diff --git a/.github/ISSUE_TEMPLATE/bug-report.md b/.github/ISSUE_TEMPLATE/bug-report.md
index 7ace32f24..9c56a364a 100644
--- a/.github/ISSUE_TEMPLATE/bug-report.md
+++ b/.github/ISSUE_TEMPLATE/bug-report.md
@@ -1,9 +1,9 @@
 ---
-name: Bug Report 
+name: Bug Report
 about: Create a report to help us squash bugs!
 
 ---
-<!-- 
+<!--
 Please fill in as much of the template below as you can.
 
 Be ready for followup questions, and please respond in a timely
@@ -27,12 +27,16 @@ manner. We might ask you to provide additional logs and data (tendermint & app).
 **What you expected to happen**:
 
 
+**Have you tried the latest version**: yes/no
+
 **How to reproduce it** (as minimally and precisely as possible):
 
 **Logs (paste a small part showing an error (< 10 lines) or link a pastebin, gist, etc. containing more of the log file)**:
 
 **Config (you can paste only the changes you've made)**:
 
+**node command runtime flags**:
+
 **`/dump_consensus_state` output for consensus bugs**
 
 **Anything else we need to know**:
diff --git a/CHANGELOG_PENDING.md b/CHANGELOG_PENDING.md
index 252a4d488..be90fc199 100644
--- a/CHANGELOG_PENDING.md
+++ b/CHANGELOG_PENDING.md
@@ -32,3 +32,5 @@ BUG FIXES:
 - [common] Safely handle cases where atomic write files already exist [#2109](https://github.com/tendermint/tendermint/issues/2109)
 - [privval] fix a deadline for accepting new connections in socket private
   validator.
+- [p2p] Allow startup if a configured seed node's IP can't be resolved ([#1716](https://github.com/tendermint/tendermint/issues/1716))
+- [node] Fully exit when CTRL-C is pressed even if consensus state panics [#2072](https://github.com/tendermint/tendermint/issues/2072)
diff --git a/Gopkg.lock b/Gopkg.lock
index db035fc07..df455e8d0 100644
--- a/Gopkg.lock
+++ b/Gopkg.lock
@@ -15,7 +15,7 @@
   name = "github.com/btcsuite/btcd"
   packages = ["btcec"]
   pruneopts = "UT"
-  revision = "cf05f92c3f815bbd5091ed6c73eff51f7b1945e8"
+  revision = "f5e261fc9ec3437697fb31d8b38453c293204b29"
 
 [[projects]]
   digest = "1:df684ed7fed3fb406ec421424aaf5fc9c63ccc2f428b25b842da78e634482e4b"
@@ -244,7 +244,7 @@
 
 [[projects]]
   branch = "master"
-  digest = "1:dad2e5a2153ee7a6c9ab8fc13673a16ee4fb64434a7da980965a3741b0c981a3"
+  digest = "1:63b68062b8968092eb86bedc4e68894bd096ea6b24920faca8b9dcf451f54bb5"
   name = "github.com/prometheus/common"
   packages = [
     "expfmt",
@@ -418,14 +418,14 @@
 
 [[projects]]
   branch = "master"
-  digest = "1:8cf61f10625f94b618d574224a437fc22ca0f300a3bc03ecab23ab81d478e95c"
+  digest = "1:bb0fe59917bdd5b89f49b9a8b26e5f465e325d9223b3a8e32254314bdf51e0f1"
   name = "golang.org/x/sys"
   packages = [
     "cpu",
     "unix",
   ]
   pruneopts = "UT"
-  revision = "0ffbfd41fbef8ffcf9b62b0b0aa3a5873ed7a4fe"
+  revision = "3dc4335d56c789b04b0ba99b7a37249d9b614314"
 
 [[projects]]
   digest = "1:7509ba4347d1f8de6ae9be8818b0cd1abc3deeffe28aeaf4be6d4b6b5178d9ca"
@@ -451,11 +451,12 @@
   version = "v0.3.0"
 
 [[projects]]
-  digest = "1:cd018653a358d4b743a9d3bee89e825521f2ab2f2ec0770164bf7632d8d73ab7"
+  branch = "master"
+  digest = "1:077c1c599507b3b3e9156d17d36e1e61928ee9b53a5b420f10f28ebd4a0b275c"
   name = "google.golang.org/genproto"
   packages = ["googleapis/rpc/status"]
   pruneopts = "UT"
-  revision = "7fd901a49ba6a7f87732eb344f6e3c5b19d1b200"
+  revision = "daca94659cb50e9f37c1b834680f2e46358f10b0"
 
 [[projects]]
   digest = "1:4515e3030c440845b046354fd5d57671238428b820deebce2e9dabb5cd3c51ac"
diff --git a/Gopkg.toml b/Gopkg.toml
index 5ec6a47c4..e61a37f2c 100644
--- a/Gopkg.toml
+++ b/Gopkg.toml
@@ -72,20 +72,6 @@
 ## Some repos dont have releases.
 ## Pin to revision
 
-## We can remove this one by updating protobuf to v1.1.0
-## but then the grpc tests break with
-#--- FAIL: TestBroadcastTx (0.01s)
-#panic: message/group field common.KVPair:bytes without pointer [recovered]
-#        panic: message/group field common.KVPair:bytes without pointer
-#
-# ...
-#
-# github.com/tendermint/tendermint/rpc/grpc_test.TestBroadcastTx(0xc420a5ab40)
-#         /go/src/github.com/tendermint/tendermint/rpc/grpc/grpc_test.go:29 +0x141
-[[override]]
-  name = "google.golang.org/genproto"
-  revision = "7fd901a49ba6a7f87732eb344f6e3c5b19d1b200"
-
 [[override]]
   name = "github.com/jmhodges/levigo"
   revision = "c42d9e0ca023e2198120196f842701bb4c55d7b9"
diff --git a/consensus/state.go b/consensus/state.go
index c7c17517d..97734d08b 100644
--- a/consensus/state.go
+++ b/consensus/state.go
@@ -561,9 +561,30 @@ func (cs *ConsensusState) newStep() {
 // Updates (state transitions) happen on timeouts, complete proposals, and 2/3 majorities.
 // ConsensusState must be locked before any internal state is updated.
 func (cs *ConsensusState) receiveRoutine(maxSteps int) {
+	onExit := func(cs *ConsensusState) {
+		// NOTE: the internalMsgQueue may have signed messages from our
+		// priv_val that haven't hit the WAL, but its ok because
+		// priv_val tracks LastSig
+
+		// close wal now that we're done writing to it
+		cs.wal.Stop()
+		cs.wal.Wait()
+
+		close(cs.done)
+	}
+
 	defer func() {
 		if r := recover(); r != nil {
 			cs.Logger.Error("CONSENSUS FAILURE!!!", "err", r, "stack", string(debug.Stack()))
+			// stop gracefully
+			//
+			// NOTE: We most probably shouldn't be running any further when there is
+			// some unexpected panic. Some unknown error happened, and so we don't
+			// know if that will result in the validator signing an invalid thing. It
+			// might be worthwhile to explore a mechanism for manual resuming via
+			// some console or secure RPC system, but for now, halting the chain upon
+			// unexpected consensus bugs sounds like the better option.
+			onExit(cs)
 		}
 	}()
 
@@ -596,16 +617,7 @@ func (cs *ConsensusState) receiveRoutine(maxSteps int) {
 			// go to the next step
 			cs.handleTimeout(ti, rs)
 		case <-cs.Quit():
-
-			// NOTE: the internalMsgQueue may have signed messages from our
-			// priv_val that haven't hit the WAL, but its ok because
-			// priv_val tracks LastSig
-
-			// close wal now that we're done writing to it
-			cs.wal.Stop()
-			cs.wal.Wait()
-
-			close(cs.done)
+			onExit(cs)
 			return
 		}
 	}
diff --git a/docs/architecture/adr-013-symmetric-crypto.md b/docs/architecture/adr-013-symmetric-crypto.md
new file mode 100644
index 000000000..00442ab0d
--- /dev/null
+++ b/docs/architecture/adr-013-symmetric-crypto.md
@@ -0,0 +1,93 @@
+# ADR 013: Need for symmetric cryptography
+
+## Context
+
+We require symmetric ciphers to handle how we encrypt keys in the sdk,
+and to potentially encrypt `priv_validator.json` in tendermint.
+
+Currently we use AEAD's to support symmetric encryption,
+which is great since we want data integrity in addition to privacy and authenticity.
+We don't currently have a scenario where we want to encrypt without data integrity,
+so it is fine to optimize our code to just use AEAD's.
+Currently there is not a way to switch out AEAD's easily, this ADR outlines a way
+to easily swap these out.
+
+### How do we encrypt with AEAD's
+
+AEAD's typically require a nonce in addition to the key. 
+For the purposes we require symmetric cryptography for,
+we need encryption to be stateless.
+Because of this we use random nonces. 
+(Thus the AEAD must support random nonces)
+
+We currently construct a random nonce, and encrypt the data with it. 
+The returned value is `nonce || encrypted data`.
+The limitation of this is that does not provide a way to identify
+which algorithm was used in encryption.
+Consequently decryption with multiple algoritms is sub-optimal. 
+(You have to try them all)
+
+## Decision
+
+We should create the following two methods in a new `crypto/encoding/symmetric` package: 
+```golang
+func Encrypt(aead cipher.AEAD, plaintext []byte) (ciphertext []byte, err error)
+func Decrypt(key []byte, ciphertext []byte) (plaintext []byte, err error)
+func Register(aead cipher.AEAD, algo_name string, NewAead func(key []byte) (cipher.Aead, error)) error
+```
+
+This allows you to specify the algorithm in encryption, but not have to specify
+it in decryption. 
+This is intended for ease of use in downstream applications, in addition to people
+looking at the file directly.
+One downside is that for the encrypt function you must have already initialized an AEAD,
+but I don't really see this as an issue. 
+
+If there is no error in encryption, Encrypt will return `algo_name || nonce || aead_ciphertext`. 
+`algo_name` should be length prefixed, using standard varuint encoding.
+This will be binary data, but thats not a problem considering the nonce and ciphertext are also binary.
+
+This solution requires a mapping from aead type to name. 
+We can achieve this via reflection. 
+```golang
+func getType(myvar interface{}) string {
+    if t := reflect.TypeOf(myvar); t.Kind() == reflect.Ptr {
+        return "*" + t.Elem().Name()
+    } else {
+        return t.Name()
+    }
+}
+```
+Then we maintain a map from the name returned from `getType(aead)` to `algo_name`. 
+
+In decryption, we read the `algo_name`, and then instantiate a new AEAD with the key.
+Then we call the AEAD's decrypt method on the provided nonce/ciphertext.
+
+`Register` allows a downstream user to add their own desired AEAD to the symmetric package.
+It will error if the AEAD name is already registered.
+This prevents a malicious import from modifying / nullifying an AEAD at runtime.
+
+## Implementation strategy
+
+The golang implementation of what is proposed is rather straight forward.
+The concern is that we will break existing private keys if we just switch to this.
+If this is concerning, we can make a simple script which doesn't require decoding privkeys,
+for converting from the old format to the new one.
+
+## Status
+
+Proposed.
+
+## Consequences
+
+### Positive
+* Allows us to support new AEAD's, in a way that makes decryption easier
+* Allows downstream users to add their own AEAD
+
+### Negative
+* We will have to break all private keys stored on disk.
+They can be recovered using seed words, and upgrade scripts are simple.
+
+### Neutral
+* Caller has to instantiate the AEAD with the private key.
+However it forces them to be aware of what signing algorithm they are using, which is a positive.
\ No newline at end of file
diff --git a/docs/architecture/adr-014-secp-malleability.md b/docs/architecture/adr-014-secp-malleability.md
new file mode 100644
index 000000000..3351056c6
--- /dev/null
+++ b/docs/architecture/adr-014-secp-malleability.md
@@ -0,0 +1,61 @@
+# ADR 014: Secp256k1 Signature Malleability
+
+## Context
+
+Secp256k1 has two layers of malleability.
+The signer has a random nonce, and thus can produce many different valid signatures.
+This ADR is not concerned with that.
+The second layer of malleability basically allows one who is given a signature
+to produce exactly one more valid signature for the same message from the same public key.
+(They don't even have to know the message!)
+The math behind this will be explained in the subsequent section.
+
+Note that in many downstream applications, signatures will appear in a transaction, and therefore in the tx hash.
+This means that if someone broadcasts a transaction with secp256k1 signature, the signature can be altered into the other form by anyone in the p2p network.
+Thus the tx hash will change, and this altered tx hash may be committed instead.
+This breaks the assumption that you can broadcast a valid transaction and just wait for its hash to be included on chain.
+One example is if you are broadcasting a tx in cosmos,
+and you wait for it to appear on chain before incrementing your sequence number.
+You may never increment your sequence number if a different tx hash got committed.
+Removing this second layer of signature malleability concerns could ease downstream development.
+
+### ECDSA context
+
+Secp256k1 is ECDSA over a particular curve.
+The signature is of the form `(r, s)`, where `s` is a field element. 
+(The particular field is the `Z_n`, where the elliptic curve has order `n`)
+However `(r, -s)` is also another valid solution.
+Note that anyone can negate a group element, and therefore can get this second signature.
+
+## Decision
+
+We can just distinguish a canonical form for the ECDSA signatures. 
+Then we require that all ECDSA signatures be in the form which we defined as canonical.
+We reject signatures in non-canonical form.
+
+A canonical form is rather easy to define and check. 
+It would just be the smaller of the two values for `s`, defined lexicographically.
+This is a simple check, instead of checking if `s < n`, instead check `s <= (n - 1)/2`.
+An example of another cryptosystem using this 
+is the parity definition here https://github.com/zkcrypto/pairing/pull/30#issuecomment-372910663.
+
+This is the same solution Ethereum has chosen for solving secp malleability.
+
+## Proposed Implementation
+
+Fork https://github.com/btcsuite/btcd, and just update the [parse sig method](https://github.com/btcsuite/btcd/blob/master/btcec/signature.go#195) and serialize functions to enforce our canonical form.
+
+## Status
+
+Proposed.
+
+## Consequences
+
+### Positive
+* Lets us maintain the ability to expect a tx hash to appear in the blockchain.
+
+### Negative
+* More work in all future implementations (Though this is a very simple check)
+* Requires us to maintain another fork
+
+### Neutral
diff --git a/docs/architecture/adr-015-crypto-encoding.md b/docs/architecture/adr-015-crypto-encoding.md
index 983411270..67cce95f9 100644
--- a/docs/architecture/adr-015-crypto-encoding.md
+++ b/docs/architecture/adr-015-crypto-encoding.md
@@ -59,8 +59,8 @@ Use the canonical representation for signatures.
 #### Secp256k1
 There isn't a clear canonical representation here.
 Signatures have two elements `r,s`.
-We should encode these bytes as `r || s`, where `r` and `s` are both exactly
-32 bytes long.
+These bytes are encoded as `r || s`, where `r` and `s` are both exactly
+32 bytes long, encoded big-endian.
 This is basically Ethereum's encoding, but without the leading recovery bit.
 
 ## Status
diff --git a/libs/autofile/autofile.go b/libs/autofile/autofile.go
index 313da6789..2f1bb4fd5 100644
--- a/libs/autofile/autofile.go
+++ b/libs/autofile/autofile.go
@@ -35,18 +35,20 @@ const autoFileOpenDuration = 1000 * time.Millisecond
 // Automatically closes and re-opens file for writing.
 // This is useful for using a log file with the logrotate tool.
 type AutoFile struct {
-	ID     string
-	Path   string
-	ticker *time.Ticker
-	mtx    sync.Mutex
-	file   *os.File
+	ID            string
+	Path          string
+	ticker        *time.Ticker
+	tickerStopped chan struct{} // closed when ticker is stopped
+	mtx           sync.Mutex
+	file          *os.File
 }
 
 func OpenAutoFile(path string) (af *AutoFile, err error) {
 	af = &AutoFile{
-		ID:     cmn.RandStr(12) + ":" + path,
-		Path:   path,
-		ticker: time.NewTicker(autoFileOpenDuration),
+		ID:            cmn.RandStr(12) + ":" + path,
+		Path:          path,
+		ticker:        time.NewTicker(autoFileOpenDuration),
+		tickerStopped: make(chan struct{}),
 	}
 	if err = af.openFile(); err != nil {
 		return
@@ -58,18 +60,18 @@ func OpenAutoFile(path string) (af *AutoFile, err error) {
 
 func (af *AutoFile) Close() error {
 	af.ticker.Stop()
+	close(af.tickerStopped)
 	err := af.closeFile()
 	sighupWatchers.removeAutoFile(af)
 	return err
 }
 
 func (af *AutoFile) processTicks() {
-	for {
-		_, ok := <-af.ticker.C
-		if !ok {
-			return // Done.
-		}
+	select {
+	case <-af.ticker.C:
 		af.closeFile()
+	case <-af.tickerStopped:
+		return
 	}
 }
 
diff --git a/libs/autofile/group.go b/libs/autofile/group.go
index b4368ed9e..e747f04dd 100644
--- a/libs/autofile/group.go
+++ b/libs/autofile/group.go
@@ -85,7 +85,6 @@ func OpenGroup(headPath string) (g *Group, err error) {
 		Head:           head,
 		headBuf:        bufio.NewWriterSize(head, 4096*10),
 		Dir:            dir,
-		ticker:         time.NewTicker(groupCheckDuration),
 		headSizeLimit:  defaultHeadSizeLimit,
 		totalSizeLimit: defaultTotalSizeLimit,
 		minIndex:       0,
@@ -102,6 +101,7 @@ func OpenGroup(headPath string) (g *Group, err error) {
 // OnStart implements Service by starting the goroutine that checks file and
 // group limits.
 func (g *Group) OnStart() error {
+	g.ticker = time.NewTicker(groupCheckDuration)
 	go g.processTicks()
 	return nil
 }
@@ -199,21 +199,15 @@ func (g *Group) Flush() error {
 }
 
 func (g *Group) processTicks() {
-	for {
-		_, ok := <-g.ticker.C
-		if !ok {
-			return // Done.
-		}
+	select {
+	case <-g.ticker.C:
 		g.checkHeadSizeLimit()
 		g.checkTotalSizeLimit()
+	case <-g.Quit():
+		return
 	}
 }
 
-// NOTE: for testing
-func (g *Group) stopTicker() {
-	g.ticker.Stop()
-}
-
 // NOTE: this function is called manually in tests.
 func (g *Group) checkHeadSizeLimit() {
 	limit := g.HeadSizeLimit()
diff --git a/libs/autofile/group_test.go b/libs/autofile/group_test.go
index c7e8725cf..d87bdba82 100644
--- a/libs/autofile/group_test.go
+++ b/libs/autofile/group_test.go
@@ -16,23 +16,25 @@ import (
 	cmn "github.com/tendermint/tendermint/libs/common"
 )
 
-// NOTE: Returned group has ticker stopped
-func createTestGroup(t *testing.T, headSizeLimit int64) *Group {
+func createTestGroupWithHeadSizeLimit(t *testing.T, headSizeLimit int64) *Group {
 	testID := cmn.RandStr(12)
 	testDir := "_test_" + testID
 	err := cmn.EnsureDir(testDir, 0700)
 	require.NoError(t, err, "Error creating dir")
+
 	headPath := testDir + "/myfile"
 	g, err := OpenGroup(headPath)
 	require.NoError(t, err, "Error opening Group")
-	g.SetHeadSizeLimit(headSizeLimit)
-	g.stopTicker()
 	require.NotEqual(t, nil, g, "Failed to create Group")
+
+	g.SetHeadSizeLimit(headSizeLimit)
+
 	return g
 }
 
 func destroyTestGroup(t *testing.T, g *Group) {
 	g.Close()
+
 	err := os.RemoveAll(g.Dir)
 	require.NoError(t, err, "Error removing test Group directory")
 }
@@ -45,7 +47,7 @@ func assertGroupInfo(t *testing.T, gInfo GroupInfo, minIndex, maxIndex int, tota
 }
 
 func TestCheckHeadSizeLimit(t *testing.T) {
-	g := createTestGroup(t, 1000*1000)
+	g := createTestGroupWithHeadSizeLimit(t, 1000*1000)
 
 	// At first, there are no files.
 	assertGroupInfo(t, g.ReadGroupInfo(), 0, 0, 0, 0)
@@ -107,7 +109,7 @@ func TestCheckHeadSizeLimit(t *testing.T) {
 }
 
 func TestSearch(t *testing.T) {
-	g := createTestGroup(t, 10*1000)
+	g := createTestGroupWithHeadSizeLimit(t, 10*1000)
 
 	// Create some files in the group that have several INFO lines in them.
 	// Try to put the INFO lines in various spots.
@@ -208,7 +210,7 @@ func TestSearch(t *testing.T) {
 }
 
 func TestRotateFile(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 	g.WriteLine("Line 1")
 	g.WriteLine("Line 2")
 	g.WriteLine("Line 3")
@@ -238,7 +240,7 @@ func TestRotateFile(t *testing.T) {
 }
 
 func TestFindLast1(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	g.WriteLine("Line 1")
 	g.WriteLine("Line 2")
@@ -262,7 +264,7 @@ func TestFindLast1(t *testing.T) {
 }
 
 func TestFindLast2(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	g.WriteLine("Line 1")
 	g.WriteLine("Line 2")
@@ -286,7 +288,7 @@ func TestFindLast2(t *testing.T) {
 }
 
 func TestFindLast3(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	g.WriteLine("Line 1")
 	g.WriteLine("# a")
@@ -310,7 +312,7 @@ func TestFindLast3(t *testing.T) {
 }
 
 func TestFindLast4(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	g.WriteLine("Line 1")
 	g.WriteLine("Line 2")
@@ -332,7 +334,7 @@ func TestFindLast4(t *testing.T) {
 }
 
 func TestWrite(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	written := []byte("Medusa")
 	g.Write(written)
@@ -353,7 +355,7 @@ func TestWrite(t *testing.T) {
 // test that Read reads the required amount of bytes from all the files in the
 // group and returns no error if n == size of the given slice.
 func TestGroupReaderRead(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	professor := []byte("Professor Monster")
 	g.Write(professor)
@@ -382,7 +384,7 @@ func TestGroupReaderRead(t *testing.T) {
 // test that Read returns an error if number of bytes read < size of
 // the given slice. Subsequent call should return 0, io.EOF.
 func TestGroupReaderRead2(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	professor := []byte("Professor Monster")
 	g.Write(professor)
@@ -413,7 +415,7 @@ func TestGroupReaderRead2(t *testing.T) {
 }
 
 func TestMinIndex(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	assert.Zero(t, g.MinIndex(), "MinIndex should be zero at the beginning")
 
@@ -422,7 +424,7 @@ func TestMinIndex(t *testing.T) {
 }
 
 func TestMaxIndex(t *testing.T) {
-	g := createTestGroup(t, 0)
+	g := createTestGroupWithHeadSizeLimit(t, 0)
 
 	assert.Zero(t, g.MaxIndex(), "MaxIndex should be zero at the beginning")
 
diff --git a/libs/autofile/sighup_watcher.go b/libs/autofile/sighup_watcher.go
index 56fbd4d86..f72f12fcd 100644
--- a/libs/autofile/sighup_watcher.go
+++ b/libs/autofile/sighup_watcher.go
@@ -18,13 +18,19 @@ var sighupCounter int32 // For testing
 func initSighupWatcher() {
 	sighupWatchers = newSighupWatcher()
 
-	c := make(chan os.Signal, 1)
-	signal.Notify(c, syscall.SIGHUP)
+	hup := make(chan os.Signal, 1)
+	signal.Notify(hup, syscall.SIGHUP)
+
+	quit := make(chan os.Signal, 1)
+	signal.Notify(quit, os.Interrupt, syscall.SIGTERM)
 
 	go func() {
-		for range c {
+		select {
+		case <-hup:
 			sighupWatchers.closeAll()
 			atomic.AddInt32(&sighupCounter, 1)
+		case <-quit:
+			return
 		}
 	}()
 }
diff --git a/p2p/pex/addrbook.go b/p2p/pex/addrbook.go
index ef7d7edaa..ad6e0c00b 100644
--- a/p2p/pex/addrbook.go
+++ b/p2p/pex/addrbook.go
@@ -45,6 +45,9 @@ type AddrBook interface {
 
 	// Do we need more peers?
 	NeedMoreAddrs() bool
+	// Is Address Book Empty? Answer should not depend on being in your own
+	// address book, or private peers
+	Empty() bool
 
 	// Pick an address to dial
 	PickAddress(biasTowardsNewAddrs int) *p2p.NetAddress
@@ -223,6 +226,12 @@ func (a *addrBook) NeedMoreAddrs() bool {
 	return a.Size() < needAddressThreshold
 }
 
+// Empty implements AddrBook - returns true if there are no addresses in the address book.
+// Does not count the peer appearing in its own address book, or private peers.
+func (a *addrBook) Empty() bool {
+	return a.Size() == 0
+}
+
 // PickAddress implements AddrBook. It picks an address to connect to.
 // The address is picked randomly from an old or new bucket according
 // to the biasTowardsNewAddrs argument, which must be between [0, 100] (or else is truncated to that range)
@@ -496,7 +505,6 @@ out:
 	}
 	saveFileTicker.Stop()
 	a.saveToFile(a.filePath)
-	a.Logger.Info("Address handler done")
 }
 
 //----------------------------------------------------------
diff --git a/p2p/pex/addrbook_test.go b/p2p/pex/addrbook_test.go
index 761c11874..ade02d490 100644
--- a/p2p/pex/addrbook_test.go
+++ b/p2p/pex/addrbook_test.go
@@ -7,6 +7,8 @@ import (
 	"os"
 	"testing"
 
+	"github.com/stretchr/testify/require"
+
 	"github.com/stretchr/testify/assert"
 
 	cmn "github.com/tendermint/tendermint/libs/common"
@@ -355,22 +357,48 @@ func TestAddrBookHasAddress(t *testing.T) {
 	assert.False(t, book.HasAddress(addr))
 }
 
-func TestPrivatePeers(t *testing.T) {
+func testCreatePrivateAddrs(t *testing.T, numAddrs int) ([]*p2p.NetAddress, []string) {
+	addrs := make([]*p2p.NetAddress, numAddrs)
+	for i := 0; i < numAddrs; i++ {
+		addrs[i] = randIPv4Address(t)
+	}
+
+	private := make([]string, numAddrs)
+	for i, addr := range addrs {
+		private[i] = string(addr.ID)
+	}
+	return addrs, private
+}
+
+func TestAddrBookEmpty(t *testing.T) {
 	fname := createTempFileName("addrbook_test")
 	defer deleteTempFile(fname)
 
 	book := NewAddrBook(fname, true)
 	book.SetLogger(log.TestingLogger())
+	// Check that empty book is empty
+	require.True(t, book.Empty())
+	// Check that book with our address is empty
+	book.AddOurAddress(randIPv4Address(t))
+	require.True(t, book.Empty())
+	// Check that book with private addrs is empty
+	_, privateIds := testCreatePrivateAddrs(t, 5)
+	book.AddPrivateIDs(privateIds)
+	require.True(t, book.Empty())
+
+	// Check that book with address is not empty
+	book.AddAddress(randIPv4Address(t), randIPv4Address(t))
+	require.False(t, book.Empty())
+}
 
-	addrs := make([]*p2p.NetAddress, 10)
-	for i := 0; i < 10; i++ {
-		addrs[i] = randIPv4Address(t)
-	}
+func TestPrivatePeers(t *testing.T) {
+	fname := createTempFileName("addrbook_test")
+	defer deleteTempFile(fname)
 
-	private := make([]string, 10)
-	for i, addr := range addrs {
-		private[i] = string(addr.ID)
-	}
+	book := NewAddrBook(fname, true)
+	book.SetLogger(log.TestingLogger())
+
+	addrs, private := testCreatePrivateAddrs(t, 10)
 	book.AddPrivateIDs(private)
 
 	// private addrs must not be added
diff --git a/p2p/pex/pex_reactor.go b/p2p/pex/pex_reactor.go
index c59b3797d..4220dd42f 100644
--- a/p2p/pex/pex_reactor.go
+++ b/p2p/pex/pex_reactor.go
@@ -7,9 +7,10 @@ import (
 	"sync"
 	"time"
 
+	"github.com/pkg/errors"
+
 	amino "github.com/tendermint/go-amino"
 	cmn "github.com/tendermint/tendermint/libs/common"
-
 	"github.com/tendermint/tendermint/p2p"
 	"github.com/tendermint/tendermint/p2p/conn"
 )
@@ -120,11 +121,11 @@ func (r *PEXReactor) OnStart() error {
 		return err
 	}
 
-	// return err if user provided a bad seed address
-	// or a host name that we cant resolve
-	seedAddrs, err := r.checkSeeds()
+	numOnline, seedAddrs, err := r.checkSeeds()
 	if err != nil {
 		return err
+	} else if numOnline == 0 && r.book.Empty() {
+		return errors.New("Address book is empty, and could not connect to any seed nodes")
 	}
 
 	r.seedAddrs = seedAddrs
@@ -478,19 +479,27 @@ func (r *PEXReactor) dialPeer(addr *p2p.NetAddress) {
 	}
 }
 
-// check seed addresses are well formed
-func (r *PEXReactor) checkSeeds() ([]*p2p.NetAddress, error) {
+// checkSeeds checks that addresses are well formed.
+// Returns number of seeds we can connect to, along with all seeds addrs.
+// return err if user provided any badly formatted seed addresses.
+// Doesn't error if the seed node can't be reached.
+// numOnline returns -1 if no seed nodes were in the initial configuration.
+func (r *PEXReactor) checkSeeds() (numOnline int, netAddrs []*p2p.NetAddress, err error) {
 	lSeeds := len(r.config.Seeds)
 	if lSeeds == 0 {
-		return nil, nil
+		return -1, nil, nil
 	}
 	netAddrs, errs := p2p.NewNetAddressStrings(r.config.Seeds)
+	numOnline = lSeeds - len(errs)
 	for _, err := range errs {
-		if err != nil {
-			return nil, err
+		switch e := err.(type) {
+		case p2p.ErrNetAddressLookup:
+			r.Logger.Error("Connecting to seed failed", "err", e)
+		default:
+			return 0, nil, errors.Wrap(e, "seed node configuration has error")
 		}
 	}
-	return netAddrs, nil
+	return
 }
 
 // randomly dial seeds until we connect to one or exhaust them
diff --git a/p2p/pex/pex_reactor_test.go b/p2p/pex/pex_reactor_test.go
index 36f38c570..f72f81e06 100644
--- a/p2p/pex/pex_reactor_test.go
+++ b/p2p/pex/pex_reactor_test.go
@@ -204,6 +204,45 @@ func TestPEXReactorAddrsMessageAbuse(t *testing.T) {
 	assert.False(t, sw.Peers().Has(peer.ID()))
 }
 
+func TestCheckSeeds(t *testing.T) {
+	// directory to store address books
+	dir, err := ioutil.TempDir("", "pex_reactor")
+	require.Nil(t, err)
+	defer os.RemoveAll(dir) // nolint: errcheck
+
+	// 1. test creating peer with no seeds works
+	peer := testCreateDefaultPeer(dir, 0)
+	require.Nil(t, peer.Start())
+	peer.Stop()
+
+	// 2. create seed
+	seed := testCreateSeed(dir, 1, []*p2p.NetAddress{}, []*p2p.NetAddress{})
+
+	// 3. test create peer with online seed works
+	peer = testCreatePeerWithSeed(dir, 2, seed)
+	require.Nil(t, peer.Start())
+	peer.Stop()
+
+	// 4. test create peer with all seeds having unresolvable DNS fails
+	badPeerConfig := &PEXReactorConfig{
+		Seeds: []string{"ed3dfd27bfc4af18f67a49862f04cc100696e84d@bad.network.addr:26657",
+			"d824b13cb5d40fa1d8a614e089357c7eff31b670@anotherbad.network.addr:26657"},
+	}
+	peer = testCreatePeerWithConfig(dir, 2, badPeerConfig)
+	require.Error(t, peer.Start())
+	peer.Stop()
+
+	// 5. test create peer with one good seed address succeeds
+	badPeerConfig = &PEXReactorConfig{
+		Seeds: []string{"ed3dfd27bfc4af18f67a49862f04cc100696e84d@bad.network.addr:26657",
+			"d824b13cb5d40fa1d8a614e089357c7eff31b670@anotherbad.network.addr:26657",
+			seed.NodeInfo().NetAddress().String()},
+	}
+	peer = testCreatePeerWithConfig(dir, 2, badPeerConfig)
+	require.Nil(t, peer.Start())
+	peer.Stop()
+}
+
 func TestPEXReactorUsesSeedsIfNeeded(t *testing.T) {
 	// directory to store address books
 	dir, err := ioutil.TempDir("", "pex_reactor")
@@ -231,30 +270,7 @@ func TestConnectionSpeedForPeerReceivedFromSeed(t *testing.T) {
 	defer os.RemoveAll(dir) // nolint: errcheck
 
 	// 1. create peer
-	peer := p2p.MakeSwitch(
-		cfg,
-		1,
-		"127.0.0.1",
-		"123.123.123",
-		func(i int, sw *p2p.Switch) *p2p.Switch {
-			book := NewAddrBook(filepath.Join(dir, "addrbook1.json"), false)
-			book.SetLogger(log.TestingLogger())
-			sw.SetAddrBook(book)
-
-			sw.SetLogger(log.TestingLogger())
-
-			r := NewPEXReactor(
-				book,
-				&PEXReactorConfig{},
-			)
-			r.SetLogger(log.TestingLogger())
-			sw.AddReactor("pex", r)
-			return sw
-		},
-	)
-	peer.AddListener(
-		p2p.NewDefaultListener("tcp://"+peer.NodeInfo().ListenAddr, "", false, log.TestingLogger()),
-	)
+	peer := testCreateDefaultPeer(dir, 1)
 	require.Nil(t, peer.Start())
 	defer peer.Stop()
 
@@ -435,67 +451,78 @@ func assertPeersWithTimeout(
 	}
 }
 
-// Creates a seed which knows about the provided addresses / source address pairs.
-// Starting and stopping the seed is left to the caller
-func testCreateSeed(dir string, id int, knownAddrs, srcAddrs []*p2p.NetAddress) *p2p.Switch {
-	seed := p2p.MakeSwitch(
+// Creates a peer with the provided config
+func testCreatePeerWithConfig(dir string, id int, config *PEXReactorConfig) *p2p.Switch {
+	peer := p2p.MakeSwitch(
 		cfg,
 		id,
 		"127.0.0.1",
 		"123.123.123",
 		func(i int, sw *p2p.Switch) *p2p.Switch {
-			book := NewAddrBook(filepath.Join(dir, "addrbookSeed.json"), false)
+			book := NewAddrBook(filepath.Join(dir, fmt.Sprintf("addrbook%d.json", id)), false)
 			book.SetLogger(log.TestingLogger())
-			for j := 0; j < len(knownAddrs); j++ {
-				book.AddAddress(knownAddrs[j], srcAddrs[j])
-				book.MarkGood(knownAddrs[j])
-			}
 			sw.SetAddrBook(book)
 
 			sw.SetLogger(log.TestingLogger())
 
-			r := NewPEXReactor(book, &PEXReactorConfig{})
+			r := NewPEXReactor(
+				book,
+				config,
+			)
 			r.SetLogger(log.TestingLogger())
 			sw.AddReactor("pex", r)
 			return sw
 		},
 	)
-	seed.AddListener(
-		p2p.NewDefaultListener("tcp://"+seed.NodeInfo().ListenAddr, "", false, log.TestingLogger()),
+	peer.AddListener(
+		p2p.NewDefaultListener("tcp://"+peer.NodeInfo().ListenAddr, "", false, log.TestingLogger()),
 	)
-	return seed
+	return peer
 }
 
-// Creates a peer which knows about the provided seed.
-// Starting and stopping the peer is left to the caller
-func testCreatePeerWithSeed(dir string, id int, seed *p2p.Switch) *p2p.Switch {
-	peer := p2p.MakeSwitch(
+// Creates a peer with the default config
+func testCreateDefaultPeer(dir string, id int) *p2p.Switch {
+	return testCreatePeerWithConfig(dir, id, &PEXReactorConfig{})
+}
+
+// Creates a seed which knows about the provided addresses / source address pairs.
+// Starting and stopping the seed is left to the caller
+func testCreateSeed(dir string, id int, knownAddrs, srcAddrs []*p2p.NetAddress) *p2p.Switch {
+	seed := p2p.MakeSwitch(
 		cfg,
 		id,
 		"127.0.0.1",
 		"123.123.123",
 		func(i int, sw *p2p.Switch) *p2p.Switch {
-			book := NewAddrBook(filepath.Join(dir, fmt.Sprintf("addrbook%d.json", id)), false)
+			book := NewAddrBook(filepath.Join(dir, "addrbookSeed.json"), false)
 			book.SetLogger(log.TestingLogger())
+			for j := 0; j < len(knownAddrs); j++ {
+				book.AddAddress(knownAddrs[j], srcAddrs[j])
+				book.MarkGood(knownAddrs[j])
+			}
 			sw.SetAddrBook(book)
 
 			sw.SetLogger(log.TestingLogger())
 
-			r := NewPEXReactor(
-				book,
-				&PEXReactorConfig{
-					Seeds: []string{seed.NodeInfo().NetAddress().String()},
-				},
-			)
+			r := NewPEXReactor(book, &PEXReactorConfig{})
 			r.SetLogger(log.TestingLogger())
 			sw.AddReactor("pex", r)
 			return sw
 		},
 	)
-	peer.AddListener(
-		p2p.NewDefaultListener("tcp://"+peer.NodeInfo().ListenAddr, "", false, log.TestingLogger()),
+	seed.AddListener(
+		p2p.NewDefaultListener("tcp://"+seed.NodeInfo().ListenAddr, "", false, log.TestingLogger()),
 	)
-	return peer
+	return seed
+}
+
+// Creates a peer which knows about the provided seed.
+// Starting and stopping the peer is left to the caller
+func testCreatePeerWithSeed(dir string, id int, seed *p2p.Switch) *p2p.Switch {
+	conf := &PEXReactorConfig{
+		Seeds: []string{seed.NodeInfo().NetAddress().String()},
+	}
+	return testCreatePeerWithConfig(dir, id, conf)
 }
 
 func createReactor(conf *PEXReactorConfig) (r *PEXReactor, book *addrBook) {