diff --git a/app/scripts/background.js b/app/scripts/background.js
index 7782fc41e..3ad0a7863 100644
--- a/app/scripts/background.js
+++ b/app/scripts/background.js
@@ -22,7 +22,7 @@ const EdgeEncryptor = require('./edge-encryptor')
 const getFirstPreferredLangCode = require('./lib/get-first-preferred-lang-code')
 
 const STORAGE_KEY = 'metamask-config'
-const METAMASK_DEBUG = 'GULP_METAMASK_DEBUG'
+const METAMASK_DEBUG = process.env.METAMASK_DEBUG
 
 window.log = log
 log.setDefaultLevel(METAMASK_DEBUG ? 'debug' : 'warn')
@@ -94,7 +94,7 @@ function setupController (initState, initLangCode) {
   //
   // MetaMask Controller
   //
-  
+
   const controller = new MetamaskController({
     // User confirmation callbacks:
     showUnconfirmedMessage: triggerUi,
diff --git a/app/scripts/config.js b/app/scripts/config.js
index 74c5b576e..a8470ed82 100644
--- a/app/scripts/config.js
+++ b/app/scripts/config.js
@@ -13,7 +13,7 @@ const DEFAULT_RPC = 'rinkeby'
 const OLD_UI_NETWORK_TYPE = 'network'
 const BETA_UI_NETWORK_TYPE = 'networkBeta'
 
-global.METAMASK_DEBUG = 'GULP_METAMASK_DEBUG'
+global.METAMASK_DEBUG = process.env.METAMASK_DEBUG
 
 module.exports = {
   network: {
diff --git a/app/scripts/first-time-state.js b/app/scripts/first-time-state.js
index 5e8577100..3063df627 100644
--- a/app/scripts/first-time-state.js
+++ b/app/scripts/first-time-state.js
@@ -1,6 +1,6 @@
 // test and development environment variables
 const env = process.env.METAMASK_ENV
-const METAMASK_DEBUG = 'GULP_METAMASK_DEBUG'
+const METAMASK_DEBUG = process.env.METAMASK_DEBUG
 
 //
 // The default state of MetaMask
diff --git a/app/scripts/inpage.js b/app/scripts/inpage.js
index 9261e7d64..ec99bfc35 100644
--- a/app/scripts/inpage.js
+++ b/app/scripts/inpage.js
@@ -9,7 +9,7 @@ const setupDappAutoReload = require('./lib/auto-reload.js')
 const MetamaskInpageProvider = require('./lib/inpage-provider.js')
 restoreContextAfterImports()
 
-const METAMASK_DEBUG = 'GULP_METAMASK_DEBUG'
+const METAMASK_DEBUG = process.env.METAMASK_DEBUG
 window.log = log
 log.setDefaultLevel(METAMASK_DEBUG ? 'debug' : 'warn')
 
diff --git a/app/scripts/lib/setupRaven.js b/app/scripts/lib/setupRaven.js
index b93591e65..9ec9a256f 100644
--- a/app/scripts/lib/setupRaven.js
+++ b/app/scripts/lib/setupRaven.js
@@ -1,5 +1,5 @@
 const Raven = require('raven-js')
-const METAMASK_DEBUG = 'GULP_METAMASK_DEBUG'
+const METAMASK_DEBUG = process.env.METAMASK_DEBUG
 const extractEthjsErrorMessage = require('./extractEthjsErrorMessage')
 const PROD = 'https://3567c198f8a8412082d32655da2961d0@sentry.io/273505'
 const DEV = 'https://f59f3dd640d2429d9d0e2445a87ea8e1@sentry.io/273496'
diff --git a/gulpfile.js b/gulpfile.js
index b71ce0703..4f0da9d60 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -1,5 +1,6 @@
 const watchify = require('watchify')
 const browserify = require('browserify')
+const envify = require('envify/custom')
 const disc = require('disc')
 const gulp = require('gulp')
 const source = require('vinyl-source-stream')
@@ -377,12 +378,6 @@ gulp.task('zip:edge', zipTask('edge'))
 gulp.task('zip:opera', zipTask('opera'))
 gulp.task('zip', gulp.parallel('zip:chrome', 'zip:firefox', 'zip:edge', 'zip:opera'))
 
-// set env for production
-gulp.task('apply-prod-environment', function(done) {
-  process.env.NODE_ENV = 'production'
-  done()
-});
-
 // high level tasks
 
 gulp.task('dev',
@@ -458,7 +453,6 @@ gulp.task('build:mascara',
 
 gulp.task('dist',
   gulp.series(
-    'apply-prod-environment',
     'build',
     'zip'
   )
@@ -484,6 +478,12 @@ function generateBundler(opts, performBundle) {
 
   let bundler = browserify(browserifyOpts)
 
+  // inject variables into bundle
+  bundler.transform(envify({
+    METAMASK_DEBUG: opts.devMode,
+    NODE_ENV: opts.devMode ? 'development' : 'production',
+  }))
+
   // Minification
   if (opts.minifyBuild) {
     bundler.transform('uglifyify', {
@@ -557,8 +557,6 @@ function bundleTask(opts) {
     buildStream = buildStream
       // convert bundle stream to gulp vinyl stream
       .pipe(source(opts.filename))
-      // inject variables into bundle
-      .pipe(replace('\'GULP_METAMASK_DEBUG\'', opts.devMode))
       // buffer file contents (?)
       .pipe(buffer())
 
diff --git a/package.json b/package.json
index fa91c69e4..1227b82b7 100644
--- a/package.json
+++ b/package.json
@@ -5,7 +5,7 @@
   "private": true,
   "scripts": {
     "start": "gulp dev:extension",
-    "mascara": "gulp dev:mascara & cross-env METAMASK_DEBUG=true node ./mascara/example/server",
+    "mascara": "gulp dev:mascara & node ./mascara/example/server",
     "dist": "gulp dist",
     "test": "npm run test:unit && npm run test:integration && npm run lint",
     "test:unit": "cross-env METAMASK_ENV=test mocha --exit --require babel-core/register --require test/helper.js --recursive \"test/unit/**/*.js\"",
@@ -61,7 +61,6 @@
         }
       ],
       "reactify",
-      "envify",
       "brfs"
     ]
   },
diff --git a/ui/app/store.js b/ui/app/store.js
index 3bafdee11..feebbabc0 100644
--- a/ui/app/store.js
+++ b/ui/app/store.js
@@ -4,7 +4,7 @@ const thunkMiddleware = require('redux-thunk').default
 const rootReducer = require('./reducers')
 const createLogger = require('redux-logger').createLogger
 
-global.METAMASK_DEBUG = 'GULP_METAMASK_DEBUG'
+global.METAMASK_DEBUG = process.env.METAMASK_DEBUG
 
 module.exports = configureStore