diff --git a/contracts/gateway/L1GraphTokenGateway.sol b/contracts/gateway/L1GraphTokenGateway.sol
index 06c4b7ea7..3c81080ae 100644
--- a/contracts/gateway/L1GraphTokenGateway.sol
+++ b/contracts/gateway/L1GraphTokenGateway.sol
@@ -316,8 +316,6 @@ contract L1GraphTokenGateway is Initializable, GraphTokenGateway, L1ArbitrumMess
         uint256 _amount,
         bytes memory _data
     ) public pure returns (bytes memory) {
-        bytes memory emptyBytes;
-
         return
             abi.encodeWithSelector(
                 ITokenGateway.finalizeInboundTransfer.selector,
@@ -325,7 +323,7 @@ contract L1GraphTokenGateway is Initializable, GraphTokenGateway, L1ArbitrumMess
                 _from,
                 _to,
                 _amount,
-                abi.encode(emptyBytes, _data)
+                _data
             );
     }
 
diff --git a/contracts/l2/gateway/L2GraphTokenGateway.sol b/contracts/l2/gateway/L2GraphTokenGateway.sol
index ca9c62bca..7af102fb4 100644
--- a/contracts/l2/gateway/L2GraphTokenGateway.sol
+++ b/contracts/l2/gateway/L2GraphTokenGateway.sol
@@ -171,11 +171,7 @@ contract L2GraphTokenGateway is GraphTokenGateway, L2ArbitrumMessenger, Reentran
         L2GraphToken(calculateL2TokenAddress(l1GRT)).bridgeMint(_to, _amount);
 
         if (_data.length > 0) {
-            bytes memory callhookData;
-            {
-                (, callhookData) = abi.decode(_data, (bytes, bytes));
-            }
-            ICallhookReceiver(_to).onTokenTransfer(_from, _amount, callhookData);
+            ICallhookReceiver(_to).onTokenTransfer(_from, _amount, _data);
         }
 
         emit DepositFinalized(_l1Token, _from, _to, _amount);
diff --git a/test/gateway/l1GraphTokenGateway.test.ts b/test/gateway/l1GraphTokenGateway.test.ts
index 2542832ab..b619e7a42 100644
--- a/test/gateway/l1GraphTokenGateway.test.ts
+++ b/test/gateway/l1GraphTokenGateway.test.ts
@@ -339,13 +339,7 @@ describe('L1GraphTokenGateway', () => {
       const selector = l1GraphTokenGateway.interface.getSighash('finalizeInboundTransfer')
       const params = utils.defaultAbiCoder.encode(
         ['address', 'address', 'address', 'uint256', 'bytes'],
-        [
-          grt.address,
-          tokenSender.address,
-          l2Receiver.address,
-          toGRT('10'),
-          utils.defaultAbiCoder.encode(['bytes', 'bytes'], [emptyCallHookData, callHookData]),
-        ],
+        [grt.address, tokenSender.address, l2Receiver.address, toGRT('10'), callHookData],
       )
       const outboundData = utils.hexlify(utils.concat([selector, params]))
 
diff --git a/test/l2/l2GraphTokenGateway.test.ts b/test/l2/l2GraphTokenGateway.test.ts
index f85ea7dfb..236817afd 100644
--- a/test/l2/l2GraphTokenGateway.test.ts
+++ b/test/l2/l2GraphTokenGateway.test.ts
@@ -39,14 +39,10 @@ describe('L2GraphTokenGateway', () => {
 
   const senderTokens = toGRT('1000')
   const defaultData = '0x'
-  const notEmptyCallHookData = utils.defaultAbiCoder.encode(
+  const defaultDataWithNotEmptyCallHookData = utils.defaultAbiCoder.encode(
     ['uint256', 'uint256'],
     [toBN('1337'), toBN('42')],
   )
-  const defaultDataWithNotEmptyCallHookData = utils.defaultAbiCoder.encode(
-    ['bytes', 'bytes'],
-    ['0x', notEmptyCallHookData],
-  )
 
   before(async function () {
     ;[
@@ -419,7 +415,6 @@ describe('L2GraphTokenGateway', () => {
           ['uint256', 'uint256'],
           [toBN('0'), toBN('42')],
         )
-        const data = utils.defaultAbiCoder.encode(['bytes', 'bytes'], ['0x', callHookData])
         const mockL1GatewayL2Alias = await getL2SignerFromL1(mockL1Gateway.address)
         await me.signer.sendTransaction({
           to: await mockL1GatewayL2Alias.getAddress(),
@@ -432,13 +427,12 @@ describe('L2GraphTokenGateway', () => {
             tokenSender.address,
             callhookReceiverMock.address,
             toGRT('10'),
-            data,
+            callHookData,
           )
         await expect(tx).revertedWith('FOO_IS_ZERO')
       })
       it('reverts if trying to call a callhook in a contract that does not implement onTokenTransfer', async function () {
         const callHookData = utils.defaultAbiCoder.encode(['uint256'], [toBN('0')])
-        const data = utils.defaultAbiCoder.encode(['bytes', 'bytes'], ['0x', callHookData])
         const mockL1GatewayL2Alias = await getL2SignerFromL1(mockL1Gateway.address)
         await me.signer.sendTransaction({
           to: await mockL1GatewayL2Alias.getAddress(),
@@ -452,7 +446,7 @@ describe('L2GraphTokenGateway', () => {
             tokenSender.address,
             rewardsManager.address,
             toGRT('10'),
-            data,
+            callHookData,
           )
         await expect(tx).revertedWith(
           "function selector was not recognized and there's no fallback function",