diff --git a/package.json b/package.json
index 9518b6a472..1dfe812c8f 100644
--- a/package.json
+++ b/package.json
@@ -10,6 +10,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/amino/karma.conf.cjs b/packages/amino/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/amino/karma.conf.cjs
+++ b/packages/amino/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/amino/package.json b/packages/amino/package.json
index 05243001bd..bbbf68d1a7 100644
--- a/packages/amino/package.json
+++ b/packages/amino/package.json
@@ -15,6 +15,7 @@
     "*.md",
     "!*.spec.*",
     "!*testutils.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/amino/webpack.web.config.cjs b/packages/amino/webpack.web.config.cjs
index 905426a47c..897db8708c 100644
--- a/packages/amino/webpack.web.config.cjs
+++ b/packages/amino/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     resolve: {
diff --git a/packages/cosmwasm-stargate/karma.conf.cjs b/packages/cosmwasm-stargate/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/cosmwasm-stargate/karma.conf.cjs
+++ b/packages/cosmwasm-stargate/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/cosmwasm-stargate/package.json b/packages/cosmwasm-stargate/package.json
index 5358b3ec20..f87b57b65d 100644
--- a/packages/cosmwasm-stargate/package.json
+++ b/packages/cosmwasm-stargate/package.json
@@ -15,6 +15,7 @@
     "*.md",
     "!*.spec.*",
     "!*testutils.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/cosmwasm-stargate/webpack.web.config.cjs b/packages/cosmwasm-stargate/webpack.web.config.cjs
index 5378a584e2..1628061f56 100644
--- a/packages/cosmwasm-stargate/webpack.web.config.cjs
+++ b/packages/cosmwasm-stargate/webpack.web.config.cjs
@@ -3,7 +3,7 @@ const path = require("path");
 const webpack = require("webpack");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -12,7 +12,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     plugins: [
diff --git a/packages/crypto/karma.conf.cjs b/packages/crypto/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/crypto/karma.conf.cjs
+++ b/packages/crypto/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/crypto/package.json b/packages/crypto/package.json
index a7e5ca17aa..20bf887369 100644
--- a/packages/crypto/package.json
+++ b/packages/crypto/package.json
@@ -15,6 +15,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/crypto/webpack.web.config.cjs b/packages/crypto/webpack.web.config.cjs
index 905426a47c..897db8708c 100644
--- a/packages/crypto/webpack.web.config.cjs
+++ b/packages/crypto/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     resolve: {
diff --git a/packages/encoding/karma.conf.cjs b/packages/encoding/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/encoding/karma.conf.cjs
+++ b/packages/encoding/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/encoding/package.json b/packages/encoding/package.json
index b56ac0b938..8169eb0b21 100644
--- a/packages/encoding/package.json
+++ b/packages/encoding/package.json
@@ -14,6 +14,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/encoding/webpack.web.config.cjs b/packages/encoding/webpack.web.config.cjs
index 13b8407815..73f95968aa 100644
--- a/packages/encoding/webpack.web.config.cjs
+++ b/packages/encoding/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     resolve: {
diff --git a/packages/faucet-client/karma.conf.cjs b/packages/faucet-client/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/faucet-client/karma.conf.cjs
+++ b/packages/faucet-client/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/faucet-client/package.json b/packages/faucet-client/package.json
index ccaab872d8..9869034845 100644
--- a/packages/faucet-client/package.json
+++ b/packages/faucet-client/package.json
@@ -14,6 +14,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/faucet-client/webpack.web.config.cjs b/packages/faucet-client/webpack.web.config.cjs
index 414894e663..b18cfd1079 100644
--- a/packages/faucet-client/webpack.web.config.cjs
+++ b/packages/faucet-client/webpack.web.config.cjs
@@ -3,7 +3,7 @@ const path = require("path");
 const webpack = require("webpack");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -12,7 +12,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     plugins: [new webpack.EnvironmentPlugin({ FAUCET_ENABLED: "" })],
diff --git a/packages/faucet/bin/cosmos-faucet-dist b/packages/faucet/bin/cosmos-faucet-dist
index 6ec8dca257..d1f34d5faf 100755
--- a/packages/faucet/bin/cosmos-faucet-dist
+++ b/packages/faucet/bin/cosmos-faucet-dist
@@ -2,5 +2,5 @@
 const path = require("path");
 
 // attempt to call in main file....
-const faucet = require(path.join(__dirname, "..", "dist", "node", "cli.js"));
+const faucet = require(path.join(__dirname, "..", "build", "cli-bundle", "cli.js"));
 faucet.main(process.argv.slice(2));
diff --git a/packages/faucet/package.json b/packages/faucet/package.json
index 8792e077b7..31dfd768b7 100644
--- a/packages/faucet/package.json
+++ b/packages/faucet/package.json
@@ -16,6 +16,8 @@
     "*.md",
     "!*.spec.*",
     "!*testutils.*",
+    "!**/cli-bundle/",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/faucet/webpack.node.config.cjs b/packages/faucet/webpack.node.config.cjs
index b8c80a73f6..e51bff4e73 100644
--- a/packages/faucet/webpack.node.config.cjs
+++ b/packages/faucet/webpack.node.config.cjs
@@ -1,15 +1,14 @@
 const path = require("path");
 
-const target = "node";
-const distdir = path.join(__dirname, "dist", target);
+const cliBundleDir = path.join(__dirname, "build", "cli-bundle");
 
 module.exports = [
   {
-    target: target,
+    target: "node",
     entry: "./build/cli.js",
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: cliBundleDir,
       filename: "cli.js",
       library: {
         type: "commonjs",
diff --git a/packages/json-rpc/karma.conf.cjs b/packages/json-rpc/karma.conf.cjs
index cfa5475418..45f9593f13 100644
--- a/packages/json-rpc/karma.conf.cjs
+++ b/packages/json-rpc/karma.conf.cjs
@@ -16,9 +16,9 @@ module.exports = function (config) {
 
     // list of files / patterns to load in the browser
     files: [
-      "dist/web/tests.js",
+      "build/karma-bundle/tests.js",
       {
-        pattern: "dist/web/dummyservice.worker.js",
+        pattern: "build/karma-bundle/dummyservice.worker.js",
         included: false,
         served: true,
         watched: false,
diff --git a/packages/json-rpc/package.json b/packages/json-rpc/package.json
index a4dc23e390..8fd774851d 100644
--- a/packages/json-rpc/package.json
+++ b/packages/json-rpc/package.json
@@ -16,6 +16,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/json-rpc/src/jsonrpcclient.spec.ts b/packages/json-rpc/src/jsonrpcclient.spec.ts
index 2e26238072..d4baad6d22 100644
--- a/packages/json-rpc/src/jsonrpcclient.spec.ts
+++ b/packages/json-rpc/src/jsonrpcclient.spec.ts
@@ -29,7 +29,7 @@ function makeSimpleMessagingConnection(
 }
 
 (typeof Worker !== "undefined" ? describe : xdescribe)("JsonRpcClient", () => {
-  const dummyserviceKarmaUrl = "/base/dist/web/dummyservice.worker.js";
+  const dummyserviceKarmaUrl = "/base/build/karma-bundle/dummyservice.worker.js";
 
   it("can be constructed with a Worker", () => {
     const worker = new Worker(dummyserviceKarmaUrl);
diff --git a/packages/json-rpc/webpack.web.config.cjs b/packages/json-rpc/webpack.web.config.cjs
index ffce4c6b08..996d7f67b4 100644
--- a/packages/json-rpc/webpack.web.config.cjs
+++ b/packages/json-rpc/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: "./build/workers/dummyservice.worker.js",
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "dummyservice.worker.js",
     },
   },
@@ -21,7 +21,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
   },
diff --git a/packages/ledger-amino/README.md b/packages/ledger-amino/README.md
index ad41645bf7..de192585ae 100644
--- a/packages/ledger-amino/README.md
+++ b/packages/ledger-amino/README.md
@@ -35,8 +35,8 @@ yarn demo-node
 Serve the project locally:
 
 ```sh
-# Build the package for web
-yarn pack-web
+# Build and bundle the demo for web
+yarn pack-demo-web
 
 # Host the `ledger-amino` package directory, for example using Python 3
 python3 -m http.server
diff --git a/packages/ledger-amino/demo/index.html b/packages/ledger-amino/demo/index.html
index d2ca617a76..88c4dca936 100644
--- a/packages/ledger-amino/demo/index.html
+++ b/packages/ledger-amino/demo/index.html
@@ -5,7 +5,7 @@
     <meta name="viewport" content="width=device-width, initial-scale=1.0" />
     <title>Ledger Demo</title>
     <link rel="stylesheet" href="index.css"></style>
-    <script src="../dist/demo/ledger.js"></script>
+    <script src="../build/demo-bundle/ledger.js"></script>
   </head>
   <body>
     <section>
diff --git a/packages/ledger-amino/package.json b/packages/ledger-amino/package.json
index 80b52c22df..05cdd7210b 100644
--- a/packages/ledger-amino/package.json
+++ b/packages/ledger-amino/package.json
@@ -15,6 +15,9 @@
     "*.md",
     "!*.spec.*",
     "!*testutils.*",
+    "!**/demo/",
+    "!**/demo-bundle/",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
@@ -35,7 +38,7 @@
     "test": "yarn build-or-skip && yarn test-node",
     "demo-node": "yarn build-or-skip && node ./demo/node.cjs",
     "coverage": "nyc --reporter=text --reporter=lcov yarn test --quiet",
-    "pack-web": "yarn build-or-skip && webpack --mode development --config webpack.demo.config.cjs"
+    "pack-demo-web": "yarn build-or-skip && webpack --mode development --config webpack.demo.config.cjs"
   },
   "dependencies": {
     "@cosmjs/amino": "workspace:^",
diff --git a/packages/ledger-amino/webpack.demo.config.cjs b/packages/ledger-amino/webpack.demo.config.cjs
index a4f523133c..7898e9b577 100644
--- a/packages/ledger-amino/webpack.demo.config.cjs
+++ b/packages/ledger-amino/webpack.demo.config.cjs
@@ -3,16 +3,16 @@ const path = require("path");
 const webpack = require("webpack");
 
 const target = "web";
-const demodir = path.join(__dirname, "dist", "demo");
+const demoBundleDir = path.join(__dirname, "build", "demo-bundle");
 
 module.exports = [
   {
     // bundle used for Ledger demo
     target: target,
-    entry: globSync("./build/demo/web.js"),
+    entry: globSync("./build/demo/web.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: demodir,
+      path: demoBundleDir,
       filename: "ledger.js",
     },
     plugins: [
diff --git a/packages/math/karma.conf.cjs b/packages/math/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/math/karma.conf.cjs
+++ b/packages/math/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/math/package.json b/packages/math/package.json
index 609f10e2e9..45aabd8cfb 100644
--- a/packages/math/package.json
+++ b/packages/math/package.json
@@ -14,6 +14,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/math/webpack.web.config.cjs b/packages/math/webpack.web.config.cjs
index 3430433607..e929707e0c 100644
--- a/packages/math/webpack.web.config.cjs
+++ b/packages/math/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
   },
diff --git a/packages/proto-signing/karma.conf.cjs b/packages/proto-signing/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/proto-signing/karma.conf.cjs
+++ b/packages/proto-signing/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/proto-signing/package.json b/packages/proto-signing/package.json
index 3f99bc3502..243ac45a85 100644
--- a/packages/proto-signing/package.json
+++ b/packages/proto-signing/package.json
@@ -16,6 +16,7 @@
     "*.md",
     "!*.spec.*",
     "!*testutils.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/proto-signing/webpack.web.config.cjs b/packages/proto-signing/webpack.web.config.cjs
index 905426a47c..897db8708c 100644
--- a/packages/proto-signing/webpack.web.config.cjs
+++ b/packages/proto-signing/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     resolve: {
diff --git a/packages/socket/karma.conf.cjs b/packages/socket/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/socket/karma.conf.cjs
+++ b/packages/socket/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/socket/package.json b/packages/socket/package.json
index e5e2ec432f..0bd1a088d3 100644
--- a/packages/socket/package.json
+++ b/packages/socket/package.json
@@ -16,6 +16,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/socket/webpack.web.config.cjs b/packages/socket/webpack.web.config.cjs
index 797dca59c6..1f9df010e7 100644
--- a/packages/socket/webpack.web.config.cjs
+++ b/packages/socket/webpack.web.config.cjs
@@ -3,7 +3,7 @@ const path = require("path");
 const webpack = require("webpack");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -12,7 +12,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     plugins: [new webpack.EnvironmentPlugin({ SOCKETSERVER_ENABLED: "" })],
diff --git a/packages/stargate/karma.conf.cjs b/packages/stargate/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/stargate/karma.conf.cjs
+++ b/packages/stargate/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/stargate/package.json b/packages/stargate/package.json
index 37e4f2db06..eef6b7cdd7 100644
--- a/packages/stargate/package.json
+++ b/packages/stargate/package.json
@@ -15,6 +15,7 @@
     "*.md",
     "!*.spec.*",
     "!*testutils.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/stargate/webpack.web.config.cjs b/packages/stargate/webpack.web.config.cjs
index 9f7f545547..640010251f 100644
--- a/packages/stargate/webpack.web.config.cjs
+++ b/packages/stargate/webpack.web.config.cjs
@@ -3,7 +3,7 @@ const path = require("path");
 const webpack = require("webpack");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -12,7 +12,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     plugins: [
diff --git a/packages/stream/karma.conf.cjs b/packages/stream/karma.conf.cjs
index cb9fe44683..38b12a77a0 100644
--- a/packages/stream/karma.conf.cjs
+++ b/packages/stream/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/stream/package.json b/packages/stream/package.json
index c90bc7a484..22796645d7 100644
--- a/packages/stream/package.json
+++ b/packages/stream/package.json
@@ -16,6 +16,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/stream/webpack.web.config.cjs b/packages/stream/webpack.web.config.cjs
index 3430433607..e929707e0c 100644
--- a/packages/stream/webpack.web.config.cjs
+++ b/packages/stream/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
   },
diff --git a/packages/tendermint-rpc/karma.conf.cjs b/packages/tendermint-rpc/karma.conf.cjs
index 40eb56af65..676f553892 100644
--- a/packages/tendermint-rpc/karma.conf.cjs
+++ b/packages/tendermint-rpc/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/tendermint-rpc/package.json b/packages/tendermint-rpc/package.json
index 826f5eeff6..715c0c420e 100644
--- a/packages/tendermint-rpc/package.json
+++ b/packages/tendermint-rpc/package.json
@@ -16,6 +16,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/tendermint-rpc/webpack.web.config.cjs b/packages/tendermint-rpc/webpack.web.config.cjs
index 723a8058f3..a5cc192b61 100644
--- a/packages/tendermint-rpc/webpack.web.config.cjs
+++ b/packages/tendermint-rpc/webpack.web.config.cjs
@@ -3,7 +3,7 @@ const path = require("path");
 const webpack = require("webpack");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -12,7 +12,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
     plugins: [
diff --git a/packages/utils/karma.conf.cjs b/packages/utils/karma.conf.cjs
index 40eb56af65..676f553892 100644
--- a/packages/utils/karma.conf.cjs
+++ b/packages/utils/karma.conf.cjs
@@ -15,7 +15,7 @@ module.exports = function (config) {
     frameworks: ["jasmine"],
 
     // list of files / patterns to load in the browser
-    files: ["dist/web/tests.js"],
+    files: ["build/karma-bundle/tests.js"],
 
     client: {
       jasmine: {
diff --git a/packages/utils/package.json b/packages/utils/package.json
index 0b4e7b58f9..e704ad7add 100644
--- a/packages/utils/package.json
+++ b/packages/utils/package.json
@@ -14,6 +14,7 @@
     "build/",
     "*.md",
     "!*.spec.*",
+    "!**/karma-bundle/",
     "!**/testdata/"
   ],
   "repository": {
diff --git a/packages/utils/webpack.web.config.cjs b/packages/utils/webpack.web.config.cjs
index 3430433607..e929707e0c 100644
--- a/packages/utils/webpack.web.config.cjs
+++ b/packages/utils/webpack.web.config.cjs
@@ -2,7 +2,7 @@ const { globSync } = require("glob");
 const path = require("path");
 
 const target = "web";
-const distdir = path.join(__dirname, "dist", "web");
+const bundleDir = path.join(__dirname, "build", "karma-bundle");
 
 module.exports = [
   {
@@ -11,7 +11,7 @@ module.exports = [
     entry: globSync("./build/**/*.spec.js", { dotRelative: true }).sort(),
     output: {
       asyncChunks: false,
-      path: distdir,
+      path: bundleDir,
       filename: "tests.js",
     },
   },