diff --git a/client/keys/utils.go b/client/keys/utils.go
index f86389a896..013aa1848b 100644
--- a/client/keys/utils.go
+++ b/client/keys/utils.go
@@ -24,8 +24,13 @@ var keybase keys.Keybase
 
 // initialize a keybase based on the configuration
 func GetKeyBase() (keys.Keybase, error) {
+	rootDir := viper.GetString(cli.HomeFlag)
+	return GetKeyBaseFromDir(rootDir)
+}
+
+// initialize a keybase based on the configuration
+func GetKeyBaseFromDir(rootDir string) (keys.Keybase, error) {
 	if keybase == nil {
-		rootDir := viper.GetString(cli.HomeFlag)
 		db, err := dbm.NewGoLevelDB(KeyDBName, filepath.Join(rootDir, "keys"))
 		if err != nil {
 			return nil, err
diff --git a/cmd/gaia/app/app.go b/cmd/gaia/app/app.go
index eb63c6f1a0..9ece80ea7f 100644
--- a/cmd/gaia/app/app.go
+++ b/cmd/gaia/app/app.go
@@ -1,20 +1,14 @@
 package app
 
 import (
-	"encoding/json"
-	"errors"
+	"os"
 
-	"github.com/spf13/pflag"
-	"github.com/spf13/viper"
 	abci "github.com/tendermint/abci/types"
-	crypto "github.com/tendermint/go-crypto"
-	tmtypes "github.com/tendermint/tendermint/types"
 	cmn "github.com/tendermint/tmlibs/common"
 	dbm "github.com/tendermint/tmlibs/db"
 	"github.com/tendermint/tmlibs/log"
 
 	bam "github.com/cosmos/cosmos-sdk/baseapp"
-	"github.com/cosmos/cosmos-sdk/server"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/wire"
 	"github.com/cosmos/cosmos-sdk/x/auth"
@@ -27,6 +21,12 @@ const (
 	appName = "GaiaApp"
 )
 
+// default home directories for expected binaries
+var (
+	DefaultCLIHome  = os.ExpandEnv("$HOME/.gaiacli")
+	DefaultNodeHome = os.ExpandEnv("$HOME/.gaiad")
+)
+
 // Extended ABCI application
 type GaiaApp struct {
 	*bam.BaseApp
@@ -153,154 +153,3 @@ func (app *GaiaApp) initChainer(ctx sdk.Context, req abci.RequestInitChain) abci
 
 	return abci.ResponseInitChain{}
 }
-
-//________________________________________________________________________________________
-
-// State to Unmarshal
-type GenesisState struct {
-	Accounts  []GenesisAccount   `json:"accounts"`
-	StakeData stake.GenesisState `json:"stake"`
-}
-
-// GenesisAccount doesn't need pubkey or sequence
-type GenesisAccount struct {
-	Address sdk.Address `json:"address"`
-	Coins   sdk.Coins   `json:"coins"`
-}
-
-func NewGenesisAccount(acc *auth.BaseAccount) GenesisAccount {
-	return GenesisAccount{
-		Address: acc.Address,
-		Coins:   acc.Coins,
-	}
-}
-
-// convert GenesisAccount to auth.BaseAccount
-func (ga *GenesisAccount) ToAccount() (acc *auth.BaseAccount) {
-	return &auth.BaseAccount{
-		Address: ga.Address,
-		Coins:   ga.Coins.Sort(),
-	}
-}
-
-var (
-	flagName = "name"
-	//flagOWK      = "overwrite-keys"
-)
-
-// get app init parameters for server init command
-func GaiaAppInit() server.AppInit {
-	fsAppGenState := pflag.NewFlagSet("", pflag.ContinueOnError)
-	//fsAppGenState.BoolP(flagOWK, "k", false, "overwrite the for the accounts created, if false and key exists init will fail")
-
-	fsAppGenTx := pflag.NewFlagSet("", pflag.ContinueOnError)
-	fsAppGenTx.String(flagName, "", "validator moniker, if left blank, do not add validator")
-
-	return server.AppInit{
-		FlagsAppGenState: fsAppGenState,
-		FlagsAppGenTx:    fsAppGenTx,
-		AppGenState:      GaiaAppGenState,
-		AppGenTx:         GaiaAppGenTx,
-	}
-}
-
-// simple genesis tx
-type GaiaGenTx struct {
-	Name    string        `json:"name"`
-	Address sdk.Address   `json:"address"`
-	PubKey  crypto.PubKey `json:"pub_key"`
-}
-
-// power given to validators in gaia init functions
-var FreePower = int64(100)
-
-// Create the core parameters for genesis initialization for gaia
-// note that the pubkey input is this machines pubkey
-func GaiaAppGenState(cdc *wire.Codec, appGenTxs []json.RawMessage) (appState json.RawMessage, err error) {
-
-	if len(appGenTxs) == 0 {
-		err = errors.New("must provide at least genesis transaction")
-		return
-	}
-
-	// start with the default staking genesis state
-	stakeData := stake.GetDefaultGenesisState()
-
-	// get genesis flag account information
-	genaccs := make([]GenesisAccount, len(appGenTxs))
-	for i, appGenTx := range appGenTxs {
-
-		var genTx GaiaGenTx
-		err = cdc.UnmarshalJSON(appGenTx, &genTx)
-		if err != nil {
-			return
-		}
-
-		// create the genesis account, give'm few fermions and a buncha token with there name
-		accAuth := auth.NewBaseAccountWithAddress(genTx.Address)
-		accAuth.Coins = sdk.Coins{
-			{genTx.Name + "Token", 1000},
-			{"fermion", 50},
-		}
-		acc := NewGenesisAccount(&accAuth)
-		genaccs[i] = acc
-
-		// add the validator
-		if len(genTx.Name) > 0 {
-			desc := stake.NewDescription(genTx.Name, "", "", "")
-			candidate := stake.NewCandidate(genTx.Address, genTx.PubKey, desc)
-			candidate.Assets = sdk.NewRat(FreePower)
-			stakeData.Candidates = append(stakeData.Candidates, candidate)
-
-			// pool logic
-			stakeData.Pool.TotalSupply += FreePower
-			stakeData.Pool.BondedPool += FreePower
-			stakeData.Pool.BondedShares = sdk.NewRat(stakeData.Pool.BondedPool)
-		}
-	}
-
-	// create the final app state
-	genesisState := GenesisState{
-		Accounts:  genaccs,
-		StakeData: stakeData,
-	}
-	appState, err = wire.MarshalJSONIndent(cdc, genesisState)
-	return
-}
-
-// Generate a gaia genesis transaction
-func GaiaAppGenTx(cdc *wire.Codec, pk crypto.PubKey) (
-	appGenTx, cliPrint json.RawMessage, validator tmtypes.GenesisValidator, err error) {
-
-	var addr sdk.Address
-	var secret string
-	addr, secret, err = server.GenerateCoinKey()
-	if err != nil {
-		return
-	}
-
-	var bz []byte
-	gaiaGenTx := GaiaGenTx{
-		Name:    viper.GetString(flagName),
-		Address: addr,
-		PubKey:  pk,
-	}
-	bz, err = wire.MarshalJSONIndent(cdc, gaiaGenTx)
-	if err != nil {
-		return
-	}
-	appGenTx = json.RawMessage(bz)
-
-	mm := map[string]string{"secret": secret}
-	bz, err = cdc.MarshalJSON(mm)
-	if err != nil {
-		return
-	}
-	cliPrint = json.RawMessage(bz)
-
-	validator = tmtypes.GenesisValidator{
-		PubKey: pk,
-		Power:  FreePower,
-	}
-	return
-}
diff --git a/cmd/gaia/app/genesis.go b/cmd/gaia/app/genesis.go
new file mode 100644
index 0000000000..66fd1f98d9
--- /dev/null
+++ b/cmd/gaia/app/genesis.go
@@ -0,0 +1,175 @@
+package app
+
+import (
+	"encoding/json"
+	"errors"
+
+	"github.com/spf13/pflag"
+	"github.com/spf13/viper"
+	crypto "github.com/tendermint/go-crypto"
+	tmtypes "github.com/tendermint/tendermint/types"
+
+	"github.com/cosmos/cosmos-sdk/server"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/wire"
+	"github.com/cosmos/cosmos-sdk/x/auth"
+	"github.com/cosmos/cosmos-sdk/x/stake"
+)
+
+// State to Unmarshal
+type GenesisState struct {
+	Accounts  []GenesisAccount   `json:"accounts"`
+	StakeData stake.GenesisState `json:"stake"`
+}
+
+// GenesisAccount doesn't need pubkey or sequence
+type GenesisAccount struct {
+	Address sdk.Address `json:"address"`
+	Coins   sdk.Coins   `json:"coins"`
+}
+
+func NewGenesisAccount(acc *auth.BaseAccount) GenesisAccount {
+	return GenesisAccount{
+		Address: acc.Address,
+		Coins:   acc.Coins,
+	}
+}
+
+// convert GenesisAccount to auth.BaseAccount
+func (ga *GenesisAccount) ToAccount() (acc *auth.BaseAccount) {
+	return &auth.BaseAccount{
+		Address: ga.Address,
+		Coins:   ga.Coins.Sort(),
+	}
+}
+
+var (
+	flagName       = "name"
+	flagClientHome = "home-client"
+	flagOWK        = "owk"
+
+	// bonded tokens given to genesis validators/accounts
+	freeFermionVal  = int64(100)
+	freeFermionsAcc = int64(50)
+)
+
+// get app init parameters for server init command
+func GaiaAppInit() server.AppInit {
+	fsAppGenState := pflag.NewFlagSet("", pflag.ContinueOnError)
+
+	fsAppGenTx := pflag.NewFlagSet("", pflag.ContinueOnError)
+	fsAppGenTx.String(flagName, "", "validator moniker, if left blank, do not add validator")
+	fsAppGenTx.String(flagClientHome, DefaultCLIHome, "home directory for the client, used for key generation")
+	fsAppGenTx.Bool(flagOWK, false, "overwrite the for the accounts created")
+
+	return server.AppInit{
+		FlagsAppGenState: fsAppGenState,
+		FlagsAppGenTx:    fsAppGenTx,
+		AppGenState:      GaiaAppGenState,
+		AppGenTx:         GaiaAppGenTx,
+	}
+}
+
+// simple genesis tx
+type GaiaGenTx struct {
+	Name    string        `json:"name"`
+	Address sdk.Address   `json:"address"`
+	PubKey  crypto.PubKey `json:"pub_key"`
+}
+
+// power given to validators in gaia init functions
+
+// Create the core parameters for genesis initialization for gaia
+// note that the pubkey input is this machines pubkey
+func GaiaAppGenState(cdc *wire.Codec, appGenTxs []json.RawMessage) (appState json.RawMessage, err error) {
+
+	if len(appGenTxs) == 0 {
+		err = errors.New("must provide at least genesis transaction")
+		return
+	}
+
+	// start with the default staking genesis state
+	stakeData := stake.GetDefaultGenesisState()
+
+	// get genesis flag account information
+	genaccs := make([]GenesisAccount, len(appGenTxs))
+	for i, appGenTx := range appGenTxs {
+
+		var genTx GaiaGenTx
+		err = cdc.UnmarshalJSON(appGenTx, &genTx)
+		if err != nil {
+			return
+		}
+
+		// create the genesis account, give'm few fermions and a buncha token with there name
+		accAuth := auth.NewBaseAccountWithAddress(genTx.Address)
+		accAuth.Coins = sdk.Coins{
+			{genTx.Name + "Token", 1000},
+			{"fermion", freeFermionsAcc},
+		}
+		acc := NewGenesisAccount(&accAuth)
+		genaccs[i] = acc
+		stakeData.Pool.TotalSupply += freeFermionsAcc // increase the supply
+
+		// add the validator
+		if len(genTx.Name) > 0 {
+			desc := stake.NewDescription(genTx.Name, "", "", "")
+			candidate := stake.NewCandidate(genTx.Address, genTx.PubKey, desc)
+			candidate.Assets = sdk.NewRat(freeFermionVal)
+			stakeData.Candidates = append(stakeData.Candidates, candidate)
+
+			// pool logic
+			stakeData.Pool.TotalSupply += freeFermionVal
+			stakeData.Pool.BondedPool += freeFermionVal
+			stakeData.Pool.BondedShares = sdk.NewRat(stakeData.Pool.BondedPool)
+		}
+	}
+
+	// create the final app state
+	genesisState := GenesisState{
+		Accounts:  genaccs,
+		StakeData: stakeData,
+	}
+	appState, err = wire.MarshalJSONIndent(cdc, genesisState)
+	return
+}
+
+// Generate a gaia genesis transaction
+func GaiaAppGenTx(cdc *wire.Codec, pk crypto.PubKey) (
+	appGenTx, cliPrint json.RawMessage, validator tmtypes.GenesisValidator, err error) {
+
+	var addr sdk.Address
+	var secret string
+	clientRoot := viper.GetString(flagClientHome)
+	overwrite := viper.GetBool(flagOWK)
+	name := viper.GetString(flagName)
+	addr, secret, err = server.GenerateSaveCoinKey(clientRoot, name, "1234567890", overwrite)
+	if err != nil {
+		return
+	}
+
+	var bz []byte
+	gaiaGenTx := GaiaGenTx{
+		Name:    name,
+		Address: addr,
+		PubKey:  pk,
+	}
+	bz, err = wire.MarshalJSONIndent(cdc, gaiaGenTx)
+	if err != nil {
+		return
+	}
+	appGenTx = json.RawMessage(bz)
+
+	mm := map[string]string{"secret": secret}
+	bz, err = cdc.MarshalJSON(mm)
+	if err != nil {
+		return
+	}
+	cliPrint = json.RawMessage(bz)
+
+	validator = tmtypes.GenesisValidator{
+		PubKey: pk,
+		Power:  freeFermionVal,
+	}
+	return
+}
diff --git a/cmd/gaia/cli_test/cli_test.go b/cmd/gaia/cli_test/cli_test.go
index 00d94861d1..01f2e15631 100644
--- a/cmd/gaia/cli_test/cli_test.go
+++ b/cmd/gaia/cli_test/cli_test.go
@@ -24,7 +24,8 @@ func TestGaiaCLISend(t *testing.T) {
 	pass := "1234567890"
 	executeWrite(t, "gaiacli keys delete foo", pass)
 	executeWrite(t, "gaiacli keys delete bar", pass)
-	key, chainID := executeInit(t, "gaiad init -o --name=foo")
+	chainID := executeInit(t, "gaiad init -o --name=foo")
+	executeWrite(t, "gaiacli keys add bar", pass)
 
 	// get a free port, also setup some common flags
 	servAddr := server.FreeTCPAddr(t)
@@ -34,9 +35,6 @@ func TestGaiaCLISend(t *testing.T) {
 	cmd, _, _ := tests.GoExecuteT(t, fmt.Sprintf("gaiad start --rpc.laddr=%v", servAddr))
 	defer cmd.Process.Kill()
 
-	executeWrite(t, "gaiacli keys add foo --recover", pass, key)
-	executeWrite(t, "gaiacli keys add bar", pass)
-
 	fooAddr, _ := executeGetAddrPK(t, "gaiacli keys show foo --output=json")
 	barAddr, _ := executeGetAddrPK(t, "gaiacli keys show bar --output=json")
 
@@ -58,7 +56,8 @@ func TestGaiaCLIDeclareCandidacy(t *testing.T) {
 	pass := "1234567890"
 	executeWrite(t, "gaiacli keys delete foo", pass)
 	executeWrite(t, "gaiacli keys delete bar", pass)
-	key, chainID := executeInit(t, "gaiad init -o --name=foo")
+	chainID := executeInit(t, "gaiad init -o --name=foo")
+	executeWrite(t, "gaiacli keys add bar", pass)
 
 	// get a free port, also setup some common flags
 	servAddr := server.FreeTCPAddr(t)
@@ -68,8 +67,6 @@ func TestGaiaCLIDeclareCandidacy(t *testing.T) {
 	cmd, _, _ := tests.GoExecuteT(t, fmt.Sprintf("gaiad start --rpc.laddr=%v", servAddr))
 	defer cmd.Process.Kill()
 
-	executeWrite(t, "gaiacli keys add foo --recover", pass, key)
-	executeWrite(t, "gaiacli keys add bar", pass)
 	fooAddr, _ := executeGetAddrPK(t, "gaiacli keys show foo --output=json")
 	barAddr, barPubKey := executeGetAddrPK(t, "gaiacli keys show bar --output=json")
 
@@ -140,7 +137,7 @@ func executeWritePrint(t *testing.T, cmdStr string, writes ...string) {
 	fmt.Printf("debug read: %v\n", string(bz))
 }
 
-func executeInit(t *testing.T, cmdStr string) (key, chainID string) {
+func executeInit(t *testing.T, cmdStr string) (chainID string) {
 	out := tests.ExecuteT(t, cmdStr)
 
 	var initRes map[string]json.RawMessage
@@ -150,13 +147,6 @@ func executeInit(t *testing.T, cmdStr string) (key, chainID string) {
 	err = json.Unmarshal(initRes["chain_id"], &chainID)
 	require.NoError(t, err)
 
-	var appMessageRes map[string]json.RawMessage
-	err = json.Unmarshal(initRes["app_message"], &appMessageRes)
-	require.NoError(t, err)
-
-	err = json.Unmarshal(appMessageRes["secret"], &key)
-	require.NoError(t, err)
-
 	return
 }
 
diff --git a/cmd/gaia/cmd/gaiacli/main.go b/cmd/gaia/cmd/gaiacli/main.go
index 8efb9f4dd8..ab0a98c695 100644
--- a/cmd/gaia/cmd/gaiacli/main.go
+++ b/cmd/gaia/cmd/gaiacli/main.go
@@ -1,8 +1,6 @@
 package main
 
 import (
-	"os"
-
 	"github.com/spf13/cobra"
 
 	"github.com/tendermint/tmlibs/cli"
@@ -73,6 +71,6 @@ func main() {
 	)
 
 	// prepare and add flags
-	executor := cli.PrepareMainCmd(rootCmd, "GA", os.ExpandEnv("$HOME/.gaiacli"))
+	executor := cli.PrepareMainCmd(rootCmd, "GA", app.DefaultCLIHome)
 	executor.Execute()
 }
diff --git a/cmd/gaia/cmd/gaiad/main.go b/cmd/gaia/cmd/gaiad/main.go
index 565cf5ac26..0417671a2f 100644
--- a/cmd/gaia/cmd/gaiad/main.go
+++ b/cmd/gaia/cmd/gaiad/main.go
@@ -1,7 +1,6 @@
 package main
 
 import (
-	"os"
 	"path/filepath"
 
 	"github.com/spf13/cobra"
@@ -27,8 +26,7 @@ func main() {
 	server.AddCommands(ctx, cdc, rootCmd, app.GaiaAppInit(), generateApp)
 
 	// prepare and add flags
-	rootDir := os.ExpandEnv("$HOME/.gaiad")
-	executor := cli.PrepareBaseCmd(rootCmd, "GA", rootDir)
+	executor := cli.PrepareBaseCmd(rootCmd, "GA", app.DefaultNodeHome)
 	executor.Execute()
 }
 
diff --git a/server/init.go b/server/init.go
index 98b724caf5..d23d78b818 100644
--- a/server/init.go
+++ b/server/init.go
@@ -8,8 +8,6 @@ import (
 	"path"
 	"path/filepath"
 
-	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/cosmos/cosmos-sdk/wire"
 	"github.com/pkg/errors"
 	"github.com/spf13/cobra"
 	"github.com/spf13/pflag"
@@ -22,8 +20,13 @@ import (
 	"github.com/tendermint/tendermint/p2p"
 	tmtypes "github.com/tendermint/tendermint/types"
 	pvm "github.com/tendermint/tendermint/types/priv_validator"
+	tmcli "github.com/tendermint/tmlibs/cli"
 	cmn "github.com/tendermint/tmlibs/common"
 	dbm "github.com/tendermint/tmlibs/db"
+
+	clkeys "github.com/cosmos/cosmos-sdk/client/keys"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/wire"
 )
 
 // genesis piece structure for creating combined genesis
@@ -82,7 +85,7 @@ func GenTxCmd(ctx *Context, cdc *wire.Codec, appInit AppInit) *cobra.Command {
 			}
 			genTxFile := json.RawMessage(bz)
 			name := fmt.Sprintf("gentx-%v.json", nodeID)
-			file := filepath.Join(viper.GetString("home"), name)
+			file := filepath.Join(viper.GetString(tmcli.HomeFlag), name)
 			err = cmn.WriteFile(file, bz, 0644)
 			if err != nil {
 				return err
@@ -148,7 +151,7 @@ func InitCmd(ctx *Context, cdc *wire.Codec, appInit AppInit) *cobra.Command {
 					return err
 				}
 				config.P2P.PersistentPeers = persistentPeers
-				configFilePath := filepath.Join(viper.GetString("home"), "config", "config.toml") //TODO this is annoying should be easier to get
+				configFilePath := filepath.Join(viper.GetString(tmcli.HomeFlag), "config", "config.toml") //TODO this is annoying should be easier to get
 				cfg.WriteConfigFile(configFilePath, config)
 			} else {
 				appGenTx, am, validator, err := appInit.AppGenTx(cdc, pubKey)
@@ -165,7 +168,7 @@ func InitCmd(ctx *Context, cdc *wire.Codec, appInit AppInit) *cobra.Command {
 				return err
 			}
 
-			err = WriteGenesisFile(cdc, genFile, chainID, validators, appState)
+			err = writeGenesisFile(cdc, genFile, chainID, validators, appState)
 			if err != nil {
 				return err
 			}
@@ -258,7 +261,7 @@ func ReadOrCreatePrivValidator(tmConfig *cfg.Config) crypto.PubKey {
 }
 
 // create the genesis file
-func WriteGenesisFile(cdc *wire.Codec, genesisFile, chainID string, validators []tmtypes.GenesisValidator, appState json.RawMessage) error {
+func writeGenesisFile(cdc *wire.Codec, genesisFile, chainID string, validators []tmtypes.GenesisValidator, appState json.RawMessage) error {
 	genDoc := tmtypes.GenesisDoc{
 		ChainID:    chainID,
 		Validators: validators,
@@ -399,3 +402,30 @@ func GenerateCoinKey() (sdk.Address, string, error) {
 	addr := info.PubKey.Address()
 	return addr, secret, nil
 }
+
+// GenerateSaveCoinKey returns the address of a public key, along with the secret
+// phrase to recover the private key.
+func GenerateSaveCoinKey(clientRoot, keyName, keyPass string, overwrite bool) (sdk.Address, string, error) {
+
+	// get the keystore from the client
+	keybase, err := clkeys.GetKeyBaseFromDir(clientRoot)
+	if err != nil {
+		return nil, "", err
+	}
+
+	// ensure no overwrite
+	if !overwrite {
+		_, err := keybase.Get(keyName)
+		if err == nil {
+			return nil, "", errors.New("key already exists, overwrite is disabled")
+		}
+	}
+
+	// generate a private key, with recovery phrase
+	info, secret, err := keybase.Create(keyName, keyPass, keys.AlgoEd25519)
+	if err != nil {
+		return nil, "", err
+	}
+	addr := info.PubKey.Address()
+	return addr, secret, nil
+}
diff --git a/server/tm_cmds.go b/server/tm_cmds.go
index a876d1bcd3..d581ca5f76 100644
--- a/server/tm_cmds.go
+++ b/server/tm_cmds.go
@@ -36,7 +36,7 @@ func ShowValidatorCmd(ctx *Context) *cobra.Command {
 	flagJSON := "json"
 	cmd := cobra.Command{
 		Use:   "show_validator",
-		Short: "Show this node's validator info",
+		Short: "Show this node's tendermint validator info",
 		RunE: func(cmd *cobra.Command, args []string) error {
 
 			cfg := ctx.Config
@@ -67,7 +67,7 @@ func ShowValidatorCmd(ctx *Context) *cobra.Command {
 func UnsafeResetAllCmd(ctx *Context) *cobra.Command {
 	return &cobra.Command{
 		Use:   "unsafe_reset_all",
-		Short: "Reset all blockchain data",
+		Short: "Reset blockchain database, priv_validator.json file, and the logger",
 		RunE: func(cmd *cobra.Command, args []string) error {
 			cfg := ctx.Config
 			tcmd.ResetAll(cfg.DBDir(), cfg.PrivValidatorFile(), ctx.Logger)