diff --git a/Gopkg.lock b/Gopkg.lock
index 68350442d84d..bf9fa4149c6c 100644
--- a/Gopkg.lock
+++ b/Gopkg.lock
@@ -10,6 +10,7 @@
   revision = "48b08affede2cea076a3cf13b2e3f72ed262b743"
 
 [[projects]]
+  branch = "master"
   digest = "1:09a7f74eb6bb3c0f14d8926610c87f569c5cff68e978d30e9a3540aeb626fdf0"
   name = "github.com/bartekn/go-bip39"
   packages = ["."]
@@ -38,7 +39,7 @@
   name = "github.com/btcsuite/btcd"
   packages = ["btcec"]
   pruneopts = "UT"
-  revision = "2a560b2036bee5e3679ec2133eb6520b2f195213"
+  revision = "67e573d211ace594f1366b4ce9d39726c4b19bd0"
 
 [[projects]]
   digest = "1:386de157f7d19259a7f9c81f26ce011223ce0f090353c1152ffdf730d7d10ac2"
@@ -62,13 +63,6 @@
   revision = "346938d642f2ec3594ed81d874461961cd0faa76"
   version = "v1.1.0"
 
-[[projects]]
-  digest = "1:c7644c73a3d23741fdba8a99b1464e021a224b7e205be497271a8003a15ca41b"
-  name = "github.com/ebuchman/fail-test"
-  packages = ["."]
-  pruneopts = "UT"
-  revision = "95f809107225be108efcf10a3509e4ea6ceef3c4"
-
 [[projects]]
   digest = "1:abeb38ade3f32a92943e5be54f55ed6d6e3b6602761d74b4aab4c9dd45c18abd"
   name = "github.com/fsnotify/fsnotify"
@@ -171,12 +165,13 @@
   version = "v1.2.0"
 
 [[projects]]
-  digest = "1:ea40c24cdbacd054a6ae9de03e62c5f252479b96c716375aace5c120d68647c8"
+  digest = "1:c0d19ab64b32ce9fe5cf4ddceba78d5bc9807f0016db6b1183599da3dcc24d10"
   name = "github.com/hashicorp/hcl"
   packages = [
     ".",
     "hcl/ast",
     "hcl/parser",
+    "hcl/printer",
     "hcl/scanner",
     "hcl/strconv",
     "hcl/token",
@@ -245,12 +240,12 @@
   version = "v1.0.0"
 
 [[projects]]
-  digest = "1:e32dfc6abff6a3633ef4d9a1022fd707c8ef26f1e1e8f855dc58dc415ce7c8f3"
+  digest = "1:53bc4cd4914cd7cd52139990d5170d6dc99067ae31c56530621b18b35fc30318"
   name = "github.com/mitchellh/mapstructure"
   packages = ["."]
   pruneopts = "UT"
-  revision = "fe40af7a9c397fa3ddba203c38a5042c5d0475ad"
-  version = "v1.1.1"
+  revision = "3536a929edddb9a5b34bd6861dc4a9647cb459fe"
+  version = "v1.1.2"
 
 [[projects]]
   digest = "1:95741de3af260a92cc5c7f3f3061e85273f5a81b5db20d4bd68da74bd521675e"
@@ -296,7 +291,7 @@
 
 [[projects]]
   branch = "master"
-  digest = "1:63b68062b8968092eb86bedc4e68894bd096ea6b24920faca8b9dcf451f54bb5"
+  digest = "1:db712fde5d12d6cdbdf14b777f0c230f4ff5ab0be8e35b239fc319953ed577a4"
   name = "github.com/prometheus/common"
   packages = [
     "expfmt",
@@ -304,11 +299,11 @@
     "model",
   ]
   pruneopts = "UT"
-  revision = "c7de2306084e37d54b8be01f3541a8464345e9a5"
+  revision = "7e9e6cabbd393fc208072eedef99188d0ce788b6"
 
 [[projects]]
   branch = "master"
-  digest = "1:ef1dd9945e58ee9b635273d28c0ef3fa3742a7dedc038ebe207fd63e6ce000ef"
+  digest = "1:ef74914912f99c79434d9c09658274678bc85080ebe3ab32bec3940ebce5e1fc"
   name = "github.com/prometheus/procfs"
   packages = [
     ".",
@@ -317,7 +312,7 @@
     "xfs",
   ]
   pruneopts = "UT"
-  revision = "418d78d0b9a7b7de3a6bbc8a23def624cc977bb2"
+  revision = "185b4288413d2a0dd0806f78c90dde719829e5ae"
 
 [[projects]]
   digest = "1:ea0700160aca4ef099f4e06686a665a87691f4248dddd40796925eda2e46bd64"
@@ -346,12 +341,12 @@
   version = "v1.1.2"
 
 [[projects]]
-  digest = "1:516e71bed754268937f57d4ecb190e01958452336fa73dbac880894164e91c1f"
+  digest = "1:08d65904057412fc0270fc4812a1c90c594186819243160dc779a402d4b6d0bc"
   name = "github.com/spf13/cast"
   packages = ["."]
   pruneopts = "UT"
-  revision = "8965335b8c7107321228e3e3702cab9832751bac"
-  version = "v1.2.0"
+  revision = "8c9545af88b134710ab1cd196795e7f2388358d7"
+  version = "v1.3.0"
 
 [[projects]]
   digest = "1:7ffc0983035bc7e297da3688d9fe19d60a420e9c38bef23f845c53788ed6a05e"
@@ -370,12 +365,12 @@
   version = "v1.0.0"
 
 [[projects]]
-  digest = "1:dab83a1bbc7ad3d7a6ba1a1cc1760f25ac38cdf7d96a5cdd55cd915a4f5ceaf9"
+  digest = "1:c1b1102241e7f645bc8e0c22ae352e8f0dc6484b6cb4d132fa9f24174e0119e2"
   name = "github.com/spf13/pflag"
   packages = ["."]
   pruneopts = "UT"
-  revision = "9a97c102cda95a86cec2345a6f09f55a939babf5"
-  version = "v1.0.2"
+  revision = "298182f68c66c05229eb03ac171abe6e309ee79a"
+  version = "v1.0.3"
 
 [[projects]]
   digest = "1:f8e1a678a2571e265f4bf91a3e5e32aa6b1474a55cb0ea849750cc177b664d96"
@@ -423,18 +418,6 @@
   pruneopts = "UT"
   revision = "e5840949ff4fff0c56f9b6a541e22b63581ea9df"
 
-[[projects]]
-  branch = "master"
-  digest = "1:087aaa7920e5d0bf79586feb57ce01c35c830396ab4392798112e8aae8c47722"
-  name = "github.com/tendermint/ed25519"
-  packages = [
-    ".",
-    "edwards25519",
-    "extra25519",
-  ]
-  pruneopts = "UT"
-  revision = "d8387025d2b9d158cf4efb07e7ebf814bcce2057"
-
 [[projects]]
   digest = "1:2c971a45c89ca2ccc735af50919cdee05fbdc54d4bf50625073693300e31ead8"
   name = "github.com/tendermint/go-amino"
@@ -452,7 +435,7 @@
   version = "v0.11.0"
 
 [[projects]]
-  digest = "1:f9c7a1f3ee087476f4883c33cc7c1bdbe56b9670b2fb27855ea2f386393272f5"
+  digest = "1:395820b381043b9d2204e181ddf0f9147397c4a7b8f5dc3162de4cfcddf4589a"
   name = "github.com/tendermint/tendermint"
   packages = [
     "abci/client",
@@ -485,6 +468,7 @@
     "libs/db",
     "libs/errors",
     "libs/events",
+    "libs/fail",
     "libs/flowrate",
     "libs/log",
     "libs/pubsub",
@@ -505,7 +489,6 @@
     "rpc/core",
     "rpc/core/types",
     "rpc/grpc",
-    "rpc/lib",
     "rpc/lib/client",
     "rpc/lib/server",
     "rpc/lib/types",
@@ -518,8 +501,8 @@
     "version",
   ]
   pruneopts = "UT"
-  revision = "90eda9bfb6e6daeed1c8015df41cb36772d91778"
-  version = "v0.25.1-rc0"
+  revision = "03e42d2e3866f01a00625f608e3bbfaeb30690de"
+  version = "v0.26.1-rc0"
 
 [[projects]]
   digest = "1:7886f86064faff6f8d08a3eb0e8c773648ff5a2e27730831e2bfbf07467f6666"
@@ -530,13 +513,15 @@
   version = "v0.1.0"
 
 [[projects]]
-  digest = "1:aaff04fa01d9b824fde6799759cc597b3ac3671b9ad31924c28b6557d0ee5284"
+  digest = "1:6f6dc6060c4e9ba73cf28aa88f12a69a030d3d19d518ef8e931879eaa099628d"
   name = "golang.org/x/crypto"
   packages = [
     "bcrypt",
     "blowfish",
     "chacha20poly1305",
     "curve25519",
+    "ed25519",
+    "ed25519/internal/edwards25519",
     "hkdf",
     "internal/chacha20",
     "internal/subtle",
diff --git a/Gopkg.toml b/Gopkg.toml
index 0902bc412607..09e3d28d9ec1 100644
--- a/Gopkg.toml
+++ b/Gopkg.toml
@@ -57,7 +57,7 @@
 
 [[override]]
   name = "github.com/tendermint/tendermint"
-  version = "=0.25.1-rc0"
+  version = "0.26.1-rc0"
 
 ## deps without releases:
 
@@ -106,4 +106,3 @@
 [prune]
   go-tests = true
   unused-packages = true
-
diff --git a/cmd/gaia/app/genesis.go b/cmd/gaia/app/genesis.go
index cfbbe5cc2edd..66eaae099379 100644
--- a/cmd/gaia/app/genesis.go
+++ b/cmd/gaia/app/genesis.go
@@ -11,7 +11,6 @@ import (
 	"strings"
 
 	"github.com/cosmos/cosmos-sdk/codec"
-	"github.com/cosmos/cosmos-sdk/server"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/x/auth"
 	distr "github.com/cosmos/cosmos-sdk/x/distribution"
@@ -81,14 +80,6 @@ func (ga *GenesisAccount) ToAccount() (acc *auth.BaseAccount) {
 	}
 }
 
-// get app init parameters for server init command
-func GaiaAppInit() server.AppInit {
-
-	return server.AppInit{
-		AppGenState: GaiaAppGenStateJSON,
-	}
-}
-
 // Create the core parameters for genesis initialization for gaia
 // note that the pubkey input is this machines pubkey
 func GaiaAppGenState(cdc *codec.Codec, genDoc tmtypes.GenesisDoc, appGenTxs []json.RawMessage) (
diff --git a/cmd/gaia/cmd/gaiad/main.go b/cmd/gaia/cmd/gaiad/main.go
index ae076571b504..2983789b1b1e 100644
--- a/cmd/gaia/cmd/gaiad/main.go
+++ b/cmd/gaia/cmd/gaiad/main.go
@@ -37,14 +37,12 @@ func main() {
 		Short:             "Gaia Daemon (server)",
 		PersistentPreRunE: server.PersistentPreRunEFn(ctx),
 	}
-	appInit := app.GaiaAppInit()
-	rootCmd.AddCommand(gaiaInit.InitCmd(ctx, cdc, appInit))
+	rootCmd.AddCommand(gaiaInit.InitCmd(ctx, cdc))
 	rootCmd.AddCommand(gaiaInit.CollectGenTxsCmd(ctx, cdc))
-	rootCmd.AddCommand(gaiaInit.TestnetFilesCmd(ctx, cdc, server.AppInit{}))
+	rootCmd.AddCommand(gaiaInit.TestnetFilesCmd(ctx, cdc))
 	rootCmd.AddCommand(gaiaInit.GenTxCmd(ctx, cdc))
 
-	server.AddCommands(ctx, cdc, rootCmd, appInit,
-		newApp, exportAppStateAndTMValidators)
+	server.AddCommands(ctx, cdc, rootCmd, newApp, exportAppStateAndTMValidators)
 
 	// prepare and add flags
 	executor := cli.PrepareBaseCmd(rootCmd, "GA", app.DefaultNodeHome)
diff --git a/cmd/gaia/init/collect.go b/cmd/gaia/init/collect.go
index 34b65e560bce..fc5504cce5a7 100644
--- a/cmd/gaia/init/collect.go
+++ b/cmd/gaia/init/collect.go
@@ -64,7 +64,7 @@ func CollectGenTxsCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command {
 				return err
 			}
 
-			toPrint.AppMessage = appMessage
+			toPrint.Message = appMessage
 			// print out some key information
 			return displayInfo(cdc, toPrint)
 		},
@@ -105,7 +105,7 @@ func genAppStateFromConfig(cdc *codec.Codec, config *cfg.Config, initCfg initCon
 		return
 	}
 
-	err = WriteGenesisFile(genFile, initCfg.ChainID, nil, appState)
+	err = server.WriteGenesisFile(genFile, initCfg.ChainID, nil, appState)
 	return
 }
 
diff --git a/cmd/gaia/init/init.go b/cmd/gaia/init/init.go
index 0290ae4fb2bb..738251bd6fdd 100644
--- a/cmd/gaia/init/init.go
+++ b/cmd/gaia/init/init.go
@@ -3,7 +3,6 @@ package init
 import (
 	"encoding/json"
 	"fmt"
-	"github.com/tendermint/tendermint/privval"
 	"os"
 	"path/filepath"
 
@@ -18,7 +17,6 @@ import (
 	"github.com/tendermint/tendermint/libs/cli"
 	"github.com/tendermint/tendermint/libs/common"
 	"github.com/tendermint/tendermint/p2p"
-	"github.com/tendermint/tendermint/types"
 )
 
 const (
@@ -28,10 +26,10 @@ const (
 )
 
 type printInfo struct {
-	Moniker    string          `json:"moniker"`
-	ChainID    string          `json:"chain_id"`
-	NodeID     string          `json:"node_id"`
-	AppMessage json.RawMessage `json:"app_message"`
+	Moniker string          `json:"moniker"`
+	ChainID string          `json:"chain_id"`
+	NodeID  string          `json:"node_id"`
+	Message json.RawMessage `json:"message"`
 }
 
 // nolint: errcheck
@@ -46,7 +44,7 @@ func displayInfo(cdc *codec.Codec, info printInfo) error {
 
 // get cmd to initialize all files for tendermint and application
 // nolint
-func InitCmd(ctx *server.Context, cdc *codec.Codec, appInit server.AppInit) *cobra.Command {
+func InitCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command {
 	cmd := &cobra.Command{
 		Use:   "init",
 		Short: "Initialize private validator, p2p, genesis, and application configuration files",
@@ -74,15 +72,15 @@ func InitCmd(ctx *server.Context, cdc *codec.Codec, appInit server.AppInit) *cob
 				viper.GetBool(flagOverwrite)); err != nil {
 				return err
 			}
-			if err = WriteGenesisFile(genFile, chainID, nil, appState); err != nil {
+			if err = server.WriteGenesisFile(genFile, chainID, nil, appState); err != nil {
 				return err
 			}
 
 			toPrint := printInfo{
-				ChainID:    chainID,
-				Moniker:    config.Moniker,
-				NodeID:     nodeID,
-				AppMessage: appState,
+				ChainID: chainID,
+				Moniker: config.Moniker,
+				NodeID:  nodeID,
+				Message: appState,
 			}
 
 			cfg.WriteConfigFile(filepath.Join(config.RootDir, "config", "config.toml"), config)
@@ -105,40 +103,10 @@ func InitializeNodeValidatorFiles(config *cfg.Config) (nodeID string, valPubKey
 		return
 	}
 	nodeID = string(nodeKey.ID())
-	valPubKey = ReadOrCreatePrivValidator(config.PrivValidatorFile())
+	valPubKey = server.ReadOrCreatePrivValidator(config.PrivValidatorFile())
 	return
 }
 
-// WriteGenesisFile creates and writes the genesis configuration to disk. An
-// error is returned if building or writing the configuration to file fails.
-// nolint: unparam
-func WriteGenesisFile(genesisFile, chainID string, validators []types.GenesisValidator, appState json.RawMessage) error {
-	genDoc := types.GenesisDoc{
-		ChainID:    chainID,
-		Validators: validators,
-		AppState:   appState,
-	}
-
-	if err := genDoc.ValidateAndComplete(); err != nil {
-		return err
-	}
-
-	return genDoc.SaveAs(genesisFile)
-}
-
-// read of create the private key file for this config
-func ReadOrCreatePrivValidator(privValFile string) crypto.PubKey {
-	// private validator
-	var privValidator *privval.FilePV
-	if common.FileExists(privValFile) {
-		privValidator = privval.LoadFilePV(privValFile)
-	} else {
-		privValidator = privval.GenFilePV(privValFile)
-		privValidator.Save()
-	}
-	return privValidator.GetPubKey()
-}
-
 func initializeEmptyGenesis(cdc *codec.Codec, genFile string, chainID string,
 	overwrite bool) (appState json.RawMessage, err error) {
 	if !overwrite && common.FileExists(genFile) {
diff --git a/cmd/gaia/init/init_test.go b/cmd/gaia/init/init_test.go
index bd5274c26113..f6845c3114eb 100644
--- a/cmd/gaia/init/init_test.go
+++ b/cmd/gaia/init/init_test.go
@@ -30,10 +30,7 @@ func TestInitCmd(t *testing.T) {
 	require.Nil(t, err)
 	ctx := server.NewContext(cfg, logger)
 	cdc := app.MakeCodec()
-	appInit := server.AppInit{
-		AppGenState: mock.AppGenState,
-	}
-	cmd := InitCmd(ctx, cdc, appInit)
+	cmd := InitCmd(ctx, cdc)
 	err = cmd.RunE(nil, nil)
 	require.NoError(t, err)
 }
@@ -58,10 +55,7 @@ func TestEmptyState(t *testing.T) {
 	require.Nil(t, err)
 	ctx := server.NewContext(cfg, logger)
 	cdc := app.MakeCodec()
-	appInit := server.AppInit{
-		AppGenState: mock.AppGenStateEmpty,
-	}
-	cmd := InitCmd(ctx, cdc, appInit)
+	cmd := InitCmd(ctx, cdc)
 	err = cmd.RunE(nil, nil)
 	require.NoError(t, err)
 
@@ -105,10 +99,7 @@ func TestStartStandAlone(t *testing.T) {
 	require.Nil(t, err)
 	ctx := server.NewContext(cfg, logger)
 	cdc := app.MakeCodec()
-	appInit := server.AppInit{
-		AppGenState: mock.AppGenState,
-	}
-	initCmd := InitCmd(ctx, cdc, appInit)
+	initCmd := InitCmd(ctx, cdc)
 	err = initCmd.RunE(nil, nil)
 	require.NoError(t, err)
 
diff --git a/cmd/gaia/init/testnet.go b/cmd/gaia/init/testnet.go
index 5f729b0a4b7e..a2aaa27024ff 100644
--- a/cmd/gaia/init/testnet.go
+++ b/cmd/gaia/init/testnet.go
@@ -36,8 +36,7 @@ var (
 const nodeDirPerm = 0755
 
 // get cmd to initialize all files for tendermint testnet and application
-func TestnetFilesCmd(ctx *server.Context, cdc *codec.Codec,
-	appInit server.AppInit) *cobra.Command {
+func TestnetFilesCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command {
 
 	cmd := &cobra.Command{
 		Use:   "testnet",
@@ -137,7 +136,7 @@ func testnetWithConfig(config *cfg.Config, cdc *codec.Codec) error {
 			keyPass = app.DefaultKeyPass
 		}
 
-		addr, secret, err := server.GenerateSaveCoinKey(clientDir, nodeDirName, keyPass, true)
+		addr, secret, err := server.GenerateSaveAccountKeyAndSecret(clientDir, nodeDirName, keyPass, true)
 		if err != nil {
 			_ = os.RemoveAll(outDir)
 			return err
diff --git a/docs/getting-started/join-testnet.md b/docs/getting-started/join-testnet.md
index ce070c4fe967..d921df91f8ae 100644
--- a/docs/getting-started/join-testnet.md
+++ b/docs/getting-started/join-testnet.md
@@ -29,19 +29,6 @@ You can edit this `name` later, in the `~/.gaiad/config/config.toml` file:
 moniker = "<your_custom_name>"
 ```
 
-You can edit the `~/.gaiad/config/gaiad.toml` file in order to enable the anti spam mechanism and reject incoming transactions with less than a minimum fee:
-
-```
-# This is a TOML config file.
-# For more information, see https://github.com/toml-lang/toml
-
-##### main base config options #####
-
-# Validators reject any tx from the mempool with less than the minimum fee per gas.
-minimum_fees = ""
-```
-
-
 Your full node has been initialized! Please skip to [Genesis & Seeds](#genesis-seeds).
 
 ## Upgrading From Previous Testnet
diff --git a/docs/sdk/sdk-by-examples/simple-governance/bridging-it-all.md b/docs/sdk/sdk-by-examples/simple-governance/bridging-it-all.md
index 546eb7d875f6..9978adfff7f9 100644
--- a/docs/sdk/sdk-by-examples/simple-governance/bridging-it-all.md
+++ b/docs/sdk/sdk-by-examples/simple-governance/bridging-it-all.md
@@ -97,6 +97,8 @@ To interact with our application, let us add the commands from the `simple_gover
 The `simplegovd` command will run the daemon server as a background process. First, let us create some `utils` functions:
 
 ```go
+// NOTE: This is outdated, AppInit has been removed.
+// XXX: Update tutorial.
 //  cmd/simplegovd/main.go
 // SimpleGovAppInit initial parameters
 var SimpleGovAppInit = server.AppInit{
@@ -137,7 +139,7 @@ func main() {
         PersistentPreRunE: server.PersistentPreRunEFn(ctx),
     }
 
-    server.AddCommands(ctx, cdc, rootCmd, SimpleGovAppInit,
+    server.AddCommands(ctx, cdc, rootCmd,
         server.ConstructAppCreator(newApp, "simplegov"),
         server.ConstructAppExporter(exportAppState, "simplegov"))
 
@@ -253,4 +255,4 @@ func MakeCodec() *codec.Codec {
     cdc.RegisterConcrete(&types.AppAccount{}, "simpleGov/Account", nil)
     return cdc
 }
-```
\ No newline at end of file
+```
diff --git a/examples/basecoin/cmd/basecoind/main.go b/examples/basecoin/cmd/basecoind/main.go
index 4f40a145094e..b33d968ebe95 100644
--- a/examples/basecoin/cmd/basecoind/main.go
+++ b/examples/basecoin/cmd/basecoind/main.go
@@ -9,8 +9,6 @@ import (
 	"github.com/tendermint/tendermint/p2p"
 
 	"github.com/cosmos/cosmos-sdk/baseapp"
-	gaiaInit "github.com/cosmos/cosmos-sdk/cmd/gaia/init"
-
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/examples/basecoin/app"
@@ -39,10 +37,9 @@ func main() {
 		PersistentPreRunE: server.PersistentPreRunEFn(ctx),
 	}
 
-	appInit := server.DefaultAppInit
-	rootCmd.AddCommand(InitCmd(ctx, cdc, appInit))
+	rootCmd.AddCommand(InitCmd(ctx, cdc))
 
-	server.AddCommands(ctx, cdc, rootCmd, appInit,
+	server.AddCommands(ctx, cdc, rootCmd,
 		newApp, exportAppStateAndTMValidators)
 
 	// prepare and add flags
@@ -58,7 +55,7 @@ func main() {
 
 // get cmd to initialize all files for tendermint and application
 // nolint: errcheck
-func InitCmd(ctx *server.Context, cdc *codec.Codec, appInit server.AppInit) *cobra.Command {
+func InitCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command {
 	cmd := &cobra.Command{
 		Use:   "init",
 		Short: "Initialize genesis config, priv-validator file, and p2p-node file",
@@ -78,38 +75,44 @@ func InitCmd(ctx *server.Context, cdc *codec.Codec, appInit server.AppInit) *cob
 			}
 			nodeID := string(nodeKey.ID())
 
-			pk := gaiaInit.ReadOrCreatePrivValidator(config.PrivValidatorFile())
-			genTx, appMessage, validator, err := server.SimpleAppGenTx(cdc, pk)
-			if err != nil {
-				return err
+			pk := server.ReadOrCreatePrivValidator(config.PrivValidatorFile())
+			validator := tmtypes.GenesisValidator{
+				PubKey: pk,
+				Power:  10,
 			}
 
-			appState, err := appInit.AppGenState(
-				cdc, tmtypes.GenesisDoc{}, []json.RawMessage{genTx})
-			if err != nil {
-				return err
-			}
-			appStateJSON, err := cdc.MarshalJSON(appState)
+			addr, secret, err := server.GenerateAccountKeyAndSecret()
 			if err != nil {
 				return err
 			}
+			appStateJSON := (fmt.Sprintf(`{
+  "accounts": [{
+    "address": "%s",
+    "coins": [
+      {
+        "denom": "mycoin",
+        "amount": "9007199254740992"
+      }
+    ]
+  }]
+}`, addr))
 
 			toPrint := struct {
-				ChainID    string          `json:"chain_id"`
-				NodeID     string          `json:"node_id"`
-				AppMessage json.RawMessage `json:"app_message"`
+				ChainID string `json:"chain_id"`
+				NodeID  string `json:"node_id"`
+				Message string `json:"message"`
 			}{
 				chainID,
 				nodeID,
-				appMessage,
+				fmt.Sprintf("Secret: %v", secret),
 			}
 			out, err := codec.MarshalJSONIndent(cdc, toPrint)
 			if err != nil {
 				return err
 			}
 			fmt.Fprintf(os.Stderr, "%s\n", string(out))
-			return gaiaInit.WriteGenesisFile(config.GenesisFile(), chainID,
-				[]tmtypes.GenesisValidator{validator}, appStateJSON)
+			return server.WriteGenesisFile(config.GenesisFile(), chainID,
+				[]tmtypes.GenesisValidator{validator}, []byte(appStateJSON))
 		},
 	}
 
diff --git a/examples/democoin/cmd/democoind/main.go b/examples/democoin/cmd/democoind/main.go
index 2f48a64f34c9..6531b8360dcf 100644
--- a/examples/democoin/cmd/democoind/main.go
+++ b/examples/democoin/cmd/democoind/main.go
@@ -6,20 +6,18 @@ import (
 	"io"
 	"os"
 
-	"github.com/cosmos/cosmos-sdk/client"
-	"github.com/spf13/viper"
-	"github.com/tendermint/tendermint/libs/common"
-	"github.com/tendermint/tendermint/p2p"
-
 	"github.com/spf13/cobra"
+	"github.com/spf13/viper"
 
 	abci "github.com/tendermint/tendermint/abci/types"
 	"github.com/tendermint/tendermint/libs/cli"
+	"github.com/tendermint/tendermint/libs/common"
 	dbm "github.com/tendermint/tendermint/libs/db"
 	"github.com/tendermint/tendermint/libs/log"
+	"github.com/tendermint/tendermint/p2p"
 	tmtypes "github.com/tendermint/tendermint/types"
 
-	gaiaInit "github.com/cosmos/cosmos-sdk/cmd/gaia/init"
+	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/examples/democoin/app"
 	"github.com/cosmos/cosmos-sdk/server"
@@ -30,42 +28,9 @@ const (
 	flagClientHome = "home-client"
 )
 
-// init parameters
-var CoolAppInit = server.AppInit{
-	AppGenState: CoolAppGenState,
-}
-
-// coolGenAppParams sets up the app_state and appends the cool app state
-func CoolAppGenState(cdc *codec.Codec, genDoc tmtypes.GenesisDoc, appGenTxs []json.RawMessage) (
-	appState json.RawMessage, err error) {
-	appState, err = server.SimpleAppGenState(cdc, tmtypes.GenesisDoc{}, appGenTxs)
-	if err != nil {
-		return
-	}
-
-	key := "cool"
-	value := json.RawMessage(`{
-        "trend": "ice-cold"
-      }`)
-
-	appState, err = server.InsertKeyJSON(cdc, appState, key, value)
-	if err != nil {
-		return
-	}
-
-	key = "pow"
-	value = json.RawMessage(`{
-        "difficulty": "1",
-        "count": "0"
-      }`)
-
-	appState, err = server.InsertKeyJSON(cdc, appState, key, value)
-	return
-}
-
 // get cmd to initialize all files for tendermint and application
 // nolint: errcheck
-func InitCmd(ctx *server.Context, cdc *codec.Codec, appInit server.AppInit) *cobra.Command {
+func InitCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command {
 	cmd := &cobra.Command{
 		Use:   "init",
 		Short: "Initialize genesis config, priv-validator file, and p2p-node file",
@@ -85,38 +50,51 @@ func InitCmd(ctx *server.Context, cdc *codec.Codec, appInit server.AppInit) *cob
 			}
 			nodeID := string(nodeKey.ID())
 
-			pk := gaiaInit.ReadOrCreatePrivValidator(config.PrivValidatorFile())
-			genTx, appMessage, validator, err := server.SimpleAppGenTx(cdc, pk)
-			if err != nil {
-				return err
+			pk := server.ReadOrCreatePrivValidator(config.PrivValidatorFile())
+			validator := tmtypes.GenesisValidator{
+				PubKey: pk,
+				Power:  10,
 			}
 
-			appState, err := appInit.AppGenState(cdc, tmtypes.GenesisDoc{},
-				[]json.RawMessage{genTx})
-			if err != nil {
-				return err
-			}
-			appStateJSON, err := cdc.MarshalJSON(appState)
+			addr, secret, err := server.GenerateAccountKeyAndSecret()
 			if err != nil {
 				return err
 			}
+			appStateJSON := (fmt.Sprintf(`{
+  "cool": {
+    "trend": "ice-cold"
+  },
+  "pow": {
+    "difficulty": "1",
+    "count": "0"
+  },
+  "accounts": [{
+    "address": "%s",
+    "coins": [
+      {
+        "denom": "mycoin",
+        "amount": "9007199254740992"
+      }
+    ]
+  }]
+}`, addr))
 
 			toPrint := struct {
-				ChainID    string          `json:"chain_id"`
-				NodeID     string          `json:"node_id"`
-				AppMessage json.RawMessage `json:"app_message"`
+				ChainID string `json:"chain_id"`
+				NodeID  string `json:"node_id"`
+				Message string `json:"message"`
 			}{
 				chainID,
 				nodeID,
-				appMessage,
+				fmt.Sprintf("Secret: %v", secret),
 			}
 			out, err := codec.MarshalJSONIndent(cdc, toPrint)
 			if err != nil {
 				return err
 			}
 			fmt.Fprintf(os.Stderr, "%s\n", string(out))
-			return gaiaInit.WriteGenesisFile(config.GenesisFile(), chainID,
-				[]tmtypes.GenesisValidator{validator}, appStateJSON)
+			return server.WriteGenesisFile(config.GenesisFile(), chainID,
+				[]tmtypes.GenesisValidator{validator}, []byte(appStateJSON))
 		},
 	}
 
@@ -157,10 +135,8 @@ func main() {
 		PersistentPreRunE: server.PersistentPreRunEFn(ctx),
 	}
 
-	rootCmd.AddCommand(InitCmd(ctx, cdc, CoolAppInit))
-	rootCmd.AddCommand(gaiaInit.TestnetFilesCmd(ctx, cdc, CoolAppInit))
-
-	server.AddCommands(ctx, cdc, rootCmd, CoolAppInit,
+	rootCmd.AddCommand(InitCmd(ctx, cdc))
+	server.AddCommands(ctx, cdc, rootCmd,
 		newApp, exportAppStateAndTMValidators)
 
 	// prepare and add flags
diff --git a/server/config/config.go b/server/config/config.go
deleted file mode 100644
index 239097b13737..000000000000
--- a/server/config/config.go
+++ /dev/null
@@ -1,37 +0,0 @@
-package config
-
-import (
-	"fmt"
-
-	sdk "github.com/cosmos/cosmos-sdk/types"
-)
-
-const (
-	defaultMinimumFees = ""
-)
-
-// BaseConfig defines the server's basic configuration
-type BaseConfig struct {
-	// Tx minimum fee
-	MinFees string `mapstructure:"minimum_fees"`
-}
-
-// Config defines the server's top level configuration
-type Config struct {
-	BaseConfig `mapstructure:",squash"`
-}
-
-// SetMinimumFee sets the minimum fee.
-func (c *Config) SetMinimumFees(fees sdk.Coins) { c.MinFees = fees.String() }
-
-// SetMinimumFee sets the minimum fee.
-func (c *Config) MinimumFees() sdk.Coins {
-	fees, err := sdk.ParseCoins(c.MinFees)
-	if err != nil {
-		panic(fmt.Sprintf("invalid minimum fees: %v", err))
-	}
-	return fees
-}
-
-// DefaultConfig returns server's default configuration.
-func DefaultConfig() *Config { return &Config{BaseConfig{MinFees: defaultMinimumFees}} }
diff --git a/server/config/config_test.go b/server/config/config_test.go
deleted file mode 100644
index e4d552ad21f3..000000000000
--- a/server/config/config_test.go
+++ /dev/null
@@ -1,19 +0,0 @@
-package config
-
-import (
-	"testing"
-
-	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/stretchr/testify/require"
-)
-
-func TestDefaultConfig(t *testing.T) {
-	cfg := DefaultConfig()
-	require.True(t, cfg.MinimumFees().IsZero())
-}
-
-func TestSetMinimumFees(t *testing.T) {
-	cfg := DefaultConfig()
-	cfg.SetMinimumFees(sdk.Coins{sdk.NewCoin("foo", sdk.NewInt(100))})
-	require.Equal(t, "100foo", cfg.MinFees)
-}
diff --git a/server/config/toml.go b/server/config/toml.go
deleted file mode 100644
index 3c60fbdf93fb..000000000000
--- a/server/config/toml.go
+++ /dev/null
@@ -1,46 +0,0 @@
-package config
-
-import (
-	"bytes"
-	"text/template"
-
-	"github.com/spf13/viper"
-	cmn "github.com/tendermint/tendermint/libs/common"
-)
-
-const defaultConfigTemplate = `# This is a TOML config file.
-# For more information, see https://github.com/toml-lang/toml
-
-##### main base config options #####
-
-# Validators reject any tx from the mempool with less than the minimum fee per gas.
-minimum_fees = "{{ .BaseConfig.MinFees }}"
-`
-
-var configTemplate *template.Template
-
-func init() {
-	var err error
-	tmpl := template.New("cosmosConfigFileTemplate")
-	if configTemplate, err = tmpl.Parse(defaultConfigTemplate); err != nil {
-		panic(err)
-	}
-}
-
-// ParseConfig retrieves the default environment configuration for Cosmos.
-func ParseConfig() (*Config, error) {
-	conf := DefaultConfig()
-	err := viper.Unmarshal(conf)
-	return conf, err
-}
-
-// WriteConfigFile renders config using the template and writes it to configFilePath.
-func WriteConfigFile(configFilePath string, config *Config) {
-	var buffer bytes.Buffer
-
-	if err := configTemplate.Execute(&buffer, config); err != nil {
-		panic(err)
-	}
-
-	cmn.MustWriteFile(configFilePath, buffer.Bytes(), 0644)
-}
diff --git a/server/init.go b/server/init.go
index 75e13f452653..05b94746703a 100644
--- a/server/init.go
+++ b/server/init.go
@@ -2,102 +2,19 @@ package server
 
 import (
 	"encoding/json"
-	"errors"
 	"fmt"
+
 	"github.com/cosmos/cosmos-sdk/crypto/keys"
-	"github.com/tendermint/tendermint/crypto"
 	dbm "github.com/tendermint/tendermint/libs/db"
 	"github.com/tendermint/tendermint/types"
 
 	clkeys "github.com/cosmos/cosmos-sdk/client/keys"
-	"github.com/cosmos/cosmos-sdk/codec"
 	sdk "github.com/cosmos/cosmos-sdk/types"
-	tmtypes "github.com/tendermint/tendermint/types"
 )
 
-// Core functionality passed from the application to the server init command
-type AppInit struct {
-	// AppGenState creates the core parameters initialization. It takes in a
-	// pubkey meant to represent the pubkey of the validator of this machine.
-	AppGenState func(cdc *codec.Codec, genDoc tmtypes.GenesisDoc, appGenTxs []json.RawMessage) (
-		appState json.RawMessage, err error)
-}
-
-// SimpleGenTx is a simple genesis tx
-type SimpleGenTx struct {
-	Addr sdk.AccAddress `json:"addr"`
-}
-
-//_____________________________________________________________________
-
-// simple default application init
-var DefaultAppInit = AppInit{
-	AppGenState: SimpleAppGenState,
-}
-
-// Generate a genesis transaction
-func SimpleAppGenTx(cdc *codec.Codec, pk crypto.PubKey) (
-	appGenTx, cliPrint json.RawMessage, validator types.GenesisValidator, err error) {
-	var addr sdk.AccAddress
-	var secret string
-	addr, secret, err = GenerateCoinKey()
-	if err != nil {
-		return
-	}
-	var bz []byte
-	simpleGenTx := SimpleGenTx{Addr: addr}
-	bz, err = cdc.MarshalJSON(simpleGenTx)
-	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:  10,
-	}
-	return
-}
-
-// create the genesis app state
-func SimpleAppGenState(cdc *codec.Codec, genDoc tmtypes.GenesisDoc, appGenTxs []json.RawMessage) (
-	appState json.RawMessage, err error) {
-
-	if len(appGenTxs) != 1 {
-		err = errors.New("must provide a single genesis transaction")
-		return
-	}
-
-	var tx SimpleGenTx
-	err = cdc.UnmarshalJSON(appGenTxs[0], &tx)
-	if err != nil {
-		return
-	}
-
-	appState = json.RawMessage(fmt.Sprintf(`{
-  "accounts": [{
-    "address": "%s",
-    "coins": [
-      {
-        "denom": "mycoin",
-        "amount": "9007199254740992"
-      }
-    ]
-  }]
-}`, tx.Addr))
-	return
-}
-
-//___________________________________________________________________________________________
-
-// GenerateCoinKey returns the address of a public key, along with the secret
+// GenerateAccountKeyAndSecret returns the address of a public key, along with the secret
 // phrase to recover the private key.
-func GenerateCoinKey() (sdk.AccAddress, string, error) {
+func GenerateAccountKeyAndSecret() (sdk.AccAddress, string, error) {
 
 	// construct an in-memory key store
 	keybase := keys.New(
@@ -113,9 +30,9 @@ func GenerateCoinKey() (sdk.AccAddress, string, error) {
 	return sdk.AccAddress(addr), secret, nil
 }
 
-// GenerateSaveCoinKey returns the address of a public key, along with the secret
+// GenerateSaveAccountKeyAndSecret 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.AccAddress, string, error) {
+func GenerateSaveAccountKeyAndSecret(clientRoot, keyName, keyPass string, overwrite bool) (sdk.AccAddress, string, error) {
 
 	// get the keystore from the client
 	keybase, err := clkeys.GetKeyBaseFromDirWithWritePerm(clientRoot)
@@ -140,3 +57,20 @@ func GenerateSaveCoinKey(clientRoot, keyName, keyPass string, overwrite bool) (s
 	addr := info.GetPubKey().Address()
 	return sdk.AccAddress(addr), secret, nil
 }
+
+// WriteGenesisFile creates and writes the genesis configuration to disk. An
+// error is returned if building or writing the configuration to file fails.
+// nolint: unparam
+func WriteGenesisFile(genesisFile, chainID string, validators []types.GenesisValidator, appState json.RawMessage) error {
+	genDoc := types.GenesisDoc{
+		ChainID:    chainID,
+		Validators: validators,
+		AppState:   appState,
+	}
+
+	if err := genDoc.ValidateAndComplete(); err != nil {
+		return err
+	}
+
+	return genDoc.SaveAs(genesisFile)
+}
diff --git a/server/util.go b/server/util.go
index 51f10c765a98..0d16b08c4803 100644
--- a/server/util.go
+++ b/server/util.go
@@ -1,7 +1,6 @@
 package server
 
 import (
-	"encoding/json"
 	"net"
 	"os"
 	"os/signal"
@@ -14,13 +13,15 @@ import (
 
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/codec"
-	"github.com/cosmos/cosmos-sdk/server/config"
 	"github.com/cosmos/cosmos-sdk/version"
 	tcmd "github.com/tendermint/tendermint/cmd/tendermint/commands"
 	cfg "github.com/tendermint/tendermint/config"
+	crypto "github.com/tendermint/tendermint/crypto"
 	"github.com/tendermint/tendermint/libs/cli"
 	tmflags "github.com/tendermint/tendermint/libs/cli/flags"
+	"github.com/tendermint/tendermint/libs/common"
 	"github.com/tendermint/tendermint/libs/log"
+	"github.com/tendermint/tendermint/privval"
 )
 
 // server context
@@ -101,19 +102,6 @@ func interceptLoadConfig() (conf *cfg.Config, err error) {
 		conf, err = tcmd.ParseConfig() // NOTE: ParseConfig() creates dir/files as necessary.
 	}
 
-	cosmosConfigFilePath := filepath.Join(rootDir, "config/gaiad.toml")
-	viper.SetConfigName("cosmos")
-	_ = viper.MergeInConfig()
-	var cosmosConf *config.Config
-	if _, err := os.Stat(cosmosConfigFilePath); os.IsNotExist(err) {
-		cosmosConf, _ := config.ParseConfig()
-		config.WriteConfigFile(cosmosConfigFilePath, cosmosConf)
-	}
-
-	if cosmosConf == nil {
-		_, err = config.ParseConfig()
-	}
-
 	return
 }
 
@@ -128,7 +116,7 @@ func validateConfig(conf *cfg.Config) error {
 // add server commands
 func AddCommands(
 	ctx *Context, cdc *codec.Codec,
-	rootCmd *cobra.Command, appInit AppInit,
+	rootCmd *cobra.Command,
 	appCreator AppCreator, appExport AppExporter) {
 
 	rootCmd.PersistentFlags().String("log_level", ctx.Config.LogLevel, "Log level")
@@ -155,25 +143,7 @@ func AddCommands(
 	)
 }
 
-//___________________________________________________________________________________
-
-// InsertKeyJSON inserts a new JSON field/key with a given value to an existing
-// JSON message. An error is returned if any serialization operation fails.
-//
-// NOTE: The ordering of the keys returned as the resulting JSON message is
-// non-deterministic, so the client should not rely on key ordering.
-func InsertKeyJSON(cdc *codec.Codec, baseJSON []byte, key string, value json.RawMessage) ([]byte, error) {
-	var jsonMap map[string]json.RawMessage
-
-	if err := cdc.UnmarshalJSON(baseJSON, &jsonMap); err != nil {
-		return nil, err
-	}
-
-	jsonMap[key] = value
-	bz, err := codec.MarshalJSONIndent(cdc, jsonMap)
-
-	return json.RawMessage(bz), err
-}
+//----------------------------------------
 
 // https://stackoverflow.com/questions/23558425/how-do-i-get-the-local-ip-address-in-go
 // TODO there must be a better way to get external IP
@@ -242,3 +212,16 @@ func addrToIP(addr net.Addr) net.IP {
 	}
 	return ip
 }
+
+// read of create the private key file for this config
+func ReadOrCreatePrivValidator(privValFile string) crypto.PubKey {
+	// private validator
+	var privValidator *privval.FilePV
+	if common.FileExists(privValFile) {
+		privValidator = privval.LoadFilePV(privValFile)
+	} else {
+		privValidator = privval.GenFilePV(privValFile)
+		privValidator.Save()
+	}
+	return privValidator.GetPubKey()
+}
diff --git a/server/util_test.go b/server/util_test.go
deleted file mode 100644
index 2c16759c9dfc..000000000000
--- a/server/util_test.go
+++ /dev/null
@@ -1,40 +0,0 @@
-package server
-
-import (
-	"encoding/json"
-	"testing"
-
-	"github.com/cosmos/cosmos-sdk/codec"
-	"github.com/stretchr/testify/require"
-)
-
-func TestInsertKeyJSON(t *testing.T) {
-	cdc := codec.New()
-
-	foo := map[string]string{"foo": "foofoo"}
-	bar := map[string]string{"barInner": "barbar"}
-
-	// create raw messages
-	bz, err := cdc.MarshalJSON(foo)
-	require.NoError(t, err)
-	fooRaw := json.RawMessage(bz)
-
-	bz, err = cdc.MarshalJSON(bar)
-	require.NoError(t, err)
-	barRaw := json.RawMessage(bz)
-
-	// make the append
-	appBz, err := InsertKeyJSON(cdc, fooRaw, "barOuter", barRaw)
-	require.NoError(t, err)
-
-	// test the append
-	var appended map[string]json.RawMessage
-	err = cdc.UnmarshalJSON(appBz, &appended)
-	require.NoError(t, err)
-
-	var resBar map[string]string
-	err = cdc.UnmarshalJSON(appended["barOuter"], &resBar)
-	require.NoError(t, err)
-
-	require.Equal(t, bar, resBar, "appended: %v", appended)
-}