diff --git a/pkg/keyring/keyring.go b/pkg/keyring/keyring.go
index 64f14c36..6fe747a1 100644
--- a/pkg/keyring/keyring.go
+++ b/pkg/keyring/keyring.go
@@ -101,7 +101,7 @@ func GenerateMnemonic() (string, error) {
 }
 
 // CreateNewAccount creates a new account in the keyring
-func CreateNewAccount(kr keyring.Keyring, name string, entropySize int) (string, *keyring.Record, error) {
+func CreateNewAccount(kr keyring.Keyring, name string) (string, *keyring.Record, error) {
 	// Generate a new mnemonic
 	mnemonic, err := GenerateMnemonic()
 	if err != nil {
diff --git a/sdk/action/client.go b/sdk/action/client.go
index 6bbcaa95..ed4dabb6 100644
--- a/sdk/action/client.go
+++ b/sdk/action/client.go
@@ -39,12 +39,12 @@ type ClientImpl struct {
 var _ Client = (*ClientImpl)(nil)
 
 // NewClient creates a new action client
-func NewClient(ctx context.Context, config config.Config, logger log.Logger, keyring keyring.Keyring) (Client, error) {
+func NewClient(ctx context.Context, config config.Config, logger log.Logger) (Client, error) {
 	if logger == nil {
 		logger = log.NewNoopLogger()
 	}
 
-	taskManager, err := task.NewManager(ctx, config, logger, keyring)
+	taskManager, err := task.NewManager(ctx, config, logger)
 	if err != nil {
 		return nil, fmt.Errorf("failed to create task manager: %w", err)
 	}
@@ -53,7 +53,6 @@ func NewClient(ctx context.Context, config config.Config, logger log.Logger, key
 		config:      config,
 		taskManager: taskManager,
 		logger:      logger,
-		keyring:     keyring,
 	}, nil
 }
 
diff --git a/sdk/config/config.go b/sdk/config/config.go
index 2a353525..7653e58e 100644
--- a/sdk/config/config.go
+++ b/sdk/config/config.go
@@ -2,27 +2,29 @@ package config
 
 import (
 	"errors"
-	"time"
+	"fmt"
+
+	"github.com/LumeraProtocol/supernode/pkg/keyring"
+	cosmoskeyring "github.com/cosmos/cosmos-sdk/crypto/keyring"
 )
 
 const (
-	DefaultLocalCosmosAddress = "lumera1qv3"     // Example address - replace with actual
-	DefaultChainID            = "lumera-testnet" // Example chain ID - replace with actual
-	DefaultGRPCAddr           = "127.0.0.1:9090"
-	DefaultTimeout            = 10
+	DefaultChainID  = "lumera-testnet"
+	DefaultGRPCAddr = "127.0.0.1:9090"
+	defaultKeyName  = "default"
 )
 
 // AccountConfig holds peer-to-peer addresses, ports, etc.
 type AccountConfig struct {
-	LocalCosmosAddress string // REQUIRED - cosmos account address used for signing tx
+	LocalCosmosAddress string
+	KeyName            string
+	Keyring            cosmoskeyring.Keyring
 }
 
 // LumeraConfig wraps all chain-specific dials.
 type LumeraConfig struct {
-	GRPCAddr string        // REQUIRED – e.g. "127.0.0.1:9090"
-	ChainID  string        // REQUIRED – e.g. "lumera-mainnet"
-	Timeout  time.Duration // OPTIONAL – defaults to DefaultTimeout
-	KeyName  string
+	GRPCAddr string
+	ChainID  string
 }
 
 type Config struct {
@@ -30,48 +32,72 @@ type Config struct {
 	Lumera  LumeraConfig
 }
 
-// Option is a functional option for configuring the Config.
-type Option func(*Config)
-
-// New builds a Config, applying the supplied functional options.
-func New(opts ...Option) (*Config, error) {
-	cfg := &Config{
-		Account: AccountConfig{LocalCosmosAddress: DefaultLocalCosmosAddress},
+// Default returns a fully initialized config with default values and an auto-generated keyring
+func DefaultConfigWithKr() (Config, error) {
+	cfg := Config{
 		Lumera: LumeraConfig{
 			GRPCAddr: DefaultGRPCAddr,
-			Timeout:  DefaultTimeout,
 			ChainID:  DefaultChainID,
 		},
 	}
 
-	for _, opt := range opts {
-		opt(cfg)
-	}
+	return WithKeyring(cfg)
+}
 
-	if err := cfg.Validate(); err != nil {
-		return nil, err
+// WithKeyring ensures the config has a keyring, creating one if needed
+func WithKeyring(cfg Config) (Config, error) {
+	// Apply any defaults for zero values
+	if cfg.Lumera.GRPCAddr == "" {
+		cfg.Lumera.GRPCAddr = DefaultGRPCAddr
+	}
+	if cfg.Lumera.ChainID == "" {
+		cfg.Lumera.ChainID = DefaultChainID
 	}
-	return cfg, nil
-}
 
-func WithLocalCosmosAddress(addr string) Option {
-	return func(c *Config) { c.Account.LocalCosmosAddress = addr }
-}
+	// Initialize Lumera SDK config
+	keyring.InitSDKConfig()
 
-func WithGRPCAddr(addr string) Option {
-	return func(c *Config) { c.Lumera.GRPCAddr = addr }
-}
+	// If keyring is nil, create an in-memory keyring and generate a new account
+	if cfg.Account.Keyring == nil {
+		// Set default key name if not provided
+		keyName := cfg.Account.KeyName
+		if keyName == "" {
+			keyName = defaultKeyName
+		}
 
-func WithChainID(id string) Option {
-	return func(c *Config) { c.Lumera.ChainID = id }
-}
+		// Create an in-memory keyring
+		kr, err := keyring.InitKeyring("memory", "")
+		if err != nil {
+			return Config{}, fmt.Errorf("failed to create in-memory keyring: %w", err)
+		}
+
+		// Create a new account with generated mnemonic
+		_, info, err := keyring.CreateNewAccount(kr, keyName)
+		if err != nil {
+			return Config{}, fmt.Errorf("failed to create new account: %w", err)
+		}
 
-func WithTimeout(d time.Duration) Option {
-	return func(c *Config) { c.Lumera.Timeout = d }
+		// Get the address of the new account
+		addr, err := info.GetAddress()
+		if err != nil {
+			return Config{}, fmt.Errorf("failed to get address from account: %w", err)
+		}
+
+		// Update config with the new keyring and address
+		cfg.Account.Keyring = kr
+		cfg.Account.KeyName = keyName
+		cfg.Account.LocalCosmosAddress = addr.String()
+	}
+
+	// Validate the config
+	if err := cfg.Validate(); err != nil {
+		return Config{}, err
+	}
+	return cfg, nil
 }
 
 // Validate checks the configuration for required fields and valid values.
-func (c *Config) Validate() error {
+func (c Config) Validate() error {
 	switch {
 	case c.Account.LocalCosmosAddress == "":
 		return errors.New("config: Network.LocalCosmosAddress is required")
@@ -79,8 +105,6 @@ func (c *Config) Validate() error {
 		return errors.New("config: Lumera.GRPCAddr is required")
 	case c.Lumera.ChainID == "":
 		return errors.New("config: Lumera.ChainID is required")
-	case c.Lumera.Timeout <= 0:
-		return errors.New("config: Lumera.Timeout must be > 0")
 	default:
 		return nil
 	}
diff --git a/sdk/task/manager.go b/sdk/task/manager.go
index 5e2381dc..a59c729a 100644
--- a/sdk/task/manager.go
+++ b/sdk/task/manager.go
@@ -35,7 +35,7 @@ type ManagerImpl struct {
 	keyring      keyring.Keyring
 }
 
-func NewManager(ctx context.Context, config config.Config, logger log.Logger, kr keyring.Keyring) (Manager, error) {
+func NewManager(ctx context.Context, config config.Config, logger log.Logger) (Manager, error) {
 	// 1 - Logger
 	if logger == nil {
 		logger = log.NewNoopLogger()
@@ -51,8 +51,8 @@ func NewManager(ctx context.Context, config config.Config, logger log.Logger, kr
 		lumera.ConfigParams{
 			GRPCAddr: config.Lumera.GRPCAddr,
 			ChainID:  config.Lumera.ChainID,
-			KeyName:  config.Lumera.KeyName,
-			Keyring:  kr,
+			KeyName:  config.Account.KeyName,
+			Keyring:  config.Account.Keyring,
 		},
 		logger)
 
@@ -72,7 +72,7 @@ func NewManager(ctx context.Context, config config.Config, logger log.Logger, kr
 		taskCache:    taskCache,
 		eventBus:     eventBus,
 		logger:       logger,
-		keyring:      kr,
+		keyring:      config.Account.Keyring,
 	}, nil
 }
 
diff --git a/supernode/cmd/keys_add.go b/supernode/cmd/keys_add.go
index 828ff55c..54468ec0 100644
--- a/supernode/cmd/keys_add.go
+++ b/supernode/cmd/keys_add.go
@@ -43,7 +43,7 @@ Example:
 
 		// Generate mnemonic and create new account
 		// Default to 256 bits of entropy (24 words)
-		mnemonic, info, err := keyring.CreateNewAccount(kr, keyName, 256)
+		mnemonic, info, err := keyring.CreateNewAccount(kr, keyName)
 		if err != nil {
 			return fmt.Errorf("failed to create new account: %w", err)
 		}
diff --git a/tests/system/e2e_cascade_test.go b/tests/system/e2e_cascade_test.go
index 01952602..4943bd0f 100644
--- a/tests/system/e2e_cascade_test.go
+++ b/tests/system/e2e_cascade_test.go
@@ -397,13 +397,13 @@ func TestCascadeE2E(t *testing.T) {
 	// This defines how to connect to network services
 	accConfig := sdkconfig.AccountConfig{
 		LocalCosmosAddress: recoveredAddress,
+		KeyName:            testKeyName,
+		Keyring:            keplrKeyring,
 	}
 
 	lumraConfig := sdkconfig.LumeraConfig{
 		GRPCAddr: lumeraGRPCAddr,
 		ChainID:  lumeraChainID,
-		Timeout:  300, // 30 seconds timeout
-		KeyName:  testKeyName,
 	}
 	actionConfig := sdkconfig.Config{
 		Account: accConfig,
@@ -414,8 +414,8 @@ func TestCascadeE2E(t *testing.T) {
 	actionClient, err := action.NewClient(
 		ctx,
 		actionConfig,
-		nil,          // Nil logger - use default
-		keplrKeyring, // Use the in-memory keyring for signing
+		nil, // Nil logger - use default
+
 	)
 	require.NoError(t, err, "Failed to create action client")