diff --git a/cmd/opera/launcher/config.go b/cmd/opera/launcher/config.go
index 6107efbbc..f4f0d9266 100644
--- a/cmd/opera/launcher/config.go
+++ b/cmd/opera/launcher/config.go
@@ -9,6 +9,7 @@ import (
 	"path/filepath"
 	"reflect"
 	"strings"
+	"time"
 
 	"github.com/Fantom-foundation/lachesis-base/abft"
 	"github.com/Fantom-foundation/lachesis-base/utils/cachescale"
@@ -206,10 +207,7 @@ func loadAllConfigs(file string, cfg *config) error {
 func mayGetGenesisStore(ctx *cli.Context) *genesisstore.Store {
 	switch {
 	case ctx.GlobalIsSet(FakeNetFlag.Name):
-		_, num, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
-		if err != nil {
-			log.Crit("Invalid flag", "flag", FakeNetFlag.Name, "err", err)
-		}
+		num := getFakeValidatorCount(ctx)
 		return makefakegenesis.FakeGenesisStore(num, futils.ToFtm(1000000000), futils.ToFtm(5000000))
 	case ctx.GlobalIsSet(GenesisFlag.Name):
 		genesisPath := ctx.GlobalString(GenesisFlag.Name)
@@ -271,10 +269,7 @@ func setDataDir(ctx *cli.Context, cfg *node.Config) {
 	case ctx.GlobalIsSet(DataDirFlag.Name):
 		cfg.DataDir = ctx.GlobalString(DataDirFlag.Name)
 	case ctx.GlobalIsSet(FakeNetFlag.Name):
-		_, num, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
-		if err != nil {
-			log.Crit("Invalid flag", "flag", FakeNetFlag.Name, "err", err)
-		}
+		num := getFakeValidatorCount(ctx)
 		cfg.DataDir = filepath.Join(defaultDataDir, fmt.Sprintf("fakenet-%d", num))
 	}
 }
@@ -497,11 +492,13 @@ func mayMakeAllConfigs(ctx *cli.Context) (*config, error) {
 	}
 
 	if ctx.GlobalIsSet(FakeNetFlag.Name) {
-		_, num, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
-		if err != nil {
-			return nil, fmt.Errorf("invalid fakenet flag")
+		// don't wait long in fakenet
+		cfg.Emitter.EmitIntervals.Max = 10 * time.Second
+		cfg.Emitter.EmitIntervals.DoublesignProtection = 5 * time.Second
+		if getFakeValidatorCount(ctx) <= 1 {
+			// disable self-fork protection if fakenet 1/1
+			cfg.Emitter.EmitIntervals.DoublesignProtection = 0
 		}
-		cfg.Emitter = emitter.FakeConfig(num)
 		setBootnodes(ctx, []string{}, &cfg.Node)
 	} else {
 		// "asDefault" means set network defaults
diff --git a/cmd/opera/launcher/fake.go b/cmd/opera/launcher/fake.go
index 7c7140316..9e511c432 100644
--- a/cmd/opera/launcher/fake.go
+++ b/cmd/opera/launcher/fake.go
@@ -6,7 +6,10 @@ import (
 	"strconv"
 	"strings"
 
+	"github.com/Fantom-foundation/go-opera/inter/validatorpk"
 	"github.com/Fantom-foundation/lachesis-base/inter/idx"
+	"github.com/ethereum/go-ethereum/crypto"
+	"github.com/ethereum/go-ethereum/log"
 	cli "gopkg.in/urfave/cli.v1"
 
 	"github.com/Fantom-foundation/go-opera/integration/makefakegenesis"
@@ -15,17 +18,34 @@ import (
 // FakeNetFlag enables special testnet, where validators are automatically created
 var FakeNetFlag = cli.StringFlag{
 	Name:  "fakenet",
-	Usage: "'n/N' - sets coinbase as fake n-th key from genesis of N validators.",
+	Usage: "'n/N' - sets coinbase as fake n-th key from genesis of [1..N] validators. Use n=0 for non-validator node",
+}
+
+func getFakeValidatorID(ctx *cli.Context) idx.ValidatorID {
+	id, _, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
+	if err != nil {
+		log.Crit("Invalid flag", "flag", FakeNetFlag.Name, "err", err)
+	}
+	return id
 }
 
 func getFakeValidatorKey(ctx *cli.Context) *ecdsa.PrivateKey {
 	id, _, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
-	if err != nil || id == 0 {
-		return nil
+	if err != nil {
+		log.Crit("Invalid flag", "flag", FakeNetFlag.Name, "err", err)
 	}
 	return makefakegenesis.FakeKey(id)
 }
 
+func getFakeValidatorCount(ctx *cli.Context) idx.Validator {
+	_, num, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
+	if err != nil {
+		log.Crit("Invalid flag", "flag", FakeNetFlag.Name, "err", err)
+		return 0
+	}
+	return num
+}
+
 func parseFakeGen(s string) (id idx.ValidatorID, num idx.Validator, err error) {
 	parts := strings.SplitN(s, "/", 2)
 	if len(parts) != 2 {
@@ -41,11 +61,17 @@ func parseFakeGen(s string) (id idx.ValidatorID, num idx.Validator, err error) {
 	id = idx.ValidatorID(u32)
 
 	u32, err = strconv.ParseUint(parts[1], 10, 32)
-	num = idx.Validator(u32)
-	if num < 0 || idx.Validator(id) > num {
-		err = fmt.Errorf("key-num should be in range from 1 to validators (<key-num>/<validators>), or should be zero for non-validator node")
+	if err != nil {
 		return
 	}
+	num = idx.Validator(u32)
 
 	return
 }
+
+func fakeValidatorPubKey(id idx.ValidatorID) validatorpk.PubKey {
+	return validatorpk.PubKey{
+		Raw:  crypto.FromECDSAPub(&makefakegenesis.FakeKey(id).PublicKey),
+		Type: validatorpk.Types.Secp256k1,
+	}
+}
diff --git a/cmd/opera/launcher/fake_test.go b/cmd/opera/launcher/fake_test.go
index 74da25047..a5c9211f7 100644
--- a/cmd/opera/launcher/fake_test.go
+++ b/cmd/opera/launcher/fake_test.go
@@ -7,10 +7,8 @@ import (
 	"testing"
 	"time"
 
-	"github.com/ethereum/go-ethereum/crypto"
 	"github.com/ethereum/go-ethereum/params"
 
-	"github.com/Fantom-foundation/go-opera/integration/makefakegenesis"
 	"github.com/Fantom-foundation/go-opera/inter/validatorpk"
 )
 
@@ -101,18 +99,11 @@ To exit, press ctrl-d
 	}
 }
 
-func readFakeValidator(fakenet string) *validatorpk.PubKey {
-	n, _, err := parseFakeGen(fakenet)
+func readFakeValidator(fakenet string) validatorpk.PubKey {
+	id, _, err := parseFakeGen(fakenet)
 	if err != nil {
 		panic(err)
 	}
 
-	if n < 1 {
-		return nil
-	}
-
-	return &validatorpk.PubKey{
-		Raw:  crypto.FromECDSAPub(&makefakegenesis.FakeKey(n).PublicKey),
-		Type: validatorpk.Types.Secp256k1,
-	}
+	return fakeValidatorPubKey(id)
 }
diff --git a/cmd/opera/launcher/launcher.go b/cmd/opera/launcher/launcher.go
index f23690294..10e9b291f 100644
--- a/cmd/opera/launcher/launcher.go
+++ b/cmd/opera/launcher/launcher.go
@@ -14,13 +14,12 @@ import (
 	"github.com/ethereum/go-ethereum/console/prompt"
 	"github.com/ethereum/go-ethereum/ethclient"
 	"github.com/ethereum/go-ethereum/log"
+	evmetrics "github.com/ethereum/go-ethereum/metrics"
 	"github.com/ethereum/go-ethereum/node"
 	"github.com/ethereum/go-ethereum/p2p/discover/discfilter"
 	"github.com/ethereum/go-ethereum/params"
 	"gopkg.in/urfave/cli.v1"
 
-	evmetrics "github.com/ethereum/go-ethereum/metrics"
-
 	"github.com/Fantom-foundation/go-opera/cmd/opera/launcher/metrics"
 	"github.com/Fantom-foundation/go-opera/cmd/opera/launcher/tracing"
 	"github.com/Fantom-foundation/go-opera/debug"
@@ -29,6 +28,7 @@ import (
 	"github.com/Fantom-foundation/go-opera/gossip"
 	"github.com/Fantom-foundation/go-opera/gossip/emitter"
 	"github.com/Fantom-foundation/go-opera/integration"
+	"github.com/Fantom-foundation/go-opera/inter/validatorpk"
 	"github.com/Fantom-foundation/go-opera/opera/genesis"
 	"github.com/Fantom-foundation/go-opera/opera/genesisstore"
 	"github.com/Fantom-foundation/go-opera/utils/errlock"
@@ -322,9 +322,11 @@ func makeNode(ctx *cli.Context, cfg *config, genesisStore *genesisstore.Store) (
 
 	valKeystore := valkeystore.NewDefaultFileKeystore(path.Join(getValKeystoreDir(cfg.Node), "validator"))
 	valPubkey := cfg.Emitter.Validator.PubKey
-	if key := getFakeValidatorKey(ctx); key != nil && cfg.Emitter.Validator.ID != 0 {
+
+	if ctx.GlobalIsSet(FakeNetFlag.Name) && !valPubkey.Empty() {
+		key := getFakeValidatorKey(ctx)
 		addFakeValidatorKey(ctx, key, valPubkey, valKeystore)
-		coinbase := integration.SetAccountKey(stack.AccountManager(), key, "fakepassword")
+		coinbase := integration.SetAccountKey(stack.AccountManager(), key, validatorpk.FakePassword)
 		log.Info("Unlocked fake validator account", "address", coinbase.Address.Hex())
 	}
 
diff --git a/cmd/opera/launcher/validator.go b/cmd/opera/launcher/validator.go
index 1f128c626..382c4aa94 100644
--- a/cmd/opera/launcher/validator.go
+++ b/cmd/opera/launcher/validator.go
@@ -7,7 +7,6 @@ import (
 	"github.com/Fantom-foundation/lachesis-base/inter/idx"
 
 	"github.com/Fantom-foundation/go-opera/gossip/emitter"
-	"github.com/Fantom-foundation/go-opera/integration/makefakegenesis"
 	"github.com/Fantom-foundation/go-opera/inter/validatorpk"
 )
 
@@ -34,18 +33,14 @@ var validatorPasswordFlag = cli.StringFlag{
 func setValidator(ctx *cli.Context, cfg *emitter.Config) error {
 	// Extract the current validator address, new flag overriding legacy one
 	if ctx.GlobalIsSet(FakeNetFlag.Name) {
-		id, num, err := parseFakeGen(ctx.GlobalString(FakeNetFlag.Name))
-		if err != nil {
-			return err
+		id := getFakeValidatorID(ctx)
+		if id != 0 {
+			if ctx.GlobalIsSet(validatorIDFlag.Name) {
+				return errors.New("specified validator ID with both --fakenet and --validator.id")
+			}
+			cfg.Validator.ID = id
+			cfg.Validator.PubKey = fakeValidatorPubKey(id)
 		}
-
-		if ctx.GlobalIsSet(validatorIDFlag.Name) && id != 0 {
-			return errors.New("specified validator ID with both --fakenet and --validator.id")
-		}
-
-		cfg.Validator.ID = id
-		validators := makefakegenesis.GetFakeValidators(num)
-		cfg.Validator.PubKey = validators.Map()[cfg.Validator.ID].PubKey
 	}
 
 	if ctx.GlobalIsSet(validatorIDFlag.Name) {
diff --git a/demo/README.md b/demo/README.md
index 598ec616c..c145fb3e0 100755
--- a/demo/README.md
+++ b/demo/README.md
@@ -1,15 +1,17 @@
 # Demo
 
-This directory contains the scripts to run fakenet (private testing network) with N local nodes,
+This directory contains the scripts to run fakenet (private testing network) with N+M local nodes,
 primarily for benchmarking purposes.
 
 ## Scripts
 
   - start network: `./start.sh`;
   - stop network: `./stop.sh`;
+  - run new validator node: `./run-validator.sh 3`;
   - clean data and logs: `./clean.sh`;
 
-You can specify number of genesis validators by setting N environment variable.
+You can specify number of genesis validators by setting N environment variable
+ and M for additional nodes.
 
 ## Balance transfer example
 
diff --git a/demo/_params.sh b/demo/_params.sh
index d5299a7d9..1bb6619f3 100755
--- a/demo/_params.sh
+++ b/demo/_params.sh
@@ -1,17 +1,41 @@
 #!/usr/bin/env bash
 
 declare -ri N="${N:-3}"
-declare -ri M="${M:-2}"
+declare -ri M="${M:-0}"
 declare -r  TAG="${TAG:-latest}"
 
 PORT_BASE=3000
 RPCP_BASE=4000
 WSP_BASE=4500
 
+data_dir() {
+	local i=$1
+	echo "${PWD}/opera$i.datadir"
+}
+
+run_opera_node() {
+	local i=$1
+	local ACC=$(($i+1))
+	local DATADIR="$(data_dir $i)"
+	local PORT=$(($PORT_BASE+$i))
+	local RPCP=$(($RPCP_BASE+$i))
+	local WSP=$(($WSP_BASE+$i))
+
+	../build/demo_opera \
+		--datadir=${DATADIR} \
+		--fakenet=${ACC}/$N \
+		--port=${PORT} \
+		--nat extip:127.0.0.1 \
+		--http --http.addr="127.0.0.1" --http.port=${RPCP} --http.corsdomain="*" --http.api="eth,debug,net,admin,web3,personal,txpool,ftm,dag" \
+		--ws --ws.addr="127.0.0.1" --ws.port=${WSP} --ws.origins="*" --ws.api="eth,debug,net,admin,web3,personal,txpool,ftm,dag" \
+		--metrics --metrics.addr=127.0.0.1 --metrics.port=$(($RPCP+1100)) \
+		--verbosity=3 --tracing >> opera$i.log 2>&1
+}
+
 attach_and_exec() {
     local i=$1
-    local CMD=$2
-    local RPCP=$(($RPCP_BASE+$i))
+    local DATADIR="$(data_dir $i)"
+    local CMD=$2    
 
     for attempt in $(seq 40)
     do
@@ -20,7 +44,7 @@ attach_and_exec() {
             echo "  - attempt ${attempt}: " >&2
         fi
 
-        res=$(../build/demo_opera --exec "${CMD}" attach http://127.0.0.1:${RPCP} 2> /dev/null)
+        res=$(../build/demo_opera --exec "${CMD}" attach ${DATADIR}/opera.ipc 2> /dev/null)
         if [ $? -eq 0 ]
         then
             #echo "success" >&2
diff --git a/demo/run-validator.sh b/demo/run-validator.sh
new file mode 100755
index 000000000..d73d13ade
--- /dev/null
+++ b/demo/run-validator.sh
@@ -0,0 +1,44 @@
+#!/usr/bin/env bash
+cd $(dirname $0)
+. ./_params.sh
+
+set -e
+
+TOTAL=$((N+M))
+i=$1
+DATADIR="$(data_dir $i)"
+if [ -d ${DATADIR} ]; then
+	echo "${DATADIR} already exists!"
+	exit 1
+fi
+mkdir -p "${DATADIR}"
+
+echo -e "\nStart additional node $i:\n"
+run_opera_node $i &
+echo -e "\tnode$i ok"
+
+echo -e "\nConnect to existing nodes:\n"
+for ((n=0;n<$TOTAL;n+=1))
+do
+	enode=$(attach_and_exec $n 'admin.nodeInfo.enode')
+	echo "    p2p address = ${enode}"
+
+	echo " connecting node-$i to node-$n:"
+	res=$(attach_and_exec $i "admin.addPeer(${enode})")
+	echo "    result = ${res}"
+done
+sleep 5
+
+VPKEY=$(grep "Unlocked validator key" opera$i.log | head -n 1 | sed 's/.* pubkey=\(0x.*\)$/\1/')
+VADDR=$(grep "Unlocked fake validator account" opera$i.log | head -n 1 | sed 's/.* address=\(0x.*\)$/\1/')
+
+echo -e "\nFund new validator acc ${VADDR}:\n"
+attach_and_exec 0 "ftm.sendTransaction({from: personal.listAccounts[0], to: \"${VADDR}\", value: web3.toWei(\"510000.0\", \"ftm\")})"
+sleep 5
+
+echo -e "\nCall SFC to create validator ${VPKEY}:\n"
+../build/demo_opera attach "${DATADIR}/opera.ipc" << JS
+	abi = JSON.parse('[{"constant":false,"inputs":[{"internalType":"bytes","name":"pubkey","type":"bytes"}],"name":"createValidator","outputs":[],"payable":true,"stateMutability":"payable","type":"function"}]');
+	sfcc = web3.ftm.contract(abi).at("0xfc00face00000000000000000000000000000000");
+	sfcc.createValidator("${VPKEY}", {from:"${VADDR}", value: web3.toWei("500000.0", "ftm")});
+JS
diff --git a/demo/start.sh b/demo/start.sh
index 763c6a529..c6462ca75 100755
--- a/demo/start.sh
+++ b/demo/start.sh
@@ -4,45 +4,27 @@ cd $(dirname $0)
 
 set -e
 
-echo -e "\nStart $N nodes:\n"
+TOTAL=$((N+M))
+echo -e "\nStart ${TOTAL} validators on $N-validator genesis:\n"
 
 go build -o ../build/demo_opera ../cmd/opera
-
 rm -f ./transactions.rlp
-for ((i=0;i<$N;i+=1))
-do
-    DATADIR="${PWD}/opera$i.datadir"
-    mkdir -p ${DATADIR}
-
-    PORT=$(($PORT_BASE+$i))
-    RPCP=$(($RPCP_BASE+$i))
-    WSP=$(($WSP_BASE+$i))
-    ACC=$(($i+1))
-    (../build/demo_opera \
-	--datadir=${DATADIR} \
-	--fakenet=${ACC}/$N \
-	--port=${PORT} \
-	--nat extip:127.0.0.1 \
-	--http --http.addr="127.0.0.1" --http.port=${RPCP} --http.corsdomain="*" --http.api="eth,debug,net,admin,web3,personal,txpool,ftm,dag" \
-	--ws --ws.addr="127.0.0.1" --ws.port=${WSP} --ws.origins="*" --ws.api="eth,debug,net,admin,web3,personal,txpool,ftm,dag" \
-	--metrics --metrics.addr=127.0.0.1 --metrics.port=$(($RPCP+1100)) \
-	--verbosity=3 --tracing >> opera$i.log 2>&1)&
 
+for ((i=0;i<${TOTAL};i+=1))
+do
+    run_opera_node $i &
     echo -e "\tnode$i ok"
 done
 
 echo -e "\nConnect nodes to ring:\n"
-for ((i=0;i<$N;i+=1))
+for ((i=0;i<${TOTAL};i+=1))
 do
-    for ((n=0;n<$M;n+=1))
-    do
-        j=$(((i+n+1) % N))
+	j=$(((i+n+1) % TOTAL))
 
 	enode=$(attach_and_exec $j 'admin.nodeInfo.enode')
-        echo "    p2p address = ${enode}"
+	echo "    p2p address = ${enode}"
 
-        echo " connecting node-$i to node-$j:"
-        res=$(attach_and_exec $i "admin.addPeer(${enode})")
-        echo "    result = ${res}"
-    done
+	echo " connecting node-$i to node-$j:"
+	res=$(attach_and_exec $i "admin.addPeer(${enode})")
+	echo "    result = ${res}"
 done
diff --git a/evmcore/apply_fake_genesis.go b/evmcore/apply_fake_genesis.go
index 8abd7f2ae..2a1940589 100644
--- a/evmcore/apply_fake_genesis.go
+++ b/evmcore/apply_fake_genesis.go
@@ -94,7 +94,18 @@ func MustApplyFakeGenesis(statedb *state.StateDB, time inter.Timestamp, balances
 
 // FakeKey gets n-th fake private key.
 func FakeKey(n uint32) *ecdsa.PrivateKey {
-	var keys = [100]string{
+	/* NOTE: hardcoded keys are from legacy (golang 1.17)
+	func FakeKey(n uint32) *ecdsa.PrivateKey {
+		reader := rand.New("math/rand".NewSource(int64(n)))
+		key, err := ecdsa.GenerateKey(crypto.S256(), reader)
+		if err != nil {
+			panic(err)
+		}
+		return key
+	}
+	*/
+	var keys = [101]string{
+		"0x41d3ff12045b73c870529fe44f70dca2745bafbe1698ffc3c8759eef3cfbaee1",
 		"0x163f5f0f9a621d72fedd85ffca3d08d131ab4e812181e0d30ffd1c885d20aac7",
 		"0x3144c0aa4ced56dc15c79b045bc5559a5ac9363d98db6df321fe3847a103740f",
 		"0x04a531f967898df5dbe223b67989b248e23c1c356a3f6717775cccb7fe53482c",
@@ -197,10 +208,10 @@ func FakeKey(n uint32) *ecdsa.PrivateKey {
 		"0x4203c438d4e94bf4a595794b5f5c2882f959face730abb7a7b8acb462c8e138d",
 	}
 
-	if n == 0 || n > 100 {
+	if 0 > n || n >= uint32(len(keys)) {
 		panic(errors.New("validator num is out of range"))
 	}
 
-	key, _ := crypto.ToECDSA(hexutil.MustDecode(keys[n-1]))
+	key, _ := crypto.ToECDSA(hexutil.MustDecode(keys[n]))
 	return key
 }
diff --git a/gossip/emitter/config.go b/gossip/emitter/config.go
index a56c072d5..c6b64ea55 100644
--- a/gossip/emitter/config.go
+++ b/gossip/emitter/config.go
@@ -92,15 +92,3 @@ func (cfg EmitIntervals) RandomizeEmitTime(r *rand.Rand) EmitIntervals {
 	}
 	return config
 }
-
-// FakeConfig returns the testing configurations for the events emitter.
-func FakeConfig(num idx.Validator) Config {
-	cfg := DefaultConfig()
-	cfg.EmitIntervals.Max = 10 * time.Second // don't wait long in fakenet
-	cfg.EmitIntervals.DoublesignProtection = cfg.EmitIntervals.Max / 2
-	if num <= 1 {
-		// disable self-fork protection if fakenet 1/1
-		cfg.EmitIntervals.DoublesignProtection = 0
-	}
-	return cfg
-}