diff --git a/crates/ethereum/evm/src/parallel_execute.rs b/crates/ethereum/evm/src/parallel_execute.rs
index e4b902369a..9e610d9b53 100644
--- a/crates/ethereum/evm/src/parallel_execute.rs
+++ b/crates/ethereum/evm/src/parallel_execute.rs
@@ -177,7 +177,9 @@ where
             Requests::default()
         };
 
-        let mut balance_increments = post_block_balance_increments(&self.chain_spec, block);
+        // Gravity chain uses a deflationary model where rewards come solely from gas fees,
+        // so PoW block rewards (coinbase increments) are disabled to prevent inflation.
+        let mut balance_increments = HashMap::default();
         let state = self.state.as_mut().unwrap();
 
         // Irregular state change at Ethereum DAO hardfork
@@ -315,6 +317,7 @@ where
     }
 }
 
+#[allow(dead_code)]
 #[inline]
 fn post_block_balance_increments<ChainSpec, Block>(
     chain_spec: &ChainSpec,
@@ -363,6 +366,7 @@ where
     balance_increments
 }
 
+#[allow(dead_code)]
 #[inline]
 fn insert_post_block_withdrawals_balance_increments(
     spec: impl EthereumHardforks,
diff --git a/crates/stages/stages/src/stages/execution.rs b/crates/stages/stages/src/stages/execution.rs
index 26437661ca..078b9d6f22 100644
--- a/crates/stages/stages/src/stages/execution.rs
+++ b/crates/stages/stages/src/stages/execution.rs
@@ -938,11 +938,8 @@ mod tests {
             let account1_info =
                 Account { balance: U256::ZERO, nonce: 0x00, bytecode_hash: Some(code_hash) };
             let account2 = address!("0x2adc25665018aa1fe0e6bc666dac8fc2697ff9ba");
-            let account2_info = Account {
-                balance: U256::from(0x1bc16d674ece94bau128),
-                nonce: 0x00,
-                bytecode_hash: None,
-            };
+            let account2_info =
+                Account { balance: U256::from(0x694bau128), nonce: 0x00, bytecode_hash: None };
             let account3 = address!("0xa94f5374fce5edbc8e2a8697c15331677e6ebf0b");
             let account3_info = Account {
                 balance: U256::from(0x3635c9adc5de996b46u128),
@@ -1184,11 +1181,7 @@ mod tests {
             vec![
                 (
                     beneficiary_address,
-                    Account {
-                        nonce: 0,
-                        balance: U256::from(0x1bc16d674eca30a0u64),
-                        bytecode_hash: None
-                    }
+                    Account { nonce: 0, balance: U256::from(0x230a0u64), bytecode_hash: None }
                 ),
                 (
                     caller_address,