diff --git a/i2p2www/spec/common-structures.rst b/i2p2www/spec/common-structures.rst
index e99078b4..aded67a2 100644
--- a/i2p2www/spec/common-structures.rst
+++ b/i2p2www/spec/common-structures.rst
@@ -3,7 +3,7 @@ Common structures Specification
 ===============================
 .. meta::
     :category: Design
-    :lastupdated: February 2019
+    :lastupdated: March 2019
     :accuratefor: 0.9.39
 
 .. contents::
@@ -1272,7 +1272,8 @@ MetaLeaseSet
 Description
 ```````````
 Contained in a I2NP DatabaseStore message of type 7.
-Supported as of 0.9.38; see proposal 123 for more information.
+Defined as of 0.9.38; scheduled to be working as of 0.9.40;
+see proposal 123 for more information.
 
 Contains all of the currently authorized MetaLease_ for a particular Destination_,
 the PublicKey_ to which garlic messages can be encrypted, and then the
@@ -1389,7 +1390,8 @@ EncryptedLeaseSet
 Description
 ```````````
 Contained in a I2NP DatabaseStore message of type 5.
-Supported as of 0.9.38; see proposal 123 for more information.
+Defined as of 0.9.38; working as of 0.9.39;
+see proposal 123 for more information.
 
 Only the blinded key and expiration are visible in cleartext.
 The actual lease set is encrypted.
@@ -1489,15 +1491,17 @@ Notes
   destination, or the transient signing public key, if an offline signature
   is included in the leaseset2 header.
 
-* Blinding and encryption schemes are TBD; see proposal 123.
+* Blinding and encryption are specified in `EncryptedLeaseSet`_
 
 * This structure does not use the LeaseSet2Header_.
 
 * Maximum actual expires time is about 11 minutes, unless
   it is an encrypted MetaLeaseSet_.
 
-* TODO probably don't want the offline block in cleartext;
-  may not be able to make offline signatures work with encrypted leasesets at all.
+* See proposal 123 for notes on using offline signatures
+  with encrypted leasesets.
+
+.. _EncryptedLeaseSet: {{ site_url('docs/spec/encryptedleaseset') }}
 
 JavaDoc: http://{{ i2pconv('echelon.i2p/javadoc') }}/net/i2p/data/EncryptedLeaseSet.html
 
diff --git a/i2p2www/spec/encryptedleaseset.rst b/i2p2www/spec/encryptedleaseset.rst
new file mode 100644
index 00000000..8a7ad698
--- /dev/null
+++ b/i2p2www/spec/encryptedleaseset.rst
@@ -0,0 +1,860 @@
+================================
+Encrypted LeaseSet Specification
+================================
+.. meta::
+    :category: Protocols
+    :lastupdated: March 2019
+    :accuratefor: 0.9.39
+
+.. contents::
+
+
+Overview
+========
+
+This document specifies the blinding, encryption, and decryption of
+encrypted leasesets. For the structure of the encrypted leaseset,
+see the common structures specification.
+For backround on encrypted leasesets, see proposal 123.
+For usage in the netdb, see netdb documentation.
+
+
+Definitions
+```````````
+We define the following functions corresponding to the cryptographic building blocks used
+for encrypted LS2:
+
+CSRNG(n)
+    n-byte output from a cryptographically-secure random number generator.
+
+    In addition to the requirement of CSRNG being cryptographically-secure (and thus
+    suitable for generating key material), it MUST be safe
+    for some n-byte output to be used for key material when the byte sequences immediately
+    preceding and following it are exposed on the network (such as in a salt, or encrypted
+    padding). Implementations that rely on a potentially-untrustworthy source should hash
+    any output that is to be exposed on the network [PRNG-REFS]_.
+
+H(p, d)
+    SHA-256 hash function that takes a personalization string p and data d, and
+    produces an output of length 32 bytes.
+
+    Use SHA-256 as follows::
+
+        H(p, d) := SHA-256(p || d)
+
+STREAM
+    The ChaCha20 stream cipher as specified in [RFC-7539-S2.4]_, with the initial counter
+    set to 1. S_KEY_LEN = 32 and S_IV_LEN = 12.
+
+    ENCRYPT(k, iv, plaintext)
+        Encrypts plaintext using the cipher key k, and nonce iv which MUST be unique for
+        the key k. Returns a ciphertext that is the same size as the plaintext.
+
+        The entire ciphertext must be indistinguishable from random if the key is secret.
+
+    DECRYPT(k, iv, ciphertext)
+        Decrypts ciphertext using the cipher key k, and nonce iv. Returns the plaintext.
+
+
+SIG
+    The RedDSA signature scheme (corresponding to SigType 11) with key blinding.
+    It has the following functions:
+
+    DERIVE_PUBLIC(privkey)
+        Returns the public key corresponding to the given private key.
+
+    SIGN(privkey, m)
+        Returns a signature by the private key privkey over the given message m.
+
+    VERIFY(pubkey, m, sig)
+        Verifies the signature sig against the public key pubkey and message m. Returns
+        true if the signature is valid, false otherwise.
+
+    It must also support the following key blinding operations:
+
+    GENERATE_ALPHA(data, secret)
+        Generate alpha for those who know the data and an optional secret.
+        The result must be identically distributed as the private keys.
+
+    BLIND_PRIVKEY(privkey, alpha)
+        Blinds a private key, using a secret alpha.
+
+    BLIND_PUBKEY(pubkey, alpha)
+        Blinds a public key, using a secret alpha.
+        For a given keypair (privkey, pubkey) the following relationship holds::
+
+            BLIND_PUBKEY(pubkey, alpha) ==
+            DERIVE_PUBLIC(BLIND_PRIVKEY(privkey, alpha))
+
+DH
+    X25519 public key agreement system. Private keys of 32 bytes, public keys of 32
+    bytes, produces outputs of 32 bytes. It has the following
+    functions:
+
+    GENERATE_PRIVATE()
+        Generates a new private key.
+
+    DERIVE_PUBLIC(privkey)
+        Returns the public key corresponding to the given private key.
+
+    DH(privkey, pubkey)
+        Generates a shared secret from the given private and public keys.
+
+HKDF(salt, ikm, info, n)
+    A cryptographic key derivation function which takes some input key material ikm (which
+    should have good entropy but is not required to be a uniformly random string), a salt
+    of length 32 bytes, and a context-specific 'info' value, and produces an output
+    of n bytes suitable for use as key material.
+
+    Use HKDF as specified in [RFC-5869]_, using the HMAC hash function SHA-256
+    as specified in [RFC-2104]_. This means that SALT_LEN is 32 bytes max.
+
+
+Format
+``````
+The encrypted LS2 format consists of three nested layers:
+
+- An outer layer containing the necessary plaintext information for storage and retrieval.
+- A middle layer that handles client authentication.
+- An inner layer that contains the actual LS2 data.
+
+The overall format looks like::
+
+    Layer 0 data + Enc(layer 1 data + Enc(layer 2 data)) + Signature
+
+Note that encrypted LS2 is blinded. The Destination is not in the header.
+DHT storage location is SHA-256(sig type || blinded public key), and rotated daily.
+
+Does NOT use the standard LS2 header specified above.
+
+Layer 0 (outer)
+~~~~~~~~~~~~~~~
+Type
+    1 byte
+
+    Not actually in header, but part of data covered by signature.
+    Take from field in Database Store Message.
+
+Blinded Public Key Sig Type
+    2 bytes, big endian
+    This will always be type 11, identifying a RedDSA blinded key.
+
+Blinded Public Key
+    Length as implied by sig type
+
+Published timestamp
+    4 bytes, big endian
+
+    Seconds since epoch, rolls over in 2106
+
+Expires
+    2 bytes, big endian
+
+    Offset from published timestamp in seconds, 18.2 hours max
+
+Flags
+    2 bytes
+
+    Bit order: 15 14 ... 3 2 1 0
+
+    Bit 0: If 0, no offline keys; if 1, offline keys
+
+    Other bits: set to 0 for compatibility with future uses
+
+Transient key data
+    Present if flag indicates offline keys
+
+    Expires timestamp
+        4 bytes, big endian
+
+        Seconds since epoch, rolls over in 2106
+
+    Transient sig type
+        2 bytes, big endian
+
+    Transient signing public key
+        Length as implied by sig type
+
+    Signature
+        Length as implied by blinded public key sig type
+
+        Over expires timestamp, transient sig type, and transient public key.
+
+        Verified with the blinded public key.
+
+lenOuterCiphertext
+    2 bytes, big endian
+
+outerCiphertext
+    lenOuterCiphertext bytes
+
+    Encrypted layer 1 data. See below for key derivation and encryption algorithms.
+
+Signature
+    Length as implied by sig type of the signing key used
+
+    The signature is of everything above.
+
+    If the flag indicates offline keys, the signature is verified with the transient
+    public key. Otherwise, the signature is verified with the blinded public key.
+
+
+Layer 1 (middle)
+~~~~~~~~~~~~~~~~
+Flags
+    1 byte
+    
+    Bit order: 76543210
+
+    Bit 0: 0 for everybody, 1 for per-client, auth section to follow
+
+    Bits 3-1: Authentication scheme, only if bit 1 is set to 1 for per-client, otherwise 0
+              0: DH client authentication (or no per-client authentication)
+              1: PSK client authentication
+
+    Bits 7-4: Unused, set to 0 for future compatibility
+
+DH client auth data
+    Present if flag bit 0 is set to 1 and flag bits 3-1 are set to 0.
+
+    ephemeralPublicKey
+        32 bytes
+
+    clients
+        2 bytes, big endian
+
+        Number of authClient entries to follow, 40 bytes each
+
+    authClient
+        Authorization data for a single client.
+        See below for the per-client authorization algorithm.
+
+        clientID_i
+            8 bytes
+
+        clientCookie_i
+            32 bytes
+
+PSK client auth data
+    Present if flag bit 0 is set to 1 and flag bits 3-1 are set to 0.
+
+    authSalt
+        32 bytes
+
+    clients
+        2 bytes, big endian
+
+        Number of authClient entries to follow, 40 bytes each
+
+    authClient
+        Authorization data for a single client.
+        See below for the per-client authorization algorithm.
+
+        clientID_i
+            8 bytes
+
+        clientCookie_i
+            32 bytes
+
+
+innerCiphertext
+    Length implied by lenOuterCiphertext (whatever data remains)
+
+    Encrypted layer 2 data. See below for key derivation and encryption algorithms.
+
+
+Layer 2 (inner)
+~~~~~~~~~~~~~~~
+Type
+    1 byte
+
+    Either 3 (LS2) or 7 (Meta LS2)
+
+Data
+    LeaseSet2 data for the given type.
+
+    Includes the header and signature.
+
+
+Blinding Key Derivation
+```````````````````````
+
+We use the following scheme for key blinding, based on Ed25519
+and ZCash RedDSA [ZCASH]_.
+The RedDSA signatures are over the Ed25519 curve, using SHA-512 for the hash.
+
+We do not use Tor's rend-spec-v3.txt appendix A.2 [TOR-REND-SPEC-V3]_,
+which has similar design goals, because its blinded public keys
+may be off the prime-order subgroup, with unknown security implications.
+
+
+Goals
+~~~~~
+
+- Signing public key in unblinded destination must be
+  Ed25519 (sig type 7) or RedDSA (sig type 11);
+  no other sig types are supported
+- If the signing public key is offline, the transient signing public key must also be Ed25519
+- Blinding is computationally simple
+- Use existing cryptographic primitives
+- Blinded public keys cannot be unblinded
+- Blinded public keys must be on the Ed25519 curve and prime-order subgroup
+- Must know the destination's signing public key
+  (full destination not required) to derive the blinded public key
+- Optionally provide for an additional secret required to derive the blinded public key
+
+
+Security
+~~~~~~~~
+
+The security of a blinding scheme requires that the
+distribution of alpha is the same as the unblinded private keys.
+However, when we blind an Ed25519 private key (sig type 7)
+to a RedDSA private key (sig type 11), the distribution is different.
+To meet the requirements of zcash section 4.1.6.1 [ZCASH]_,
+RedDSA (sig type 11) should be used for the unblinded keys as well, so that
+"the combination of a re-randomized public key and signature(s)
+under that key do not reveal the key from which it was re-randomized."
+We allow type 7 for existing destinations, but recommend
+type 11 for new destinations that will be encrypted.
+
+
+
+Definitions
+~~~~~~~~~~~
+
+B
+    The Ed25519 base point (generator) 2^255 - 19 as in [ED25519-REFS]_
+
+l
+    The Ed25519 order 2^252 + 27742317777372353535851937790883648493
+    as in [ED25519-REFS]_
+
+DERIVE_PUBLIC(a)
+    Convert a private key to public, as in Ed25519 (mulitply by G)
+
+alpha
+    A 32-byte random number known to those who know the destination.
+
+GENERATE_ALPHA(destination, date, secret)
+    Generate alpha for the current date, for those who know the destination and the secret.
+    The result must be identically distributed as Ed25519 private keys.
+
+a
+    The unblinded 32-byte EdDSA or RedDSA signing private key used to sign the destination
+
+A
+    The unblinded 32-byte EdDSA or RedDSA signing public key in the destination,
+    = DERIVE_PUBLIC(a), as in Ed25519
+
+a'
+    The blinded 32-byte EdDSA signing private key used to sign the encrypted leaseset
+    This is a valid EdDSA private key.
+
+A'
+    The blinded 32-byte EdDSA signing public key in the Destination,
+    may be generated with DERIVE_PUBLIC(a'), or from A and alpha.
+    This is a valid EdDSA public key, on the curve and on the prime-order subgroup.
+
+LEOS2IP(x)
+    Flip the order of the input bytes to little-endian
+
+H*(x)
+    32 bytes = (LEOS2IP(SHA512(x))) mod B, same as in Ed25519 hash-and-reduce
+
+
+Blinding Calculations
+~~~~~~~~~~~~~~~~~~~~~
+
+A new secret alpha and blinded keys must be generated each day (UTC).
+
+The secret alpha and the blinded keys are calculated as follows:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+GENERATE_ALPHA(destination, date, secret), for all parties:
+  // secret is optional, else zero-length
+  A = destination's signing public key
+  stA = signature type of A, 2 bytes big endian (0x0007 or 0x000b)
+  stA' = signature type of blinded public key A', 2 bytes big endian (0x000b)
+  keydata = A || stA || stA'
+  datestring = 8 bytes ASCII YYYYMMDD from the current date UTC
+  seed = HKDF(H("I2PGenerateAlpha", keydata), datestring || secret, "i2pblinding1", 64)
+  // treat seed as a 64 byte little-endian value
+  alpha = seed mod l
+
+  // BLIND_PRIVKEY(), for the owner publishing the leaseset:
+  alpha = GENERATE_ALPHA(destination, date, secret)
+  a = destination's signing private key
+  // Addition using scalar arithmentic
+  blinded signing private key = a' = BLIND_PRIVKEY(a, alpha) = (a + alpha) mod l
+  blinded signing public key = A' = DERIVE_PUBLIC(a')
+
+  // BLIND_PUBKEY(), for the clients retrieving the leaseset:
+  alpha = GENERATE_ALPHA(destination, date, secret)
+  A = destination's signing public key
+  // Addition using group elements (points on the curve)
+  blinded public key = A' = BLIND_PUBKEY(A, alpha) = A + DERIVE_PUBLIC(alpha)
+
+  //Both methods of calculating A' yield the same result, as required.
+{% endhighlight %}
+
+
+
+Signing
+~~~~~~~
+
+The unblinded leaseset is signed by the unblinded Ed25519 or RedDSA signing private key
+and verified with the unblinded Ed25519 or RedDSA signing public key (sig types 7 or 11) as usual.
+
+If the signing public key is offline,
+the unblinded leaseset is signed by the unblinded transient Ed25519 or RedDSA signing private key
+and verified with the unblinded Ed25519 or RedDSA transient signing public key (sig types 7 or 11) as usual.
+See below for additional notes on offline keys for encrytped leasesets.
+
+For signing of the encrypted leaseset, we use RedDSA [ZCASH]_
+to sign and verify with blinded keys.
+The RedDSA signatures are over the Ed25519 curve, using SHA-512 for the hash.
+
+RedDSA is similar to standard Ed25519 except as specified below.
+
+
+Sign/Verify Calculations
+~~~~~~~~~~~~~~~~~~~~~~~~
+
+The outer portion of the encrypted leaseset uses RedDSA keys and signatures.
+
+RedDSA is similar to Ed25519. There are two differences:
+
+RedDSA private keys are generated from random numbers and then must be reduced mod l, where l is defined above.
+Ed25519 private keys are generated from random numbers and then "clamped" using
+bitwise masking to bytes 0 and 31. This is not done for RedDSA.
+The functions GENERATE_ALPHA() and BLIND_PRIVKEY() defined above generate proper
+RedDSA private keys using mod l.
+
+In RedDSA, the calculation of r for signing uses additional random data,
+and uses the public key value rather than the hash of the private key.
+Because of the random data, every RedDSA signature is different, even
+when signing the same data with the same key.
+
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+Signing:
+  T = 80 random bytes
+  r = H*(T || publickey || message)
+  (rest is the same as in Ed25519)
+
+  Verification:
+  Same as for Ed25519
+{% endhighlight %}
+
+
+
+Encryption and processing
+`````````````````````````
+Derivation of subcredentials
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+As part of the blinding process, we need to ensure that an encrypted LS2 can only be
+decrypted by someone who knows the corresponding Destination's signing public key.
+The full Destination is not required.
+To achieve this, we derive a credential from the signing public key:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+A = destination's signing public key
+  stA = signature type of A, 2 bytes big endian (0x0007 or 0x000b)
+  stA' = signature type of A', 2 bytes big endian (0x000b)
+  keydata = A || stA || stA'
+  credential = H("credential", keydata)
+{% endhighlight %}
+
+The personalization string ensures that the credential does not collide with any hash used
+as a DHT lookup key, such as the plain Destination hash.
+
+For a given blinded key, we can then derive a subcredential:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+subcredential = H("subcredential", credential || blindedPublicKey)
+{% endhighlight %}
+
+The subcredential is included in the key derivation processes below, which binds those
+keys to knowledge of the Destination's signing public key.
+
+Layer 1 encryption
+~~~~~~~~~~~~~~~~~~
+First, the input to the key derivation process is prepared:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+outerInput = subcredential || publishedTimestamp
+{% endhighlight %}
+
+Next, a random salt is generated:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+outerSalt = CSRNG(32)
+{% endhighlight %}
+
+Then the key used to encrypt layer 1 is derived:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+keys = HKDF(outerSalt, outerInput, "ELS2_L1K", 44)
+  outerKey = keys[0:31]
+  outerIV = keys[32:43]
+{% endhighlight %}
+
+Finally, the layer 1 plaintext is encrypted and serialized:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+outerCiphertext = outerSalt || ENCRYPT(outerKey, outerIV, outerPlaintext)
+{% endhighlight %}
+
+Layer 1 decryption
+~~~~~~~~~~~~~~~~~~
+The salt is parsed from the layer 1 ciphertext:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+outerSalt = outerCiphertext[0:31]
+{% endhighlight %}
+
+Then the key used to encrypt layer 1 is derived:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+outerInput = subcredential || publishedTimestamp
+  keys = HKDF(outerSalt, outerInput, "ELS2_L1K", 44)
+  outerKey = keys[0:31]
+  outerIV = keys[32:43]
+{% endhighlight %}
+
+Finally, the layer 1 ciphertext is decrypted:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+outerPlaintext = DECRYPT(outerKey, outerIV, outerCiphertext[32:end])
+{% endhighlight %}
+
+Layer 2 encryption
+~~~~~~~~~~~~~~~~~~
+When client authorization is enabled, ``authCookie`` is calculated as described below.
+When client authorization is disabled, ``authCookie`` is the zero-length byte array.
+
+Encryption proceeds in a similar fashion to layer 1:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+innerInput = authCookie || subcredential || publishedTimestamp
+  innerSalt = CSRNG(32)
+  keys = HKDF(innerSalt, innerInput, "ELS2_L2K", 44)
+  innerKey = keys[0:31]
+  innerIV = keys[32:43]
+  innerCiphertext = innerSalt || ENCRYPT(innerKey, innerIV, innerPlaintext)
+{% endhighlight %}
+
+Layer 2 decryption
+~~~~~~~~~~~~~~~~~~
+When client authorization is enabled, ``authCookie`` is calculated as described below.
+When client authorization is disabled, ``authCookie`` is the zero-length byte array.
+
+Decryption proceeds in a similar fashion to layer 1:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+innerInput = authCookie || subcredential || publishedTimestamp
+  innerSalt = innerCiphertext[0:31]
+  keys = HKDF(innerSalt, innerInput, "ELS2_L2K", 44)
+  innerKey = keys[0:31]
+  innerIV = keys[32:43]
+  innerPlaintext = DECRYPT(innerKey, innerIV, innerCiphertext[32:end])
+{% endhighlight %}
+
+
+Per-client authorization
+````````````````````````
+When client authorization is enabled for a Destination, the server maintains a list of
+clients they are authorizing to decrypt the encrypted LS2 data. The data stored per-client
+depends on the authorization mechanism, and includes some form of key material that each
+client generates and sends to the server via a secure out-of-band mechanism.
+
+There are two alternatives for implementing per-client authorization:
+
+DH client authorization
+~~~~~~~~~~~~~~~~~~~~~~~
+Each client generates a DH keypair ``[csk_i, cpk_i]``, and sends the public key ``cpk_i``
+to the server.
+
+Server processing
+^^^^^^^^^^^^^^^^^
+The server generates a new ``authCookie`` and an ephemeral DH keypair:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+authCookie = CSRNG(32)
+  esk = GENERATE_PRIVATE()
+  epk = DERIVE_PUBLIC(esk)
+{% endhighlight %}
+
+Then for each authorized client, the server encrypts ``authCookie`` to its public key:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+sharedSecret = DH(esk, cpk_i)
+  authInput = sharedSecret || cpk_i || subcredential || publishedTimestamp
+  okm = HKDF(epk, authInput, "ELS2_XCA", 52)
+  clientKey_i = okm[0:31]
+  clientIV_i = okm[32:43]
+  clientID_i = okm[44:51]
+  clientCookie_i = ENCRYPT(clientKey_i, clientIV_i, authCookie)
+{% endhighlight %}
+
+The server places each ``[clientID_i, clientCookie_i]`` tuple into layer 1 of the
+encrypted LS2, along with ``epk``.
+
+Client processing
+^^^^^^^^^^^^^^^^^
+The client uses its private key to derive its expected client identifier ``clientID_i``,
+encryption key ``clientKey_i``, and encryption IV ``clientIV_i``:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+sharedSecret = DH(csk_i, epk)
+  authInput = sharedSecret || cpk_i || subcredential || publishedTimestamp
+  okm = HKDF(epk, authInput, "ELS2_XCA", 52)
+  clientKey_i = okm[0:31]
+  clientIV_i = okm[32:43]
+  clientID_i = okm[44:51]
+{% endhighlight %}
+
+Then the client searches the layer 1 authorization data for an entry that contains
+``clientID_i``. If a matching entry exists, the client decrypts it to obtain
+``authCookie``:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+authCookie = DECRYPT(clientKey_i, clientIV_i, clientCookie_i)
+{% endhighlight %}
+
+Pre-shared key client authorization
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+Each client generates a secret 32-byte key ``psk_i``, and sends it to the server.
+
+Server processing
+^^^^^^^^^^^^^^^^^
+The server generates a new ``authCookie`` and salt:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+authCookie = CSRNG(32)
+  authSalt = CSRNG(32)
+{% endhighlight %}
+
+Then for each authorized client, the server encrypts ``authCookie`` to its pre-shared key:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+authInput = psk_i || subcredential || publishedTimestamp
+  okm = HKDF(authSalt, authInput, "ELS2PSKA", 52)
+  clientKey_i = okm[0:31]
+  clientIV_i = okm[32:43]
+  clientID_i = okm[44:51]
+  clientCookie_i = ENCRYPT(clientKey_i, clientIV_i, authCookie)
+{% endhighlight %}
+
+The server places each ``[clientID_i, clientCookie_i]`` tuple into layer 1 of the
+encrypted LS2, along with ``authSalt``.
+
+Client processing
+^^^^^^^^^^^^^^^^^
+The client uses its pre-shared key to derive its expected client identifier ``clientID_i``,
+encryption key ``clientKey_i``, and encryption IV ``clientIV_i``:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+authInput = psk_i || subcredential || publishedTimestamp
+  okm = HKDF(authSalt, authInput, "ELS2PSKA", 52)
+  clientKey_i = okm[0:31]
+  clientIV_i = okm[32:43]
+  clientID_i = okm[44:51]
+{% endhighlight %}
+
+Then the client searches the layer 1 authorization data for an entry that contains
+``clientID_i``. If a matching entry exists, the client decrypts it to obtain
+``authCookie``:
+
+.. raw:: html
+
+  {% highlight lang='text' %}
+authCookie = DECRYPT(clientKey_i, clientIV_i, clientCookie_i)
+{% endhighlight %}
+
+Security considerations
+~~~~~~~~~~~~~~~~~~~~~~~
+Both of the client authorization mechanisms above provide privacy for client membership.
+An entity that only knows the Destination can see how many clients are subscribed at any
+time, but cannot track which clients are being added or revoked.
+
+Servers SHOULD randomize the order of clients each time they generate an encrypted LS2, to
+prevent clients learning their position in the list and inferring when other clients have
+been added or revoked.
+
+A server MAY choose to hide the number of clients that are subscribed by inserting random
+entries into the list of authorization data.
+
+Advantages of DH client authorization
+^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+- Security of the scheme is not solely dependent on the out-of-band exchange of client key
+  material. The client's private key never needs to leave their device, and so an
+  adversary that is able to intercept the out-of-band exchange, but cannot break the DH
+  algorithm, cannot decrypt the encrypted LS2, or determine how long the client is given
+  access.
+
+Downsides of DH client authorization
+^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+- Requires N + 1 DH operations on the server side for N clients.
+- Requires one DH operation on the client side.
+
+Advantages of PSK client authorization
+^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+- Requires no DH operations.
+
+Downsides of PSK client authorization
+^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+- Security of the scheme is critically dependent on the out-of-band exchange of client key
+  material. An adversary that intercepts the exchange for a particular client can decrypt
+  any subsequent encrypted LS2 for which that client is authorized, as well as determine
+  when the client's access is revoked.
+
+
+Encrypted LS with Base 32 Addresses
+```````````````````````````````````
+
+You can't use a traditional base 32 address for an encrypted LS2,
+as it contains only the hash of the destination. It does not provide the non-blinded public key.
+Therefore, a base 32 address alone is insufficient.
+The client needs either the full destination (which contains the public key),
+or the public key by itself.
+If the client has the full destination in an address book, and the address book
+supports reverse lookup by hash, then the public key may be retrieved.
+
+So we need a new format that puts the public key instead of the hash into
+a base32 address. This format must also contain the signature type of the
+public key, and the signature type of the blinding scheme.
+The total requirements are 32 + 2 + 2 = 36 bytes, requiring 58 characters in base 32.
+
+  {% highlight lang='text' %}
+data = 32 byte pubkey || 2 byte unblinded sigtype || 2 byte blinded sigtype
+  address = Base32Encode(data) || ".b32.i2p"
+{% endhighlight %}
+
+We use the same ".b32.i2p" suffix as for traditional base 32 addresses.
+Addresses for encrypted leasesets are identified by the 58 encoded characters
+(36 decoded bytes), compared to 52 characters (32 bytes) for traditional base 32 addresses.
+The five unused bits at the end of b32 must be 0.
+
+You can't use an encrypted LS2 for bittorrent, because of compact announce replies which are 32 bytes.
+The 32 bytes contain only the hash. There is no room for an indication that the
+leaseset is encrypted, or the signature types.
+
+
+
+Encrypted LS with Offline Keys
+``````````````````````````````
+For encrypted leasesets with offline keys, the blinded private keys must also be generated offline,
+one for each day.
+
+As the optional offline signature block is in the cleartext part of the encryted leaseset,
+anybody scraping the floodfills could use this to track the leaseset (but not decrypt it)
+over several days.
+To prevent this, the owner of the keys should generate new transient keys
+for each day as well.
+Both the transient and blinded keys can be generated in advance, and delivered to the router
+in a batch.
+
+There is no file format defined for packaging multiple transient and
+blinded keys and providing them to the client or router.
+There is no I2CP protocol enhancement defined to support
+encrypted leasesets with offline keys.
+
+
+
+Notes
+`````
+
+- A service using encrypted leasesets would publish the encrypted version to the
+  floodfills. However, for efficiency, it would send unencrypted leasesets to
+  clients in the wrapped garlic message, once authenticated (via whitelist, for
+  example).
+
+- Floodfills may limit the max size to a reasonable value to prevent abuse.
+
+- After decryption, several checks should be made, including that
+  the inner timestamp and expiration match those at the top level.
+
+- ChaCha20 was selected over AES. While the speeds are similar if AES
+  hardware support is available, ChaCha20 is 2.5-3x faster when
+  AES hardware support is not available, such as on lower-end ARM devices.
+
+
+
+References
+==========
+
+.. [ED25519-REFS]
+    "High-speed high-security signatures" by Daniel
+    J. Bernstein, Niels Duif, Tanja Lange, Peter Schwabe, and
+    Bo-Yin Yang. http://cr.yp.to/papers.html#ed25519
+
+.. [KEYBLIND-PROOF]
+    https://lists.torproject.org/pipermail/tor-dev/2013-December/005943.html
+
+.. [KEYBLIND-REFS]
+    https://trac.torproject.org/projects/tor/ticket/8106
+    https://lists.torproject.org/pipermail/tor-dev/2012-September/004026.html
+
+.. [PRNG-REFS]
+    http://projectbullrun.org/dual-ec/ext-rand.html
+    https://lists.torproject.org/pipermail/tor-dev/2015-November/009954.html
+
+.. [RFC-2104]
+    https://tools.ietf.org/html/rfc2104
+
+.. [RFC-4880-S5.1]
+    https://tools.ietf.org/html/rfc4880#section-5.1
+
+.. [RFC-5869]
+    https://tools.ietf.org/html/rfc5869
+
+.. [RFC-7539-S2.4]
+    https://tools.ietf.org/html/rfc7539#section-2.4
+
+.. [TOR-REND-SPEC-V3]
+    https://spec.torproject.org/rend-spec-v3
+
+.. [ZCASH]
+   https://github.com/zcash/zips/tree/master/protocol/protocol.pdf
diff --git a/i2p2www/spec/i2np.rst b/i2p2www/spec/i2np.rst
index c38367ac..5726cd4b 100644
--- a/i2p2www/spec/i2np.rst
+++ b/i2p2www/spec/i2np.rst
@@ -3,7 +3,7 @@ I2NP Specification
 ==================
 .. meta::
     :category: Protocols
-    :lastupdated: February 2019
+    :lastupdated: March 2019
     :accuratefor: 0.9.39
 
 .. contents::
@@ -42,9 +42,14 @@ below.
 ==============  ================================================================
    Version      Required I2NP Features
 ==============  ================================================================
+   0.9.40       MetaLeaseSet may be sent in a DSM
+
+   0.9.39       EncryptedLeaseSet may be sent in a DSM
+                RedDSA_SHA512_Ed25519 signature type supported for
+                destinations and leasesets
+
    0.9.38       DSM type bits 3-0 now contain the type;
-                LeaseSet2, MetaLeaseSet, and EncryptedLeaseSet may be sent
-                in a DSM
+                LeaseSet2 may be sent in a DSM
 
    0.9.28       RSA sig types disallowed