diff --git a/core/src/local_cluster.rs b/core/src/local_cluster.rs
index 3b75eb497..555d02a99 100644
--- a/core/src/local_cluster.rs
+++ b/core/src/local_cluster.rs
@@ -411,11 +411,11 @@ impl LocalCluster {
             let stake_account_pubkey = stake_account_keypair.pubkey();
             let mut transaction = Transaction::new_signed_instructions(
                 &[from_account.as_ref()],
-                vec![stake_instruction::create_account(
+                stake_instruction::create_delegate_account(
                     &from_account.pubkey(),
                     &stake_account_pubkey,
                     amount,
-                )],
+                ),
                 client.get_recent_blockhash().unwrap().0,
             );
 
diff --git a/core/src/staking_utils.rs b/core/src/staking_utils.rs
index f74c5fb5d..46f1bfd1e 100644
--- a/core/src/staking_utils.rs
+++ b/core/src/staking_utils.rs
@@ -183,11 +183,11 @@ pub(crate) mod tests {
         process_instructions(
             bank,
             &[from_account],
-            vec![stake_instruction::create_account(
+            stake_instruction::create_delegate_account(
                 &from_account.pubkey(),
                 &stake_account_pubkey,
                 amount,
-            )],
+            ),
         );
 
         process_instructions(
diff --git a/programs/stake_api/src/stake_instruction.rs b/programs/stake_api/src/stake_instruction.rs
index 1c531701c..21bbb7b8d 100644
--- a/programs/stake_api/src/stake_instruction.rs
+++ b/programs/stake_api/src/stake_instruction.rs
@@ -10,26 +10,84 @@ use solana_sdk::system_instruction;
 
 #[derive(Serialize, Deserialize, Debug, PartialEq, Eq, Clone)]
 pub enum StakeInstruction {
+    /// Initialize the stake account as a Delegate account.
+    ///
+    /// Expects 2 Accounts:
+    ///    0 - payer (TODO unused/remove)
+    ///    1 - Delegate StakeAccount to be initialized
+    InitializeDelegate,
+
+    // Initialize the stake account as a MiningPool account
+    ///
+    /// Expects 2 Accounts:
+    ///    0 - payer (TODO unused/remove)
+    ///    1 - MiningPool StakeAccount to be initialized
+    InitializeMiningPool,
+
     /// `Delegate` or `Assign` a stake account to a particular node
-    ///  expects 2 KeyedAccounts:
-    ///     StakeAccount to be updated
-    ///     VoteAccount to which this Stake will be delegated
+    ///
+    /// Expects 3 Accounts:
+    ///    0 - payer (TODO unused/remove)
+    ///    1 - Delegate StakeAccount to be updated
+    ///    2 - VoteAccount to which this Stake will be delegated
     DelegateStake,
 
     /// Redeem credits in the stake account
-    ///  expects 3 KeyedAccounts: the StakeAccount to be updated
-    ///  and the VoteAccount to which this Stake will be delegated
+    ///
+    /// Expects 4 Accounts:
+    ///    0 - payer (TODO unused/remove)
+    ///    1 - MiningPool Stake Account to redeem credits from
+    ///    2 - Delegate StakeAccount to be updated
+    ///    3 - VoteAccount to which the Stake is delegated
     RedeemVoteCredits,
 }
 
-pub fn create_account(from_id: &Pubkey, staker_id: &Pubkey, lamports: u64) -> Instruction {
-    system_instruction::create_account(
-        from_id,
-        staker_id,
-        lamports,
-        std::mem::size_of::<StakeState>() as u64,
-        &id(),
-    )
+pub fn create_delegate_account(
+    from_id: &Pubkey,
+    staker_id: &Pubkey,
+    lamports: u64,
+) -> Vec<Instruction> {
+    vec![
+        system_instruction::create_account(
+            from_id,
+            staker_id,
+            lamports,
+            std::mem::size_of::<StakeState>() as u64,
+            &id(),
+        ),
+        Instruction::new(
+            id(),
+            &StakeInstruction::InitializeDelegate,
+            vec![
+                AccountMeta::new(*from_id, true),
+                AccountMeta::new(*staker_id, false),
+            ],
+        ),
+    ]
+}
+
+pub fn create_mining_pool_account(
+    from_id: &Pubkey,
+    staker_id: &Pubkey,
+    lamports: u64,
+) -> Vec<Instruction> {
+    vec![
+        system_instruction::create_account(
+            from_id,
+            staker_id,
+            lamports,
+            std::mem::size_of::<StakeState>() as u64,
+            &id(),
+        ),
+        Instruction::new(
+            id(),
+            &StakeInstruction::InitializeMiningPool,
+            vec![
+                AccountMeta::new(*from_id, true),
+                AccountMeta::new(*staker_id, false),
+            ],
+        ),
+    ]
 }
 
 pub fn redeem_vote_credits(
@@ -67,17 +125,29 @@ pub fn process_instruction(
     trace!("process_instruction: {:?}", data);
     trace!("keyed_accounts: {:?}", keyed_accounts);
 
-    if keyed_accounts.len() < 3 {
+    if keyed_accounts.len() < 2 {
         Err(InstructionError::InvalidInstructionData)?;
     }
 
-    // 0th index is the guy who paid for the transaction
+    // 0th index is the account who paid for the transaction
+    // TODO: Remove the 0th index from the instruction. The stake program doesn't care who paid.
     let (me, rest) = &mut keyed_accounts.split_at_mut(2);
-
     let me = &mut me[1];
 
     // TODO: data-driven unpack and dispatch of KeyedAccounts
     match deserialize(data).map_err(|_| InstructionError::InvalidInstructionData)? {
+        StakeInstruction::InitializeMiningPool => {
+            if !rest.is_empty() {
+                Err(InstructionError::InvalidInstructionData)?;
+            }
+            me.initialize_mining_pool()
+        }
+        StakeInstruction::InitializeDelegate => {
+            if !rest.is_empty() {
+                Err(InstructionError::InvalidInstructionData)?;
+            }
+            me.initialize_delegate()
+        }
         StakeInstruction::DelegateStake => {
             if rest.len() != 1 {
                 Err(InstructionError::InvalidInstructionData)?;
@@ -127,10 +197,6 @@ mod tests {
 
     #[test]
     fn test_stake_process_instruction() {
-        assert_eq!(
-            process_instruction(&create_account(&Pubkey::default(), &Pubkey::default(), 0)),
-            Err(InstructionError::InvalidInstructionData) // won't even decode ;)
-        );
         assert_eq!(
             process_instruction(&redeem_vote_credits(
                 &Pubkey::default(),
diff --git a/programs/stake_api/src/stake_state.rs b/programs/stake_api/src/stake_state.rs
index 5a256bca1..a8dff7630 100644
--- a/programs/stake_api/src/stake_state.rs
+++ b/programs/stake_api/src/stake_state.rs
@@ -13,6 +13,7 @@ use solana_vote_api::vote_state::VoteState;
 
 #[derive(Debug, Serialize, Deserialize, PartialEq, Eq, Clone)]
 pub enum StakeState {
+    Uninitialized,
     Delegate {
         voter_id: Pubkey,
         credits_observed: u64,
@@ -22,10 +23,7 @@ pub enum StakeState {
 
 impl Default for StakeState {
     fn default() -> Self {
-        StakeState::Delegate {
-            voter_id: Pubkey::default(),
-            credits_observed: 0,
-        }
+        StakeState::Uninitialized
     }
 }
 //  TODO: trusted values of network parameters come from where?
@@ -90,6 +88,8 @@ impl StakeState {
 }
 
 pub trait StakeAccount {
+    fn initialize_mining_pool(&mut self) -> Result<(), InstructionError>;
+    fn initialize_delegate(&mut self) -> Result<(), InstructionError>;
     fn delegate_stake(&mut self, vote_account: &KeyedAccount) -> Result<(), InstructionError>;
     fn redeem_vote_credits(
         &mut self,
@@ -99,6 +99,23 @@ pub trait StakeAccount {
 }
 
 impl<'a> StakeAccount for KeyedAccount<'a> {
+    fn initialize_mining_pool(&mut self) -> Result<(), InstructionError> {
+        if let StakeState::Uninitialized = self.state()? {
+            self.set_state(&StakeState::MiningPool)
+        } else {
+            Err(InstructionError::InvalidAccountData)
+        }
+    }
+    fn initialize_delegate(&mut self) -> Result<(), InstructionError> {
+        if let StakeState::Uninitialized = self.state()? {
+            self.set_state(&StakeState::Delegate {
+                voter_id: Pubkey::default(),
+                credits_observed: 0,
+            })
+        } else {
+            Err(InstructionError::InvalidAccountData)
+        }
+    }
     fn delegate_stake(&mut self, vote_account: &KeyedAccount) -> Result<(), InstructionError> {
         if self.signer_key().is_none() {
             return Err(InstructionError::MissingRequiredSignature);
@@ -156,7 +173,7 @@ impl<'a> StakeAccount for KeyedAccount<'a> {
                 })
             } else {
                 // not worth collecting
-                Ok(())
+                Err(InstructionError::CustomError(1))
             }
         } else {
             Err(InstructionError::InvalidAccountData)
@@ -215,6 +232,7 @@ mod tests {
             assert_eq!(stake_state, StakeState::default());
         }
 
+        stake_keyed_account.initialize_delegate().unwrap();
         assert_eq!(
             stake_keyed_account.delegate_stake(&vote_keyed_account),
             Err(InstructionError::MissingRequiredSignature)
@@ -316,6 +334,7 @@ mod tests {
             &id(),
         );
         let mut stake_keyed_account = KeyedAccount::new(&pubkey, true, &mut stake_account);
+        stake_keyed_account.initialize_delegate().unwrap();
 
         // delegate the stake
         assert!(stake_keyed_account
@@ -338,9 +357,11 @@ mod tests {
             .unwrap();
 
         // no movement in vote account, so no redemption needed
-        assert!(mining_pool_keyed_account
-            .redeem_vote_credits(&mut stake_keyed_account, &mut vote_keyed_account)
-            .is_ok());
+        assert_eq!(
+            mining_pool_keyed_account
+                .redeem_vote_credits(&mut stake_keyed_account, &mut vote_keyed_account),
+            Err(InstructionError::CustomError(1))
+        );
 
         // move the vote account forward
         vote_state.process_vote(&Vote::new(1000));
@@ -383,6 +404,7 @@ mod tests {
         let pubkey = Pubkey::default();
         let mut stake_account = Account::new(0, std::mem::size_of::<StakeState>(), &id());
         let mut stake_keyed_account = KeyedAccount::new(&pubkey, true, &mut stake_account);
+        stake_keyed_account.initialize_delegate().unwrap();
 
         // delegate the stake
         assert!(stake_keyed_account
diff --git a/wallet/src/wallet.rs b/wallet/src/wallet.rs
index d3b9217d7..de2c5f609 100644
--- a/wallet/src/wallet.rs
+++ b/wallet/src/wallet.rs
@@ -48,7 +48,9 @@ pub enum WalletCommand {
     CreateVoteAccount(Pubkey, Pubkey, u32, u64),
     ShowVoteAccount(Pubkey),
     CreateStakeAccount(Pubkey, u64),
+    CreateMiningPoolAccount(Pubkey, u64),
     DelegateStake(Keypair, Pubkey),
+    RedeemVoteCredits(Pubkey, Pubkey, Pubkey),
     ShowStakeAccount(Pubkey),
     Deploy(String),
     GetTransactionCount,
@@ -216,6 +218,14 @@ pub fn parse_command(
                 lamports,
             ))
         }
+        ("create-mining-pool-account", Some(matches)) => {
+            let mining_pool_account_id = pubkey_of(matches, "mining_pool_account_id").unwrap();
+            let lamports = matches.value_of("lamports").unwrap().parse()?;
+            Ok(WalletCommand::CreateMiningPoolAccount(
+                mining_pool_account_id,
+                lamports,
+            ))
+        }
         ("delegate-stake", Some(matches)) => {
             let staking_account_keypair =
                 keypair_of(matches, "staking_account_keypair_file").unwrap();
@@ -225,6 +235,16 @@ pub fn parse_command(
                 voting_account_id,
             ))
         }
+        ("redeem-vote-credits", Some(matches)) => {
+            let mining_pool_account_id = pubkey_of(matches, "mining_pool_account_id").unwrap();
+            let staking_account_id = pubkey_of(matches, "staking_account_id").unwrap();
+            let voting_account_id = pubkey_of(matches, "voting_account_id").unwrap();
+            Ok(WalletCommand::RedeemVoteCredits(
+                mining_pool_account_id,
+                staking_account_id,
+                voting_account_id,
+            ))
+        }
         ("show-stake-account", Some(matches)) => {
             let staking_account_id = pubkey_of(matches, "staking_account_id").unwrap();
             Ok(WalletCommand::ShowStakeAccount(staking_account_id))
@@ -469,11 +489,28 @@ fn process_create_stake_account(
     lamports: u64,
 ) -> ProcessResult {
     let (recent_blockhash, _fee_calculator) = rpc_client.get_recent_blockhash()?;
-    let ixs = vec![stake_instruction::create_account(
+    let ixs = stake_instruction::create_delegate_account(
         &config.keypair.pubkey(),
         staking_account_id,
         lamports,
-    )];
+    );
+    let mut tx = Transaction::new_signed_instructions(&[&config.keypair], ixs, recent_blockhash);
+    let signature_str = rpc_client.send_and_confirm_transaction(&mut tx, &[&config.keypair])?;
+    Ok(signature_str.to_string())
+}
+
+fn process_create_mining_pool_account(
+    rpc_client: &RpcClient,
+    config: &WalletConfig,
+    mining_pool_account_id: &Pubkey,
+    lamports: u64,
+) -> ProcessResult {
+    let (recent_blockhash, _fee_calculator) = rpc_client.get_recent_blockhash()?;
+    let ixs = stake_instruction::create_mining_pool_account(
+        &config.keypair.pubkey(),
+        mining_pool_account_id,
+        lamports,
+    );
     let mut tx = Transaction::new_signed_instructions(&[&config.keypair], ixs, recent_blockhash);
     let signature_str = rpc_client.send_and_confirm_transaction(&mut tx, &[&config.keypair])?;
     Ok(signature_str.to_string())
@@ -501,6 +538,25 @@ fn process_delegate_stake(
     Ok(signature_str.to_string())
 }
 
+fn process_redeem_vote_credits(
+    rpc_client: &RpcClient,
+    config: &WalletConfig,
+    mining_pool_account_id: &Pubkey,
+    staking_account_id: &Pubkey,
+    voting_account_id: &Pubkey,
+) -> ProcessResult {
+    let (recent_blockhash, _fee_calculator) = rpc_client.get_recent_blockhash()?;
+    let ixs = vec![stake_instruction::redeem_vote_credits(
+        &config.keypair.pubkey(),
+        mining_pool_account_id,
+        staking_account_id,
+        voting_account_id,
+    )];
+    let mut tx = Transaction::new_signed_instructions(&[&config.keypair], ixs, recent_blockhash);
+    let signature_str = rpc_client.send_and_confirm_transaction(&mut tx, &[&config.keypair])?;
+    Ok(signature_str.to_string())
+}
+
 fn process_show_stake_account(
     rpc_client: &RpcClient,
     _config: &WalletConfig,
@@ -518,6 +574,10 @@ fn process_show_stake_account(
             println!("credits observed: {}", credits_observed);
             Ok("".to_string())
         }
+        Ok(StakeState::MiningPool) => {
+            println!("account lamports: {}", stake_account.lamports);
+            Ok("".to_string())
+        }
         _ => Err(WalletError::RpcRequestError(
             "Account data could not be deserialized to stake state".to_string(),
         ))?,
@@ -813,7 +873,15 @@ pub fn process_command(config: &WalletConfig) -> ProcessResult {
             process_create_stake_account(&rpc_client, config, &staking_account_id, *lamports)
         }
 
-        // Create stake account
+        WalletCommand::CreateMiningPoolAccount(mining_pool_account_id, lamports) => {
+            process_create_mining_pool_account(
+                &rpc_client,
+                config,
+                &mining_pool_account_id,
+                *lamports,
+            )
+        }
+
         WalletCommand::DelegateStake(staking_account_keypair, voting_account_id) => {
             process_delegate_stake(
                 &rpc_client,
@@ -822,6 +890,19 @@ pub fn process_command(config: &WalletConfig) -> ProcessResult {
                 &voting_account_id,
             )
         }
+
+        WalletCommand::RedeemVoteCredits(
+            mining_pool_account_id,
+            staking_account_id,
+            voting_account_id,
+        ) => process_redeem_vote_credits(
+            &rpc_client,
+            config,
+            &mining_pool_account_id,
+            &staking_account_id,
+            &voting_account_id,
+        ),
+
         // Show a vote account
         WalletCommand::ShowStakeAccount(staking_account_id) => {
             process_show_stake_account(&rpc_client, config, &staking_account_id)
@@ -1099,6 +1180,27 @@ pub fn app<'ab, 'v>(name: &str, about: &'ab str, version: &'v str) -> App<'ab, '
                 )
         )
         .subcommand(
+            SubCommand::with_name("create-mining-pool-account")
+                .about("Create mining pool account")
+                .arg(
+                    Arg::with_name("mining_pool_account_id")
+                        .index(1)
+                        .value_name("PUBKEY")
+                        .takes_value(true)
+                        .required(true)
+                        .validator(is_pubkey)
+                        .help("Staking account address to fund"),
+                )
+                .arg(
+                    Arg::with_name("lamports")
+                        .index(2)
+                        .value_name("NUM")
+                        .takes_value(true)
+                        .required(true)
+                        .help("The number of lamports to assign to the mining pool account"),
+                ),
+        )
+       .subcommand(
             SubCommand::with_name("create-stake-account")
                 .about("Create staking account")
                 .arg(
@@ -1141,6 +1243,37 @@ pub fn app<'ab, 'v>(name: &str, about: &'ab str, version: &'v str) -> App<'ab, '
                 ),
         )
         .subcommand(
+            SubCommand::with_name("redeem-vote-credits")
+                .about("Redeem credits in the staking account")
+                .arg(
+                    Arg::with_name("mining_pool_account_id")
+                        .index(1)
+                        .value_name("PUBKEY")
+                        .takes_value(true)
+                        .required(true)
+                        .validator(is_pubkey)
+                        .help("Mining pool account to redeem credits from"),
+                )
+                .arg(
+                    Arg::with_name("staking_account_id")
+                        .index(2)
+                        .value_name("PUBKEY")
+                        .takes_value(true)
+                        .required(true)
+                        .validator(is_pubkey)
+                        .help("Staking account address to redeem credits for"),
+                )
+                .arg(
+                    Arg::with_name("voting_account_id")
+                        .index(3)
+                        .value_name("PUBKEY")
+                        .takes_value(true)
+                        .required(true)
+                        .validator(is_pubkey)
+                        .help("The voting account to which the stake was previously delegated."),
+                ),
+        )
+  .subcommand(
             SubCommand::with_name("show-stake-account")
                 .about("Show the contents of a stake account")
                 .arg(