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I like these ideas, but i don't like setting up a complete operating system just for DNS purposes.

I know i could add it to other existing servers, but i'd really love a really small independent virtual machine which sole purpose would be DNS.

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Take a look at https://github.com/longsleep/adblockrouter - i hacked this together some months ago and use it since to provide DNS blacklisting to dnsmasq running on OpenWRT. If your OpenWRTC router has wget and ssl, it even runs directly on it.

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