cosmos-sdk/docs/getting-started/create-testnet.md

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Create your Own Testnet

To create your own testnet, first each validator will need to install gaiad and run gen-tx

gaiad init gen-tx --name <account_name>

This populations $HOME/.gaiad/gen-tx/ with a json file.

Now these json files need to be aggregated together via Github, a Google form, pastebin or other methods.

Place all files on one computer in $HOME/.gaiad/gen-tx/

gaiad init --with-txs -o --chain=<chain-name>

This will generate a genesis.json in $HOME/.gaiad/config/genesis.json distribute this file to all validators on your testnet.

Export state

To export state and reload (useful for testing purposes):

gaiad export > genesis.json; cp genesis.json ~/.gaiad/config/genesis.json; gaiad start