diff --git a/chain/db.go b/chain/db.go
index 55035ac..e7b2bc2 100644
--- a/chain/db.go
+++ b/chain/db.go
@@ -331,6 +331,9 @@ func (db *DBStore) treeKey(row, col uint64) []byte {
 }
 
 func (db *DBStore) getElementProof(leafIndex, numLeaves uint64) (proof []types.Hash256) {
+	if leafIndex >= numLeaves {
+		panic(fmt.Sprintf("leafIndex %v exceeds accumulator size %v", leafIndex, numLeaves)) // should never happen
+	}
 	// The size of the proof is the mergeHeight of leafIndex and numLeaves. To
 	// see why, imagine a tree large enough to contain both leafIndex and
 	// numLeaves within the same subtree; the height at which the paths to those
@@ -348,7 +351,9 @@ func (db *DBStore) getElementProof(leafIndex, numLeaves uint64) (proof []types.H
 
 func (db *DBStore) getSiacoinElement(id types.SiacoinOutputID, numLeaves uint64) (sce types.SiacoinElement, ok bool) {
 	ok = db.bucket(bSiacoinElements).get(id[:], &sce)
-	sce.MerkleProof = db.getElementProof(sce.LeafIndex, numLeaves)
+	if ok {
+		sce.MerkleProof = db.getElementProof(sce.LeafIndex, numLeaves)
+	}
 	return
 }
 
@@ -363,7 +368,9 @@ func (db *DBStore) deleteSiacoinElement(id types.SiacoinOutputID) {
 
 func (db *DBStore) getSiafundElement(id types.SiafundOutputID, numLeaves uint64) (sfe types.SiafundElement, ok bool) {
 	ok = db.bucket(bSiafundElements).get(id[:], &sfe)
-	sfe.MerkleProof = db.getElementProof(sfe.LeafIndex, numLeaves)
+	if ok {
+		sfe.MerkleProof = db.getElementProof(sfe.LeafIndex, numLeaves)
+	}
 	return
 }
 
@@ -378,7 +385,9 @@ func (db *DBStore) deleteSiafundElement(id types.SiafundOutputID) {
 
 func (db *DBStore) getFileContractElement(id types.FileContractID, numLeaves uint64) (fce types.FileContractElement, ok bool) {
 	ok = db.bucket(bFileContractElements).get(id[:], &fce)
-	fce.MerkleProof = db.getElementProof(fce.LeafIndex, numLeaves)
+	if ok {
+		fce.MerkleProof = db.getElementProof(fce.LeafIndex, numLeaves)
+	}
 	return
 }
 
@@ -428,17 +437,17 @@ func (db *DBStore) applyElements(cau consensus.ApplyUpdate) {
 		db.bucket(bTree).put(db.treeKey(row, col), h)
 	})
 
-	cau.ForEachSiacoinElement(func(sce types.SiacoinElement, spent bool) {
-		if sce.LeafIndex == types.EphemeralLeafIndex {
-			return
+	cau.ForEachSiacoinElement(func(sce types.SiacoinElement, created, spent bool) {
+		if created && spent {
+			return // ephemeral
 		} else if spent {
 			db.deleteSiacoinElement(types.SiacoinOutputID(sce.ID))
 		} else {
 			db.putSiacoinElement(sce)
 		}
 	})
-	cau.ForEachSiafundElement(func(sfe types.SiafundElement, spent bool) {
-		if sfe.LeafIndex == types.EphemeralLeafIndex {
+	cau.ForEachSiafundElement(func(sfe types.SiafundElement, created, spent bool) {
+		if created && spent {
 			return
 		} else if spent {
 			db.deleteSiafundElement(types.SiafundOutputID(sfe.ID))
@@ -446,8 +455,10 @@ func (db *DBStore) applyElements(cau consensus.ApplyUpdate) {
 			db.putSiafundElement(sfe)
 		}
 	})
-	cau.ForEachFileContractElement(func(fce types.FileContractElement, rev *types.FileContractElement, resolved, valid bool) {
-		if resolved {
+	cau.ForEachFileContractElement(func(fce types.FileContractElement, created bool, rev *types.FileContractElement, resolved, valid bool) {
+		if created && resolved {
+			return
+		} else if resolved {
 			db.deleteFileContractElement(types.FileContractID(fce.ID))
 			db.deleteFileContractExpiration(types.FileContractID(fce.ID), fce.FileContract.WindowEnd)
 		} else if rev != nil {
@@ -464,8 +475,10 @@ func (db *DBStore) applyElements(cau consensus.ApplyUpdate) {
 }
 
 func (db *DBStore) revertElements(cru consensus.RevertUpdate) {
-	cru.ForEachFileContractElement(func(fce types.FileContractElement, rev *types.FileContractElement, resolved, valid bool) {
-		if resolved {
+	cru.ForEachFileContractElement(func(fce types.FileContractElement, created bool, rev *types.FileContractElement, resolved, valid bool) {
+		if created && resolved {
+			return
+		} else if resolved {
 			// contract no longer resolved; restore it
 			db.putFileContractElement(fce)
 			db.putFileContractExpiration(types.FileContractID(fce.ID), fce.FileContract.WindowEnd)
@@ -482,8 +495,8 @@ func (db *DBStore) revertElements(cru consensus.RevertUpdate) {
 			db.deleteFileContractExpiration(types.FileContractID(fce.ID), fce.FileContract.WindowEnd)
 		}
 	})
-	cru.ForEachSiafundElement(func(sfe types.SiafundElement, spent bool) {
-		if sfe.LeafIndex == types.EphemeralLeafIndex {
+	cru.ForEachSiafundElement(func(sfe types.SiafundElement, created, spent bool) {
+		if created && spent {
 			return
 		} else if spent {
 			// output no longer spent; restore it
@@ -493,8 +506,8 @@ func (db *DBStore) revertElements(cru consensus.RevertUpdate) {
 			db.deleteSiafundElement(types.SiafundOutputID(sfe.ID))
 		}
 	})
-	cru.ForEachSiacoinElement(func(sce types.SiacoinElement, spent bool) {
-		if sce.LeafIndex == types.EphemeralLeafIndex {
+	cru.ForEachSiacoinElement(func(sce types.SiacoinElement, created, spent bool) {
+		if created && spent {
 			return
 		} else if spent {
 			// output no longer spent; restore it
diff --git a/chain/manager.go b/chain/manager.go
index f89a1c6..364f0b1 100644
--- a/chain/manager.go
+++ b/chain/manager.go
@@ -614,7 +614,7 @@ func updateTxnProofs(txn *types.V2Transaction, updateElementProof func(*types.St
 	valid = true
 	updateProof := func(e *types.StateElement) {
 		valid = valid && e.LeafIndex < numLeaves
-		if !valid || e.LeafIndex == types.EphemeralLeafIndex {
+		if !valid || e.LeafIndex == types.UnassignedLeafIndex {
 			return
 		}
 		updateElementProof(e)
@@ -638,36 +638,37 @@ func updateTxnProofs(txn *types.V2Transaction, updateElementProof func(*types.St
 }
 
 func (m *Manager) revertPoolUpdate(cru consensus.RevertUpdate, cs consensus.State) {
-	// restore ephemeral elements, if necessary
+	// applying a block can make ephemeral elements in the txpool non-ephemeral;
+	// here, we undo that
 	var uncreated map[types.Hash256]bool
 	replaceEphemeral := func(e *types.StateElement) {
-		if e.LeafIndex != types.EphemeralLeafIndex {
+		if e.LeafIndex == types.UnassignedLeafIndex {
 			return
 		} else if uncreated == nil {
 			uncreated = make(map[types.Hash256]bool)
-			cru.ForEachSiacoinElement(func(sce types.SiacoinElement, spent bool) {
-				if !spent {
+			cru.ForEachSiacoinElement(func(sce types.SiacoinElement, created, spent bool) {
+				if created {
 					uncreated[sce.ID] = true
 				}
 			})
-			cru.ForEachSiafundElement(func(sfe types.SiafundElement, spent bool) {
-				if !spent {
+			cru.ForEachSiafundElement(func(sfe types.SiafundElement, created, spent bool) {
+				if created {
 					uncreated[sfe.ID] = true
 				}
 			})
-			cru.ForEachFileContractElement(func(fce types.FileContractElement, rev *types.FileContractElement, resolved, valid bool) {
-				if !resolved {
+			cru.ForEachFileContractElement(func(fce types.FileContractElement, created bool, rev *types.FileContractElement, resolved, valid bool) {
+				if created {
 					uncreated[fce.ID] = true
 				}
 			})
-			cru.ForEachV2FileContractElement(func(fce types.V2FileContractElement, rev *types.V2FileContractElement, res types.V2FileContractResolutionType) {
-				if res != nil {
+			cru.ForEachV2FileContractElement(func(fce types.V2FileContractElement, created bool, rev *types.V2FileContractElement, res types.V2FileContractResolutionType) {
+				if created {
 					uncreated[fce.ID] = true
 				}
 			})
 		}
 		if uncreated[e.ID] {
-			*e = types.StateElement{ID: e.ID, LeafIndex: types.EphemeralLeafIndex}
+			*e = types.StateElement{ID: e.ID, LeafIndex: types.UnassignedLeafIndex}
 		}
 	}
 	for _, txn := range m.txpool.v2txns {
@@ -695,35 +696,37 @@ func (m *Manager) revertPoolUpdate(cru consensus.RevertUpdate, cs consensus.Stat
 }
 
 func (m *Manager) applyPoolUpdate(cau consensus.ApplyUpdate, cs consensus.State) {
-	// replace ephemeral elements, if necessary
+	// applying a block can make ephemeral elements in the txpool non-ephemeral
 	var newElements map[types.Hash256]types.StateElement
 	replaceEphemeral := func(e *types.StateElement) {
-		if e.LeafIndex != types.EphemeralLeafIndex {
+		if e.LeafIndex != types.UnassignedLeafIndex {
 			return
 		} else if newElements == nil {
 			newElements = make(map[types.Hash256]types.StateElement)
-			cau.ForEachSiacoinElement(func(sce types.SiacoinElement, spent bool) {
-				if !spent {
+			cau.ForEachSiacoinElement(func(sce types.SiacoinElement, created, spent bool) {
+				if created {
 					newElements[sce.ID] = sce.StateElement
 				}
 			})
-			cau.ForEachSiafundElement(func(sfe types.SiafundElement, spent bool) {
-				if !spent {
+			cau.ForEachSiafundElement(func(sfe types.SiafundElement, created, spent bool) {
+				if created {
 					newElements[sfe.ID] = sfe.StateElement
 				}
 			})
-			cau.ForEachFileContractElement(func(fce types.FileContractElement, rev *types.FileContractElement, resolved, valid bool) {
-				if !resolved {
+			cau.ForEachFileContractElement(func(fce types.FileContractElement, created bool, rev *types.FileContractElement, resolved, valid bool) {
+				if created {
 					newElements[fce.ID] = fce.StateElement
 				}
 			})
-			cau.ForEachV2FileContractElement(func(fce types.V2FileContractElement, rev *types.V2FileContractElement, res types.V2FileContractResolutionType) {
-				if res != nil {
+			cau.ForEachV2FileContractElement(func(fce types.V2FileContractElement, created bool, rev *types.V2FileContractElement, res types.V2FileContractResolutionType) {
+				if created {
 					newElements[fce.ID] = fce.StateElement
 				}
 			})
 		}
-		*e = newElements[e.ID]
+		if se, ok := newElements[e.ID]; ok {
+			*e = se
+		}
 	}
 	for _, txn := range m.txpool.v2txns {
 		for i := range txn.SiacoinInputs {
diff --git a/go.mod b/go.mod
index 8db149f..c3cbeba 100644
--- a/go.mod
+++ b/go.mod
@@ -4,7 +4,7 @@ go 1.21.8
 
 require (
 	go.etcd.io/bbolt v1.3.10
-	go.sia.tech/core v0.2.9
+	go.sia.tech/core v0.3.0
 	go.uber.org/zap v1.27.0
 	golang.org/x/crypto v0.24.0
 	lukechampine.com/frand v1.4.2
diff --git a/go.sum b/go.sum
index f77ddd5..3f609f9 100644
--- a/go.sum
+++ b/go.sum
@@ -8,10 +8,8 @@ github.com/stretchr/testify v1.8.1 h1:w7B6lhMri9wdJUVmEZPGGhZzrYTPvgJArz7wNPgYKs
 github.com/stretchr/testify v1.8.1/go.mod h1:w2LPCIKwWwSfY2zedu0+kehJoqGctiVI29o6fzry7u4=
 go.etcd.io/bbolt v1.3.10 h1:+BqfJTcCzTItrop8mq/lbzL8wSGtj94UO/3U31shqG0=
 go.etcd.io/bbolt v1.3.10/go.mod h1:bK3UQLPJZly7IlNmV7uVHJDxfe5aK9Ll93e/74Y9oEQ=
-go.sia.tech/core v0.2.8 h1:NQZw8gz9XWlkw9zr7HrLIA3xQnoatp8lYzyONS0IXJg=
-go.sia.tech/core v0.2.8/go.mod h1:BMgT/reXtgv6XbDgUYTCPY7wSMbspDRDs7KMi1vL6Iw=
-go.sia.tech/core v0.2.9 h1:UnO+wXQ3w2dMaU3ULA95fLYspllxaYPSfVW08fFIxQU=
-go.sia.tech/core v0.2.9/go.mod h1:BMgT/reXtgv6XbDgUYTCPY7wSMbspDRDs7KMi1vL6Iw=
+go.sia.tech/core v0.3.0 h1:PDfAQh9z8PYD+oeVS7rS9SEnTMOZzwwFfAH45yktmko=
+go.sia.tech/core v0.3.0/go.mod h1:BMgT/reXtgv6XbDgUYTCPY7wSMbspDRDs7KMi1vL6Iw=
 go.sia.tech/mux v1.2.0 h1:ofa1Us9mdymBbGMY2XH/lSpY8itFsKIo/Aq8zwe+GHU=
 go.sia.tech/mux v1.2.0/go.mod h1:Yyo6wZelOYTyvrHmJZ6aQfRoer3o4xyKQ4NmQLJrBSo=
 go.uber.org/goleak v1.3.0 h1:2K3zAYmnTNqV73imy9J1T3WC+gmCePx2hEGkimedGto=
diff --git a/wallet/update.go b/wallet/update.go
index 18e59dd..f4d39cf 100644
--- a/wallet/update.go
+++ b/wallet/update.go
@@ -55,7 +55,7 @@ func appliedEvents(cau chain.ApplyUpdate, walletAddress types.Address) (events [
 	siacoinElements := make(map[types.SiacoinOutputID]types.SiacoinElement)
 
 	// cache the value of siacoin elements to use when calculating v1 outflow
-	cau.ForEachSiacoinElement(func(se types.SiacoinElement, spent bool) {
+	cau.ForEachSiacoinElement(func(se types.SiacoinElement, created, spent bool) {
 		siacoinElements[types.SiacoinOutputID(se.ID)] = se
 	})
 
@@ -187,7 +187,8 @@ func appliedEvents(cau chain.ApplyUpdate, walletAddress types.Address) (events [
 		addEvent(types.Hash256(txn.ID()), EventTypeV2Transaction, EventV2Transaction(txn))
 	}
 
-	cau.ForEachFileContractElement(func(fce types.FileContractElement, rev *types.FileContractElement, resolved bool, valid bool) {
+	// add the file contract outputs
+	cau.ForEachFileContractElement(func(fce types.FileContractElement, created bool, rev *types.FileContractElement, resolved bool, valid bool) {
 		if !resolved {
 			return
 		}
@@ -221,7 +222,7 @@ func appliedEvents(cau chain.ApplyUpdate, walletAddress types.Address) (events [
 		}
 	})
 
-	cau.ForEachV2FileContractElement(func(fce types.V2FileContractElement, rev *types.V2FileContractElement, res types.V2FileContractResolutionType) {
+	cau.ForEachV2FileContractElement(func(fce types.V2FileContractElement, created bool, rev *types.V2FileContractElement, res types.V2FileContractResolutionType) {
 		if res == nil {
 			return
 		}
@@ -287,31 +288,10 @@ func applyChainState(tx UpdateTx, address types.Address, cau chain.ApplyUpdate)
 		return fmt.Errorf("failed to get state elements: %w", err)
 	}
 
-	// determine which siacoin and siafund elements are ephemeral
-	//
-	// note: I thought we could use LeafIndex == EphemeralLeafIndex, but
-	// it seems to be set before the subscriber is called.
-	created := make(map[types.Hash256]bool)
-	ephemeral := make(map[types.Hash256]bool)
-	for _, txn := range cau.Block.Transactions {
-		for i := range txn.SiacoinOutputs {
-			created[types.Hash256(txn.SiacoinOutputID(i))] = true
-		}
-		for _, input := range txn.SiacoinInputs {
-			ephemeral[types.Hash256(input.ParentID)] = created[types.Hash256(input.ParentID)]
-		}
-		for i := range txn.SiafundOutputs {
-			created[types.Hash256(txn.SiafundOutputID(i))] = true
-		}
-		for _, input := range txn.SiafundInputs {
-			ephemeral[types.Hash256(input.ParentID)] = created[types.Hash256(input.ParentID)]
-		}
-	}
-
 	var createdUTXOs, spentUTXOs []types.SiacoinElement
 	utxoValues := make(map[types.SiacoinOutputID]types.Currency)
 
-	cau.ForEachSiacoinElement(func(se types.SiacoinElement, spent bool) {
+	cau.ForEachSiacoinElement(func(se types.SiacoinElement, created, spent bool) {
 		if se.SiacoinOutput.Address != address {
 			return
 		}
@@ -320,7 +300,7 @@ func applyChainState(tx UpdateTx, address types.Address, cau chain.ApplyUpdate)
 		utxoValues[types.SiacoinOutputID(se.ID)] = se.SiacoinOutput.Value
 
 		// ignore ephemeral elements
-		if ephemeral[se.ID] {
+		if created && spent {
 			return
 		}
 
@@ -346,11 +326,10 @@ func applyChainState(tx UpdateTx, address types.Address, cau chain.ApplyUpdate)
 // revertChainUpdate atomically reverts a chain update from a wallet
 func revertChainUpdate(tx UpdateTx, revertedIndex types.ChainIndex, address types.Address, cru chain.RevertUpdate) error {
 	var removedUTXOs, unspentUTXOs []types.SiacoinElement
-	cru.ForEachSiacoinElement(func(se types.SiacoinElement, spent bool) {
-		if se.SiacoinOutput.Address != address {
+	cru.ForEachSiacoinElement(func(se types.SiacoinElement, created, spent bool) {
+		if se.SiacoinOutput.Address != address || (created && spent) {
 			return
 		}
-
 		if spent {
 			unspentUTXOs = append(unspentUTXOs, se)
 		} else {