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I have monerod running on an AppVM in Qubes and want to run the CLI in a separate AppVM to minimize the exposure to my wallet files. First, is there any downside to this approach? Second, can someone provide a walk through for accomplishing this?

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You need to setup your firewall to allow connections between the two VMs.

Run this on startup (some script linked from /rw/config/rc.local):

/usr/sbin/iptables -I INPUT 5 -p tcp --dport 18081 -m conntrack --ctstate new -j ACCEPT

This allows incoming RPC calls.

In the firewall VM, allow the two VMs to talk to each other (again, from /rw/config/rc.local):

/usr/bin/iptables -I FORWARD 2 -s a.b.c.d -d e.f.g.h -j ACCEPT

/usr/bin/iptables -I FORWARD 2 -s e.f.g.h -d a.b.c.d -j ACCEPT

Rule numbers kinda arbitrary here, especially for your setup.

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