diff --git a/lightningd/lightningd.c b/lightningd/lightningd.c
index 686f36bbf..4861d9149 100644
--- a/lightningd/lightningd.c
+++ b/lightningd/lightningd.c
@@ -50,7 +50,6 @@ static struct lightningd *new_lightningd(const tal_t *ctx)
 #if DEVELOPER
 	ld->dev_debug_subdaemon = NULL;
 	ld->dev_disconnect_fd = -1;
-	ld->dev_hsm_seed = NULL;
 	ld->dev_subdaemon_fail = false;
 	ld->no_reconnect = false;
 
diff --git a/lightningd/lightningd.h b/lightningd/lightningd.h
index 0287a612a..b17c50df7 100644
--- a/lightningd/lightningd.h
+++ b/lightningd/lightningd.h
@@ -171,9 +171,6 @@ struct lightningd {
 	/* If we want to debug a subdaemon. */
 	const char *dev_debug_subdaemon;
 
-	/* If we want to set a specific non-random HSM seed. */
-	const u8 *dev_hsm_seed;
-
 	/* If we have a --dev-disconnect file */
 	int dev_disconnect_fd;
 
diff --git a/lightningd/options.c b/lightningd/options.c
index fd2db18e8..2b6cc09b5 100644
--- a/lightningd/options.c
+++ b/lightningd/options.c
@@ -344,17 +344,6 @@ static void config_register_opts(struct lightningd *ld)
 }
 
 #if DEVELOPER
-static char *opt_set_hsm_seed(const char *arg, struct lightningd *ld)
-{
-	assert(arg != NULL);
-
-	ld->dev_hsm_seed = tal_hexdata(ld, arg, strlen(arg));
-	if (ld->dev_hsm_seed)
-		return NULL;
-
-	return tal_fmt(NULL, "bad hex string '%s'", arg);
-}
-
 static void dev_register_opts(struct lightningd *ld)
 {
 	opt_register_noarg("--dev-no-reconnect", opt_set_bool,
@@ -369,8 +358,6 @@ static void dev_register_opts(struct lightningd *ld)
 			 "Time between gossip broadcasts in milliseconds");
 	opt_register_arg("--dev-disconnect=<filename>", opt_subd_dev_disconnect,
 			 NULL, ld, "File containing disconnection points");
-	opt_register_arg("--dev-hsm-seed=<seed>", opt_set_hsm_seed,
-			 NULL, ld, "Hex-encoded seed for HSM");
 }
 #endif
 
@@ -771,20 +758,6 @@ void handle_opts(struct lightningd *ld, int argc, char *argv[])
 	else
 		log_debug(ld->log, "Not guessing addresses: %s",
 			  ld->portnum ? "manually set" : "port set to zero");
-
-#if DEVELOPER
-	if (ld->dev_hsm_seed) {
-		int fd;
-		unlink("hsm_secret");
-		fd = open("hsm_secret", O_CREAT|O_WRONLY, 0400);
-		if (fd < 0 ||
-		    !write_all(fd, ld->dev_hsm_seed, tal_len(ld->dev_hsm_seed))
-		    || fsync(fd) != 0)
-			fatal("dev-hsm-seed: Could not write file: %s",
-			      strerror(errno));
-		close(fd);
-	}
-#endif
 }
 
 /* FIXME: This is a hack!  Expose somehow in ccan/opt.*/
diff --git a/tests/test_lightningd.py b/tests/test_lightningd.py
index aecca39d6..423563106 100644
--- a/tests/test_lightningd.py
+++ b/tests/test_lightningd.py
@@ -454,6 +454,17 @@ class LightningDTests(BaseLightningDTests):
                                l2.rpc.invoice, 123456, 'inv2', '?',
                                None, None, invoice_preimage)
 
+    def test_names(self):
+        for key, alias, color in [('0266e4598d1d3c415f572a8488830b60f7e744ed9235eb0b1ba93283b315c03518', 'JUNIORBEAM', '0266e4'),
+                                  ('022d223620a359a47ff7f7ac447c85c46c923da53389221a0054c11c1e3ca31d59', 'SILENTARTIST', '022d22'),
+                                  ('035d2b1192dfba134e10e540875d366ebc8bc353d5aa766b80c090b39c3a5d885d', 'HOPPINGFIRE', '035d2b'),
+                                  ('0382ce59ebf18be7d84677c2e35f23294b9992ceca95491fcf8a56c6cb2d9de199', 'JUNIORFELONY', '0382ce'),
+                                  ('032cf15d1ad9c4a08d26eab1918f732d8ef8fdc6abb9640bf3db174372c491304e', 'SOMBERFIRE', '032cf1'),
+                                  ('0265b6ab5ec860cd257865d61ef0bbf5b3339c36cbda8b26b74e7f1dca490b6518', 'LOUDPHOTO', '0265b6')]:
+            n = self.node_factory.get_node()
+            assert n.daemon.is_in_log('public key {}, alias {}.* \(color #{}\)'
+                                      .format(key, alias, color))
+
     def test_invoice(self):
         l1 = self.node_factory.get_node()
         l2 = self.node_factory.get_node()
diff --git a/tests/utils.py b/tests/utils.py
index 88ffb5eeb..4a4bf96d8 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -1,4 +1,3 @@
-import binascii
 import logging
 import os
 import re
@@ -233,12 +232,6 @@ class BitcoinD(TailableProc):
         # As of 0.16, generate() is removed; use generatetoaddress.
         self.rpc.generatetoaddress(numblocks, self.rpc.getnewaddress())
 
-# lightning-1 => 0266e4598d1d3c415f572a8488830b60f7e744ed9235eb0b1ba93283b315c03518 aka JUNIORBEAM #0266e4
-# lightning-2 => 022d223620a359a47ff7f7ac447c85c46c923da53389221a0054c11c1e3ca31d59 aka SILENTARTIST #022d22
-# lightning-3 => 035d2b1192dfba134e10e540875d366ebc8bc353d5aa766b80c090b39c3a5d885d aka HOPPINGFIRE #035d2b
-# lightning-4 => 0382ce59ebf18be7d84677c2e35f23294b9992ceca95491fcf8a56c6cb2d9de199 aka JUNIORFELONY #0382ce
-# lightning-5 => 032cf15d1ad9c4a08d26eab1918f732d8ef8fdc6abb9640bf3db174372c491304e aka SOMBERFIRE #032cf1
-
 
 class LightningD(TailableProc):
     def __init__(self, lightning_dir, bitcoin_dir, port=9735, random_hsm=False):
@@ -261,17 +254,18 @@ class LightningD(TailableProc):
         for k, v in opts.items():
             self.opts[k] = v
 
+        if not os.path.exists(lightning_dir):
+            os.makedirs(lightning_dir)
+
         # Last 32-bytes of final part of dir -> seed.
         seed = (bytes(re.search('([^/]+)/*$', lightning_dir).group(1), encoding='utf-8') + bytes(32))[:32]
+        if not random_hsm:
+            with open(os.path.join(lightning_dir, 'hsm_secret'), 'wb') as f:
+                f.write(seed)
         if DEVELOPER:
             self.opts['dev-broadcast-interval'] = 1000
-            if not random_hsm:
-                self.opts['dev-hsm-seed'] = binascii.hexlify(seed).decode('ascii')
         self.prefix = 'lightningd(%d)' % (port)
 
-        if not os.path.exists(lightning_dir):
-            os.makedirs(lightning_dir)
-
     @property
     def cmd_line(self):