diff --git a/Dockerfile-versioned b/Dockerfile-versioned
new file mode 100644
index 0000000000..0ec85f149e
--- /dev/null
+++ b/Dockerfile-versioned
@@ -0,0 +1,70 @@
+FROM golang:1.19-alpine
+
+ENV GOPATH /go
+ENV GOOS=linux
+ENV CGO_ENABLED=1
+
+ARG old_version
+ARG new_version
+
+RUN apk --no-cache add git make build-base jq openssh libusb-dev linux-headers bash curl tmux
+RUN ssh-keygen -b 2048 -t rsa -f /root/.ssh/localtest.pem -q -N ""
+
+WORKDIR /go/delivery/zeta-node
+
+RUN mkdir -p  $GOPATH/bin/old
+RUN mkdir -p  $GOPATH/bin/new
+
+ENV NEW_VERSION=${new_version}
+
+# Checkout and build new binary
+RUN git clone https://github.com/zeta-chain/node.git
+RUN cd node && git fetch
+RUN cd node && git checkout ${new_version}
+RUN cd node && make install
+RUN cd node && make install-smoketest
+RUN cp $GOPATH/bin/zetacored $GOPATH/bin/new/
+RUN cp $GOPATH/bin/zetaclientd $GOPATH/bin/new/
+RUN cp $GOPATH/bin/smoketest $GOPATH/bin/new/
+
+# Checkout and build old binary
+RUN cd node && git checkout ${old_version}
+RUN cd node && git pull
+RUN cd node && make install
+RUN cd node && make install-smoketest
+RUN cp $GOPATH/bin/zetacored $GOPATH/bin/old/
+RUN cp $GOPATH/bin/zetaclientd $GOPATH/bin/old/
+RUN cp $GOPATH/bin/smoketest $GOPATH/bin/old/
+
+RUN git clone https://github.com/zeta-chain/cosmos-sdk.git
+RUN cd cosmos-sdk && git checkout zetavisor-v0.1.5
+RUN cd cosmos-sdk/cosmovisor && make zetavisor
+#
+#FROM golang:1.19-alpine
+
+#RUN apk --no-cache add openssh jq tmux vim curl bash
+RUN ssh-keygen -A
+WORKDIR /root
+
+RUN cp /root/.ssh/localtest.pem.pub /root/.ssh/authorized_keys
+
+RUN cp /go/bin/zetaclientd /usr/local/bin
+RUN cp /go/bin/zetacored /usr/local/bin
+RUN cp /go/bin/smoketest /usr/local/bin
+RUN cp /go/bin/zetavisor /usr/local/bin
+
+COPY contrib/localnet/scripts /root
+COPY contrib/localnet/preparams /root/preparams
+COPY contrib/localnet/ssh_config /root/.ssh/config
+COPY contrib/localnet/zetacored /root/zetacored
+COPY contrib/localnet/tss /root/tss
+
+RUN chmod 755 /root/*.sh
+RUN chmod 700 /root/.ssh
+RUN chmod 600 /root/.ssh/*
+
+WORKDIR /usr/local/bin
+ENV SHELL /bin/sh
+EXPOSE 22
+
+ENTRYPOINT ["/usr/sbin/sshd", "-D"]
diff --git a/Makefile b/Makefile
index 063540ef86..f6333af275 100644
--- a/Makefile
+++ b/Makefile
@@ -217,4 +217,13 @@ stress-test: zetanode
 	cd contrib/localnet/ && $(DOCKER) compose -f docker-compose-stresstest.yml up -d
 
 stop-stress-test:
-	cd contrib/localnet/ && $(DOCKER) compose -f docker-compose-stresstest.yml down --remove-orphans
\ No newline at end of file
+	cd contrib/localnet/ && $(DOCKER) compose -f docker-compose-stresstest.yml down --remove-orphans
+
+stateful-upgrade:
+	@echo "--> Starting stateful smoketest"
+	$(DOCKER) build --build-arg old_version=v9.0.0-rc2 --build-arg new_version=v10.0.0 -t zetanode -f ./Dockerfile-versioned .
+	$(DOCKER) build -t orchestrator -f contrib/localnet/orchestrator/Dockerfile-upgrade.fastbuild .
+	cd contrib/localnet/ && $(DOCKER) compose -f docker-compose-stateful.yml up -d
+
+stop-stateful-upgrade:
+	cd contrib/localnet/ && $(DOCKER) compose -f docker-compose-stateful.yml down --remove-orphans
\ No newline at end of file
diff --git a/contrib/localnet/docker-compose-stateful.yml b/contrib/localnet/docker-compose-stateful.yml
new file mode 100644
index 0000000000..d577d96b2d
--- /dev/null
+++ b/contrib/localnet/docker-compose-stateful.yml
@@ -0,0 +1,109 @@
+version: "3"
+
+networks:
+  mynetwork:
+    ipam:
+      config:
+        - subnet: 172.20.0.0/24
+
+
+services:
+  zetacore0:
+    image: zetanode:latest
+    container_name: zetacore0
+    build:
+      context: ../../.
+      dockerfile: Dockerfile
+    hostname: zetacore0
+    ports:
+      - "1317:1317"
+      - "9545:8545"
+      - "9546:8546"
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.11
+    entrypoint: ["/root/genesis-stateful.sh", "2"] # Need to specify that there are 2 nodes
+
+
+  zetacore1:
+    image: zetanode:latest
+    container_name: zetacore1
+    build:
+      context: ../../.
+      dockerfile: Dockerfile
+    hostname: zetacore1
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.12
+    entrypoint: ["/root/genesis-stateful.sh", "2"]
+
+  zetaclient0:
+    image: zetanode:latest
+    container_name: zetaclient0
+    build:
+      context: ../../.
+      dockerfile: Dockerfile
+    hostname: zetaclient0
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.21
+    entrypoint: /root/start-zetaclientd-background.sh
+    environment:
+      - ETHDEV_ENDPOINT=http://eth:8545
+
+  zetaclient1:
+    image: zetanode:latest
+    container_name: zetaclient1
+    build:
+      context: ../../.
+      dockerfile: Dockerfile
+    hostname: zetaclient1
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.22
+    entrypoint: /root/start-zetaclientd-background.sh
+    environment:
+      - ETHDEV_ENDPOINT=http://eth:8545
+
+  bitcoin:
+    image: ruimarinho/bitcoin-core:22 # version 23 is not working with btcd 0.22.0 due to change in createwallet rpc
+    container_name: bitcoin
+    hostname: bitcoin
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.101
+    ports:
+      - "18443:18443"
+    command:
+      -printtoconsole
+      -regtest=1
+      -rpcallowip=172.20.0.0/16
+      -rpcbind=0.0.0.0
+      -rpcauth=smoketest:63acf9b8dccecce914d85ff8c044b78b$$5892f9bbc84f4364e79f0970039f88bdd823f168d4acc76099ab97b14a766a99
+      -txindex=1
+
+  eth:
+    image: ethereum/client-go:v1.10.26
+    container_name: eth
+    hostname: eth
+    ports:
+      - "8545:8545"
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.100
+    entrypoint: [ "geth", "--dev", "--http", "--http.addr", "172.20.0.100", "--http.vhosts", "*", "--http.api", "eth,web3,net", "--http.corsdomain", "https://remix.ethereum.org", "--dev.period", "2" ]
+
+  orchestrator:
+    image: orchestrator:latest
+    container_name: orchestrator
+    build:
+      context: ../../.
+      dockerfile: contrib/localnet/orchestrator/Dockerfile
+    depends_on:
+      - zetacore0
+      - eth
+    hostname: orchestrator
+    networks:
+      mynetwork:
+        ipv4_address: 172.20.0.2
+    entrypoint: [ "/work/start-upgrade.sh", "local"]
diff --git a/contrib/localnet/orchestrator/Dockerfile b/contrib/localnet/orchestrator/Dockerfile
index 5e7c2013c9..e57670b3d6 100644
--- a/contrib/localnet/orchestrator/Dockerfile
+++ b/contrib/localnet/orchestrator/Dockerfile
@@ -2,7 +2,7 @@ FROM zetanode:latest as zeta
 FROM ethereum/client-go:v1.10.26 as geth
 FROM golang:1.20-alpine as orchestrator
 
-RUN apk --no-cache add jq curl bash make git build-base
+RUN apk --no-cache add jq curl bash make git build-base openssh
 
 COPY --from=zeta /usr/local/bin/zetacored /usr/local/bin/
 COPY --from=zeta /usr/local/bin/zetaclientd /usr/local/bin/
@@ -12,7 +12,9 @@ COPY --from=zeta /root/.ssh/localtest.pem.pub /root/.ssh/authorized_keys
 COPY --from=zeta /root/.ssh/localtest.pem /root/.ssh/localtest.pem
 
 COPY contrib/localnet/orchestrator/start.sh /work/
-RUN chmod +x /work/start.sh
+COPY contrib/localnet/orchestrator/start-upgrade.sh /work/
+COPY contrib/localnet/orchestrator/restart-zetaclientd.sh /work/
+RUN chmod +x /work/*.sh
 
 ENV GOPATH /go
 ENV GOOS=linux
diff --git a/contrib/localnet/orchestrator/Dockerfile-upgrade.fastbuild b/contrib/localnet/orchestrator/Dockerfile-upgrade.fastbuild
new file mode 100644
index 0000000000..3fb6b69e67
--- /dev/null
+++ b/contrib/localnet/orchestrator/Dockerfile-upgrade.fastbuild
@@ -0,0 +1,24 @@
+FROM zetanode:latest as zeta
+FROM ethereum/client-go:v1.10.26 as geth
+FROM golang:1.20-alpine as orchestrator
+
+RUN apk --no-cache add jq curl bash make git build-base openssh
+
+COPY --from=zeta /usr/local/bin/zetacored /usr/local/bin/
+COPY --from=zeta /usr/local/bin/zetaclientd /usr/local/bin/
+COPY --from=geth /usr/local/bin/geth /usr/local/bin/
+
+COPY --from=zeta /root/.ssh/localtest.pem.pub /root/.ssh/authorized_keys
+COPY --from=zeta /root/.ssh/localtest.pem /root/.ssh/localtest.pem
+
+COPY contrib/localnet/orchestrator/start.sh /work/
+COPY contrib/localnet/orchestrator/start-upgrade.sh /work/
+COPY contrib/localnet/orchestrator/restart-zetaclientd.sh /work/
+RUN chmod +x /work/*.sh
+
+
+COPY --from=zeta /go/bin/old/smoketest /usr/local/bin/smoketest-old
+COPY --from=zeta /go/bin/new/smoketest /usr/local/bin/smoketest-new
+RUN chmod +x /usr/local/bin/smoketest-*
+
+WORKDIR /work
diff --git a/contrib/localnet/orchestrator/Dockerfile.fastbuild b/contrib/localnet/orchestrator/Dockerfile.fastbuild
index e4c4381be6..20cd3d1f56 100644
--- a/contrib/localnet/orchestrator/Dockerfile.fastbuild
+++ b/contrib/localnet/orchestrator/Dockerfile.fastbuild
@@ -18,4 +18,4 @@ RUN chmod +x /work/start.sh
 COPY --from=zeta /usr/local/bin/smoketest /usr/local/bin/
 RUN chmod +x /usr/local/bin/smoketest
 
-WORKDIR /work
+WORKDIR /work
\ No newline at end of file
diff --git a/contrib/localnet/orchestrator/restart-zetaclientd.sh b/contrib/localnet/orchestrator/restart-zetaclientd.sh
new file mode 100644
index 0000000000..d5f8b1becc
--- /dev/null
+++ b/contrib/localnet/orchestrator/restart-zetaclientd.sh
@@ -0,0 +1,44 @@
+#!/bin/bash
+
+clibuilder()
+{
+   echo ""
+   echo "Usage: $0 -u UPGRADE_HEIGHT"
+   echo -e "\t-u Height of upgrade, should match governance proposal"
+   echo -e "\t-n Number of clients in the network"
+   exit 1 # Exit script after printing help
+}
+
+while getopts "u:n:" opt
+do
+   case "$opt" in
+      u ) UPGRADE_HEIGHT="$OPTARG" ;;
+      n ) NUM_OF_NODES="$OPTARG" ;;
+      ? ) clibuilder ;; # Print cliBuilder in case parameter is non-existent
+   esac
+done
+
+# generate client list
+START=0
+END=$((NUM_OF_NODES-1))
+CLIENT_LIST=()
+for i in $(eval echo "{$START..$END}")
+do
+  CLIENT_LIST+=("zetaclient$i")
+done
+
+echo "$UPGRADE_HEIGHT"
+
+CURRENT_HEIGHT=0
+
+while [[ $CURRENT_HEIGHT -lt $UPGRADE_HEIGHT ]]
+do
+    CURRENT_HEIGHT=$(curl zetacore0:26657/status | jq '.result.sync_info.latest_block_height' | tr -d '"')
+    sleep 5
+done
+
+echo current height is "$CURRENT_HEIGHT", restarting zetaclients
+for NODE in "${CLIENT_LIST[@]}"; do
+    ssh -o "StrictHostKeyChecking no" "$NODE" -i ~/.ssh/localtest.pem killall zetaclientd
+    ssh -o "StrictHostKeyChecking no" "$NODE" -i ~/.ssh/localtest.pem "$GOPATH/bin/new/zetaclientd start < /dev/null > $HOME/zetaclient.log 2>&1 &"
+done
diff --git a/contrib/localnet/orchestrator/smoketest/main.go b/contrib/localnet/orchestrator/smoketest/main.go
index 44607b3c22..95ee48389e 100644
--- a/contrib/localnet/orchestrator/smoketest/main.go
+++ b/contrib/localnet/orchestrator/smoketest/main.go
@@ -67,6 +67,7 @@ var LocalCmd = &cobra.Command{
 
 type localArgs struct {
 	contractsDeployed bool
+	waitForHeight     int64
 }
 
 var localTestArgs = localArgs{}
@@ -74,6 +75,7 @@ var localTestArgs = localArgs{}
 func init() {
 	RootCmd.AddCommand(LocalCmd)
 	LocalCmd.Flags().BoolVar(&localTestArgs.contractsDeployed, "deployed", false, "set to to true if running smoketest again with existing state")
+	LocalCmd.Flags().Int64Var(&localTestArgs.waitForHeight, "wait-for", 0, "block height for smoketest to begin, ex. --wait-for 100")
 }
 
 func main() {
@@ -94,6 +96,10 @@ func LocalSmokeTest(_ *cobra.Command, _ []string) {
 		os.Exit(1)
 	}()
 
+	if localTestArgs.waitForHeight != 0 {
+		WaitForBlockHeight(localTestArgs.waitForHeight)
+	}
+
 	// set account prefix to zeta
 	cfg := sdk.GetConfig()
 	cfg.SetBech32PrefixForAccount(app.Bech32PrefixAccAddr, app.Bech32PrefixAccPub)
diff --git a/contrib/localnet/orchestrator/smoketest/test_deposit_eth.go b/contrib/localnet/orchestrator/smoketest/test_deposit_eth.go
index 2a02176ada..5f390560e0 100644
--- a/contrib/localnet/orchestrator/smoketest/test_deposit_eth.go
+++ b/contrib/localnet/orchestrator/smoketest/test_deposit_eth.go
@@ -6,6 +6,8 @@ package main
 import (
 	"context"
 	"fmt"
+	"github.com/zeta-chain/zetacore/common/ethereum"
+	observertypes "github.com/zeta-chain/zetacore/x/observer/types"
 	"math/big"
 	"time"
 
@@ -15,9 +17,7 @@ import (
 	"github.com/ethereum/go-ethereum/crypto"
 	zrc20 "github.com/zeta-chain/protocol-contracts/pkg/contracts/zevm/zrc20.sol"
 	"github.com/zeta-chain/zetacore/common"
-	"github.com/zeta-chain/zetacore/common/ethereum"
 	"github.com/zeta-chain/zetacore/x/crosschain/types"
-	observertypes "github.com/zeta-chain/zetacore/x/observer/types"
 	"github.com/zeta-chain/zetacore/zetaclient"
 )
 
@@ -93,8 +93,8 @@ func (sm *SmokeTest) TestDepositEtherIntoZRC20() {
 				BlockHash: blockHash.Bytes(),
 			})
 			if err != nil {
-				fmt.Printf("WARN: block header not found; retrying...\n")
-				time.Sleep(2 * time.Second)
+				fmt.Printf("WARN: block header not found; retrying... error: %s \n", err.Error())
+				time.Sleep(5 * time.Second)
 			} else {
 				fmt.Printf("OK: block header found\n")
 				break
diff --git a/contrib/localnet/orchestrator/smoketest/utils.go b/contrib/localnet/orchestrator/smoketest/utils.go
index 7c4345f536..36afa0d364 100644
--- a/contrib/localnet/orchestrator/smoketest/utils.go
+++ b/contrib/localnet/orchestrator/smoketest/utils.go
@@ -8,6 +8,8 @@ import (
 	"encoding/hex"
 	"errors"
 	"fmt"
+	rpchttp "github.com/tendermint/tendermint/rpc/client/http"
+	coretypes "github.com/tendermint/tendermint/rpc/core/types"
 	"sync"
 	"time"
 
@@ -113,3 +115,17 @@ func ScriptPKToAddress(scriptPKHex string) string {
 	}
 	return ""
 }
+
+func WaitForBlockHeight(height int64) {
+	// initialize rpc and check status
+	rpc, err := rpchttp.New("http://zetacore0:26657", "/websocket")
+	if err != nil {
+		panic(err)
+	}
+	status := &coretypes.ResultStatus{}
+	for status.SyncInfo.LatestBlockHeight < height {
+		status, _ = rpc.Status(context.Background())
+		time.Sleep(time.Second * 5)
+		fmt.Printf("waiting for block: %d, current height: %d\n", height, status.SyncInfo.LatestBlockHeight)
+	}
+}
diff --git a/contrib/localnet/orchestrator/start-upgrade.sh b/contrib/localnet/orchestrator/start-upgrade.sh
new file mode 100644
index 0000000000..b787a5b0da
--- /dev/null
+++ b/contrib/localnet/orchestrator/start-upgrade.sh
@@ -0,0 +1,42 @@
+#!/bin/bash
+
+SMOKETEST_CMD=$1
+
+echo "waiting for geth RPC to start..."
+sleep 6
+echo "funding deployer address 0xE5C5367B8224807Ac2207d350E60e1b6F27a7ecC with 100 Ether"
+geth --exec 'eth.sendTransaction({from: eth.coinbase, to: "0xE5C5367B8224807Ac2207d350E60e1b6F27a7ecC", value: web3.toWei(100,"ether")})' attach http://eth:8545
+echo "funding TSS address 0xF421292cb0d3c97b90EEEADfcD660B893592c6A2 with 1 Ether"
+geth --exec 'eth.sendTransaction({from: eth.coinbase, to: "0xF421292cb0d3c97b90EEEADfcD660B893592c6A2", value: web3.toWei(100,"ether")})' attach http://eth:8545
+
+echo "waiting for 6s for the transaction to be mined"
+sleep 6
+echo "the new balance of the deployer addrees:"
+curl -sS http://eth:8545 \
+  -X POST \
+  -H "Content-Type: application/json" \
+  --data '{"method":"eth_getBalance","params":["0xE5C5367B8224807Ac2207d350E60e1b6F27a7ecC", "latest"],"id":1,"jsonrpc":"2.0"}'
+curl -sS http://eth:8545 \
+  -X POST \
+  -H "Content-Type: application/json" \
+  --data '{"method":"eth_getBalance","params":["0xF421292cb0d3c97b90EEEADfcD660B893592c6A2", "latest"],"id":1,"jsonrpc":"2.0"}'
+echo "running smoketest..."
+smoketest-old "$SMOKETEST_CMD"
+SMOKETEST_EXIT_CODE=$?
+if [ $SMOKETEST_EXIT_CODE -ne 0 ]; then
+  echo "smoketest failed"
+  exit 1
+fi
+
+# Restart zetaclients at upgrade height
+/work/restart-zetaclientd.sh -u 330 -n 2
+
+smoketest-new "$SMOKETEST_CMD" --deployed --wait-for 335
+
+if [ $SMOKETEST_EXIT_CODE -eq 0 ]; then
+  echo "smoketest passed"
+  exit 0
+else
+  echo "smoketest failed"
+  exit 1
+fi
\ No newline at end of file
diff --git a/contrib/localnet/scripts/genesis-stateful.sh b/contrib/localnet/scripts/genesis-stateful.sh
new file mode 100755
index 0000000000..5f9f293f1b
--- /dev/null
+++ b/contrib/localnet/scripts/genesis-stateful.sh
@@ -0,0 +1,185 @@
+#!/bin/bash
+
+/usr/sbin/sshd
+
+if [ $# -ne 1 ]
+then
+  echo "Usage: genesis.sh <num of nodes>"
+  exit 1
+fi
+NUMOFNODES=$1
+
+# create keys
+CHAINID="athens_101-1"
+KEYRING="test"
+HOSTNAME=$(hostname)
+INDEX=${HOSTNAME:0-1}
+
+export DAEMON_HOME=$HOME/.zetacored
+export DAEMON_NAME=zetacored
+export DAEMON_ALLOW_DOWNLOAD_BINARIES=true
+export DAEMON_RESTART_AFTER_UPGRADE=true
+export CLIENT_DAEMON_NAME=zetaclientd
+export CLIENT_DAEMON_ARGS="-enable-chains,GOERLI,-val,operator"
+export DAEMON_DATA_BACKUP_DIR=$DAEMON_HOME
+export CLIENT_SKIP_UPGRADE=true
+export CLIENT_START_PROCESS=false
+export UNSAFE_SKIP_BACKUP=true
+export UpgradeName=${NEW_VERSION}
+
+# generate node list
+START=1
+# shellcheck disable=SC2100
+END=$((NUMOFNODES - 1))
+NODELIST=()
+for i in $(eval echo "{$START..$END}")
+do
+  NODELIST+=("zetacore$i")
+done
+
+echo "HOSTNAME: $HOSTNAME"
+
+# Init a new node to generate genesis file .
+# Copy config files from existing folders which get copied via Docker Copy when building images
+mkdir -p ~/.backup/config
+zetacored init Zetanode-Localnet --chain-id=$CHAINID
+rm -rf ~/.zetacored/config/app.toml
+rm -rf ~/.zetacored/config/client.toml
+rm -rf ~/.zetacored/config/config.toml
+cp -r ~/zetacored/common/app.toml ~/.zetacored/config/
+cp -r ~/zetacored/common/client.toml ~/.zetacored/config/
+cp -r ~/zetacored/common/config.toml ~/.zetacored/config/
+sed -i -e "/moniker =/s/=.*/= \"$HOSTNAME\"/" "$HOME"/.zetacored/config/config.toml
+
+# Add two new keys for operator and hotkey and create the required json structure for os_info
+source ~/os-info.sh
+
+# Pause other nodes so that the primary can node can do the genesis creation
+if [ $HOSTNAME != "zetacore0" ]
+then
+  echo "Waiting for zetacore0 to create genesis.json"
+  sleep $((7*NUMOFNODES))
+  echo "genesis.json created"
+fi
+
+# Genesis creation following steps
+# 1. Accumulate all the os_info files from other nodes on zetcacore0 and create a genesis.json
+# 2. Add the observers , authorizations and required params to the genesis.json
+# 3. Copy the genesis.json to all the nodes .And use it to create a gentx for every node
+# 4. Collect all the gentx files in zetacore0 and create the final genesis.json
+# 5. Copy the final genesis.json to all the nodes and start the nodes
+# 6. Update Config in zetacore0 so that it has the correct persistent peer list
+# 7. Start the nodes
+
+# Start of genesis creation . This is done only on zetacore0
+if [ $HOSTNAME == "zetacore0" ]
+then
+  # Misc : Copying the keyring to the client nodes so that they can sign the transactions
+  ssh zetaclient0 mkdir -p ~/.zetacored/keyring-test/
+  scp ~/.zetacored/keyring-test/* zetaclient0:~/.zetacored/keyring-test/
+
+# 1. Accumulate all the os_info files from other nodes on zetcacore0 and create a genesis.json
+  for NODE in "${NODELIST[@]}"; do
+    INDEX=${NODE:0-1}
+    ssh zetaclient"$INDEX" mkdir -p ~/.zetacored/
+    scp "$NODE":~/.zetacored/os_info/os.json ~/.zetacored/os_info/os_z"$INDEX".json
+    scp ~/.zetacored/os_info/os_z"$INDEX".json zetaclient"$INDEX":~/.zetacored/os.json
+  done
+
+  ssh zetaclient0 mkdir -p ~/.zetacored/
+  scp ~/.zetacored/os_info/os.json zetaclient0:/root/.zetacored/os.json
+
+# 2. Add the observers , authorizations and required params to the genesis.json
+  zetacored collect-observer-info
+  zetacored add-observer-list
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["staking"]["params"]["bond_denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["crisis"]["constant_fee"]["denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["gov"]["deposit_params"]["min_deposit"][0]["denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["mint"]["params"]["mint_denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["evm"]["params"]["evm_denom"]="azeta"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+  cat $HOME/.zetacored/config/genesis.json | jq '.consensus_params["block"]["max_gas"]="500000000"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["gov"]["voting_params"]["voting_period"]="100s"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+
+  # set fungible admin account as admin for fungible token
+  zetacored add-genesis-account zeta1srsq755t654agc0grpxj4y3w0znktrpr9tcdgk 100000000000000000000000000azeta
+  cat $HOME/.zetacored/config/genesis.json | jq '.app_state["observer"]["params"]["admin_policy"][2]["address"]="zeta1srsq755t654agc0grpxj4y3w0znktrpr9tcdgk"' > $HOME/.zetacored/config/tmp_genesis.json && mv $HOME/.zetacored/config/tmp_genesis.json $HOME/.zetacored/config/genesis.json
+
+
+# 3. Copy the genesis.json to all the nodes .And use it to create a gentx for every node
+  zetacored gentx operator 1000000000000000000000azeta --chain-id=$CHAINID --keyring-backend=$KEYRING
+  # Copy host gentx to other nodes
+  for NODE in "${NODELIST[@]}"; do
+    ssh $NODE mkdir -p ~/.zetacored/config/gentx/peer/
+    scp ~/.zetacored/config/gentx/* $NODE:~/.zetacored/config/gentx/peer/
+  done
+  # Create gentx files on other nodes and copy them to host node
+  mkdir ~/.zetacored/config/gentx/z2gentx
+  for NODE in "${NODELIST[@]}"; do
+      ssh $NODE rm -rf ~/.zetacored/genesis.json
+      scp ~/.zetacored/config/genesis.json $NODE:~/.zetacored/config/genesis.json
+      ssh $NODE zetacored gentx operator 1000000000000000000000azeta --chain-id=$CHAINID --keyring-backend=$KEYRING
+      scp $NODE:~/.zetacored/config/gentx/* ~/.zetacored/config/gentx/
+      scp $NODE:~/.zetacored/config/gentx/* ~/.zetacored/config/gentx/z2gentx/
+  done
+
+# 4. Collect all the gentx files in zetacore0 and create the final genesis.json
+  zetacored collect-gentxs
+  zetacored validate-genesis
+# 5. Copy the final genesis.json to all the nodes
+  for NODE in "${NODELIST[@]}"; do
+      ssh $NODE rm -rf ~/.zetacored/genesis.json
+      scp ~/.zetacored/config/genesis.json $NODE:~/.zetacored/config/genesis.json
+  done
+# 6. Update Config in zetacore0 so that it has the correct persistent peer list
+   sleep 2
+   pp=$(cat $HOME/.zetacored/config/gentx/z2gentx/*.json | jq '.body.memo' )
+   pps=${pp:1:58}
+   sed -i -e "/persistent_peers =/s/=.*/= \"$pps\"/" "$HOME"/.zetacored/config/config.toml
+fi
+# End of genesis creation steps . The steps below are common to all the nodes
+
+# Update persistent peers
+if [ $HOSTNAME != "zetacore0" ]
+then
+  # Misc : Copying the keyring to the client nodes so that they can sign the transactions
+  ssh zetaclient"$INDEX" mkdir -p ~/.zetacored/keyring-test/
+  scp ~/.zetacored/keyring-test/* "zetaclient$INDEX":~/.zetacored/keyring-test/
+
+  pp=$(cat $HOME/.zetacored/config/gentx/peer/*.json | jq '.body.memo' )
+  pps=${pp:1:58}
+  sed -i -e "/persistent_peers =/s/=.*/= \"$pps\"/" "$HOME"/.zetacored/config/config.toml
+fi
+
+mkdir -p $DAEMON_HOME/zetavisor/genesis/bin
+mkdir -p $DAEMON_HOME/zetavisor/upgrades/"$UpgradeName"/bin
+
+# Setup zetavisor
+# Genesis
+cp $GOPATH/bin/old/zetacored $DAEMON_HOME/zetavisor/genesis/bin
+cp $GOPATH/bin/zetaclientd $DAEMON_HOME/zetavisor/genesis/bin
+
+#Upgrades
+cp $GOPATH/bin/new/zetacored $DAEMON_HOME/zetavisor/upgrades/$UpgradeName/bin/
+
+#Permissions
+chmod +x $DAEMON_HOME/zetavisor/genesis/bin/zetacored
+chmod +x $DAEMON_HOME/zetavisor/genesis/bin/zetaclientd
+chmod +x $DAEMON_HOME/zetavisor/upgrades/$UpgradeName/bin/zetacored
+
+
+# 7 Start the nodes
+zetavisor start --pruning=nothing --minimum-gas-prices=0.0001azeta --json-rpc.api eth,txpool,personal,net,debug,web3,miner --api.enable --home /root/.zetacored >> zetanode.log 2>&1  &
+sleep 20
+echo
+
+if [ $HOSTNAME = "zetacore0" ]
+then
+/root/.zetacored/zetavisor/current/bin/zetacored tx gov submit-legacy-proposal software-upgrade $UpgradeName --from hotkey --deposit 100000000azeta --upgrade-height 320 --title $UpgradeName --description $UpgradeName --keyring-backend test --chain-id $CHAINID --yes --no-validate --fees=200azeta --broadcast-mode block
+fi
+
+sleep 8
+/root/.zetacored/zetavisor/current/bin/zetacored tx gov vote 1 yes --from operator --keyring-backend test --chain-id $CHAINID --yes --fees=200azeta --broadcast-mode block
+sleep 7
+/root/.zetacored/zetavisor/current/bin/zetacored query gov proposal 1
+
+tail -f zetanode.log
\ No newline at end of file
diff --git a/contrib/localnet/scripts/start-zetaclientd-background.sh b/contrib/localnet/scripts/start-zetaclientd-background.sh
new file mode 100644
index 0000000000..76726958cc
--- /dev/null
+++ b/contrib/localnet/scripts/start-zetaclientd-background.sh
@@ -0,0 +1,36 @@
+#!/bin/bash
+
+/usr/sbin/sshd
+
+HOSTNAME=$(hostname)
+
+cp  /root/preparams/PreParams_$HOSTNAME.json /root/preParams.json
+num=$(echo $HOSTNAME | tr -dc '0-9')
+node="zetacore$num"
+#mv  /root/zetacored/zetacored_$node /root/.zetacored
+#mv /root/tss/$HOSTNAME /root/.tss
+
+echo "Wait for zetacore to exchange genesis file"
+sleep 30
+operator=$(cat $HOME/.zetacored/os.json | jq '.ObserverAddress' )
+operatorAddress=$(echo "$operator" | tr -d '"')
+echo "operatorAddress: $operatorAddress"
+echo "Start zetaclientd"
+if [ $HOSTNAME == "zetaclient0" ]
+then
+    rm ~/.tss/*
+    MYIP=$(/sbin/ip -o -4 addr list eth0 | awk '{print $4}' | cut -d/ -f1)
+    zetaclientd init  --zetacore-url zetacore0 --chain-id athens_101-1 --operator "$operatorAddress"  --log-format=text --public-ip "$MYIP"
+    zetaclientd start > $HOME/zetaclient.log 2>&1 &
+else
+  num=$(echo $HOSTNAME | tr -dc '0-9')
+  node="zetacore$num"
+  MYIP=$(/sbin/ip -o -4 addr list eth0 | awk '{print $4}' | cut -d/ -f1)
+  SEED=$(curl --retry 10 --retry-delay 5 --retry-connrefused  -s zetaclient0:8123/p2p)
+  rm ~/.tss/*
+  zetaclientd init --peer /ip4/172.20.0.21/tcp/6668/p2p/"$SEED" --zetacore-url "$node" --chain-id athens_101-1 --operator "$operatorAddress" --log-format=text --public-ip "$MYIP" --log-level 0
+  zetaclientd start > $HOME/zetaclient.log 2>&1 &
+fi
+
+sleep 3
+tail -f $HOME/zetaclient.log
\ No newline at end of file
diff --git a/standalone-network/upgrade-integration.sh b/standalone-network/upgrade-integration.sh
index 4bf9571307..9d421eeaec 100755
--- a/standalone-network/upgrade-integration.sh
+++ b/standalone-network/upgrade-integration.sh
@@ -117,4 +117,3 @@ sleep 7
 zetacored query gov proposal 1
 
 tail -f zetanode.log
-