diff --git a/CHANGELOG_PENDING.md b/CHANGELOG_PENDING.md
index bb86caff4..41c694dd2 100644
--- a/CHANGELOG_PENDING.md
+++ b/CHANGELOG_PENDING.md
@@ -44,4 +44,5 @@ Friendly reminder, we have a [bug bounty program](https://hackerone.com/tendermi
 
 ### BUG FIXES:
 
+- [blockchain/v2] [\#4761](https://github.com/tendermint/tendermint/pull/4761) Fix excessive CPU usage caused by spinning on closed channels (@erikgrinaker)
 - [light] [\#4741](https://github.com/tendermint/tendermint/pull/4741) Correctly return  `ErrSignedHeaderNotFound` and `ErrValidatorSetNotFound` on corresponding RPC errors (@erikgrinaker)
diff --git a/blockchain/v2/reactor.go b/blockchain/v2/reactor.go
index 1fb8ada1a..0bf345237 100644
--- a/blockchain/v2/reactor.go
+++ b/blockchain/v2/reactor.go
@@ -130,7 +130,6 @@ type BlockchainReactor struct {
 	p2p.BaseReactor
 
 	events    chan Event // XXX: Rename eventsFromPeers
-	stopDemux chan struct{}
 	scheduler *Routine
 	processor *Routine
 	logger    log.Logger
@@ -166,7 +165,6 @@ func newReactor(state state.State, store blockStore, reporter behaviour.Reporter
 
 	return &BlockchainReactor{
 		events:    make(chan Event, bufferSize),
-		stopDemux: make(chan struct{}),
 		scheduler: newRoutine("scheduler", scheduler.handle, bufferSize),
 		processor: newRoutine("processor", processor.handle, bufferSize),
 		store:     store,
@@ -306,19 +304,29 @@ func (r *BlockchainReactor) demux() {
 		processBlockFreq = 20 * time.Millisecond
 		doProcessBlockCh = make(chan struct{}, 1)
 		doProcessBlockTk = time.NewTicker(processBlockFreq)
+	)
+	defer doProcessBlockTk.Stop()
 
+	var (
 		prunePeerFreq = 1 * time.Second
 		doPrunePeerCh = make(chan struct{}, 1)
 		doPrunePeerTk = time.NewTicker(prunePeerFreq)
+	)
+	defer doPrunePeerTk.Stop()
 
+	var (
 		scheduleFreq = 20 * time.Millisecond
 		doScheduleCh = make(chan struct{}, 1)
 		doScheduleTk = time.NewTicker(scheduleFreq)
+	)
+	defer doScheduleTk.Stop()
 
+	var (
 		statusFreq = 10 * time.Second
 		doStatusCh = make(chan struct{}, 1)
 		doStatusTk = time.NewTicker(statusFreq)
 	)
+	defer doStatusTk.Stop()
 
 	// XXX: Extract timers to make testing atemporal
 	for {
@@ -355,14 +363,20 @@ func (r *BlockchainReactor) demux() {
 		case <-doStatusCh:
 			r.io.broadcastStatusRequest(r.store.Base(), r.SyncHeight())
 
-		// Events from peers
-		case event := <-r.events:
+		// Events from peers. Closing the channel signals event loop termination.
+		case event, ok := <-r.events:
+			if !ok {
+				r.logger.Info("Stopping event processing")
+				return
+			}
 			switch event := event.(type) {
 			case bcStatusResponse:
 				r.setMaxPeerHeight(event.height)
 				r.scheduler.send(event)
 			case bcAddNewPeer, bcRemovePeer, bcBlockResponse, bcNoBlockResponse:
 				r.scheduler.send(event)
+			default:
+				r.logger.Error("Received unknown event", "event", fmt.Sprintf("%T", event))
 			}
 
 		// Incremental events form scheduler
@@ -378,6 +392,9 @@ func (r *BlockchainReactor) demux() {
 			case scFinishedEv:
 				r.processor.send(event)
 				r.scheduler.stop()
+			case noOpEvent:
+			default:
+				r.logger.Error("Received unknown scheduler event", "event", fmt.Sprintf("%T", event))
 			}
 
 		// Incremental events from processor
@@ -397,20 +414,28 @@ func (r *BlockchainReactor) demux() {
 			case pcFinished:
 				r.io.trySwitchToConsensus(event.tmState, event.blocksSynced > 0)
 				r.processor.stop()
+			case noOpEvent:
+			default:
+				r.logger.Error("Received unknown processor event", "event", fmt.Sprintf("%T", event))
 			}
 
-		// Terminal events from scheduler
+		// Terminal event from scheduler
 		case err := <-r.scheduler.final():
-			r.logger.Info(fmt.Sprintf("scheduler final %s", err))
-			// send the processor stop?
+			switch err {
+			case nil:
+				r.logger.Info("Scheduler stopped")
+			default:
+				r.logger.Error("Scheduler aborted with error", "err", err)
+			}
 
 		// Terminal event from processor
-		case event := <-r.processor.final():
-			r.logger.Info(fmt.Sprintf("processor final %s", event))
-
-		case <-r.stopDemux:
-			r.logger.Info("demuxing stopped")
-			return
+		case err := <-r.processor.final():
+			switch err {
+			case nil:
+				r.logger.Info("Processor stopped")
+			default:
+				r.logger.Error("Processor aborted with error", "err", err)
+			}
 		}
 	}
 }
@@ -421,7 +446,6 @@ func (r *BlockchainReactor) Stop() error {
 
 	r.scheduler.stop()
 	r.processor.stop()
-	close(r.stopDemux)
 	close(r.events)
 
 	r.logger.Info("reactor stopped")
diff --git a/blockchain/v2/routine.go b/blockchain/v2/routine.go
index ff12bfebc..ad32e3e82 100644
--- a/blockchain/v2/routine.go
+++ b/blockchain/v2/routine.go
@@ -69,9 +69,11 @@ func (rt *Routine) start() {
 
 	for {
 		events, err := rt.queue.Get(1)
-		if err != nil {
-			rt.logger.Info(fmt.Sprintf("%s: stopping\n", rt.name))
-			rt.terminate(fmt.Errorf("stopped"))
+		if err == queue.ErrDisposed {
+			rt.terminate(nil)
+			return
+		} else if err != nil {
+			rt.terminate(err)
 			return
 		}
 		oEvent, err := rt.handle(events[0].(Event))
@@ -131,6 +133,7 @@ func (rt *Routine) final() chan error {
 
 // XXX: Maybe get rid of this
 func (rt *Routine) terminate(reason error) {
-	close(rt.out)
+	// We don't close the rt.out channel here, to avoid spinning on the closed channel
+	// in the event loop.
 	rt.fin <- reason
 }