diff --git a/go.mod b/go.mod
index 484cbaff6..e15fa25e3 100644
--- a/go.mod
+++ b/go.mod
@@ -26,7 +26,7 @@ require (
 	github.com/iotaledger/hive.go/stringify v0.0.0-20230929122509-67f34bfed40d
 	github.com/iotaledger/inx-app v1.0.0-rc.3.0.20231001095511-32be422a567e
 	github.com/iotaledger/inx/go v1.0.0-rc.2.0.20231001095356-923e8f138951
-	github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388
+	github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737
 	github.com/labstack/echo/v4 v4.11.1
 	github.com/labstack/gommon v0.4.0
 	github.com/libp2p/go-libp2p v0.30.0
diff --git a/go.sum b/go.sum
index 2fd9470ee..a899ff5e2 100644
--- a/go.sum
+++ b/go.sum
@@ -305,8 +305,8 @@ github.com/iotaledger/inx-app v1.0.0-rc.3.0.20231001095511-32be422a567e h1:Mwoe7
 github.com/iotaledger/inx-app v1.0.0-rc.3.0.20231001095511-32be422a567e/go.mod h1:jhzexR5X8m6qcmrwt5OX477O/ZwT7Ak9sPT83ByPkAo=
 github.com/iotaledger/inx/go v1.0.0-rc.2.0.20231001095356-923e8f138951 h1:qUf1W0fE1IyZzVy3Exv0Kj+SKECXG3S26c9m2ETb07U=
 github.com/iotaledger/inx/go v1.0.0-rc.2.0.20231001095356-923e8f138951/go.mod h1:c5778OnWpLq108YE+Eb2m8Ri/t/4ydV0TvI/Sy5YivQ=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388 h1:IGqHrJRmrzfalf1py+FGWzkWoaA5o6avBSYWznVG08s=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737 h1:6fuDHswgN9zTwsMuKRKNClnT+rJCojvWf3Hk8f03cvc=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
 github.com/ipfs/boxo v0.10.0 h1:tdDAxq8jrsbRkYoF+5Rcqyeb91hgWe2hp7iLu7ORZLY=
 github.com/ipfs/boxo v0.10.0/go.mod h1:Fg+BnfxZ0RPzR0nOodzdIq3A7KgoWAOWsEIImrIQdBM=
 github.com/ipfs/go-cid v0.4.1 h1:A/T3qGvxi4kpKWWcPC/PgbvDA2bjVLO7n4UeVwnbs/s=
diff --git a/pkg/protocol/engine/ledger/ledger/ledger.go b/pkg/protocol/engine/ledger/ledger/ledger.go
index 5889c1548..fd546ae77 100644
--- a/pkg/protocol/engine/ledger/ledger/ledger.go
+++ b/pkg/protocol/engine/ledger/ledger/ledger.go
@@ -691,7 +691,7 @@ func (l *Ledger) resolveAccountOutput(accountID iotago.AccountID, slot iotago.Sl
 	return accountOutput, nil
 }
 
-func (l *Ledger) resolveState(stateRef iotago.Input) *promise.Promise[mempool.State] {
+func (l *Ledger) resolveState(stateRef mempool.StateReference) *promise.Promise[mempool.State] {
 	p := promise.New[mempool.State]()
 
 	l.utxoLedger.ReadLockLedger()
@@ -727,8 +727,8 @@ func (l *Ledger) resolveState(stateRef iotago.Input) *promise.Promise[mempool.St
 
 		return p.Resolve(loadedCommitment)
 	case iotago.InputBlockIssuanceCredit, iotago.InputReward:
-		// these are always resolved as they depend on the commitment or UTXO inputs
-		return p.Resolve(stateRef)
+		//nolint:forcetypeassert
+		return p.Resolve(stateRef.(mempool.State))
 	default:
 		return p.Reject(ierrors.Errorf("unsupported input type %s", stateRef.Type()))
 	}
diff --git a/pkg/protocol/engine/ledger/ledger/vm.go b/pkg/protocol/engine/ledger/ledger/vm.go
index 43a45cf54..720deaeb6 100644
--- a/pkg/protocol/engine/ledger/ledger/vm.go
+++ b/pkg/protocol/engine/ledger/ledger/vm.go
@@ -21,7 +21,7 @@ func NewVM(ledger *Ledger) *VM {
 	}
 }
 
-func (v *VM) Inputs(transaction mempool.Transaction) (inputReferences []iotago.Input, err error) {
+func (v *VM) Inputs(transaction mempool.Transaction) (inputReferences []mempool.StateReference, err error) {
 	stardustTransaction, ok := transaction.(*iotago.Transaction)
 	if !ok {
 		return nil, iotago.ErrTxTypeInvalid
diff --git a/pkg/protocol/engine/ledger/tests/state.go b/pkg/protocol/engine/ledger/tests/state.go
index 03513f308..c4d4766c0 100644
--- a/pkg/protocol/engine/ledger/tests/state.go
+++ b/pkg/protocol/engine/ledger/tests/state.go
@@ -27,6 +27,10 @@ func (m *MockedState) Type() iotago.StateType {
 	return iotago.InputUTXO
 }
 
+func (m *MockedState) IsReadOnly() bool {
+	return false
+}
+
 func (m *MockedState) OutputID() iotago.OutputID {
 	return m.id
 }
diff --git a/pkg/protocol/engine/ledger/tests/state_resolver.go b/pkg/protocol/engine/ledger/tests/state_resolver.go
index 1d56fa0ea..28f320b2b 100644
--- a/pkg/protocol/engine/ledger/tests/state_resolver.go
+++ b/pkg/protocol/engine/ledger/tests/state_resolver.go
@@ -30,10 +30,10 @@ func (s *MockStateResolver) DestroyOutputState(stateID mempool.StateID) {
 	s.statesByID.Delete(stateID)
 }
 
-func (s *MockStateResolver) ResolveOutputState(outputID mempool.StateID) *promise.Promise[mempool.State] {
-	output, exists := s.statesByID.Get(outputID)
+func (s *MockStateResolver) ResolveOutputState(reference mempool.StateReference) *promise.Promise[mempool.State] {
+	output, exists := s.statesByID.Get(reference.ReferencedStateID())
 	if !exists {
-		return promise.New[mempool.State]().Reject(ierrors.Errorf("output %s not found: %w", outputID.ToHex(), mempool.ErrStateNotFound))
+		return promise.New[mempool.State]().Reject(ierrors.Errorf("output %s not found: %w", reference.ReferencedStateID().ToHex(), mempool.ErrStateNotFound))
 	}
 
 	return promise.New[mempool.State]().Resolve(output)
diff --git a/pkg/protocol/engine/ledger/tests/stored_state_reference.go b/pkg/protocol/engine/ledger/tests/stored_state_reference.go
deleted file mode 100644
index a4d6f520f..000000000
--- a/pkg/protocol/engine/ledger/tests/stored_state_reference.go
+++ /dev/null
@@ -1,38 +0,0 @@
-package ledgertests
-
-import (
-	"github.com/iotaledger/hive.go/lo"
-	iotago "github.com/iotaledger/iota.go/v4"
-)
-
-// StoredStateReference is a reference to a State that is stored in the ledger state.
-type StoredStateReference iotago.OutputID
-
-func (l StoredStateReference) StateID() iotago.Identifier {
-	return iotago.IdentifierFromData(lo.PanicOnErr(l.OutputID().Bytes()))
-}
-
-// Type returns the type of the StateReference.
-func (l StoredStateReference) Type() iotago.StateType {
-	return 0
-}
-
-// Size returns the size of the StateReference.
-func (l StoredStateReference) Size() int {
-	return 0
-}
-
-// WorkScore returns the workscore of the StateReference.
-func (l StoredStateReference) WorkScore(_ *iotago.WorkScoreStructure) (iotago.WorkScore, error) {
-	return 0, nil
-}
-
-// OutputID returns the ID of the referenced State in the ledger state.
-func (l StoredStateReference) OutputID() iotago.OutputID {
-	return iotago.OutputID(l)
-}
-
-// Index returns the Index of the referenced State.
-func (l StoredStateReference) Index() uint16 {
-	return iotago.OutputID(l).Index()
-}
diff --git a/pkg/protocol/engine/mempool/state.go b/pkg/protocol/engine/mempool/state.go
index 0b0c9ed9e..13c723487 100644
--- a/pkg/protocol/engine/mempool/state.go
+++ b/pkg/protocol/engine/mempool/state.go
@@ -6,4 +6,6 @@ type State interface {
 	StateID() StateID
 
 	Type() iotago.StateType
+
+	IsReadOnly() bool
 }
diff --git a/pkg/protocol/engine/mempool/state_reference.go b/pkg/protocol/engine/mempool/state_reference.go
index 37e7f596e..8cba0f962 100644
--- a/pkg/protocol/engine/mempool/state_reference.go
+++ b/pkg/protocol/engine/mempool/state_reference.go
@@ -2,4 +2,9 @@ package mempool
 
 import iotago "github.com/iotaledger/iota.go/v4"
 
-type StateReference = iotago.Input
+type StateReference interface {
+	ReferencedStateID() iotago.Identifier
+
+	// Type returns the type of Input.
+	Type() iotago.StateType
+}
diff --git a/pkg/protocol/engine/mempool/tests/testframework.go b/pkg/protocol/engine/mempool/tests/testframework.go
index 02125a3b3..71976e432 100644
--- a/pkg/protocol/engine/mempool/tests/testframework.go
+++ b/pkg/protocol/engine/mempool/tests/testframework.go
@@ -54,10 +54,18 @@ func NewTestFramework(test *testing.T, instance mempool.MemPool[vote.MockedRank]
 
 	return t
 }
+
+func (t *TestFramework) InjectState(alias string, state mempool.State) {
+	t.referencesByAlias[alias] = NewStateReference(state.StateID(), state.Type())
+
+	t.ledgerState.AddOutputState(state)
+}
+
 func (t *TestFramework) CreateSignedTransaction(transactionAlias string, referencedStates []string, outputCount uint16, invalid ...bool) {
 	t.CreateTransaction(transactionAlias, referencedStates, outputCount, invalid...)
 	t.SignedTransactionFromTransaction(transactionAlias+"-signed", transactionAlias)
 }
+
 func (t *TestFramework) SignedTransactionFromTransaction(signedTransactionAlias string, transactionAlias string) {
 	transaction, exists := t.transactionByAlias[transactionAlias]
 	require.True(t.test, exists, "transaction with alias %s does not exist", transactionAlias)
@@ -92,7 +100,7 @@ func (t *TestFramework) CreateTransaction(alias string, referencedStates []strin
 			TransactionOutputIndex: i,
 		}
 
-		t.stateIDByAlias[alias+":"+strconv.Itoa(int(i))] = t.referencesByAlias[alias+":"+strconv.Itoa(int(i))].StateID()
+		t.stateIDByAlias[alias+":"+strconv.Itoa(int(i))] = t.referencesByAlias[alias+":"+strconv.Itoa(int(i))].ReferencedStateID()
 	}
 }
 
@@ -170,11 +178,11 @@ func (t *TestFramework) OutputStateMetadata(alias string) (mempool.StateMetadata
 
 func (t *TestFramework) StateID(alias string) mempool.StateID {
 	if alias == "genesis" {
-		return (&iotago.UTXOInput{}).StateID()
+		return (&iotago.UTXOInput{}).ReferencedStateID()
 	}
 
 	stateID, exists := t.stateIDByAlias[alias]
-	require.True(t.test, exists, "StateID with alias '%s' does not exist", alias)
+	require.True(t.test, exists, "ReferencedStateID with alias '%s' does not exist", alias)
 
 	return stateID
 }
@@ -399,3 +407,23 @@ func (t *TestFramework) Cleanup() {
 	t.signedTransactionByAlias = make(map[string]mempool.SignedTransaction)
 	t.blockIDsByAlias = make(map[string]iotago.BlockID)
 }
+
+type genericReference struct {
+	referencedStateID iotago.Identifier
+	stateType         iotago.StateType
+}
+
+func NewStateReference(referencedStateID iotago.Identifier, stateType iotago.StateType) mempool.StateReference {
+	return &genericReference{
+		referencedStateID: referencedStateID,
+		stateType:         stateType,
+	}
+}
+
+func (g *genericReference) ReferencedStateID() iotago.Identifier {
+	return g.referencedStateID
+}
+
+func (g *genericReference) Type() iotago.StateType {
+	return g.stateType
+}
diff --git a/pkg/protocol/engine/mempool/tests/tests.go b/pkg/protocol/engine/mempool/tests/tests.go
index bfd396627..33cb00f0b 100644
--- a/pkg/protocol/engine/mempool/tests/tests.go
+++ b/pkg/protocol/engine/mempool/tests/tests.go
@@ -35,13 +35,14 @@ func TestAllWithoutForkingEverything(t *testing.T, frameworkProvider func(*testi
 
 func TestAllWithForkingEverything(t *testing.T, frameworkProvider func(*testing.T) *TestFramework) {
 	for testName, testCase := range map[string]func(*testing.T, *TestFramework){
-		"TestConflictPropagationForkAll":        TestConflictPropagationForkAll,
-		"TestSetTxOrphanageMultipleAttachments": TestSetTxOrphanageMultipleAttachments,
-		"TestProcessTransaction":                TestProcessTransaction,
-		"TestProcessTransactionsOutOfOrder":     TestProcessTransactionsOutOfOrder,
-		"TestSetTransactionOrphanage":           TestSetTransactionOrphanage,
-		"TestInvalidTransaction":                TestInvalidTransaction,
-		"TestStoreAttachmentInEvictedSlot":      TestStoreAttachmentInEvictedSlot,
+		"TestConflictPropagationForkAll":           TestConflictPropagationForkAll,
+		"TestSetTxOrphanageMultipleAttachments":    TestSetTxOrphanageMultipleAttachments,
+		"TestProcessTransactionWithReadOnlyInputs": TestProcessTransactionWithReadOnlyInputs,
+		"TestProcessTransaction":                   TestProcessTransaction,
+		"TestProcessTransactionsOutOfOrder":        TestProcessTransactionsOutOfOrder,
+		"TestSetTransactionOrphanage":              TestSetTransactionOrphanage,
+		"TestInvalidTransaction":                   TestInvalidTransaction,
+		"TestStoreAttachmentInEvictedSlot":         TestStoreAttachmentInEvictedSlot,
 	} {
 		t.Run(testName, func(t *testing.T) { testCase(t, frameworkProvider(t)) })
 	}
@@ -79,6 +80,65 @@ func TestProcessTransaction(t *testing.T, tf *TestFramework) {
 	})
 }
 
+func TestProcessTransactionWithReadOnlyInputs(t *testing.T, tf *TestFramework) {
+	tf.InjectState("readOnlyInput", &iotago.Commitment{
+		ProtocolVersion:      0,
+		Slot:                 0,
+		PreviousCommitmentID: iotago.CommitmentID{},
+		RootsID:              iotago.Identifier{},
+		CumulativeWeight:     0,
+		ReferenceManaCost:    0,
+	})
+
+	tf.CreateTransaction("tx1", []string{"genesis", "readOnlyInput"}, 1)
+	tf.CreateTransaction("tx2", []string{"tx1:0", "readOnlyInput"}, 1)
+
+	tf.SignedTransactionFromTransaction("tx2", "tx2")
+	tf.SignedTransactionFromTransaction("tx1", "tx1")
+
+	require.NoError(t, tf.AttachTransactions("tx1", "tx2"))
+
+	tf.RequireBooked("tx1", "tx2")
+
+	tx1Metadata, exists := tf.TransactionMetadata("tx1")
+	require.True(t, exists)
+	_ = tx1Metadata.Outputs().ForEach(func(state mempool.StateMetadata) error {
+		if state.State().Type() == iotago.InputUTXO {
+			require.False(t, state.IsAccepted())
+			require.Equal(t, 1, state.PendingSpenderCount())
+		}
+
+		return nil
+	})
+
+	tx2Metadata, exists := tf.TransactionMetadata("tx2")
+	require.True(t, exists)
+
+	_ = tx2Metadata.Outputs().ForEach(func(state mempool.StateMetadata) error {
+		if state.State().Type() == iotago.InputUTXO {
+			require.False(t, state.IsAccepted())
+			require.Equal(t, 0, state.PendingSpenderCount())
+		}
+
+		if state.State().Type() == iotago.InputCommitment {
+			require.False(t, state.IsAccepted())
+			require.Equal(t, 2, state.PendingSpenderCount())
+		}
+
+		return nil
+	})
+
+	conflictSetsTx1, exists := tf.ConflictDAG.ConflictSets(tf.TransactionID("tx1"))
+	require.True(t, exists)
+	require.Equal(t, 1, conflictSetsTx1.Size())
+	require.True(t, conflictSetsTx1.Has(tf.StateID("genesis")))
+
+	conflictSetsTx2, exists := tf.ConflictDAG.ConflictSets(tf.TransactionID("tx2"))
+	require.True(t, exists)
+	require.Equal(t, 1, conflictSetsTx2.Size())
+	require.True(t, conflictSetsTx2.Has(tf.StateID("tx1:0")))
+}
+
 func TestProcessTransactionsOutOfOrder(t *testing.T, tf *TestFramework) {
 	tf.CreateSignedTransaction("tx1", []string{"genesis"}, 1)
 	tf.CreateSignedTransaction("tx2", []string{"tx1:0"}, 1)
diff --git a/pkg/protocol/engine/mempool/tests/transaction.go b/pkg/protocol/engine/mempool/tests/transaction.go
index 0726b032b..3e0aae669 100644
--- a/pkg/protocol/engine/mempool/tests/transaction.go
+++ b/pkg/protocol/engine/mempool/tests/transaction.go
@@ -49,14 +49,6 @@ func (t *Transaction) Inputs() ([]mempool.StateReference, error) {
 	return t.inputs, nil
 }
 
-func (t *Transaction) CommitmentInput() *iotago.CommitmentInput {
-	return nil
-}
-
-func (t *Transaction) ContextInputs() (iotago.TransactionContextInputs, error) {
-	return nil, nil
-}
-
 func (t *Transaction) String() string {
 	return "Transaction(" + t.id.String() + ")"
 }
diff --git a/pkg/protocol/engine/mempool/v1/mempool.go b/pkg/protocol/engine/mempool/v1/mempool.go
index e82a2ea5a..8e3c80a60 100644
--- a/pkg/protocol/engine/mempool/v1/mempool.go
+++ b/pkg/protocol/engine/mempool/v1/mempool.go
@@ -133,7 +133,7 @@ func (m *MemPool[VoteRank]) TransactionMetadata(id iotago.TransactionID) (transa
 
 // StateMetadata returns the metadata of the output state with the given ID.
 func (m *MemPool[VoteRank]) StateMetadata(stateReference mempool.StateReference) (state mempool.StateMetadata, err error) {
-	stateRequest, exists := m.cachedStateRequests.Get(stateReference.StateID())
+	stateRequest, exists := m.cachedStateRequests.Get(stateReference.ReferencedStateID())
 
 	// create a new request that does not wait for missing states
 	if !exists || !stateRequest.WasCompleted() {
@@ -229,7 +229,7 @@ func (m *MemPool[VoteRank]) solidifyInputs(transaction *TransactionMetadata) {
 	for i, inputReference := range transaction.inputReferences {
 		stateReference, index := inputReference, i
 
-		request, created := m.cachedStateRequests.GetOrCreate(stateReference.StateID(), func() *promise.Promise[*StateMetadata] {
+		request, created := m.cachedStateRequests.GetOrCreate(stateReference.ReferencedStateID(), func() *promise.Promise[*StateMetadata] {
 			return m.requestState(stateReference, true)
 		})
 
@@ -265,14 +265,20 @@ func (m *MemPool[VoteRank]) executeTransaction(executionContext context.Context,
 
 func (m *MemPool[VoteRank]) bookTransaction(transaction *TransactionMetadata) {
 	if m.optForkAllTransactions {
-		m.forkTransaction(transaction, ds.NewSet(lo.Map(transaction.inputs, func(stateMetadata *StateMetadata) mempool.StateID {
+		inputsToFork := lo.Filter(transaction.inputs, func(metadata *StateMetadata) bool {
+			return !metadata.state.IsReadOnly()
+		})
+
+		m.forkTransaction(transaction, ds.NewSet(lo.Map(inputsToFork, func(stateMetadata *StateMetadata) mempool.StateID {
 			return stateMetadata.state.StateID()
 		})...))
 	} else {
 		lo.ForEach(transaction.inputs, func(input *StateMetadata) {
-			input.OnDoubleSpent(func() {
-				m.forkTransaction(transaction, ds.NewSet(input.state.StateID()))
-			})
+			if !input.state.IsReadOnly() {
+				input.OnDoubleSpent(func() {
+					m.forkTransaction(transaction, ds.NewSet(input.state.StateID()))
+				})
+			}
 		})
 	}
 
diff --git a/pkg/protocol/engine/mempool/v1/mempool_test.go b/pkg/protocol/engine/mempool/v1/mempool_test.go
index c4f64dee2..c62e5339a 100644
--- a/pkg/protocol/engine/mempool/v1/mempool_test.go
+++ b/pkg/protocol/engine/mempool/v1/mempool_test.go
@@ -35,7 +35,7 @@ func TestMempoolV1_ResourceCleanup(t *testing.T) {
 	ledgerState := ledgertests.New(ledgertests.NewMockedState(iotago.TransactionID{}, 0))
 	conflictDAG := conflictdagv1.New[iotago.TransactionID, mempool.StateID, vote.MockedRank](func() int { return 0 })
 	memPoolInstance := New[vote.MockedRank](new(mempooltests.VM), func(reference mempool.StateReference) *promise.Promise[mempool.State] {
-		return ledgerState.ResolveOutputState(reference.StateID())
+		return ledgerState.ResolveOutputState(reference)
 	}, workers, conflictDAG, func(error) {})
 
 	tf := mempooltests.NewTestFramework(t, memPoolInstance, conflictDAG, ledgerState, workers)
@@ -104,7 +104,7 @@ func newTestFramework(t *testing.T) *mempooltests.TestFramework {
 	conflictDAG := conflictdagv1.New[iotago.TransactionID, mempool.StateID, vote.MockedRank](account.NewAccounts().SelectCommittee().SeatCount)
 
 	return mempooltests.NewTestFramework(t, New[vote.MockedRank](new(mempooltests.VM), func(reference mempool.StateReference) *promise.Promise[mempool.State] {
-		return ledgerState.ResolveOutputState(reference.StateID())
+		return ledgerState.ResolveOutputState(reference)
 	}, workers, conflictDAG, func(error) {}), conflictDAG, ledgerState, workers)
 }
 
@@ -115,6 +115,6 @@ func newForkingTestFramework(t *testing.T) *mempooltests.TestFramework {
 	conflictDAG := conflictdagv1.New[iotago.TransactionID, mempool.StateID, vote.MockedRank](account.NewAccounts().SelectCommittee().SeatCount)
 
 	return mempooltests.NewTestFramework(t, New[vote.MockedRank](new(mempooltests.VM), func(reference mempool.StateReference) *promise.Promise[mempool.State] {
-		return ledgerState.ResolveOutputState(reference.StateID())
+		return ledgerState.ResolveOutputState(reference)
 	}, workers, conflictDAG, func(error) {}, WithForkAllTransactions[vote.MockedRank](true)), conflictDAG, ledgerState, workers)
 }
diff --git a/pkg/protocol/engine/mempool/v1/state_diff.go b/pkg/protocol/engine/mempool/v1/state_diff.go
index e0dcc847e..8a561cf47 100644
--- a/pkg/protocol/engine/mempool/v1/state_diff.go
+++ b/pkg/protocol/engine/mempool/v1/state_diff.go
@@ -98,19 +98,17 @@ func (s *StateDiff) RollbackTransaction(transaction *TransactionMetadata) error
 	return nil
 }
 
-func (s *StateDiff) compactStateChanges(output *StateMetadata, newValue int) {
-	if output.state.Type() != iotago.InputUTXO {
-		return
-	}
-
+func (s *StateDiff) compactStateChanges(stateMetadata *StateMetadata, usageCounter int) {
 	switch {
-	case newValue > 0:
-		s.createdOutputs.Set(output.state.StateID(), output)
-	case newValue < 0:
-		s.spentOutputs.Set(output.state.StateID(), output)
+	case usageCounter > 0:
+		s.createdOutputs.Set(stateMetadata.state.StateID(), stateMetadata)
+	case usageCounter < 0:
+		if !stateMetadata.state.IsReadOnly() {
+			s.spentOutputs.Set(stateMetadata.state.StateID(), stateMetadata)
+		}
 	default:
-		s.createdOutputs.Delete(output.state.StateID())
-		s.spentOutputs.Delete(output.state.StateID())
+		s.createdOutputs.Delete(stateMetadata.state.StateID())
+		s.spentOutputs.Delete(stateMetadata.state.StateID())
 	}
 }
 
diff --git a/pkg/protocol/engine/utxoledger/output.go b/pkg/protocol/engine/utxoledger/output.go
index 86b557651..285daf29c 100644
--- a/pkg/protocol/engine/utxoledger/output.go
+++ b/pkg/protocol/engine/utxoledger/output.go
@@ -47,6 +47,10 @@ func (o *Output) Type() iotago.StateType {
 	return iotago.InputUTXO
 }
 
+func (o *Output) IsReadOnly() bool {
+	return false
+}
+
 func (o *Output) OutputID() iotago.OutputID {
 	return o.outputID
 }
diff --git a/tools/evil-spammer/go.mod b/tools/evil-spammer/go.mod
index 1fe7c131b..b4678fb13 100644
--- a/tools/evil-spammer/go.mod
+++ b/tools/evil-spammer/go.mod
@@ -17,7 +17,7 @@ require (
 	github.com/iotaledger/hive.go/runtime v0.0.0-20230929122509-67f34bfed40d
 	github.com/iotaledger/iota-core v0.0.0-00010101000000-000000000000
 	github.com/iotaledger/iota-core/tools/genesis-snapshot v0.0.0-00010101000000-000000000000
-	github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388
+	github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737
 	github.com/mr-tron/base58 v1.2.0
 	go.uber.org/atomic v1.11.0
 )
diff --git a/tools/evil-spammer/go.sum b/tools/evil-spammer/go.sum
index 2da3ca0c4..97376751f 100644
--- a/tools/evil-spammer/go.sum
+++ b/tools/evil-spammer/go.sum
@@ -195,8 +195,8 @@ github.com/iotaledger/hive.go/serializer/v2 v2.0.0-rc.1.0.20230929122509-67f34bf
 github.com/iotaledger/hive.go/serializer/v2 v2.0.0-rc.1.0.20230929122509-67f34bfed40d/go.mod h1:IJgaaxbgKCsNat18jlJJEAxCY2oVYR3F30B+M4vJ89I=
 github.com/iotaledger/hive.go/stringify v0.0.0-20230929122509-67f34bfed40d h1:ekHWRypoaiCXgrJVUQS7rCewsK3FuG1gTbPxu5jYn9c=
 github.com/iotaledger/hive.go/stringify v0.0.0-20230929122509-67f34bfed40d/go.mod h1:FTo/UWzNYgnQ082GI9QVM9HFDERqf9rw9RivNpqrnTs=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388 h1:IGqHrJRmrzfalf1py+FGWzkWoaA5o6avBSYWznVG08s=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737 h1:6fuDHswgN9zTwsMuKRKNClnT+rJCojvWf3Hk8f03cvc=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
 github.com/ipfs/go-cid v0.4.1 h1:A/T3qGvxi4kpKWWcPC/PgbvDA2bjVLO7n4UeVwnbs/s=
 github.com/ipfs/go-cid v0.4.1/go.mod h1:uQHwDeX4c6CtyrFwdqyhpNcxVewur1M7l7fNU7LKwZk=
 github.com/jmespath/go-jmespath v0.4.0/go.mod h1:T8mJZnbsbmF+m6zOOFylbeCJqk5+pHWvzYPziyZiYoo=
diff --git a/tools/gendoc/go.mod b/tools/gendoc/go.mod
index 97a51cd75..60253b09e 100644
--- a/tools/gendoc/go.mod
+++ b/tools/gendoc/go.mod
@@ -72,7 +72,7 @@ require (
 	github.com/iotaledger/hive.go/stringify v0.0.0-20230929122509-67f34bfed40d // indirect
 	github.com/iotaledger/inx-app v1.0.0-rc.3.0.20231001095511-32be422a567e // indirect
 	github.com/iotaledger/inx/go v1.0.0-rc.2.0.20231001095356-923e8f138951 // indirect
-	github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388 // indirect
+	github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737 // indirect
 	github.com/ipfs/boxo v0.10.0 // indirect
 	github.com/ipfs/go-cid v0.4.1 // indirect
 	github.com/ipfs/go-datastore v0.6.0 // indirect
diff --git a/tools/gendoc/go.sum b/tools/gendoc/go.sum
index d35f5a5a3..5e0a9c086 100644
--- a/tools/gendoc/go.sum
+++ b/tools/gendoc/go.sum
@@ -311,8 +311,9 @@ github.com/iotaledger/inx-app v1.0.0-rc.3.0.20231001095511-32be422a567e h1:Mwoe7
 github.com/iotaledger/inx-app v1.0.0-rc.3.0.20231001095511-32be422a567e/go.mod h1:jhzexR5X8m6qcmrwt5OX477O/ZwT7Ak9sPT83ByPkAo=
 github.com/iotaledger/inx/go v1.0.0-rc.2.0.20231001095356-923e8f138951 h1:qUf1W0fE1IyZzVy3Exv0Kj+SKECXG3S26c9m2ETb07U=
 github.com/iotaledger/inx/go v1.0.0-rc.2.0.20231001095356-923e8f138951/go.mod h1:c5778OnWpLq108YE+Eb2m8Ri/t/4ydV0TvI/Sy5YivQ=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388 h1:IGqHrJRmrzfalf1py+FGWzkWoaA5o6avBSYWznVG08s=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003162632-bf50df95b5f0 h1:6G9oUOnhhK5oktcsl0BImbrPlgp6tdGskKsAmaMNw8Q=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003162632-bf50df95b5f0/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
 github.com/ipfs/boxo v0.10.0 h1:tdDAxq8jrsbRkYoF+5Rcqyeb91hgWe2hp7iLu7ORZLY=
 github.com/ipfs/boxo v0.10.0/go.mod h1:Fg+BnfxZ0RPzR0nOodzdIq3A7KgoWAOWsEIImrIQdBM=
 github.com/ipfs/go-cid v0.4.1 h1:A/T3qGvxi4kpKWWcPC/PgbvDA2bjVLO7n4UeVwnbs/s=
diff --git a/tools/genesis-snapshot/go.mod b/tools/genesis-snapshot/go.mod
index 09c576a38..ba29c06b3 100644
--- a/tools/genesis-snapshot/go.mod
+++ b/tools/genesis-snapshot/go.mod
@@ -10,7 +10,7 @@ require (
 	github.com/iotaledger/hive.go/lo v0.0.0-20230929122509-67f34bfed40d
 	github.com/iotaledger/hive.go/runtime v0.0.0-20230929122509-67f34bfed40d
 	github.com/iotaledger/iota-core v0.0.0-00010101000000-000000000000
-	github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388
+	github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737
 	github.com/mr-tron/base58 v1.2.0
 	github.com/spf13/pflag v1.0.5
 	golang.org/x/crypto v0.13.0
diff --git a/tools/genesis-snapshot/go.sum b/tools/genesis-snapshot/go.sum
index 105293b91..c69dca49d 100644
--- a/tools/genesis-snapshot/go.sum
+++ b/tools/genesis-snapshot/go.sum
@@ -50,8 +50,8 @@ github.com/iotaledger/hive.go/serializer/v2 v2.0.0-rc.1.0.20230929122509-67f34bf
 github.com/iotaledger/hive.go/serializer/v2 v2.0.0-rc.1.0.20230929122509-67f34bfed40d/go.mod h1:IJgaaxbgKCsNat18jlJJEAxCY2oVYR3F30B+M4vJ89I=
 github.com/iotaledger/hive.go/stringify v0.0.0-20230929122509-67f34bfed40d h1:ekHWRypoaiCXgrJVUQS7rCewsK3FuG1gTbPxu5jYn9c=
 github.com/iotaledger/hive.go/stringify v0.0.0-20230929122509-67f34bfed40d/go.mod h1:FTo/UWzNYgnQ082GI9QVM9HFDERqf9rw9RivNpqrnTs=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388 h1:IGqHrJRmrzfalf1py+FGWzkWoaA5o6avBSYWznVG08s=
-github.com/iotaledger/iota.go/v4 v4.0.0-20231003154311-26aa2f0fd388/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737 h1:6fuDHswgN9zTwsMuKRKNClnT+rJCojvWf3Hk8f03cvc=
+github.com/iotaledger/iota.go/v4 v4.0.0-20231003181920-a3245ad7a737/go.mod h1:+e3bsJFDr9HxmUMe+eQOLNut5wfcB/ivhJdouOJgOnE=
 github.com/ipfs/go-cid v0.4.1 h1:A/T3qGvxi4kpKWWcPC/PgbvDA2bjVLO7n4UeVwnbs/s=
 github.com/ipfs/go-cid v0.4.1/go.mod h1:uQHwDeX4c6CtyrFwdqyhpNcxVewur1M7l7fNU7LKwZk=
 github.com/klauspost/cpuid/v2 v2.2.5 h1:0E5MSMDEoAulmXNFquVs//DdoomxaoTY1kUhbc/qbZg=