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Regarding the application transactions and underlying tendermint consensue #11971

Answered by alexanderbez
baok asked this question in Q&A
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The doc states that DeliverTx failure would cause the block proposer to be rejected.

Where do the docs state this? Block proposers can include txs in blocks that fail DeliverTx. Currently, there is no punishment for this, but @zmanian is working on an ADR for proposer-based slashing (under certain failure modes, e.g. sig verification failure but not gas failure).

So yes, blocks can and actually do include txs due to failed DeliverTx executions. In fact, you see this on Terra a lot.

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