diff --git a/deployments/finality-gadget-integration-op-l2/init-testnets-dir.sh b/deployments/finality-gadget-integration-op-l2/init-testnets-dir.sh
index 3e3d584f..77b34ffd 100755
--- a/deployments/finality-gadget-integration-op-l2/init-testnets-dir.sh
+++ b/deployments/finality-gadget-integration-op-l2/init-testnets-dir.sh
@@ -6,7 +6,7 @@ if [ ! -d ".testnets" ]; then
   # Create new directory that will hold node and services' configuration
   mkdir -p .testnets && chmod -R 777 .testnets
 
-  if [[ -z "$BITCOIN_NETWORK" || "$BITCOIN_NETWORK" == "regtest" ]]; then
+  if [[ "$BITCOIN_NETWORK" == "regtest" ]]; then
     FINALIZATION_TIMEOUT=2
     CONFIRMATION_DEPTH=1
     BASE_HEADER=0100000000000000000000000000000000000000000000000000000000000000000000003ba3edfd7a7b12b27ac72c3e67768f617fc81bc3888a51323a9fb8aa4b1e5e4adae5494dffff7f2002000000
@@ -32,28 +32,6 @@ if [ ! -d ".testnets" ]; then
       exit 1
     fi
     
-    echo "Base header: $BASE_HEADER"
-  elif [[ "$BITCOIN_NETWORK" == "testnet" ]]; then
-    FINALIZATION_TIMEOUT=20
-    CONFIRMATION_DEPTH=1
-    # Get the next target difficulty adjustment height
-    NEXT_RETARGET_HEIGHT=$(curl -sSL "https://mempool.space/testnet/api/v1/difficulty-adjustment" | jq -r '.nextRetargetHeight')
-    echo "Next retarget height: $NEXT_RETARGET_HEIGHT"
-
-    # Calculate the previous difficulty adjustment height
-    # Each 2016-block interval is known as a difficulty epoch
-    BASE_HEADER_HEIGHT=$((NEXT_RETARGET_HEIGHT - 2016))
-    echo "Base header height: $BASE_HEADER_HEIGHT"
-
-    # Get the base header hash and header
-    BASE_HEIGHT_HASH=$(curl -sSL "https://mempool.space/testnet/api/block-height/$BASE_HEADER_HEIGHT")
-    BASE_HEADER=$(curl -sSL "https://mempool.space/testnet/api/block/$BASE_HEIGHT_HASH/header")
-    
-    if [ -z "$BASE_HEADER" ]; then
-      echo "Error: Failed to retrieve base header"
-      exit 1
-    fi
-    
     echo "Base header: $BASE_HEADER"
   else
     echo "Unsupported bitcoin network: $BITCOIN_NETWORK"
@@ -68,7 +46,7 @@ if [ ! -d ".testnets" ]; then
       babylond testnet init-files --v 2 -o /data \
       --starting-ip-address 192.168.10.2 \
       --keyring-backend=test \
-      --chain-id chain-test \
+      --chain-id $BABYLON_CHAIN_ID \
       --epoch-interval 10 \
       --btc-finalization-timeout $FINALIZATION_TIMEOUT \
       --btc-confirmation-depth $CONFIRMATION_DEPTH \
@@ -88,6 +66,10 @@ if [ ! -d ".testnets" ]; then
   sudo chown -R $(whoami):$(whoami) .testnets
   sudo chmod -R 777 .testnets
 
+  # TODO: we need to decouple the babylon system and our finality system.
+  #   only put the configs that are needed for the babylon system in the .testnets dir
+  #   and for the finality gadget system in a separate dir.
+  #   it might also make sense to split this script into two.
   # Create separate subpaths for each component and copy relevant configuration
   mkdir -p .testnets/vigilante/bbnconfig
   mkdir -p .testnets/btc-staker
@@ -102,73 +84,36 @@ if [ ! -d ".testnets" ]; then
 
   # for btc-staker, replace placeholders with env variables
   cp artifacts/stakerd.conf .testnets/btc-staker/stakerd.conf
-  if [[ "$(uname)" == "Darwin" ]]; then
-      # macOS version
-      sed -i '' "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/btc-staker/stakerd.conf
-      sed -i '' "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/btc-staker/stakerd.conf
-      sed -i '' "s|\${WALLET_PASS}|$WALLET_PASS|g" .testnets/btc-staker/stakerd.conf
-      sed -i '' "s|\${BABYLON_CHAIN_ID}|$BABYLON_CHAIN_ID|g" .testnets/btc-staker/stakerd.conf
-  else
-      # Linux version
-      sed -i "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/btc-staker/stakerd.conf
-      sed -i "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/btc-staker/stakerd.conf
-      sed -i "s|\${WALLET_PASS}|$WALLET_PASS|g" .testnets/btc-staker/stakerd.conf
-      sed -i "s|\${BABYLON_CHAIN_ID}|$BABYLON_CHAIN_ID|g" .testnets/btc-staker/stakerd.conf
-  fi
+  sed -i.bak "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/btc-staker/stakerd.conf
+  sed -i.bak "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/btc-staker/stakerd.conf
+  sed -i.bak "s|\${WALLET_PASS}|$WALLET_PASS|g" .testnets/btc-staker/stakerd.conf
+  sed -i.bak "s|\${BABYLON_CHAIN_ID}|$BABYLON_CHAIN_ID|g" .testnets/btc-staker/stakerd.conf
+  rm .testnets/btc-staker/stakerd.conf.bak
 
   # for vigilante, replace placeholders with env variables
   cp artifacts/vigilante.yml .testnets/vigilante/vigilante.yml
-  if [[ "$(uname)" == "Darwin" ]]; then
-      # macOS version
-      sed -i '' "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/vigilante/vigilante.yml
-      sed -i '' "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/vigilante/vigilante.yml
-      sed -i '' "s|\${WALLET_PASS}|$WALLET_PASS|g" .testnets/vigilante/vigilante.yml
-  else
-      # Linux version
-      sed -i "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/vigilante/vigilante.yml
-      sed -i "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/vigilante/vigilante.yml
-      sed -i "s|\${WALLET_PASS}|$WALLET_PASS|g" .testnets/vigilante/vigilante.yml
-  fi
-  # copy genesis file to vigilante config directory
-  cp .testnets/node0/babylond/config/genesis.json .testnets/vigilante/bbnconfig/genesis.json
+  sed -i.bak "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/vigilante/vigilante.yml
+  sed -i.bak "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/vigilante/vigilante.yml
+  sed -i.bak "s|\${WALLET_PASS}|$WALLET_PASS|g" .testnets/vigilante/vigilante.yml
+  rm .testnets/vigilante/vigilante.yml.bak
 
   cp artifacts/eotsd.conf .testnets/eotsmanager/eotsd.conf
   cp artifacts/fpd.conf .testnets/finality-provider/fpd.conf
-  if [[ "$(uname)" == "Darwin" ]]; then
-      # macOS version
-      sed -i '' "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/finality-provider/fpd.conf
-  else
-      # Linux version
-      sed -i "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/finality-provider/fpd.conf
-  fi
+  sed -i.bak "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/finality-provider/fpd.conf
+  rm .testnets/finality-provider/fpd.conf.bak
 
   cp artifacts/opfgd.toml .testnets/finality-gadget/opfgd.toml
-  if [[ "$(uname)" == "Darwin" ]]; then
-      # macOS version
-      sed -i '' "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/finality-gadget/opfgd.toml
-  else
-      # Linux version
-      sed -i "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/finality-gadget/opfgd.toml
-  fi
+  sed -i.bak "s|\${BITCOIN_RPC_PORT}|$BITCOIN_RPC_PORT|g" .testnets/finality-gadget/opfgd.toml
+  rm .testnets/finality-gadget/opfgd.toml.bak
 
   cp artifacts/consumer-eotsd.conf .testnets/consumer-eotsmanager/eotsd.conf
   cp artifacts/consumer-fpd.conf .testnets/consumer-finality-provider/fpd.conf
-  if [[ "$(uname)" == "Darwin" ]]; then
-      # macOS version
-      sed -i '' "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/consumer-finality-provider/fpd.conf
-  else
-      # Linux version
-      sed -i "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/consumer-finality-provider/fpd.conf
-  fi
+  sed -i.bak "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/consumer-finality-provider/fpd.conf
+  rm .testnets/consumer-finality-provider/fpd.conf.bak
 
   cp artifacts/covd.conf .testnets/covenant-emulator/covd.conf
-  if [[ "$(uname)" == "Darwin" ]]; then
-      # macOS version
-      sed -i '' "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/covenant-emulator/covd.conf
-  else
-      # Linux version
-      sed -i "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/covenant-emulator/covd.conf
-  fi
+  sed -i.bak "s|\${BITCOIN_NETWORK}|$BITCOIN_NETWORK|g" .testnets/covenant-emulator/covd.conf
+  rm .testnets/covenant-emulator/covd.conf.bak
 
   cp -R artifacts/covenant-keyring .testnets/covenant-emulator/keyring-test
   cp .testnets/covenant-emulator/keyring-test/* .testnets/node0/babylond/covenant-emulator/keyring-test/
@@ -178,6 +123,7 @@ if [ ! -d ".testnets" ]; then
   echo
 fi
 
+# Only run if .bitcoin directory does not exist
 if [ ! -d ".bitcoin" ]; then
   echo "Creating .bitcoin directory..."
   mkdir -p .bitcoin && chmod -R 777 .bitcoin