diff --git a/iguana/dpow/dpow_fsm.c b/iguana/dpow/dpow_fsm.c
index c531c27a7..a334bb62d 100755
--- a/iguana/dpow/dpow_fsm.c
+++ b/iguana/dpow/dpow_fsm.c
@@ -265,6 +265,7 @@ void dpow_statemachinestart(void *ptr)
     void **ptrs = ptr;
     struct supernet_info *myinfo; struct dpow_info *dp; struct dpow_checkpoint checkpoint;
     int32_t i,j,ht,extralen,destprevvout0,srcprevvout0,src_or_dest,numratified=0,kmdheight,myind = -1; uint8_t extras[10000],pubkeys[64][33]; cJSON *ratified=0,*item; struct iguana_info *src,*dest; char *jsonstr,*handle,*hexstr,str[65],str2[65],srcaddr[64],destaddr[64]; bits256 zero,MoM,merkleroot,srchash,destprevtxid0,srcprevtxid0; struct dpow_block *bp; struct dpow_entry *ep = 0; uint32_t MoMdepth,duration,minsigs,starttime,srctime;
+    char *destlockunspent,*srclockunspent,*destunlockunspent,*srcunlockunspent;
     memset(&zero,0,sizeof(zero));
     MoM = zero;
     srcprevtxid0 = destprevtxid0 = zero;
@@ -467,14 +468,14 @@ void dpow_statemachinestart(void *ptr)
     }
     else
     {
-        if ( dpow_checkutxo(myinfo,dp,bp,bp->destcoin,&ep->dest.prev_hash,&ep->dest.prev_vout,destaddr,src->symbol) < 0 )
+        if ( dpow_haveutxo(myinfo,bp->destcoin,&ep->dest.prev_hash,&ep->dest.prev_vout,destaddr,src->symbol) < 0 )
         {
             printf("dont have %s %s utxo, please send funds\n",dp->dest,destaddr);
             dp->ratifying -= bp->isratify;
             free(ptr);
             return;
         }
-        if ( dpow_checkutxo(myinfo,dp,bp,bp->srccoin,&ep->src.prev_hash,&ep->src.prev_vout,srcaddr,"") < 0 )
+        if ( dpow_haveutxo(myinfo,bp->srccoin,&ep->src.prev_hash,&ep->src.prev_vout,srcaddr,"") < 0 )
         {
             printf("dont have %s %s utxo, please send funds\n",dp->symbol,srcaddr);
             dp->ratifying -= bp->isratify;
@@ -501,6 +502,30 @@ void dpow_statemachinestart(void *ptr)
         bp->desttxid = bp->notaries[myind].src.prev_hash;
         dpow_signedtxgen(myinfo,dp,src,bp,bp->myind,1LL<<bp->myind,bp->myind,DPOW_SIGCHANNEL,0,0);
     }*/
+
+    //printf("Use srcutxo.(%s) vout.(%d) destutxo.(%s) vout.(%d)\n",bits256_str(str,ep->src.prev_hash),ep->src.prev_vout,bits256_str(str2,ep->dest.prev_hash),ep->dest.prev_vout);
+
+    if (strcmp("KMD",dest->symbol) == 0 )
+    {
+      // lock the dest utxo if destination coin is KMD.s
+      destlockunspent = dpow_lockunspent(myinfo,bp->destcoin,destaddr,bits256_str(str2,ep->dest.prev_hash),ep->dest.prev_vout);
+      if (strncmp(destlockunspent,"true", 4) == 0 )
+        printf(">>>> LOCKED %s UTXO.(%s) vout.(%d)\n",dest->symbol,bits256_str(str2,ep->dest.prev_hash),ep->dest.prev_vout);
+      else
+        printf("<<<< FAILED TO LOCK %s UTXO.(%s) vout.(%d)\n",dest->symbol,bits256_str(str2,ep->dest.prev_hash),ep->dest.prev_vout);
+      free(destlockunspent);
+    }
+
+    if ( strcmp("BTC",dest->symbol) == 0 )
+    {
+      // lock the src coin selected utxo if the source coin is KMD.
+      srclockunspent = dpow_lockunspent(myinfo,bp->srccoin,srcaddr,bits256_str(str2,ep->src.prev_hash),ep->src.prev_vout);
+      if (strncmp(srclockunspent,"true", 4) == 0 )
+        printf(">>>> LOCKED %s UTXO.(%s) vout.(%d\n",src->symbol,bits256_str(str2,ep->src.prev_hash),ep->src.prev_vout);
+      else
+        printf("<<<< FAILED TO LOCK %s UTXO.(%s) vout.(%d)\n",src->symbol,bits256_str(str2,ep->src.prev_hash),ep->src.prev_vout);
+      free(srclockunspent);
+    }
     bp->recvmask |= (1LL << myind);
     bp->notaries[myind].othermask |= (1LL << myind);
     dp->checkpoint = checkpoint;
@@ -594,8 +619,20 @@ void dpow_statemachinestart(void *ptr)
     printf("[%d] END isratify.%d:%d bestk.%d %llx sigs.%llx state.%x machine ht.%d completed state.%x %s.%s %s.%s recvmask.%llx paxwdcrc.%x %p %p\n",Numallocated,bp->isratify,dp->ratifying,bp->bestk,(long long)bp->bestmask,(long long)(bp->bestk>=0?bp->destsigsmasks[bp->bestk]:0),bp->state,bp->height,bp->state,dp->dest,bits256_str(str,bp->desttxid),dp->symbol,bits256_str(str2,bp->srctxid),(long long)bp->recvmask,bp->paxwdcrc,src,dest);
     dp->lastrecvmask = bp->recvmask;
     dp->ratifying -= bp->isratify;
+
+    // unlock the dest utxo regardless if it was locked or not it does not matter.
+    destunlockunspent = dpow_unlockunspent(myinfo,bp->destcoin,destaddr,bits256_str(str2,ep->dest.prev_hash),ep->dest.prev_vout);
+    if (strncmp(destunlockunspent,"true", 4) == 0 )
+      printf(">>>>UNLOCKED %s UTXO.(%s) vout.(%d)\n",dest->symbol,bits256_str(str2,ep->dest.prev_hash),ep->dest.prev_vout);
+    free(destunlockunspent);
+
+    // unlock the src selected utxo, if it was locked or not it does not matter.
+    srcunlockunspent = dpow_unlockunspent(myinfo,bp->srccoin,srcaddr,bits256_str(str2,ep->src.prev_hash),ep->src.prev_vout);
+    if (strncmp(srcunlockunspent,"true", 4) == 0 )
+      printf(">>>>UNLOCKED %s UTXO.(%s) vout.(%d)\n",src->symbol,bits256_str(str2,ep->src.prev_hash),ep->src.prev_vout);
+    free(srcunlockunspent);
+
     // dp->blocks[bp->height] = 0;
     bp->state = 0xffffffff;
     free(ptr);
 }
-
diff --git a/iguana/dpow/dpow_rpc.c b/iguana/dpow/dpow_rpc.c
index 7fcbc1c4b..d7dc35014 100755
--- a/iguana/dpow/dpow_rpc.c
+++ b/iguana/dpow/dpow_rpc.c
@@ -466,6 +466,36 @@ cJSON *dpow_gettxout(struct supernet_info *myinfo,struct iguana_info *coin,bits2
     return(json);
 }
 
+char *dpow_lockunspent(struct supernet_info *myinfo,struct iguana_info *coin,char *coinaddr,char *txid,int32_t vout)
+{
+    char buf[128],*retstr;
+    if ( coin->FULLNODE < 0 )
+    {
+        sprintf(buf,"false, [{\"txid\":\"%s\",\"vout\":%d}]", txid, vout);
+        if ( (retstr= bitcoind_passthru(coin->symbol,coin->chain->serverport,coin->chain->userpass,"lockunspent",buf)) != 0 )
+        {
+            //printf("RESULT.(%s)\n",retstr);
+            return(retstr);
+        } else printf("%s null retstr from (%s)n",coin->symbol,buf);
+    }
+    return(0);
+}
+
+char *dpow_unlockunspent(struct supernet_info *myinfo,struct iguana_info *coin,char *coinaddr,char *txid,int32_t vout)
+{
+    char buf[128],*retstr;
+    if ( coin->FULLNODE < 0 )
+    {
+        sprintf(buf,"true, [{\"txid\":\"%s\",\"vout\":%d}]", txid, vout);
+        if ( (retstr= bitcoind_passthru(coin->symbol,coin->chain->serverport,coin->chain->userpass,"lockunspent",buf)) != 0 )
+        {
+            //printf("RESULT.(%s)\n",retstr);
+            return(retstr);
+        } else printf("%s null retstr from (%s)n",coin->symbol,buf);
+    }
+    return(0);
+}
+
 char *dpow_decoderawtransaction(struct supernet_info *myinfo,struct iguana_info *coin,char *rawtx)
 {
     char *retstr,*paramstr; cJSON *array;