The KVStoreApplication is a simple merkle key-value store. Transactions of the form key=value are stored as key-value pairs in the tree. Transactions without an = sign set the value to the key. The app has no replay protection (other than what the mempool provides).

Validator set changes are effected using the following transaction format:

"val:pubkey1!power1,pubkey2!power2,pubkey3!power3"

where pubkeyN is a base64-encoded 32-byte ed25519 key and powerN is a new voting power for the validator with pubkeyN (possibly a new one). To remove a validator from the validator set, set power to 0. There is no sybil protection against new validators joining.