certificates curl gnupg \
+    && curl -L https://raw.githubusercontent.com/matter-labs/foundry-zksync/main/install-foundry-zksync | bash
+
+# Install required dependencies including Docker
+RUN apt-get update && apt-get install -y --no-install-recommends \
+    ca-certificates curl gnupg lsb-release \
+    && mkdir -p /etc/apt/keyrings \
+    && curl -fsSL https://download.docker.com/linux/debian/gpg | gpg --dearmor -o /etc/apt/keyrings/docker.gpg \
+    && echo "deb [arch=$(dpkg --print-architecture) signed-by=/etc/apt/keyrings/docker.gpg] https://download.docker.com/linux/debian $(lsb_release -cs) stable" | tee /etc/apt/sources.list.d/docker.list > /dev/null \
+    && apt-get update \
+    && apt-get install -y docker-compose-plugin \
+    && rm -rf /var/lib/apt/lists/*
+
+# Set persistent environment variables
+ENV LIBCLANG_PATH=/usr/lib/llvm-14/lib
+ENV PATH="/usr/local/cargo/bin:/root/.foundry/bin:$PATH"
+
+RUN ./zkstack_cli/zkstackup/install -g --path ./zkstack_cli/zkstackup/zkstackup \
+    && zkstackup -g --local --cargo-features gateway
+
+
+# CMD ["/bin/bash"]
+
 ENTRYPOINT ["entrypoint.sh"]
+
+
+
+# Root hash mismatched: From config: 0xd8c9be7efb705e7dcf529c14fce7048ea99dea9eab6a6b4e5f8de1ebf4f2ebf2, Calculated 0xb6779307f23867c798513845edb67ce0eca31a433e3c86f46a6961d0567a067d
\ No newline at end of file
diff --git a/docker/local-node/entrypoint.sh b/docker/local-node/entrypoint.sh
index e57d849802ec..9987fcbb368d 100755
--- a/docker/local-node/entrypoint.sh
+++ b/docker/local-node/entrypoint.sh
@@ -17,178 +17,109 @@ if [ -z "$ETH_CLIENT_WEB3_URL" ]; then
   exit 1
 fi
 
-# Updates the value in the .toml config or .env file.
+# Function to update a key in a YAML file
 update_config() {
-  # Assigning arguments to readable variable names
   local file="$1"
-  local parameter="$2"
+  local key="$2"
   local new_value="$3"
-  local pattern_toml="^${parameter} =.*$"
-  local pattern_env="^${parameter}=.*$"
-
-  # Check if the parameter exists in the file
-  if grep -q "$pattern_toml" "$file"; then
-    # The parameter exists in the .toml file, so replace its value
-    sed -i "s!$pattern_toml!${parameter} = \"$new_value\"!" "$file"
-    echo "Update successful for $parameter in $file."
-  elif grep -q "$pattern_env" "$file"; then
-    # The parameter exists in the .env file, so replace its value
-    sed -i "s!$pattern_env!${parameter}=$new_value!" "$file"
-    echo "Update successful for $parameter in $file."
-  else
-    # The parameter does not exist in the file, output error message and return non-zero status
-    echo "Error: '$parameter' not found in $file."
-    return 1 # Return with an error status
-  fi
-}
 
-# Reads the value of the parameter from the .toml config or .env file.
-read_value_from_config() {
-  local file="$1"
-  local parameter="$2"
-  local pattern_toml="^${parameter} =.*$"
-  local pattern_env="^${parameter}=.*$"
-  local res=""
-
-  # Check if the parameter exists in the file
-  if grep -q "$pattern_toml" "$file"; then
-    # The parameter exists in the .toml file, so extract its value
-    res=$(grep "$pattern_toml" "$file" | sed "s/${parameter} = //; s/\"//g")
-  elif grep -q "$pattern_env" "$file"; then
-    # The parameter exists in the .env file, so extract its value
-    res=$(grep "$pattern_env" "$file" | sed "s/${parameter}=//; s/\"//g")
-  else
-    # The parameter does not exist in the file, output error message and return non-zero status
-    echo "Error: '$parameter' not found in $file."
-    return 1 # Return with an error status
-  fi
+  # Escape special characters for sed
+  local escaped_key=$(echo "$key" | sed 's/\./\\./g')
+  local pattern="^\\s*${escaped_key}:.*$"
 
-  if [ -z "$res" ]; then
-    echo "ERROR: $parameter is not set in $file."
-    exit 1
+  # Check if the key exists in the file
+  if grep -qE "$pattern" "$file"; then
+    # Update the existing key
+    sed -i "s|$pattern|${key}: $new_value|" "$file"
+    echo "Updated '$key' in $file."
+  else
+    # Append the key if it doesn't exist
+    echo "$key: $new_value" >> "$file"
+    echo "Added '$key' to $file."
   fi
-
-  echo $res
 }
 
+
 # wait till db service is ready
 until psql ${DATABASE_URL%/*} -c '\q'; do
   echo >&2 "Postgres is unavailable - sleeping"
   sleep 5
 done
 
+echo "Initialing local environment"
+
+# Determine the correct config path based on MASTER_URL
 if [ -z "$MASTER_URL" ]; then
-  echo "Running as zksync master"
+  CONFIG_PATH="/chains/era/configs"
+  echo "Updating configuration for MASTER chain..."
 else
-  # If running in slave mode - wait for the master to be up and running.
-  echo "Waiting for zksync master to init hyperchain"
-  until curl --fail ${MASTER_HEALTH_URL}; do
-    echo >&2 "Master zksync not ready yet, sleeping"
-    sleep 5
-  done
-fi
-
-if [ -n "$LEGACY_BRIDGE_TESTING" ]; then
-  if [ -z "$MASTER_URL" ]; then
-    echo "Running in legacy bridge testing mode"
-  else
-    # LEGACY_BRIDGE_TESTING flag is for the master only
-    unset LEGACY_BRIDGE_TESTING
-  fi
+  CONFIG_PATH="/chains/custom_token/configs"
+  echo "Updating configuration for Custom Token chain..."
 fi
+# update_config "/chains/era/configs/secrets.yaml" "server_url" "$DATABASE_URL"
+# update_config "/chains/era/configs/secrets.yaml" "prover_url" "$DATABASE_PROVER_URL"
+# update_config "/chains/era/configs/secrets.yaml" "l1_rpc_url" "$ETH_CLIENT_WEB3_URL"
 
-# Normally, the /etc/env and /var/lib/zksync/data should be mapped to volumes
-# so that they are persisted between docker restarts - which would allow even faster starts.
-
-# We use the existance of this init file to decide whether to restart or not.
-INIT_FILE="/var/lib/zksync/data/INIT_COMPLETED.remove_to_reset"
-
-if [ -f "$INIT_FILE" ]; then
-  echo "Initialization was done in the past - simply starting server"
-else
-  echo "Initialing local environment"
-
-  mkdir -p /var/lib/zksync/data
-
-  update_config "/etc/env/base/private.toml" "database_url" "$DATABASE_URL"
-  update_config "/etc/env/base/private.toml" "database_prover_url" "$DATABASE_PROVER_URL"
-  update_config "/etc/env/base/eth_client.toml" "web3_url" "$ETH_CLIENT_WEB3_URL"
-  # Put database in a special /var/lib directory so that it is persisted between docker runs.
-  update_config "/etc/env/base/database.toml" "path" "/var/lib/zksync/data"
-  update_config "/etc/env/base/database.toml" "state_keeper_db_path" "/var/lib/zksync/data/state_keeper"
-  update_config "/etc/env/base/database.toml" "backup_path" "/var/lib/zksync/data/backups"
-
-  if [ -n "$LEGACY_BRIDGE_TESTING" ]; then
-    # making era chain id same as current chain id for legacy bridge testing
-    chain_eth_zksync_network_id=$(read_value_from_config "/etc/env/base/chain.toml" "zksync_network_id")
-    update_config "/etc/env/base/contracts.toml" "ERA_CHAIN_ID" "$chain_eth_zksync_network_id"
-  fi
-
-  if [ -z "$MASTER_URL" ]; then
-    echo "Starting with hyperchain"
-  else
-    # Updates all the stuff (from the '/etc/master_env') - it assumes that it is mapped via docker compose.
-    zk f yarn --cwd /infrastructure/local-setup-preparation join
-  fi
-
-  zk config compile
-
-  zk db reset
-
-  # Perform initialization (things needed to be done only if you're running in the master mode)
-  if [ -z "$MASTER_URL" ]; then
-    zk contract deploy-verifier
-    zk run deploy-erc20 dev # (created etc/tokens/localhost)
-
-    ## init bridgehub state transition
-    zk contract deploy # (deploy L1)
-    zk contract initialize-governance
-    zk contract initialize-validator
-  fi
-
-
-  if [ -z "$CUSTOM_BASE_TOKEN" ]; then
-    echo "Starting chain with ETH as gas token"
-
-    if [ -z "$VALIDIUM_MODE" ]; then
-      ## init hyperchain in rollup mode
-      zk contract register-hyperchain
-    else
-      zk contract register-hyperchain --deployment-mode 1
-    fi
-  else
-    echo "Starting chain with custom gas token $CUSTOM_BASE_TOKEN"
-    zk contract register-hyperchain --base-token-name $CUSTOM_BASE_TOKEN
-  fi
-  
-  
-  zk f zksync_server --genesis
-
-  deploy_l2_args=""
-  if [ -n "$LEGACY_BRIDGE_TESTING" ]; then
-    # setting the flag for legacy bridge testing
-    deploy_l2_args="--local-legacy-bridge-testing"
-  fi
+# Extract the database name (everything after the last '/')
+SERVER_DB_NAME="${DATABASE_URL##*/}"
 
-  zk contract deploy-l2-through-l1 $deploy_l2_args
-
-  if [ -z "$MASTER_URL" ]; then
-    zk f yarn --cwd /infrastructure/local-setup-preparation start
-  fi
+# Extract the database URL without the database name
+SERVER_DB_URL="${DATABASE_URL%/*}"
 
-  if [ -n "$LEGACY_BRIDGE_TESTING" ]; then
-    # making era address same as current address for legacy bridge testing
-    contracts_diamond_proxy_addr=$(read_value_from_config "/etc/env/target/dev.env" "CONTRACTS_DIAMOND_PROXY_ADDR")
-    update_config "/etc/env/target/dev.env" "CONTRACTS_ERA_DIAMOND_PROXY_ADDR" "$contracts_diamond_proxy_addr"
+if [ -z "$MASTER_URL" ]; then
+  echo "Running as zksync master"
 
-    # setup-legacy-bridge-era waits for the server to be ready, so starting it in the background
-    zk contract setup-legacy-bridge-era &
-  fi
+  update_config "$CONFIG_PATH/secrets.yaml" "server_url" "$DATABASE_URL"
+  update_config "$CONFIG_PATH/secrets.yaml" "prover_url" "$DATABASE_PROVER_URL"
+  update_config "$CONFIG_PATH/secrets.yaml" "l1_rpc_url" "$ETH_CLIENT_WEB3_URL"
 
-  # Create init file.
-  echo "System initialized. Please remove this file if you want to reset the system" >$INIT_FILE
+  echo "Configuration updated successfully."
 
-fi
+  zkstack ecosystem init --deploy-paymaster --deploy-erc20 \
+    --deploy-ecosystem --l1-rpc-url=$ETH_CLIENT_WEB3_URL \
+    --server-db-url="$SERVER_DB_URL" \
+    --server-db-name="$SERVER_DB_NAME" \
+    --ignore-prerequisites --verbose \
+    --observability=false \
+    --update-submodules=false
 
-# start server
-zk f zksync_server
+  # start server
+  zkstack server
+else
+  zkstack chain create \
+    --chain-name custom_token \
+    --chain-id 275 \
+    --prover-mode no-proofs \
+    --wallet-creation localhost \
+    --l1-batch-commit-data-generator-mode rollup \
+    --base-token-address ${CUSTOM_TOKEN_ADDRESS} \
+    --base-token-price-nominator 314 \
+    --base-token-price-denominator 1000 \
+    --set-as-default false \
+    --ignore-prerequisites \
+    --evm-emulator false \
+    --update-submodules=false
+
+  update_config "$CONFIG_PATH/secrets.yaml" "server_url" "$DATABASE_URL"
+  update_config "$CONFIG_PATH/secrets.yaml" "prover_url" "$DATABASE_PROVER_URL"
+  update_config "$CONFIG_PATH/secrets.yaml" "l1_rpc_url" "$ETH_CLIENT_WEB3_URL"
+
+  echo "Configuration updated successfully."
+
+  zkstack chain init \
+    --deploy-paymaster \
+    --l1-rpc-url=$ETH_CLIENT_WEB3_URL \
+    --server-db-url="$SERVER_DB_URL" \
+    --server-db-name="$SERVER_DB_NAME" \
+    --chain custom_token \
+    --validium-type no-da \
+    --update-submodules=false
+  # # If running in slave mode - wait for the master to be up and running.
+  # echo "Waiting for zksync master to init hyperchain"
+  # until curl --fail ${MASTER_HEALTH_URL}; do
+  #   echo >&2 "Master zksync not ready yet, sleeping"
+  #   sleep 5
+  # done
+  # start server
+  zkstack server --chain custom_token 
+fi
\ No newline at end of file
diff --git a/zkstack_cli/crates/common/src/ethereum.rs b/zkstack_cli/crates/common/src/ethereum.rs
index 96ec8b4f3597..eebaefccb578 100644
--- a/zkstack_cli/crates/common/src/ethereum.rs
+++ b/zkstack_cli/crates/common/src/ethereum.rs
@@ -8,6 +8,7 @@ use ethers::{
     providers::Middleware,
     types::{Address, TransactionRequest},
 };
+use tokio::time::sleep;
 use zkstack_cli_types::TokenInfo;
 
 use crate::{logger, wallets::Wallet};
@@ -102,6 +103,8 @@ pub async fn mint_token(
 
     let mut pending_txs = vec![];
     for call in &pending_calls {
+        sleep(Duration::from_secs(2)).await; // ✅ Wait for 2 seconds
+
         let call = call.send().await;
         match call {
             // It's safe to set such low number of confirmations and low interval for localhost