diff --git a/.gitignore b/.gitignore
index 6f6f5e6a..4e318b07 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,3 +20,5 @@
 # Go workspace file
 go.work
 go.work.sum
+
+.idea/
diff --git a/.mise.toml b/.mise.toml
new file mode 100644
index 00000000..c914115b
--- /dev/null
+++ b/.mise.toml
@@ -0,0 +1,2 @@
+[tools]
+go = "1.22"
diff --git a/cmd/machined/install/root.go b/cmd/machined/install/root.go
new file mode 100644
index 00000000..90208b3d
--- /dev/null
+++ b/cmd/machined/install/root.go
@@ -0,0 +1,41 @@
+package install
+
+import (
+	"github.com/spf13/cobra"
+	"uncloud/internal/machine"
+	"uncloud/internal/machine/daemon"
+)
+
+type Options struct {
+	uncloudID     string
+	uncloudSecret string
+	network       string
+}
+
+func NewCommand(dataDir *string) *cobra.Command {
+	opts := Options{}
+	cmd := &cobra.Command{
+		Use:   "install",
+		Short: "Install OS dependencies and configure Uncloud machine.",
+		RunE: func(cmd *cobra.Command, args []string) error {
+			return install(*dataDir, opts)
+		},
+	}
+	cmd.Flags().StringVar(&opts.uncloudID, "id", "", "Globally unique identifier for the uncloud this machine belongs to")
+	_ = cmd.MarkFlagRequired("id")
+	// TODO: read secret from file for security reasons (bash history).
+	cmd.Flags().StringVar(&opts.uncloudSecret, "secret", "", "Shared secret for the uncloud this machine belongs to")
+	_ = cmd.MarkFlagRequired("secret")
+	cmd.Flags().StringVar(&opts.network, "network", "", "IPv4 network in CIDR format to use for the machine network")
+	_ = cmd.MarkFlagRequired("network")
+	return cmd
+}
+
+func install(dataDir string, opts Options) error {
+	cfg := daemon.Config{
+		UncloudID:     opts.uncloudID,
+		UncloudSecret: opts.uncloudSecret,
+		Network:       opts.network,
+	}
+	return machine.Install(dataDir, cfg)
+}
diff --git a/cmd/machined/main.go b/cmd/machined/main.go
new file mode 100644
index 00000000..be6b4c41
--- /dev/null
+++ b/cmd/machined/main.go
@@ -0,0 +1,26 @@
+package main
+
+import (
+	"github.com/spf13/cobra"
+	"uncloud/cmd/machined/install"
+	"uncloud/internal/machine/daemon"
+)
+
+func main() {
+	var dataDir string
+	cmd := &cobra.Command{
+		Use:           "machined",
+		Short:         "Uncloud machine daemon.",
+		SilenceUsage:  true,
+		SilenceErrors: true,
+		RunE: func(cmd *cobra.Command, args []string) error {
+			return daemon.Run(dataDir)
+		},
+	}
+	cmd.PersistentFlags().StringVarP(&dataDir, "data-dir", "d", daemon.DefaultDataDir, "Directory to store machine state")
+	_ = cmd.MarkFlagDirname("data-dir")
+	cmd.AddCommand(
+		install.NewCommand(&dataDir),
+	)
+	cobra.CheckErr(cmd.Execute())
+}
diff --git a/go.mod b/go.mod
new file mode 100644
index 00000000..91b0a6cd
--- /dev/null
+++ b/go.mod
@@ -0,0 +1,9 @@
+module uncloud
+
+go 1.22
+
+require (
+	github.com/inconshreveable/mousetrap v1.1.0 // indirect
+	github.com/spf13/cobra v1.8.1 // indirect
+	github.com/spf13/pflag v1.0.5 // indirect
+)
diff --git a/go.sum b/go.sum
new file mode 100644
index 00000000..912390a7
--- /dev/null
+++ b/go.sum
@@ -0,0 +1,10 @@
+github.com/cpuguy83/go-md2man/v2 v2.0.4/go.mod h1:tgQtvFlXSQOSOSIRvRPT7W67SCa46tRHOmNcaadrF8o=
+github.com/inconshreveable/mousetrap v1.1.0 h1:wN+x4NVGpMsO7ErUn/mUI3vEoE6Jt13X2s0bqwp9tc8=
+github.com/inconshreveable/mousetrap v1.1.0/go.mod h1:vpF70FUmC8bwa3OWnCshd2FqLfsEA9PFc4w1p2J65bw=
+github.com/russross/blackfriday/v2 v2.1.0/go.mod h1:+Rmxgy9KzJVeS9/2gXHxylqXiyQDYRxCVz55jmeOWTM=
+github.com/spf13/cobra v1.8.1 h1:e5/vxKd/rZsfSJMUX1agtjeTDf+qv1/JdBF8gg5k9ZM=
+github.com/spf13/cobra v1.8.1/go.mod h1:wHxEcudfqmLYa8iTfL+OuZPbBZkmvliBWKIezN3kD9Y=
+github.com/spf13/pflag v1.0.5 h1:iy+VFUOCP1a+8yFto/drg2CJ5u0yRoB7fZw3DKv/JXA=
+github.com/spf13/pflag v1.0.5/go.mod h1:McXfInJRrz4CZXVZOBLb0bTZqETkiAhM9Iw0y3An2Bg=
+gopkg.in/check.v1 v0.0.0-20161208181325-20d25e280405/go.mod h1:Co6ibVJAznAaIkqp8huTwlJQCZ016jof/cbN4VW5Yz0=
+gopkg.in/yaml.v3 v3.0.1/go.mod h1:K4uyk7z7BCEPqu6E+C64Yfv1cQ7kz7rIZviUmN+EgEM=
diff --git a/internal/machine/daemon/config.go b/internal/machine/daemon/config.go
new file mode 100644
index 00000000..9a740f1f
--- /dev/null
+++ b/internal/machine/daemon/config.go
@@ -0,0 +1,45 @@
+package daemon
+
+import (
+	"encoding/json"
+	"fmt"
+	"os"
+	"path/filepath"
+)
+
+const (
+	DefaultDataDir    = "/var/lib/uncloud"
+	MachineConfigPath = "machine.json"
+)
+
+type Config struct {
+	UncloudID     string
+	UncloudSecret string
+	// IPv4 network in CIDR format to use for the machine network.
+	Network string
+}
+
+func ReadConfig(path string) (Config, error) {
+	data, err := os.ReadFile(path)
+	if err != nil {
+		return Config{}, fmt.Errorf("read config file %q: %w", path, err)
+	}
+	var config Config
+	if err = json.Unmarshal(data, &config); err != nil {
+		return Config{}, fmt.Errorf("parse config file %q: %w", path, err)
+	}
+	return config, nil
+}
+
+func (c *Config) Write(path string) error {
+	dir, _ := filepath.Split(path)
+	if err := os.MkdirAll(dir, 0700); err != nil {
+		return fmt.Errorf("create config directory %q: %w", dir, err)
+	}
+
+	data, err := json.Marshal(c)
+	if err != nil {
+		return fmt.Errorf("marshal config: %w", err)
+	}
+	return os.WriteFile(path, data, 0600)
+}
diff --git a/internal/machine/daemon/run.go b/internal/machine/daemon/run.go
new file mode 100644
index 00000000..c678132e
--- /dev/null
+++ b/internal/machine/daemon/run.go
@@ -0,0 +1,17 @@
+package daemon
+
+import (
+	"errors"
+	"fmt"
+	"path/filepath"
+)
+
+func Run(dataDir string) error {
+	cfg, err := ReadConfig(filepath.Join(dataDir, MachineConfigPath))
+	if err != nil {
+		return err
+	}
+	fmt.Println("Config", cfg)
+
+	return errors.New("Running daemon...")
+}
diff --git a/internal/machine/install.go b/internal/machine/install.go
new file mode 100644
index 00000000..8cc176d5
--- /dev/null
+++ b/internal/machine/install.go
@@ -0,0 +1,15 @@
+package machine
+
+import (
+	"fmt"
+	"path/filepath"
+	"uncloud/internal/machine/daemon"
+)
+
+func Install(dataDir string, cfg daemon.Config) error {
+	err := cfg.Write(filepath.Join(dataDir, daemon.MachineConfigPath))
+	if err == nil {
+		fmt.Println("Machine config created.")
+	}
+	return err
+}