diff --git a/cmd/harmony/main.go b/cmd/harmony/main.go
index 05d2cf64b..18e53a507 100644
--- a/cmd/harmony/main.go
+++ b/cmd/harmony/main.go
@@ -9,6 +9,8 @@ import (
 	"runtime"
 	"time"
 
+	"github.com/harmony-one/harmony/internal/utils/contract"
+
 	"github.com/ethereum/go-ethereum/ethdb"
 	"github.com/ethereum/go-ethereum/log"
 	"github.com/harmony-one/harmony/consensus"
@@ -119,18 +121,28 @@ func createGlobalConfig() *nodeconfig.ConfigType {
 	// Currently we hardcode only one shard.
 	nodeConfig.ShardIDString = "0"
 
-	nodeConfig.StakingPriKey = node.LoadStakingKeyFromFile(*stakingKeyFile, *accountIndex)
+	// Key Setup ================= [Start]
+	// Staking private key is the ecdsa key used for token related transaction signing (especially the staking txs).
+	stakingPriKey := ""
+	if *isBeacon {
+		stakingPriKey = contract.InitialBeaconChainAccounts[*accountIndex].Private
+	} else {
+		stakingPriKey = contract.NewNodeAccounts[*accountIndex].Private
+	}
+	nodeConfig.StakingPriKey = node.StoreStakingKeyFromFile(*stakingKeyFile, stakingPriKey)
 
+	// P2p private key is used for secure message transfer between p2p nodes.
 	nodeConfig.P2pPriKey, _, err = utils.LoadKeyFromFile(*keyFile)
 	if err != nil {
 		panic(err)
 	}
 
-	// Setup Bls keys
+	// Consensus keys are the BLS12-381 keys used to sign consensus messages
 	nodeConfig.ConsensusPriKey, nodeConfig.ConsensusPubKey = utils.GenKey(*ip, *port)
 	if nodeConfig.ConsensusPriKey == nil || nodeConfig.ConsensusPubKey == nil {
 		panic(fmt.Errorf("generate key error"))
 	}
+	// Key Setup ================= [End]
 
 	// Initialize leveldb for main blockchain and beacon.
 	if nodeConfig.MainDB, err = InitLDBDatabase(*ip, *port, *freshDB, false); err != nil {
diff --git a/core/blockchain.go b/core/blockchain.go
index 5a468b52d..4b662bcf4 100644
--- a/core/blockchain.go
+++ b/core/blockchain.go
@@ -1653,7 +1653,7 @@ func (bc *BlockChain) SubscribeLogsEvent(ch chan<- []*types.Log) event.Subscript
 	return bc.scope.Track(bc.logsFeed.Subscribe(ch))
 }
 
-// GetShardState retrives sharding state given block hash and block number
+// GetShardState retrieves sharding state given block hash and block number
 func (bc *BlockChain) GetShardState(hash common.Hash, number uint64) types.ShardState {
 	if cached, ok := bc.shardStateCache.Get(hash); ok {
 		shardState := cached.(types.ShardState)
diff --git a/core/rawdb/accessors_chain.go b/core/rawdb/accessors_chain.go
index 61df9bf6b..42f0ea2dd 100644
--- a/core/rawdb/accessors_chain.go
+++ b/core/rawdb/accessors_chain.go
@@ -374,7 +374,7 @@ func FindCommonAncestor(db DatabaseReader, a, b *types.Header) *types.Header {
 	return a
 }
 
-// ReadShardState retrieves sharding state
+// ReadShardState retrieves sharding state.
 func ReadShardState(db DatabaseReader, hash common.Hash, number uint64) types.ShardState {
 	data, _ := db.Get(shardStateKey(number, hash))
 	if len(data) == 0 {
@@ -388,7 +388,7 @@ func ReadShardState(db DatabaseReader, hash common.Hash, number uint64) types.Sh
 	return shardState
 }
 
-// WriteShardState stores sharding state into database
+// WriteShardState stores sharding state into database.
 func WriteShardState(db DatabaseWriter, hash common.Hash, number uint64, shardState types.ShardState) {
 	data, err := rlp.EncodeToBytes(shardState)
 	if err != nil {
diff --git a/core/resharding.go b/core/resharding.go
index 4241dadd0..d4ae206d9 100644
--- a/core/resharding.go
+++ b/core/resharding.go
@@ -86,6 +86,7 @@ func (ss *ShardingState) assignLeaders() {
 func (ss *ShardingState) UpdateShardState(newNodeList []types.NodeID, percent float64) {
 	rand.Seed(int64(ss.rnd))
 	ss.sortCommitteeBySize()
+	// TODO: separate shuffling and leader assignment
 	ss.assignLeaders()
 	ss.assignNewNodes(newNodeList)
 	ss.cuckooResharding(percent)
@@ -124,7 +125,7 @@ func GetShardingStateFromBlockChain(bc *BlockChain, epoch uint64) *ShardingState
 	return &ShardingState{epoch: epoch, rnd: rndSeed, shardState: shardState, numShards: len(shardState)}
 }
 
-// CalculateNewShardState get sharding state from previous epoch and calcualte sharding state for new epoch
+// CalculateNewShardState get sharding state from previous epoch and calculate sharding state for new epoch
 // TODO: currently, we just mock everything
 func CalculateNewShardState(bc *BlockChain, epoch uint64) types.ShardState {
 	if epoch == FirstEpoch {
diff --git a/internal/utils/contract/constants.go b/internal/utils/contract/constants.go
index f9de9a692..0f9bbb3f4 100644
--- a/internal/utils/contract/constants.go
+++ b/internal/utils/contract/constants.go
@@ -38,18 +38,8 @@ var GenesisBeaconAccountPublicKey = GenesisBeaconAccountPriKey.PublicKey
 // DeployedContractAddress is the deployed contract address of the staking smart contract in beacon chain.
 var DeployedContractAddress = crypto.CreateAddress(crypto.PubkeyToAddress(GenesisBeaconAccountPublicKey), uint64(0))
 
-// StakingAccounts is the accounts only used for staking.
-var StakingAccounts = [...]DeployAccount{
-	{Address: "0xE2bD4413172C98d5094B94de1A8AC6a383d68b84", Private: "e401343197a852f361e38ce6b46c99f1d6d1f80499864c6ae7effee42b46ab6b", Public: "0xE2bD4413172C98d5094B94de1A8AC6a383d68b84"},
-	{Address: "0x183418934Fd8A97c98E086151317B2df6259b8A8", Private: "a7d764439a7619f703c97ee2a2cf0be2cd62ad4c9deebd5423d6f28de417b907", Public: "0x183418934Fd8A97c98E086151317B2df6259b8A8"},
-	{Address: "0x9df0e70D4cb3E9beC0548D8Ac56F46596D1BcdB6", Private: "4e3f7c819a15249d2824834cd7ce20fe24d6eab8eb39ac63b78cb3713362cf78", Public: "0x9df0e70D4cb3E9beC0548D8Ac56F46596D1BcdB6"},
-	{Address: "0x64570B8D2f9028b850340b6710bB0027baC5EFa2", Private: "8565eded3f70b2f8608495fa7e301fefc36cbc03286c0f4e75ffde7e02b49791", Public: "0x64570B8D2f9028b850340b6710bB0027baC5EFa2"},
-	{Address: "0x7E653426a7E0c1D210A652bf0E74B15838059b80", Private: "23176da901759e231d7b2d8761f3448220fcfd0232ed0b9644689a6ad7d50990", Public: "0x7E653426a7E0c1D210A652bf0E74B15838059b80"},
-	{Address: "0xAe44500A96756112C69F88008388037F6C6dd723", Private: "a9b4c273ffa398a1b1c8eeab63c40cef2c2fb2fc1fc4de9ab73a61f12e4d990a", Public: "0xAe44500A96756112C69F88008388037F6C6dd723"},
-}
-
-// FakeAccounts is the accounts only used for development purpose.
-var FakeAccounts = [...]DeployAccount{
+// InitialBeaconChainAccounts are the accounts for the initial beacon chain node.
+var InitialBeaconChainAccounts = [...]DeployAccount{
 	{Address: "0xE2bD4413172C98d5094B94de1A8AC6a383d68b84", Private: "e401343197a852f361e38ce6b46c99f1d6d1f80499864c6ae7effee42b46ab6b", Public: "0xE2bD4413172C98d5094B94de1A8AC6a383d68b84"},
 	{Address: "0x183418934Fd8A97c98E086151317B2df6259b8A8", Private: "a7d764439a7619f703c97ee2a2cf0be2cd62ad4c9deebd5423d6f28de417b907", Public: "0x183418934Fd8A97c98E086151317B2df6259b8A8"},
 	{Address: "0x9df0e70D4cb3E9beC0548D8Ac56F46596D1BcdB6", Private: "4e3f7c819a15249d2824834cd7ce20fe24d6eab8eb39ac63b78cb3713362cf78", Public: "0x9df0e70D4cb3E9beC0548D8Ac56F46596D1BcdB6"},
@@ -60,6 +50,10 @@ var FakeAccounts = [...]DeployAccount{
 	{Address: "0x6f7659765a8784F782fc6Bcdb153e915076bb9F0", Private: "24be53d408b360cc1a3608d54fa8ba070692bbe8f594062c30a5e9e89cee9794", Public: "0x6f7659765a8784F782fc6Bcdb153e915076bb9F0"},
 	{Address: "0xfA24E616BaE95160878C7F1150d1e014904809E9", Private: "41d628799eee7637bd79ae9fc2fd1321cffbb4b858348d6abf5b4247b78fd492", Public: "0xfA24E616BaE95160878C7F1150d1e014904809E9"},
 	{Address: "0x47DF74d43fa4Ca1D814897eBD8Cf07e6bA024f75", Private: "d5a62757aa51f2ae883c5cb8631d312750ecc31f3934fffd95bcd969bd190c94", Public: "0x47DF74d43fa4Ca1D814897eBD8Cf07e6bA024f75"},
+}
+
+// NewNodeAccounts is the accounts used for new node to stake and join the network.
+var NewNodeAccounts = [...]DeployAccount{
 	{Address: "0x1a3e7a44ee21101d7D64FBf29B0F6F1fc295F723", Private: "27978f895b11d9c737e1ab1623fde722c04b4f9ccb4ab776bf15932cc72d7c66", Public: "0x1a3e7a44ee21101d7D64FBf29B0F6F1fc295F723"},
 	{Address: "0x10A02A0a6e95a676AE23e2db04BEa3D1B8b7ca2E", Private: "371cb68abe6a6101ac88603fc847e0c013a834253acee5315884d2c4e387ebca", Public: "0x10A02A0a6e95a676AE23e2db04BEa3D1B8b7ca2E"},
 	{Address: "0x3e881F6C36A3A14a2D1816b0A5471d1caBB16F33", Private: "3f8af52063c6648be37d4b33559f784feb16d8e5ffaccf082b3657ea35b05977", Public: "0x3e881F6C36A3A14a2D1816b0A5471d1caBB16F33"},
diff --git a/node/contract.go b/node/contract.go
index 22c0cbf1f..46e35771e 100644
--- a/node/contract.go
+++ b/node/contract.go
@@ -16,7 +16,6 @@ import (
 	"github.com/ethereum/go-ethereum/log"
 	"github.com/ethereum/go-ethereum/params"
 	"github.com/harmony-one/harmony/core/types"
-	"github.com/harmony-one/harmony/internal/utils/contract"
 	contract_constants "github.com/harmony-one/harmony/internal/utils/contract"
 )
 
@@ -158,16 +157,3 @@ func (node *Node) callGetFreeTokenWithNonce(address common.Address, nonce uint64
 	node.addPendingTransactions(types.Transactions{tx})
 	return tx.Hash()
 }
-
-// DepositToStakingAccounts invokes the faucet contract to give the staking accounts initial money
-func (node *Node) DepositToStakingAccounts() {
-	state, err := node.blockchain.State()
-	if err != nil {
-		log.Error("Failed to get chain state", "Error", err)
-	}
-	nonce := state.GetNonce(crypto.PubkeyToAddress(node.ContractDeployerKey.PublicKey)) + 1 // + 1 because deployer key is already used for faucet contract deployment
-	for i, deployAccount := range contract.StakingAccounts {
-		address := common.HexToAddress(deployAccount.Address)
-		node.callGetFreeTokenWithNonce(address, nonce+uint64(i))
-	}
-}
diff --git a/node/node.go b/node/node.go
index 08c428c8c..2a7c6a976 100644
--- a/node/node.go
+++ b/node/node.go
@@ -254,7 +254,6 @@ func New(host p2p.Host, consensusObj *consensus.Consensus, db ethdb.Database) *N
 		node.AddFaucetContractToPendingTransactions()
 		node.CurrentStakes = make(map[common.Address]*big.Int)
 		node.AddStakingContractToPendingTransactions() //This will save the latest information about staked nodes in current staked
-		node.DepositToStakingAccounts()
 	}
 
 	node.ContractCaller = contracts.NewContractCaller(&db, node.blockchain, params.TestChainConfig)
diff --git a/node/node_genesis.go b/node/node_genesis.go
index 9525024d7..4b373a651 100644
--- a/node/node_genesis.go
+++ b/node/node_genesis.go
@@ -6,6 +6,9 @@ import (
 	"math/rand"
 	"strings"
 
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/harmony-one/harmony/internal/utils/contract"
+
 	"github.com/ethereum/go-ethereum/crypto"
 	"github.com/ethereum/go-ethereum/ethdb"
 	"github.com/ethereum/go-ethereum/params"
@@ -16,14 +19,17 @@ import (
 const (
 	// FakeAddressNumber is the number of fake address.
 	FakeAddressNumber = 100
-	// TotalInitFund is the initial total fund to the faucet.
+	// TotalInitFund is the initial total fund for the contract deployer.
 	TotalInitFund = 9000000
 )
 
 // GenesisBlockSetup setups a genesis blockchain.
 func (node *Node) GenesisBlockSetup(db ethdb.Database) (*core.BlockChain, error) {
 	// Initialize genesis block and blockchain
+	// Tests account for txgen to use
 	genesisAlloc := node.CreateGenesisAllocWithTestingAddresses(FakeAddressNumber)
+
+	// Smart contract deployer account used to deploy protocol-level smart contract
 	contractDeployerKey, _ := ecdsa.GenerateKey(crypto.S256(), strings.NewReader("Test contract key string stream that is fixed so that generated test key are deterministic every time"))
 	contractDeployerAddress := crypto.PubkeyToAddress(contractDeployerKey.PublicKey)
 	contractDeployerFunds := big.NewInt(TotalInitFund)
@@ -31,6 +37,9 @@ func (node *Node) GenesisBlockSetup(db ethdb.Database) (*core.BlockChain, error)
 	genesisAlloc[contractDeployerAddress] = core.GenesisAccount{Balance: contractDeployerFunds}
 	node.ContractDeployerKey = contractDeployerKey
 
+	// Accounts used by validator/nodes to stake and participate in the network.
+	AddNodeAddressesToGenesisAlloc(genesisAlloc)
+
 	chainConfig := params.TestChainConfig
 	chainConfig.ChainID = big.NewInt(int64(node.Consensus.ShardID)) // Use ChainID as piggybacked ShardID
 	gspec := core.Genesis{
@@ -45,7 +54,7 @@ func (node *Node) GenesisBlockSetup(db ethdb.Database) (*core.BlockChain, error)
 }
 
 // CreateGenesisAllocWithTestingAddresses create the genesis block allocation that contains deterministically
-// generated testing addressess with tokens.
+// generated testing addressess with tokens. This is mostly used for generated simulated transactions in txgen.
 // TODO: Remove it later when moving to production.
 func (node *Node) CreateGenesisAllocWithTestingAddresses(numAddress int) core.GenesisAlloc {
 	rand.Seed(0)
@@ -66,3 +75,20 @@ func (node *Node) CreateGenesisAllocWithTestingAddresses(numAddress int) core.Ge
 	}
 	return genesisAloc
 }
+
+// AddNodeAddressesToGenesisAlloc adds to the genesis block allocation the accounts used for network validators/nodes,
+// including the account used by the nodes of the initial beacon chain and later new nodes.
+func AddNodeAddressesToGenesisAlloc(genesisAlloc core.GenesisAlloc) {
+	for _, account := range contract.InitialBeaconChainAccounts {
+		testBankFunds := big.NewInt(100)
+		testBankFunds = testBankFunds.Mul(testBankFunds, big.NewInt(params.Ether))
+		address := common.HexToAddress(account.Address)
+		genesisAlloc[address] = core.GenesisAccount{Balance: testBankFunds}
+	}
+	for _, account := range contract.NewNodeAccounts {
+		testBankFunds := big.NewInt(100)
+		testBankFunds = testBankFunds.Mul(testBankFunds, big.NewInt(params.Ether))
+		address := common.HexToAddress(account.Address)
+		genesisAlloc[address] = core.GenesisAccount{Balance: testBankFunds}
+	}
+}
diff --git a/node/staking.go b/node/staking.go
index e34a99671..424c85b34 100644
--- a/node/staking.go
+++ b/node/staking.go
@@ -9,8 +9,6 @@ import (
 
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/crypto"
-	"github.com/harmony-one/harmony/internal/utils/contract"
-
 	"github.com/harmony-one/harmony/internal/utils"
 
 	"github.com/ethereum/go-ethereum/common/hexutil"
@@ -84,14 +82,10 @@ func decodeFuncSign(data []byte) string {
 	return funcSign
 }
 
-// LoadStakingKeyFromFile load staking private key from keyfile
-// If the private key is not loadable or no file, it will generate
-// a new random private key
-// Currently for deploy_newnode.sh, we hard-coded the first fake account as staking account and
-// it is minted in genesis block. See genesis_node.go
-func LoadStakingKeyFromFile(keyfile string, accountIndex int) *ecdsa.PrivateKey {
+// StoreStakingKeyFromFile load the staking private key and store it in local keyfile
+func StoreStakingKeyFromFile(keyfile string, priKey string) *ecdsa.PrivateKey {
 	// contract.FakeAccounts[0] gets minted tokens in genesis block of beacon chain.
-	key, err := crypto.HexToECDSA(contract.StakingAccounts[accountIndex].Private)
+	key, err := crypto.HexToECDSA(priKey)
 	if err != nil {
 		utils.GetLogInstance().Error("Unable to get staking key")
 		os.Exit(1)
diff --git a/test/configs/beaconchain.txt b/test/configs/beaconchain.txt
new file mode 100644
index 000000000..a6cfdea2e
--- /dev/null
+++ b/test/configs/beaconchain.txt
@@ -0,0 +1,10 @@
+127.0.0.1 9000 leader 0
+127.0.0.1 9001 validator 0
+127.0.0.1 9002 validator 0
+127.0.0.1 9003 validator 0
+127.0.0.1 9004 validator 0
+127.0.0.1 9005 validator 0
+127.0.0.1 9006 validator 0
+127.0.0.1 9007 validator 0
+127.0.0.1 9008 validator 0
+127.0.0.1 9009 validator 0