diff --git a/.goreleaser.yml b/.goreleaser.yml
index 125b906..c2e2bf5 100644
--- a/.goreleaser.yml
+++ b/.goreleaser.yml
@@ -93,6 +93,15 @@ builds:
       - amd64
       - arm
       - arm64
+  -
+    id: "config-setup"
+    main: ./cmd/config-setup
+    binary: bin/resh-config-setup
+    goarch:
+      - 386
+      - amd64
+      - arm
+      - arm64
 
 # signs:
 #   - artifacts: checksum
diff --git a/Makefile b/Makefile
index b269c6d..9a30621 100644
--- a/Makefile
+++ b/Makefile
@@ -6,7 +6,7 @@ GOFLAGS=-ldflags "-X main.version=${VERSION} -X main.commit=${COMMIT} -X main.de
 
 
 build: submodules bin/resh-session-init bin/resh-collect bin/resh-postcollect bin/resh-daemon\
-  bin/resh-control bin/resh-config bin/resh-cli
+  bin/resh-control bin/resh-config bin/resh-cli bin/resh-config-setup
 
 install: build
 	scripts/install.sh
diff --git a/cmd/collect/main.go b/cmd/collect/main.go
index a0a17b2..aac282c 100644
--- a/cmd/collect/main.go
+++ b/cmd/collect/main.go
@@ -207,7 +207,7 @@ func main() {
 			GitDir:          gitDir,
 			GitRealDir:      gitRealDir,
 			GitOriginRemote: *gitRemote,
-			MachineID:       collect.ReadFileContent(machineIDPath),
+			MachineID:       collect.ReadFileContent(out.Logger, machineIDPath),
 
 			OsReleaseID:         *osReleaseID,
 			OsReleaseVersionID:  *osReleaseVersionID,
@@ -217,7 +217,7 @@ func main() {
 
 			PartOne: true,
 
-			ReshUUID:     collect.ReadFileContent(reshUUIDPath),
+			ReshUUID:     collect.ReadFileContent(out.Logger, reshUUIDPath),
 			ReshVersion:  version,
 			ReshRevision: commit,
 		},
diff --git a/cmd/config-setup/main.go b/cmd/config-setup/main.go
new file mode 100644
index 0000000..a1ed942
--- /dev/null
+++ b/cmd/config-setup/main.go
@@ -0,0 +1,46 @@
+package main
+
+import (
+	"fmt"
+	"os"
+
+	"github.com/curusarn/resh/internal/cfg"
+	"github.com/curusarn/resh/internal/logger"
+	"go.uber.org/zap"
+)
+
+// info passed during build
+var version string
+var commit string
+var developement bool
+
+func main() {
+	errDo := doConfigSetup()
+	config, errCfg := cfg.New()
+	logger, _ := logger.New("config-setup", config.LogLevel, developement)
+	defer logger.Sync() // flushes buffer, if any
+
+	if errDo != nil {
+		logger.Error("Config setup failed", zap.Error(errDo))
+		// TODO: better error message for people
+		fmt.Fprintf(os.Stderr, "ERROR: %v\n", errDo)
+	}
+	if errCfg != nil {
+		logger.Error("Error while getting configuration", zap.Error(errCfg))
+	}
+}
+
+func doConfigSetup() error {
+	err := cfg.Touch()
+	if err != nil {
+		return fmt.Errorf("could not touch config file: %w", err)
+	}
+	changes, err := cfg.Migrate()
+	if err != nil {
+		return fmt.Errorf("could not migrate config file version: %v", err)
+	}
+	if changes {
+		fmt.Printf("Config file format has changed - your config was updated to reflect the changes.\n")
+	}
+	return nil
+}
diff --git a/cmd/postcollect/main.go b/cmd/postcollect/main.go
index 87f25b7..4d4fca8 100644
--- a/cmd/postcollect/main.go
+++ b/cmd/postcollect/main.go
@@ -145,11 +145,11 @@ func main() {
 			GitDirAfter:          gitDirAfter,
 			GitRealDirAfter:      gitRealDirAfter,
 			GitOriginRemoteAfter: *gitRemoteAfter,
-			MachineID:            collect.ReadFileContent(machineIDPath),
+			MachineID:            collect.ReadFileContent(out.Logger, machineIDPath),
 
 			PartOne: false,
 
-			ReshUUID:     collect.ReadFileContent(reshUUIDPath),
+			ReshUUID:     collect.ReadFileContent(out.Logger, reshUUIDPath),
 			ReshVersion:  version,
 			ReshRevision: commit,
 		},
diff --git a/cmd/session-init/main.go b/cmd/session-init/main.go
index 0205dec..59010f7 100644
--- a/cmd/session-init/main.go
+++ b/cmd/session-init/main.go
@@ -174,7 +174,7 @@ func main() {
 			RealtimeSinceSessionStart: realtimeSinceSessionStart,
 			RealtimeSinceBoot:         realtimeSinceBoot,
 
-			MachineID: collect.ReadFileContent(machineIDPath),
+			MachineID: collect.ReadFileContent(out.Logger, machineIDPath),
 
 			OsReleaseID:         *osReleaseID,
 			OsReleaseVersionID:  *osReleaseVersionID,
@@ -182,7 +182,7 @@ func main() {
 			OsReleaseName:       *osReleaseName,
 			OsReleasePrettyName: *osReleasePrettyName,
 
-			ReshUUID:     collect.ReadFileContent(reshUUIDPath),
+			ReshUUID:     collect.ReadFileContent(out.Logger, reshUUIDPath),
 			ReshVersion:  version,
 			ReshRevision: commit,
 		},
diff --git a/internal/cfg/cfg.go b/internal/cfg/cfg.go
index 4587bf1..9c3ae7a 100644
--- a/internal/cfg/cfg.go
+++ b/internal/cfg/cfg.go
@@ -12,38 +12,55 @@ import (
 
 // configFile used to parse the config file
 type configFile struct {
+	// ConfigVersion - never remove this
+	ConfigVersion *string
+
+	// added in legacy
 	Port                    *int
 	SesswatchPeriodSeconds  *uint
 	SesshistInitHistorySize *int
+	BindControlR            *bool
+	Debug                   *bool
 
+	// added in v1
 	LogLevel *string
 
-	BindControlR *bool
-
-	// deprecated
+	// added in legacy
+	// deprecated in v1
 	BindArrowKeysBash *bool
 	BindArrowKeysZsh  *bool
-	Debug             *bool
 }
 
 // Config returned by this package to be used in the rest of the project
 type Config struct {
-	Port                    int
-	SesswatchPeriodSeconds  uint
+	// Port used by daemon and rest of the components to communicate
+	// Make sure to restart the daemon when you change it
+	Port int
+
+	// BindControlR causes CTRL+R to launch the search app
+	BindControlR bool
+	// LogLevel used to filter logs
+	LogLevel zapcore.Level
+
+	// Debug mode for search app
+	Debug bool
+	// SesswatchPeriodSeconds is how often should daemon check if terminal
+	// sessions are still alive
+	SesswatchPeriodSeconds uint
+	// SesshistInitHistorySize is how large resh history needs to be for
+	// daemon to ignore standard shell history files
 	SesshistInitHistorySize int
-	LogLevel                zapcore.Level
-	Debug                   bool
-	BindControlR            bool
 }
 
 // defaults for config
 var defaults = Config{
-	Port:                    2627,
+	Port:         2627,
+	LogLevel:     zap.InfoLevel,
+	BindControlR: true,
+
+	Debug:                   false,
 	SesswatchPeriodSeconds:  120,
 	SesshistInitHistorySize: 1000,
-	LogLevel:                zap.InfoLevel,
-	Debug:                   false,
-	BindControlR:            true,
 }
 
 func getConfigPath() (string, error) {
@@ -59,18 +76,22 @@ func getConfigPath() (string, error) {
 	return path.Join(homeDir, ".config", fname), nil
 }
 
-func readConfig() (*configFile, error) {
+func readConfig(path string) (*configFile, error) {
 	var config configFile
-	path, err := getConfigPath()
-	if err != nil {
-		return &config, fmt.Errorf("could not get config file path: %w", err)
-	}
 	if _, err := toml.DecodeFile(path, &config); err != nil {
 		return &config, fmt.Errorf("could not decode config: %w", err)
 	}
 	return &config, nil
 }
 
+func getConfig() (*configFile, error) {
+	path, err := getConfigPath()
+	if err != nil {
+		return nil, fmt.Errorf("could not get config file path: %w", err)
+	}
+	return readConfig(path)
+}
+
 func processAndFillDefaults(configF *configFile) (Config, error) {
 	config := defaults
 
@@ -104,9 +125,9 @@ func processAndFillDefaults(configF *configFile) (Config, error) {
 // New returns a config file
 // returned config is always usable, returned errors are informative
 func New() (Config, error) {
-	configF, err := readConfig()
+	configF, err := getConfig()
 	if err != nil {
-		return defaults, fmt.Errorf("using default config because of error while getting config: %w", err)
+		return defaults, fmt.Errorf("using default config because of error while getting/reading config: %w", err)
 	}
 
 	config, err := processAndFillDefaults(configF)
diff --git a/internal/cfg/migrate.go b/internal/cfg/migrate.go
new file mode 100644
index 0000000..4f91278
--- /dev/null
+++ b/internal/cfg/migrate.go
@@ -0,0 +1,110 @@
+package cfg
+
+import (
+	"fmt"
+	"os"
+
+	"github.com/BurntSushi/toml"
+)
+
+// Touch config file
+func Touch() error {
+	path, err := getConfigPath()
+	if err != nil {
+		return fmt.Errorf("could not get config file path: %w", err)
+	}
+	file, err := os.OpenFile(path, os.O_CREATE|os.O_APPEND|os.O_WRONLY, 0666)
+	if err != nil {
+		return fmt.Errorf("could not open/create config file: %w", err)
+	}
+	err = file.Close()
+	if err != nil {
+		return fmt.Errorf("could not close config file: %w", err)
+	}
+	return nil
+}
+
+// Migrate old config versions to current config version
+// returns true if any changes were made to the config
+func Migrate() (bool, error) {
+	path, err := getConfigPath()
+	if err != nil {
+		return false, fmt.Errorf("could not get config file path: %w", err)
+	}
+	configF, err := readConfig(path)
+	if err != nil {
+		return false, fmt.Errorf("could not read config: %w", err)
+	}
+	const current = "v1"
+	if configF.ConfigVersion != nil && *configF.ConfigVersion == current {
+		return false, nil
+	}
+
+	if configF.ConfigVersion == nil {
+		configF, err = legacyToV1(configF)
+		if err != nil {
+			return true, fmt.Errorf("error converting config from version 'legacy' to 'v1': %w", err)
+		}
+	}
+
+	if *configF.ConfigVersion != current {
+		return false, fmt.Errorf("unrecognized config version: '%s'", *configF.ConfigVersion)
+	}
+	err = writeConfig(configF, path)
+	if err != nil {
+		return true, fmt.Errorf("could not write migrated config: %w", err)
+	}
+	return true, nil
+}
+
+func writeConfig(config *configFile, path string) error {
+	file, err := os.OpenFile(path, os.O_RDWR|os.O_TRUNC, 0666)
+	if err != nil {
+		return fmt.Errorf("could not open config for writing: %w", err)
+	}
+	defer file.Close()
+	err = toml.NewEncoder(file).Encode(config)
+	if err != nil {
+		return fmt.Errorf("could not encode config: %w", err)
+	}
+	return nil
+}
+
+func legacyToV1(config *configFile) (*configFile, error) {
+	if config.ConfigVersion != nil {
+		return nil, fmt.Errorf("config version is not 'legacy': '%s'", *config.ConfigVersion)
+	}
+	version := "v1"
+	newConf := configFile{
+		ConfigVersion: &version,
+	}
+	// Remove defaults
+	if config.Port != nil && *config.Port != 2627 {
+		newConf.Port = config.Port
+	}
+	if config.SesswatchPeriodSeconds != nil && *config.SesswatchPeriodSeconds != 120 {
+		newConf.SesswatchPeriodSeconds = config.SesswatchPeriodSeconds
+	}
+	if config.SesshistInitHistorySize != nil && *config.SesshistInitHistorySize != 1000 {
+		newConf.SesshistInitHistorySize = config.SesshistInitHistorySize
+	}
+	if config.BindControlR != nil && *config.BindControlR != true {
+		newConf.BindControlR = config.BindControlR
+	}
+	if config.Debug != nil && *config.Debug != false {
+		newConf.Debug = config.Debug
+	}
+	return &newConf, nil
+}
+
+// func v1ToV2(config *configFile) (*configFile, error) {
+// 	if *config.ConfigVersion != "v1" {
+// 		return nil, fmt.Errorf("config version is not 'legacy': '%s'", *config.ConfigVersion)
+// 	}
+// 	version := "v2"
+// 	newConf := configFile{
+// 		ConfigVersion: &version,
+// 		// Here goes all config fields - no need to prune defaults like we do for legacy
+// 	}
+// 	return &newConf, nil
+// }
diff --git a/internal/collect/collect.go b/internal/collect/collect.go
index a72825c..e9fc585 100644
--- a/internal/collect/collect.go
+++ b/internal/collect/collect.go
@@ -15,12 +15,6 @@ import (
 	"go.uber.org/zap"
 )
 
-// SingleResponse json struct
-type SingleResponse struct {
-	Found   bool   `json:"found"`
-	CmdLine string `json:"cmdline"`
-}
-
 // SendRecord to daemon
 func SendRecord(out *output.Output, r records.Record, port, path string) {
 	out.Logger.Debug("Sending record ...",
@@ -49,11 +43,14 @@ func SendRecord(out *output.Output, r records.Record, port, path string) {
 }
 
 // ReadFileContent and return it as a string
-func ReadFileContent(path string) string {
+func ReadFileContent(logger *zap.Logger, path string) string {
 	dat, err := ioutil.ReadFile(path)
 	if err != nil {
+		logger.Error("Error reading file",
+			zap.String("filePath", path),
+			zap.Error(err),
+		)
 		return ""
-		//sugar.Fatal("failed to open " + path)
 	}
 	return strings.TrimSuffix(string(dat), "\n")
 }
@@ -84,7 +81,7 @@ func GetTimezoneOffsetInSeconds(logger *zap.Logger, zone string) float64 {
 	}
 	mins, err := strconv.Atoi(minsStr)
 	if err != nil {
-		logger.Error("err while parsing minutes in timezone offset:", zap.Error(err))
+		logger.Error("Errot while parsing minutes in timezone offset:", zap.Error(err))
 		return -1
 	}
 	secs := ((hours * 60) + mins) * 60
diff --git a/scripts/install.sh b/scripts/install.sh
index 5caedca..b07ac4d 100755
--- a/scripts/install.sh
+++ b/scripts/install.sh
@@ -116,42 +116,23 @@ cp -f scripts/shellrc.sh ~/.resh/shellrc
 cp -f scripts/reshctl.sh scripts/widgets.sh scripts/hooks.sh scripts/util.sh ~/.resh/
 cp -f scripts/rawinstall.sh ~/.resh/
 
-update_config() {
-    version=$1
-    key=$2
-    value=$3
-    # TODO: create bin/semver-lt
-    if bin/semver-lt "${__RESH_VERSION:-0.0.0}" "$1" && [ "$(bin/resh-config -key $key)" != "$value" ] ; then
-        echo " * config option $key was updated to $value"
-        # TODO: enable resh-config value setting
-        # resh-config -key "$key" -value "$value"
-    fi
-}
-
-
-# Do not overwrite config if it exists
-if [ ! -f ~/.config/resh.toml ]; then
-    echo "Copying config file ..."
-    cp -f conf/config.toml ~/.config/resh.toml
-# else 
-    # echo "Merging config files ..."
-    # NOTE: This is where we will merge configs when we make changes to the upstream config
-    # HINT: check which version are we updating FROM and make changes to config based on that 
-fi
-
 echo "Generating completions ..."
 bin/resh-control completion bash > ~/.resh/bash_completion.d/_reshctl
 bin/resh-control completion zsh > ~/.resh/zsh_completion.d/_reshctl
 
 echo "Copying more files ..."
 cp -f scripts/uuid.sh ~/.resh/bin/resh-uuid
-cp -f bin/* ~/.resh/bin/
+rm ~/.resh/bin/resh-* ||:
+cp -f bin/resh-{daemon,control,collect,postcollect,session-init,config} ~/.resh/bin/
 cp -f scripts/resh-evaluate-plot.py ~/.resh/bin/
 cp -fr data/sanitizer ~/.resh/sanitizer_data
 
 # backward compatibility: We have a new location for resh history file 
 [ ! -f ~/.resh/history.json ] || mv ~/.resh/history.json ~/.resh_history.json 
 
+echo "Checking config file ..."
+./bin/resh-config-setup
+
 echo "Finishing up ..."
 # Adding resh shellrc to .bashrc ...
 if [ ! -f ~/.bashrc ]; then