drop transactions who's nonce is lower then the known network nonce but were not included in a block

app/scripts/controllers/transactions/index.js

@@ -542,6 +542,15 @@ class TransactionController extends EventEmitter {
     })
     this.pendingTxTracker.on('tx:failed', this.txStateManager.setTxStatusFailed.bind(this.txStateManager))
     this.pendingTxTracker.on('tx:confirmed', (txId) => this.confirmTransaction(txId))
+    this.pendingTxTracker.on('tx:dropped', (txId) => {
+      const txMeta = this.txStateManager.getTx(txId)
+      if (!txMeta.dropBlockBuffer) {
+        txMeta.dropBlockBuffer = 1
+        this.txStateManager.updateTx(txMeta, 'transactions/pending-tx-tracker#event: tx:drop-update')
+        return
+      }
+      this.setTxStatusDropped(txId)
+    })
     this.pendingTxTracker.on('tx:block-update', (txMeta, latestBlockNumber) => {
       if (!txMeta.firstRetryBlockNumber) {
         txMeta.firstRetryBlockNumber = latestBlockNumber

app/scripts/controllers/transactions/pending-tx-tracker.js

@@ -145,16 +145,16 @@ class PendingTransactionTracker extends EventEmitter {
     // If another tx with the same nonce is mined, set as failed.
     const taken = await this._checkIfNonceIsTaken(txMeta)
     if (taken) {
-      const nonceTakenErr = new Error('Another transaction with this nonce has been mined.')
-      nonceTakenErr.name = 'NonceTakenErr'
-      return this.emit('tx:failed', txId, nonceTakenErr)
+      return this.emit('tx:dropped', txId)
     }
 
+    const dropped = await this._checkIftxWasDropped(txMeta)
+    if (dropped) return
+
     // get latest transaction status
     try {
-      const txParams = await this.query.getTransactionByHash(txHash)
-      if (!txParams) return
-      if (txParams.blockNumber) {
+      const { blockNumber } = await this.query.getTransactionByHash(txHash) || {}
+      if (blockNumber) {
         this.emit('tx:confirmed', txId)
       }
     } catch (err) {
@@ -165,6 +165,23 @@ class PendingTransactionTracker extends EventEmitter {
       this.emit('tx:warning', txMeta, err)
     }
   }
+    /**
+    checks to see if if the tx's nonce has been used by another transaction
+    @param txMeta {Object} - txMeta object
+    @emits tx:dropped
+    @returns {boolean}
+  */
+
+  async _checkIftxWasDropped (txMeta) {
+    const { txParams: { nonce, from }, hash, id } = txMeta
+    const nextNonce = await this.query.getTransactionCount(from)
+    const { blockNumber } = await this.query.getTransactionByHash(hash) || {}
+    if (!blockNumber && parseInt(nextNonce) > nonce) {
+      this.emit('tx:dropped', id)
+      return true
+    }
+    return false
+  }
 
   /**
     checks to see if a confirmed txMeta has the same nonce

test/unit/app/controllers/transactions/pending-tx-test.js

@@ -58,7 +58,7 @@ describe('PendingTransactionTracker', function () {
       }
     })
 
-    it('should become failed if another tx with the same nonce succeeds', async function () {
+    it('should emit dropped if another tx with the same nonce succeeds', async function () {
 
       // SETUP
       const txGen = new MockTxGen()
@@ -84,17 +84,16 @@ describe('PendingTransactionTracker', function () {
 
       // THE EXPECTATION
       const spy = sinon.spy()
-      pendingTxTracker.on('tx:failed', (txId, err) => {
+      pendingTxTracker.on('tx:dropped', (txId) => {
         assert.equal(txId, pending.id, 'should fail the pending tx')
-        assert.equal(err.name, 'NonceTakenErr', 'should emit a nonce taken error.')
-        spy(txId, err)
+        spy(txId)
       })
 
       // THE METHOD
       await pendingTxTracker._checkPendingTx(pending)
 
       // THE ASSERTION
-      assert.ok(spy.calledWith(pending.id), 'tx failed should be emitted')
+      assert.ok(spy.calledWith(pending.id), 'tx dropped should be emitted')
     })
   })
 
@@ -283,6 +282,46 @@ describe('PendingTransactionTracker', function () {
     })
   })
 
+  describe('#_checkIftxWasDropped', () => {
+    const txMeta = {
+      id: 1,
+      hash: '0x0593ee121b92e10d63150ad08b4b8f9c7857d1bd160195ee648fb9a0f8d00eeb',
+      status: 'confirmed',
+      txParams: {
+        from: '0x1678a085c290ebd122dc42cba69373b5953b831d',
+        nonce: '0x1',
+        value: '0xfffff',
+      },
+      rawTx: '0xf86c808504a817c800827b0d940c62bb85faa3311a998d3aba8098c1235c564966880de0b6b3a7640000802aa08ff665feb887a25d4099e40e11f0fef93ee9608f404bd3f853dd9e84ed3317a6a02ec9d3d1d6e176d4d2593dd760e74ccac753e6a0ea0d00cc9789d0d7ff1f471d',
+    }
+    it('should return false', (done) => {
+      providerResultStub['eth_getTransactionCount'] = '0x01'
+      providerResultStub['eth_getTransactionByHash'] = {}
+      pendingTxTracker._checkIftxWasDropped(txMeta).then((dropped) => {
+        assert(!dropped, 'should be false')
+        done()
+      }).catch(done)
+    })
+
+    it('should return true', function (done) {
+      providerResultStub['eth_getTransactionCount'] = '0x02'
+      providerResultStub['eth_getTransactionByHash'] = {}
+      pendingTxTracker._checkIftxWasDropped(txMeta).then((dropped) => {
+        assert(dropped, 'should be true')
+        done()
+      }).catch(done)
+    })
+    it('should emit tx:dropped with th txMetas id', function (done) {
+      providerResultStub['eth_getTransactionCount'] = '0x02'
+      providerResultStub['eth_getTransactionByHash'] = {}
+      pendingTxTracker.once('tx:dropped', (id) => {
+        if (id === txMeta.id) return done()
+        else done(new Error('wrong tx Id'))
+      })
+      pendingTxTracker._checkIftxWasDropped(txMeta).catch(done)
+    })
+  })
+
   describe('#_checkIfNonceIsTaken', function () {
     beforeEach(function () {
       const confirmedTxList = [{