diff --git a/src/bin/replicator.rs b/src/bin/replicator.rs
index 561cef0581..2a931c52d3 100644
--- a/src/bin/replicator.rs
+++ b/src/bin/replicator.rs
@@ -83,7 +83,6 @@ fn main() {
         keypair.pubkey(),
         ncp
     );
-    println!("my node: {:?}", node);
 
     let exit = Arc::new(AtomicBool::new(false));
     let done = Arc::new(AtomicBool::new(false));
diff --git a/src/chacha_cuda.rs b/src/chacha_cuda.rs
index 6fc15b2a21..2a9a163aab 100644
--- a/src/chacha_cuda.rs
+++ b/src/chacha_cuda.rs
@@ -5,7 +5,7 @@ use sigverify::{chacha_cbc_encrypt_many_sample, chacha_end_sha_state, chacha_ini
 use std::io;
 use std::mem::size_of;
 
-const ENTRIES_PER_SLICE: u64 = 16;
+use storage_stage::ENTRIES_PER_SLICE;
 
 // Encrypt a file with multiple starting IV states, determined by ivecs.len()
 //
@@ -89,7 +89,6 @@ pub fn chacha_cbc_encrypt_file_many_keys(
             num_keys as u32,
         );
     }
-    info!("num_keys: {}", num_keys);
     let mut res = Vec::new();
     for x in 0..num_keys {
         let start = x * size_of::<Hash>();
diff --git a/src/lib.rs b/src/lib.rs
index 2925b2b5e9..daea890553 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -66,6 +66,7 @@ pub mod signature;
 pub mod sigverify;
 pub mod sigverify_stage;
 pub mod storage_program;
+pub mod storage_stage;
 pub mod storage_transaction;
 pub mod store_ledger_stage;
 pub mod streamer;
diff --git a/src/storage_stage.rs b/src/storage_stage.rs
new file mode 100644
index 0000000000..0d7a67849b
--- /dev/null
+++ b/src/storage_stage.rs
@@ -0,0 +1,446 @@
+// A stage that handles generating the keys used to encrypt the ledger and sample it
+// for storage mining. Replicators submit storage proofs, validator then bundles them
+// to submit it's proof for mining to be rewarded.
+
+#[cfg(feature = "cuda")]
+use chacha_cuda::chacha_cbc_encrypt_file_many_keys;
+use entry::EntryReceiver;
+use hash::Hash;
+use rand::{ChaChaRng, Rng, SeedableRng};
+use result::{Error, Result};
+use service::Service;
+use signature::Keypair;
+use signature::Signature;
+use solana_sdk::pubkey::Pubkey;
+use std::mem::size_of;
+use std::sync::atomic::{AtomicBool, Ordering};
+use std::sync::mpsc::RecvTimeoutError;
+use std::sync::{Arc, RwLock};
+use std::thread::{self, Builder, JoinHandle};
+use std::time::Duration;
+use vote_program::VoteProgram;
+
+// Block of hash answers to validate against
+// Vec of [ledger blocks] x [keys]
+type StorageResults = Vec<Hash>;
+type StorageKeys = Vec<u8>;
+
+#[derive(Default)]
+pub struct StorageState {
+    storage_results: Arc<RwLock<StorageResults>>,
+    storage_keys: Arc<RwLock<StorageKeys>>,
+}
+
+pub struct StorageStage {
+    t_storage_mining_verifier: JoinHandle<()>,
+}
+
+macro_rules! cross_boundary {
+    ($start:expr, $len:expr, $boundary:expr) => {
+        (($start + $len) & !($boundary - 1)) > $start & !($boundary - 1)
+    };
+}
+
+const NUM_HASHES_FOR_STORAGE_ROTATE: u64 = 1024;
+// TODO: some way to dynamically size NUM_IDENTITIES
+const NUM_IDENTITIES: usize = 1024;
+const NUM_SAMPLES: usize = 4;
+pub const ENTRIES_PER_SLICE: u64 = 16;
+const KEY_SIZE: usize = 64;
+
+fn get_identity_index_from_pubkey(key: &Pubkey) -> usize {
+    let rkey = key.as_ref();
+    let mut res: usize = (rkey[0] as usize)
+        | ((rkey[1] as usize) << 8)
+        | ((rkey[2] as usize) << 16)
+        | ((rkey[3] as usize) << 24);
+    res &= NUM_IDENTITIES - 1;
+    res
+}
+
+impl StorageState {
+    pub fn new() -> Self {
+        let storage_keys = Arc::new(RwLock::new(vec![0u8; KEY_SIZE * NUM_IDENTITIES]));
+        let storage_results = Arc::new(RwLock::new(vec![Hash::default(); NUM_IDENTITIES]));
+
+        StorageState {
+            storage_keys,
+            storage_results,
+        }
+    }
+
+    pub fn get_mining_key(&self, key: &Pubkey) -> Vec<u8> {
+        let idx = get_identity_index_from_pubkey(key);
+        self.storage_keys.read().unwrap()[idx..idx + KEY_SIZE].to_vec()
+    }
+
+    pub fn get_mining_result(&self, key: &Pubkey) -> Hash {
+        let idx = get_identity_index_from_pubkey(key);
+        self.storage_results.read().unwrap()[idx]
+    }
+}
+
+impl StorageStage {
+    pub fn new(
+        storage_state: &StorageState,
+        storage_entry_receiver: EntryReceiver,
+        ledger_path: Option<&str>,
+        keypair: Arc<Keypair>,
+        exit: Arc<AtomicBool>,
+        entry_height: u64,
+    ) -> Self {
+        let storage_keys_ = storage_state.storage_keys.clone();
+        let storage_results_ = storage_state.storage_results.clone();
+        let ledger_path = ledger_path.map(String::from);
+        let t_storage_mining_verifier = Builder::new()
+            .name("solana-storage-mining-verify-stage".to_string())
+            .spawn(move || {
+                let exit = exit.clone();
+                let mut poh_height = 0;
+                let mut current_key = 0;
+                let mut entry_height = entry_height;
+                loop {
+                    if let Some(ref ledger_path_str) = ledger_path {
+                        if let Err(e) = Self::process_entries(
+                            &keypair,
+                            &storage_keys_,
+                            &storage_results_,
+                            &storage_entry_receiver,
+                            ledger_path_str,
+                            &mut poh_height,
+                            &mut entry_height,
+                            &mut current_key,
+                        ) {
+                            match e {
+                                Error::RecvTimeoutError(RecvTimeoutError::Disconnected) => break,
+                                Error::RecvTimeoutError(RecvTimeoutError::Timeout) => (),
+                                _ => info!("Error from process_entries: {:?}", e),
+                            }
+                        }
+                    }
+                    if exit.load(Ordering::Relaxed) {
+                        break;
+                    }
+                }
+            }).unwrap();
+
+        StorageStage {
+            t_storage_mining_verifier,
+        }
+    }
+
+    pub fn process_entry_crossing(
+        _storage_results: &Arc<RwLock<StorageResults>>,
+        _storage_keys: &Arc<RwLock<StorageKeys>>,
+        keypair: &Arc<Keypair>,
+        _ledger_path: &str,
+        entry_id: Hash,
+        entry_height: u64,
+    ) -> Result<()> {
+        let mut seed = [0u8; 32];
+        let signature = keypair.sign(&entry_id.as_ref());
+
+        seed.copy_from_slice(&signature.as_ref()[..32]);
+
+        let mut rng = ChaChaRng::from_seed(seed);
+
+        // Regenerate the answers
+        let num_slices = (entry_height / ENTRIES_PER_SLICE) as usize;
+        if num_slices == 0 {
+            info!("Ledger has 0 slices!");
+            return Ok(());
+        }
+        // TODO: what if the validator does not have this slice
+        let slice = signature.as_ref()[0] as usize % num_slices;
+
+        debug!(
+            "storage verifying: slice: {} identities: {}",
+            slice, NUM_IDENTITIES,
+        );
+
+        let mut samples = vec![];
+        for _ in 0..NUM_SAMPLES {
+            samples.push(rng.gen_range(0, 10));
+        }
+        debug!("generated samples: {:?}", samples);
+        // TODO: cuda required to generate the reference values
+        // but if it is missing, then we need to take care not to
+        // process storage mining results.
+        #[cfg(feature = "cuda")]
+        {
+            let mut storage_results = _storage_results.write().unwrap();
+
+            // Lock the keys, since this is the IV memory,
+            // it will be updated in-place by the encryption.
+            // Should be overwritten by the vote signatures which replace the
+            // key values by the time it runs again.
+            let mut storage_keys = _storage_keys.write().unwrap();
+
+            match chacha_cbc_encrypt_file_many_keys(
+                _ledger_path,
+                slice as u64,
+                &mut storage_keys,
+                &samples,
+            ) {
+                Ok(hashes) => {
+                    debug!("Success! encrypted ledger slice: {}", slice);
+                    storage_results.copy_from_slice(&hashes);
+                }
+                Err(e) => {
+                    info!("error encrypting file: {:?}", e);
+                    Err(e)?;
+                }
+            }
+        }
+        // TODO: bundle up mining submissions from replicators
+        // and submit them in a tx to the leader to get reward.
+        Ok(())
+    }
+
+    pub fn process_entries(
+        keypair: &Arc<Keypair>,
+        storage_keys: &Arc<RwLock<StorageKeys>>,
+        storage_results: &Arc<RwLock<StorageResults>>,
+        entry_receiver: &EntryReceiver,
+        ledger_path: &str,
+        poh_height: &mut u64,
+        entry_height: &mut u64,
+        current_key_idx: &mut usize,
+    ) -> Result<()> {
+        let timeout = Duration::new(1, 0);
+        let entries = entry_receiver.recv_timeout(timeout)?;
+
+        for entry in entries {
+            // Go through the transactions, find votes, and use them to update
+            // the storage_keys with their signatures.
+            for tx in entry.transactions {
+                for program_id in tx.program_ids {
+                    if VoteProgram::check_id(&program_id) {
+                        debug!(
+                            "generating storage_keys from votes current_key_idx: {}",
+                            *current_key_idx
+                        );
+                        let mut storage_keys = storage_keys.write().unwrap();
+                        storage_keys[*current_key_idx..*current_key_idx + size_of::<Signature>()]
+                            .copy_from_slice(tx.signature.as_ref());
+                        *current_key_idx += size_of::<Signature>();
+                        *current_key_idx %= storage_keys.len();
+                    }
+                }
+            }
+            if cross_boundary!(*poh_height, entry.num_hashes, NUM_HASHES_FOR_STORAGE_ROTATE) {
+                info!(
+                    "crosses sending at poh_height: {} entry_height: {}! hashes: {}",
+                    *poh_height, entry_height, entry.num_hashes
+                );
+                Self::process_entry_crossing(
+                    &storage_results,
+                    &storage_keys,
+                    &keypair,
+                    &ledger_path,
+                    entry.id,
+                    *entry_height,
+                )?;
+            }
+            *entry_height += 1;
+            *poh_height += entry.num_hashes;
+        }
+        Ok(())
+    }
+}
+
+impl Service for StorageStage {
+    type JoinReturnType = ();
+
+    fn join(self) -> thread::Result<()> {
+        self.t_storage_mining_verifier.join()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use entry::Entry;
+    use hash::Hash;
+    use ledger::make_tiny_test_entries;
+    use ledger::{create_tmp_sample_ledger, LedgerWriter};
+    use logger;
+    use service::Service;
+    use signature::{Keypair, KeypairUtil};
+    use std::cmp::{max, min};
+    use std::fs::remove_dir_all;
+    use std::sync::atomic::{AtomicBool, Ordering};
+    use std::sync::mpsc::channel;
+    use std::sync::Arc;
+    use std::thread::sleep;
+    use std::time::Duration;
+    use storage_stage::StorageState;
+    use storage_stage::NUM_IDENTITIES;
+    use storage_stage::{get_identity_index_from_pubkey, StorageStage};
+    use transaction::Transaction;
+    use vote_program::Vote;
+    use vote_transaction::VoteTransaction;
+
+    #[test]
+    fn test_storage_stage_none_ledger() {
+        let keypair = Arc::new(Keypair::new());
+        let exit = Arc::new(AtomicBool::new(false));
+
+        let (_storage_entry_sender, storage_entry_receiver) = channel();
+        let storage_state = StorageState::new();
+        let storage_stage = StorageStage::new(
+            &storage_state,
+            storage_entry_receiver,
+            None,
+            keypair,
+            exit.clone(),
+            0,
+        );
+        exit.store(true, Ordering::Relaxed);
+        storage_stage.join().unwrap();
+    }
+
+    #[test]
+    fn test_storage_stage_process_entries() {
+        logger::setup();
+        let keypair = Arc::new(Keypair::new());
+        let exit = Arc::new(AtomicBool::new(false));
+
+        let (_mint, ledger_path, _genesis) =
+            create_tmp_sample_ledger("storage_stage_process_entries", 1000, 1);
+
+        let entries = make_tiny_test_entries(128);
+        {
+            let mut writer = LedgerWriter::open(&ledger_path, true).unwrap();
+            writer.write_entries(&entries.clone()).unwrap();
+            // drops writer, flushes buffers
+        }
+
+        let (storage_entry_sender, storage_entry_receiver) = channel();
+        let storage_state = StorageState::new();
+        let storage_stage = StorageStage::new(
+            &storage_state,
+            storage_entry_receiver,
+            Some(&ledger_path),
+            keypair,
+            exit.clone(),
+            0,
+        );
+        storage_entry_sender.send(entries.clone()).unwrap();
+
+        let keypair = Keypair::new();
+        let mut result = storage_state.get_mining_result(&keypair.pubkey());
+        assert_eq!(result, Hash::default());
+
+        for _ in 0..9 {
+            storage_entry_sender.send(entries.clone()).unwrap();
+        }
+        for _ in 0..5 {
+            result = storage_state.get_mining_result(&keypair.pubkey());
+            if result != Hash::default() {
+                info!("found result = {:?} sleeping..", result);
+                break;
+            }
+            info!("result = {:?} sleeping..", result);
+            sleep(Duration::new(1, 0));
+        }
+
+        info!("joining..?");
+        exit.store(true, Ordering::Relaxed);
+        storage_stage.join().unwrap();
+
+        #[cfg(not(feature = "cuda"))]
+        assert_eq!(result, Hash::default());
+
+        #[cfg(feature = "cuda")]
+        assert_ne!(result, Hash::default());
+
+        remove_dir_all(ledger_path).unwrap();
+    }
+
+    #[test]
+    fn test_storage_stage_process_vote_entries() {
+        logger::setup();
+        let keypair = Arc::new(Keypair::new());
+        let exit = Arc::new(AtomicBool::new(false));
+
+        let (_mint, ledger_path, _genesis) =
+            create_tmp_sample_ledger("storage_stage_process_entries", 1000, 1);
+
+        let entries = make_tiny_test_entries(128);
+        {
+            let mut writer = LedgerWriter::open(&ledger_path, true).unwrap();
+            writer.write_entries(&entries.clone()).unwrap();
+            // drops writer, flushes buffers
+        }
+
+        let (storage_entry_sender, storage_entry_receiver) = channel();
+        let storage_state = StorageState::new();
+        let storage_stage = StorageStage::new(
+            &storage_state,
+            storage_entry_receiver,
+            Some(&ledger_path),
+            keypair,
+            exit.clone(),
+            0,
+        );
+        storage_entry_sender.send(entries.clone()).unwrap();
+
+        let mut reference_keys;
+        {
+            let keys = storage_state.storage_keys.read().unwrap();
+            reference_keys = vec![0; keys.len()];
+            reference_keys.copy_from_slice(&keys);
+        }
+        let mut vote_txs: Vec<Transaction> = Vec::new();
+        let vote = Vote {
+            tick_height: 123456,
+        };
+        let keypair = Keypair::new();
+        let vote_tx = VoteTransaction::vote_new(&keypair, vote, Hash::default(), 1);
+        vote_txs.push(vote_tx);
+        let vote_entries = vec![Entry::new(&Hash::default(), 1, vote_txs)];
+        storage_entry_sender.send(vote_entries).unwrap();
+
+        for _ in 0..5 {
+            {
+                let keys = storage_state.storage_keys.read().unwrap();
+                if keys[..] != *reference_keys.as_slice() {
+                    break;
+                }
+            }
+
+            sleep(Duration::new(1, 0));
+        }
+
+        debug!("joining..?");
+        exit.store(true, Ordering::Relaxed);
+        storage_stage.join().unwrap();
+
+        {
+            let keys = storage_state.storage_keys.read().unwrap();
+            assert_ne!(keys[..], *reference_keys);
+        }
+
+        remove_dir_all(ledger_path).unwrap();
+    }
+
+    #[test]
+    fn test_pubkey_distribution() {
+        logger::setup();
+        // See that pub keys have an even-ish distribution..
+        let mut hist = [0; NUM_IDENTITIES];
+        for _ in 0..(128 * 256) {
+            let keypair = Keypair::new();
+            let ix = get_identity_index_from_pubkey(&keypair.pubkey());
+            hist[ix] += 1;
+        }
+        let mut hist_max = 0;
+        let mut hist_min = NUM_IDENTITIES;
+        for x in hist.iter() {
+            hist_max = max(*x, hist_max);
+            hist_min = min(*x, hist_min);
+        }
+        info!("min: {} max: {}", hist_min, hist_max);
+        assert_ne!(hist_min, 0);
+    }
+}
diff --git a/src/tvu.rs b/src/tvu.rs
index d13b2ed70a..288fb8614b 100644
--- a/src/tvu.rs
+++ b/src/tvu.rs
@@ -47,8 +47,10 @@ use service::Service;
 use signature::Keypair;
 use std::net::UdpSocket;
 use std::sync::atomic::{AtomicBool, Ordering};
+use std::sync::mpsc::channel;
 use std::sync::{Arc, RwLock};
 use std::thread;
+use storage_stage::{StorageStage, StorageState};
 use window::SharedWindow;
 
 #[derive(Debug, PartialEq, Eq, Clone)]
@@ -61,6 +63,7 @@ pub struct Tvu {
     fetch_stage: BlobFetchStage,
     retransmit_stage: RetransmitStage,
     ledger_write_stage: LedgerWriteStage,
+    storage_stage: StorageStage,
     exit: Arc<AtomicBool>,
 }
 
@@ -69,13 +72,15 @@ impl Tvu {
     /// on the bank state.
     /// # Arguments
     /// * `bank` - The bank state.
-    /// * `entry_height` - Initial ledger height, passed to replicate stage
+    /// * `keypair` - Node's key pair for signing
+    /// * `vote_account_keypair` - Vote key pair
+    /// * `entry_height` - Initial ledger height
     /// * `cluster_info` - The cluster_info state.
     /// * `window` - The window state.
     /// * `replicate_socket` - my replicate socket
     /// * `repair_socket` - my repair socket
     /// * `retransmit_socket` - my retransmit socket
-    /// * `exit` - The exit signal.
+    /// * `ledger_path` - path to the ledger file
     #[cfg_attr(feature = "cargo-clippy", allow(too_many_arguments))]
     pub fn new(
         keypair: Arc<Keypair>,
@@ -111,6 +116,17 @@ impl Tvu {
             bank.leader_scheduler.clone(),
         );
 
+        let (storage_entry_sender, storage_entry_receiver) = channel();
+        let storage_state = StorageState::new();
+        let storage_stage = StorageStage::new(
+            &storage_state,
+            storage_entry_receiver,
+            ledger_path,
+            keypair.clone(),
+            exit.clone(),
+            entry_height,
+        );
+
         let (replicate_stage, ledger_entry_receiver) = ReplicateStage::new(
             keypair,
             vote_account_keypair,
@@ -121,13 +137,18 @@ impl Tvu {
             entry_height,
         );
 
-        let ledger_write_stage = LedgerWriteStage::new(ledger_path, ledger_entry_receiver, None);
+        let ledger_write_stage = LedgerWriteStage::new(
+            ledger_path,
+            ledger_entry_receiver,
+            Some(storage_entry_sender),
+        );
 
         Tvu {
             replicate_stage,
             fetch_stage,
             retransmit_stage,
             ledger_write_stage,
+            storage_stage,
             exit,
         }
     }
@@ -153,6 +174,7 @@ impl Service for Tvu {
         self.retransmit_stage.join()?;
         self.fetch_stage.join()?;
         self.ledger_write_stage.join()?;
+        self.storage_stage.join()?;
         match self.replicate_stage.join()? {
             Some(ReplicateStageReturnType::LeaderRotation(
                 tick_height,