diff --git a/CHANGELOG.md b/CHANGELOG.md
index fe9fd131e..ebd3e402f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 
 ## Unreleased
+- Added RecursiveProofModule [#516](https://github.com/proto-kit/framework/pull/516)
 
 ### Added
 - Added createdAt timestamp to block, batch and settlement models.[#502](https://github.com/proto-kit/framework/pull/502)
diff --git a/packages/sequencer/src/sequencer/output/RecursiveProofModule.ts b/packages/sequencer/src/sequencer/output/RecursiveProofModule.ts
new file mode 100644
index 000000000..dc0d3fadc
--- /dev/null
+++ b/packages/sequencer/src/sequencer/output/RecursiveProofModule.ts
@@ -0,0 +1,121 @@
+import {
+  filterNonUndefined,
+  mapSequential,
+  noop,
+  range,
+} from "@proto-kit/common";
+import { inject } from "tsyringe";
+import { BlockProof } from "@proto-kit/protocol";
+import { JsonProof } from "o1js";
+
+import { sequencerModule, SequencerModule } from "../builder/SequencerModule";
+import { BatchMergingFlow } from "../../settlement/tasks/BatchMergingFlow";
+import { PropertyStorage } from "../../storage/repositories/PropertyStorage";
+import { BatchStorage } from "../../storage/repositories/BatchStorage";
+import { Batch } from "../../storage/model/Batch";
+import { BatchProducerModule } from "../../protocol/production/BatchProducerModule";
+import { BlockProofSerializer } from "../../protocol/production/tasks/serializers/BlockProofSerializer";
+
+export interface RecursiveProofJson {
+  toBatchHeight: number;
+  proof: JsonProof;
+}
+
+export interface RecursiveProof {
+  toBatchHeight: number;
+  proof: BlockProof;
+}
+
+const BATCH_STORAGE_KEY = "batch-recursive";
+
+@sequencerModule()
+// implements ProofOutputModule
+export class RecursiveProofModule extends SequencerModule {
+  public constructor(
+    @inject("PropertyStorage")
+    private readonly propertyStorage: PropertyStorage,
+    @inject("BatchStorage")
+    private readonly batchStorage: BatchStorage,
+    private readonly batchMergingFlow: BatchMergingFlow,
+    @inject("BatchProducerModule")
+    private readonly batchProducerModule: BatchProducerModule,
+    private readonly blockProofSerializer: BlockProofSerializer
+  ) {
+    super();
+  }
+
+  public async start() {
+    noop();
+  }
+
+  public async storeProof(proof: RecursiveProofJson) {
+    const str = JSON.stringify(proof);
+
+    await this.propertyStorage.set(BATCH_STORAGE_KEY, str);
+  }
+
+  public async readProof(): Promise<RecursiveProof | undefined> {
+    const json = await this.propertyStorage.get(BATCH_STORAGE_KEY);
+
+    if (json === undefined) {
+      return undefined;
+    }
+
+    // eslint-disable-next-line @typescript-eslint/no-unsafe-assignment
+    const jsonObject: RecursiveProofJson = JSON.parse(json);
+
+    const proof = await this.blockProofSerializer
+      .getBlockProofSerializer()
+      .fromJSONProof(jsonObject.proof);
+
+    return {
+      toBatchHeight: jsonObject.toBatchHeight,
+      proof,
+    };
+  }
+
+  public async proveRecursively() {
+    const previous = await this.readProof();
+    let previousBatch: Batch | undefined = undefined;
+    if (previous !== undefined) {
+      previousBatch = await this.batchStorage.getBatchAt(
+        previous.toBatchHeight
+      );
+    }
+
+    const currentHeight = await this.batchStorage.getCurrentBatchHeight();
+    const previousBatchesResults = await Promise.all(
+      range((previous?.toBatchHeight ?? -1) + 1, currentHeight).map((height) =>
+        this.batchStorage.getBatchAt(height)
+      )
+    );
+
+    const previousBatches = previousBatchesResults.filter(filterNonUndefined);
+    if (previousBatches.length < previousBatchesResults.length) {
+      throw new Error("Some previous batch retrieval failed");
+    }
+
+    const batches = [previousBatch, ...previousBatches].filter(
+      filterNonUndefined
+    );
+    // TODO This is very expensive (loads of DB-trips)
+    const settleableBatches = await mapSequential(
+      batches,
+      async (batch) =>
+        await this.batchProducerModule.recoverSettleableBatch(batch)
+    );
+
+    const batch = await this.batchMergingFlow.mergeBatches(settleableBatches);
+
+    await this.storeProof({ proof: batch.proof, toBatchHeight: batch.height });
+
+    return batch;
+  }
+
+  // public async settleBatch(batches: SettleableBatch[]): Promise<Settlement> {
+  //
+  //   return {
+  //
+  //   }
+  // }
+}
diff --git a/packages/sequencer/src/settlement/tasks/BatchMergingFlow.ts b/packages/sequencer/src/settlement/tasks/BatchMergingFlow.ts
index 7b9d43533..bdd9e9d71 100644
--- a/packages/sequencer/src/settlement/tasks/BatchMergingFlow.ts
+++ b/packages/sequencer/src/settlement/tasks/BatchMergingFlow.ts
@@ -51,7 +51,7 @@ export class BatchMergingFlow {
 
     return {
       proof: await serializer.toJSONProof(result),
-      height: batches[0].height,
+      height: batches.at(-1)!.height,
       blockHashes: batches.flatMap((batch) => batch.blockHashes),
       createdAt: Date.now(),
       fromNetworkState: batches[0].fromNetworkState,
diff --git a/packages/sequencer/test/integration/RecursiveProofModules.test.ts b/packages/sequencer/test/integration/RecursiveProofModules.test.ts
new file mode 100644
index 000000000..a9ac73539
--- /dev/null
+++ b/packages/sequencer/test/integration/RecursiveProofModules.test.ts
@@ -0,0 +1,153 @@
+import { log } from "@proto-kit/common";
+import { VanillaProtocolModules } from "@proto-kit/library";
+import { Runtime } from "@proto-kit/module";
+import { Protocol } from "@proto-kit/protocol";
+import { Bool, PrivateKey, UInt64 } from "o1js";
+import "reflect-metadata";
+import { container } from "tsyringe";
+import { afterEach, expect } from "@jest/globals";
+
+import {
+  Sequencer,
+  VanillaTaskWorkerModules,
+  AppChain,
+  InMemoryDatabase,
+} from "../../src";
+import {
+  DefaultTestingSequencerModules,
+  testingSequencerModules,
+} from "../TestingSequencer";
+import { RecursiveProofModule } from "../../src/sequencer/output/RecursiveProofModule";
+
+import { Balance } from "./mocks/Balance";
+import { BlockTestService } from "./services/BlockTestService";
+
+describe("RecursiveProofModule", () => {
+  let sequencer: Sequencer<
+    DefaultTestingSequencerModules & {
+      Database: typeof InMemoryDatabase;
+      RecursiveProofModule: typeof RecursiveProofModule;
+    }
+  >;
+
+  let appChain: AppChain<any>;
+
+  let test: BlockTestService;
+
+  beforeEach(async () => {
+    const runtimeClass = Runtime.from({
+      Balance,
+    });
+
+    const sequencerClass = Sequencer.from({
+      ...testingSequencerModules({}),
+      Database: InMemoryDatabase,
+      RecursiveProofModule,
+    });
+
+    // TODO Analyze how we can get rid of the library import for mandatory modules
+    const protocolClass = Protocol.from(
+      VanillaProtocolModules.mandatoryModules({})
+    );
+
+    const app = AppChain.from({
+      Runtime: runtimeClass,
+      Sequencer: sequencerClass,
+      Protocol: protocolClass,
+    });
+
+    app.configure({
+      Sequencer: {
+        Database: {},
+        BlockTrigger: {},
+        Mempool: {},
+        BatchProducerModule: {},
+        BlockProducerModule: {},
+        WorkerModule: VanillaTaskWorkerModules.defaultConfig(),
+        BaseLayer: {},
+        TaskQueue: {},
+        FeeStrategy: {},
+        SequencerStartupModule: {},
+        RecursiveProofModule: {},
+      },
+      Runtime: {
+        Balance: {},
+      },
+      Protocol: {
+        ...Protocol.defaultConfig(),
+      },
+    });
+
+    // Start AppChain
+    await app.start(false, container.createChildContainer());
+
+    appChain = app;
+
+    ({ sequencer } = app);
+
+    test = app.sequencer.dependencyContainer.resolve(BlockTestService);
+  }, 30000);
+
+  afterEach(async () => {
+    await appChain.close();
+  });
+
+  it("should produce a dummy block proof", async () => {
+    log.setLevel("DEBUG");
+    expect.assertions(12);
+
+    const outputModule = sequencer.resolve("RecursiveProofModule");
+
+    const privateKey = PrivateKey.random();
+    const publicKey = privateKey.toPublicKey();
+
+    await test.addTransaction({
+      method: ["Balance", "setBalanceIf"],
+      privateKey,
+      args: [publicKey, UInt64.from(100), Bool(true)],
+    });
+
+    // let [block, batch] = await blockTrigger.produceBlockAndBatch();
+    const block = await test.produceBlock();
+
+    expect(block).toBeDefined();
+    expect(block!.transactions).toHaveLength(1);
+
+    const batch = await test.produceBatch();
+
+    expect(batch).toBeDefined();
+    expect(batch!.blockHashes).toHaveLength(1);
+
+    const recursiveBatch = await outputModule.proveRecursively();
+    expect(recursiveBatch.proof.publicInput).toStrictEqual(
+      batch!.proof.publicInput
+    );
+
+    // Second tx
+    await test.addTransaction({
+      method: ["Balance", "addBalanceToSelf"],
+      privateKey,
+      args: [UInt64.from(100), UInt64.from(1)],
+    });
+
+    log.info("Starting second block");
+
+    const [block2, batch2] = await test.produceBlockAndBatch();
+
+    expect(block2).toBeDefined();
+    expect(block2!.transactions).toHaveLength(1);
+    expect(batch2!.blockHashes).toHaveLength(1);
+
+    const recursiveBatch2 = await outputModule.proveRecursively();
+    expect(recursiveBatch2.proof.publicInput).toStrictEqual(
+      batch!.proof.publicInput
+    );
+    expect(recursiveBatch2.proof.publicOutput).toStrictEqual(
+      batch2!.proof.publicOutput
+    );
+
+    const storedProperty = await outputModule.readProof();
+    expect(storedProperty).toBeDefined();
+    expect(storedProperty!.toBatchHeight).toBe(1);
+  }, 60_000);
+});