diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index e92f58bdcc..356dba0b6e 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -8,6 +8,7 @@ import (
 
 	"github.com/golang/protobuf/proto"
 	"github.com/pkg/errors"
+
 	abci "github.com/tendermint/abci/types"
 	cmn "github.com/tendermint/tmlibs/common"
 	dbm "github.com/tendermint/tmlibs/db"
@@ -21,44 +22,22 @@ var mainHeaderKey = []byte("header")
 
 // The ABCI application
 type BaseApp struct {
-	logger log.Logger
-
-	// Application name from abci.Info
-	name string
-
-	// Common DB backend
-	db dbm.DB
-
-	// Main (uncached) state
-	cms sdk.CommitMultiStore
-
-	// unmarshal []byte into sdk.Tx
-	txDecoder sdk.TxDecoder
-
-	// unmarshal rawjsonbytes to initialize the application
-	// TODO unexpose and call from InitChain
-	InitStater sdk.InitStater
-
-	// ante handler for fee and auth
-	defaultAnteHandler sdk.AnteHandler
-
-	// handle any kind of message
-	router Router
+	logger             log.Logger
+	name               string               // application name from abci.Info
+	db                 dbm.DB               // common DB backend
+	cms                sdk.CommitMultiStore // Main (uncached) state
+	txDecoder          sdk.TxDecoder        // unmarshal []byte into sdk.Tx
+	InitStater         sdk.InitStater       // TODO unexpose
+	defaultAnteHandler sdk.AnteHandler      // ante handler for fee and auth
+	router             Router               // handle any kind of message
 
 	//--------------------
 	// Volatile
 
-	// CheckTx state, a cache-wrap of `.cms`
-	msCheck sdk.CacheMultiStore
-
-	// DeliverTx state, a cache-wrap of `.cms`
-	msDeliver sdk.CacheMultiStore
-
-	// current block header
-	header *abci.Header
-
-	// cached validator changes from DeliverTx
-	valUpdates []abci.Validator
+	msCheck    sdk.CacheMultiStore // CheckTx state, a cache-wrap of `.cms`
+	msDeliver  sdk.CacheMultiStore // DeliverTx state, a cache-wrap of `.cms`
+	header     *abci.Header        // current block header
+	valUpdates []abci.Validator    // cached validator changes from DeliverTx
 }
 
 var _ abci.Application = &BaseApp{}
@@ -122,40 +101,40 @@ func (app *BaseApp) SetBeginBlocker(...) {}
 func (app *BaseApp) SetEndBlocker(...) {}
 */
 
-// TODO add description
+// load latest application version
 func (app *BaseApp) LoadLatestVersion(mainKey sdk.StoreKey) error {
 	app.cms.LoadLatestVersion()
 	return app.initFromStore(mainKey)
 }
 
-// Load application version
+// load application version
 func (app *BaseApp) LoadVersion(version int64, mainKey sdk.StoreKey) error {
 	app.cms.LoadVersion(version)
 	return app.initFromStore(mainKey)
 }
 
-// The last CommitID of the multistore.
+// the last CommitID of the multistore
 func (app *BaseApp) LastCommitID() sdk.CommitID {
 	return app.cms.LastCommitID()
 }
 
-// The last commited block height.
+// the last commited block height
 func (app *BaseApp) LastBlockHeight() int64 {
 	return app.cms.LastCommitID().Version
 }
 
-// Initializes the remaining logic from app.cms.
+// initializes the remaining logic from app.cms
 func (app *BaseApp) initFromStore(mainKey sdk.StoreKey) error {
 	var lastCommitID = app.cms.LastCommitID()
 	var main = app.cms.GetKVStore(mainKey)
 	var header *abci.Header
 
-	// Main store should exist.
+	// main store should exist.
 	if main == nil {
 		return errors.New("BaseApp expects MultiStore with 'main' KVStore")
 	}
 
-	// If we've committed before, we expect main://<mainHeaderKey>.
+	// if we've committed before, we expect main://<mainHeaderKey>
 	if !lastCommitID.IsZero() {
 		headerBytes := main.Get(mainHeaderKey)
 		if len(headerBytes) == 0 {
@@ -173,7 +152,7 @@ func (app *BaseApp) initFromStore(mainKey sdk.StoreKey) error {
 		}
 	}
 
-	// Set BaseApp state.
+	// set BaseApp state
 	app.header = header
 	app.msCheck = nil
 	app.msDeliver = nil
@@ -183,6 +162,7 @@ func (app *BaseApp) initFromStore(mainKey sdk.StoreKey) error {
 }
 
 //----------------------------------------
+// ABCI
 
 // Implements ABCI
 func (app *BaseApp) Info(req abci.RequestInfo) abci.ResponseInfo {
@@ -205,7 +185,7 @@ func (app *BaseApp) SetOption(req abci.RequestSetOption) (res abci.ResponseSetOp
 // Implements ABCI
 func (app *BaseApp) InitChain(req abci.RequestInitChain) (res abci.ResponseInitChain) {
 	// TODO: Use req.Validators
-	// TODO: Use req.AppStateJSON (?)
+	// TODO: Use req.AppState
 	return
 }
 
@@ -367,7 +347,7 @@ func (app *BaseApp) Commit() (res abci.ResponseCommit) {
 }
 
 //----------------------------------------
-// Misc.
+// Helpers
 
 func (app *BaseApp) getMultiStore(isCheckTx bool) sdk.MultiStore {
 	if isCheckTx {
diff --git a/baseapp/genesis.go b/baseapp/genesis.go
index 2baff9e515..c18d5e3589 100644
--- a/baseapp/genesis.go
+++ b/baseapp/genesis.go
@@ -5,8 +5,7 @@ import (
 	"io/ioutil"
 )
 
-// TODO: remove from here and pass the AppState
-// through InitChain
+// TODO: remove from here and pass the AppState through InitChain
 
 // GenesisDoc defines the initial conditions for a tendermint blockchain, in particular its validator set.
 type GenesisDoc struct {
@@ -14,12 +13,11 @@ type GenesisDoc struct {
 }
 
 // GenesisDocFromFile reads JSON data from a file and unmarshalls it into a GenesisDoc.
-func GenesisDocFromFile(genDocFile string) (*GenesisDoc, error) {
-	if genDocFile == "" {
-		var g GenesisDoc
-		return &g, nil
+func ReadGenesisAppState(genesisPath string) (state json.RawMessage, err error) {
+	if genesisPath == "" {
+		return
 	}
-	jsonBlob, err := ioutil.ReadFile(genDocFile)
+	jsonBlob, err := ioutil.ReadFile(genesisPath)
 	if err != nil {
 		return nil, err
 	}
@@ -28,26 +26,5 @@ func GenesisDocFromFile(genDocFile string) (*GenesisDoc, error) {
 	if err != nil {
 		return nil, err
 	}
-	return &genDoc, nil
+	return genDoc.AppState, nil
 }
-
-// read app state from the genesis file
-//func GenesisAppState(genesisFile string) (state json.RawMessage, err error) {
-//if genesisFile == "" {
-//return
-//}
-//jsonBlob, err := ioutil.ReadFile(genesisFile)
-//if err != nil {
-//return nil, err
-//}
-//data := make(map[string]interface{})
-//err = json.Unmarshal(jsonBlob, &data)
-//if err != nil {
-//return nil, err
-//}
-//state, ok := data["app_state"].(json.RawMessage)
-//if !ok {
-//return nil, errors.New("app state genesis parse error")
-//}
-//return state, nil
-//}
diff --git a/baseapp/helpers.go b/baseapp/helpers.go
new file mode 100644
index 0000000000..43bd654d67
--- /dev/null
+++ b/baseapp/helpers.go
@@ -0,0 +1,24 @@
+package baseapp
+
+import (
+	"github.com/tendermint/abci/server"
+	abci "github.com/tendermint/abci/types"
+	cmn "github.com/tendermint/tmlibs/common"
+)
+
+// RunForever - BasecoinApp execution and cleanup
+func RunForever(app abci.Application) {
+
+	// Start the ABCI server
+	srv, err := server.NewServer("0.0.0.0:46658", "socket", app)
+	if err != nil {
+		cmn.Exit(err.Error())
+	}
+	srv.Start()
+
+	// Wait forever
+	cmn.TrapSignal(func() {
+		// Cleanup
+		srv.Stop()
+	})
+}
diff --git a/examples/basecoin/app/app.go b/examples/basecoin/app/app.go
index a7d27c5805..67f871331c 100644
--- a/examples/basecoin/app/app.go
+++ b/examples/basecoin/app/app.go
@@ -1,12 +1,16 @@
 package app
 
 import (
+	"encoding/json"
 	"fmt"
 
 	bam "github.com/cosmos/cosmos-sdk/baseapp"
+	"github.com/cosmos/cosmos-sdk/examples/basecoin/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/x/auth"
+	"github.com/cosmos/cosmos-sdk/x/bank"
+	"github.com/cosmos/cosmos-sdk/x/sketchy"
 
-	"github.com/tendermint/abci/server"
 	abci "github.com/tendermint/abci/types"
 	"github.com/tendermint/go-wire"
 	cmn "github.com/tendermint/tmlibs/common"
@@ -28,63 +32,130 @@ type BasecoinApp struct {
 	accountMapper sdk.AccountMapper
 }
 
-// TODO: This should take in more configuration options.
-// TODO: This should be moved into baseapp to isolate complexity
+// construct top level keys
+func (app *BasecoinApp) initCapKeys() {
+	app.capKeyMainStore = sdk.NewKVStoreKey("main")
+	app.capKeyIBCStore = sdk.NewKVStoreKey("ibc")
+}
+
+func (app *BasecoinApp) initDefaultAnteHandler() {
+	// deducts fee from payer, verifies signatures and nonces, sets Signers to ctx.
+	app.BaseApp.SetDefaultAnteHandler(auth.NewAnteHandler(app.accountMapper))
+}
+
+func (app *BasecoinApp) initRouterHandlers() {
+
+	// All handlers must be added here, the order matters
+	app.router.AddRoute("bank", bank.NewHandler(bank.NewCoinKeeper(app.accountMapper)))
+	app.router.AddRoute("sketchy", sketchy.NewHandler())
+}
+
+func (app *BasecoinApp) initBaseAppTxDecoder() {
+	cdc := makeTxCodec()
+	app.BaseApp.SetTxDecoder(func(txBytes []byte) (sdk.Tx, sdk.Error) {
+		var tx = sdk.StdTx{}
+		// StdTx.Msg is an interface whose concrete
+		// types are registered in app/msgs.go.
+		err := cdc.UnmarshalBinary(txBytes, &tx)
+		if err != nil {
+			return nil, sdk.ErrTxParse("").TraceCause(err, "")
+		}
+		return tx, nil
+	})
+}
+
+// define the custom logic for basecoin initialization
+func (app *BasecoinApp) initBaseAppInitStater() {
+	accountMapper := app.accountMapper
+
+	app.BaseApp.SetInitStater(func(ctx sdk.Context, state json.RawMessage) sdk.Error {
+		if state == nil {
+			return nil
+		}
+
+		genesisState := new(types.GenesisState)
+		err := json.Unmarshal(state, genesisState)
+		if err != nil {
+			return sdk.ErrGenesisParse("").TraceCause(err, "")
+		}
+
+		for _, gacc := range genesisState.Accounts {
+			acc, err := gacc.ToAppAccount()
+			if err != nil {
+				return sdk.ErrGenesisParse("").TraceCause(err, "")
+			}
+			accountMapper.SetAccount(ctx, acc)
+		}
+		return nil
+	})
+}
+
+// Initialize root stores.
+func (app *BasecoinApp) mountStores() {
+
+	// Create MultiStore mounts.
+	app.BaseApp.MountStore(app.capKeyMainStore, sdk.StoreTypeIAVL)
+	app.BaseApp.MountStore(app.capKeyIBCStore, sdk.StoreTypeIAVL)
+}
+
+// Initialize the AccountMapper.
+func (app *BasecoinApp) initAccountMapper() {
+
+	var accountMapper = auth.NewAccountMapper(
+		app.capKeyMainStore, // target store
+		&types.AppAccount{}, // prototype
+	)
+
+	// Register all interfaces and concrete types that
+	// implement those interfaces, here.
+	cdc := accountMapper.WireCodec()
+	auth.RegisterWireBaseAccount(cdc)
+
+	// Make accountMapper's WireCodec() inaccessible.
+	app.accountMapper = accountMapper.Seal()
+}
+
 func NewBasecoinApp(genesisPath string) *BasecoinApp {
 
-	// Create and configure app.
+	// create and configure app
 	var app = &BasecoinApp{}
+	bapp := bam.NewBaseApp(appName)
+	app.BaseApp = bapp
+	app.router = bapp.Router()
+	app.initBaseAppTxDecoder()
 
-	// TODO open up out of functions, or introduce clarity,
-	// interdependancies are a nightmare to debug
-	app.initCapKeys() // ./init_capkeys.go
-	app.initBaseApp() // ./init_baseapp.go
-	app.initStores()  // ./init_stores.go
+	// add keys
+	app.initCapKeys()
+
+	// initialize the stores
+	app.mountStores()
+	app.initAccountMapper()
+
+	// initialize the genesis function
 	app.initBaseAppInitStater()
-	app.initHandlers() // ./init_handlers.go
 
-	genesisiDoc, err := bam.GenesisDocFromFile(genesisPath)
+	// initialize the handler
+	app.initDefaultAnteHandler()
+	app.initRouterHandlers()
+
+	genesisAppState, err := bam.ReadGenesisAppState(genesisPath)
 	if err != nil {
 		panic(fmt.Errorf("error loading genesis state: %v", err))
 	}
 
 	// set up the cache store for ctx, get ctx
-	// TODO: can InitChain handle this too ?
+	// TODO: combine with InitChain and let tendermint invoke it.
 	app.BaseApp.BeginBlock(abci.RequestBeginBlock{Header: abci.Header{}})
 	ctx := app.BaseApp.NewContext(false, nil) // context for DeliverTx
-
-	// TODO: combine with InitChain and let tendermint invoke it.
-	err = app.BaseApp.InitStater(ctx, genesisiDoc.AppState)
+	err = app.BaseApp.InitStater(ctx, genesisAppState)
 	if err != nil {
 		panic(fmt.Errorf("error initializing application genesis state: %v", err))
 	}
 
-	app.loadStores()
-
-	return app
-}
-
-// RunForever - BasecoinApp execution and cleanup
-func (app *BasecoinApp) RunForever() {
-
-	// Start the ABCI server
-	srv, err := server.NewServer("0.0.0.0:46658", "socket", app)
-	if err != nil {
-		cmn.Exit(err.Error())
-	}
-	srv.Start()
-
-	// Wait forever
-	cmn.TrapSignal(func() {
-		// Cleanup
-		srv.Stop()
-	})
-
-}
-
-// Load the stores
-func (app *BasecoinApp) loadStores() {
+	// load the stores
 	if err := app.LoadLatestVersion(app.capKeyMainStore); err != nil {
 		cmn.Exit(err.Error())
 	}
+
+	return app
 }
diff --git a/examples/basecoin/app/app_test.go b/examples/basecoin/app/app_test.go
index 2e0f24982b..2014fef7c8 100644
--- a/examples/basecoin/app/app_test.go
+++ b/examples/basecoin/app/app_test.go
@@ -7,6 +7,7 @@ import (
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
+	bam "github.com/cosmos/cosmos-sdk/baseapp"
 	"github.com/cosmos/cosmos-sdk/examples/basecoin/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/x/auth"
@@ -15,6 +16,20 @@ import (
 	crypto "github.com/tendermint/go-crypto"
 )
 
+type testBasecoinApp struct {
+	*BasecoinApp
+	*bam.TestApp
+}
+
+func newTestBasecoinApp() *testBasecoinApp {
+	app := NewBasecoinApp("")
+	tba := &testBasecoinApp{
+		BasecoinApp: app,
+	}
+	tba.TestApp = bam.NewTestApp(app.BaseApp)
+	return tba
+}
+
 func TestSendMsg(t *testing.T) {
 	tba := newTestBasecoinApp()
 	tba.RunBeginBlock()
@@ -62,9 +77,9 @@ func TestGenesis(t *testing.T) {
 	}
 	acc := &types.AppAccount{baseAcc, "foobart"}
 
-	genesisState := GenesisState{
-		Accounts: []*GenesisAccount{
-			NewGenesisAccount(acc),
+	genesisState := types.GenesisState{
+		Accounts: []*types.GenesisAccount{
+			types.NewGenesisAccount(acc),
 		},
 	}
 	bytes, err := json.MarshalIndent(genesisState, "", "\t")
diff --git a/examples/basecoin/app/init_baseapp.go b/examples/basecoin/app/init_baseapp.go
deleted file mode 100644
index 4ab701a9ff..0000000000
--- a/examples/basecoin/app/init_baseapp.go
+++ /dev/null
@@ -1,94 +0,0 @@
-package app
-
-import (
-	"encoding/json"
-
-	"github.com/cosmos/cosmos-sdk/baseapp"
-	"github.com/cosmos/cosmos-sdk/examples/basecoin/types"
-	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/cosmos/cosmos-sdk/x/auth"
-	crypto "github.com/tendermint/go-crypto"
-)
-
-// initCapKeys, initBaseApp, initStores, initHandlers.
-func (app *BasecoinApp) initBaseApp() {
-	bapp := baseapp.NewBaseApp(appName)
-	app.BaseApp = bapp
-	app.router = bapp.Router()
-	app.initBaseAppTxDecoder()
-	app.initBaseAppInitStater()
-}
-
-func (app *BasecoinApp) initBaseAppTxDecoder() {
-	cdc := makeTxCodec()
-	app.BaseApp.SetTxDecoder(func(txBytes []byte) (sdk.Tx, sdk.Error) {
-		var tx = sdk.StdTx{}
-		// StdTx.Msg is an interface whose concrete
-		// types are registered in app/msgs.go.
-		err := cdc.UnmarshalBinary(txBytes, &tx)
-		if err != nil {
-			return nil, sdk.ErrTxParse("").TraceCause(err, "")
-		}
-		return tx, nil
-	})
-}
-
-// define the custom logic for basecoin initialization
-func (app *BasecoinApp) initBaseAppInitStater() {
-	accountMapper := app.accountMapper
-
-	app.BaseApp.SetInitStater(func(ctx sdk.Context, state json.RawMessage) sdk.Error {
-		if state == nil {
-			return nil
-		}
-
-		genesisState := new(GenesisState)
-		err := json.Unmarshal(state, genesisState)
-		if err != nil {
-			return sdk.ErrGenesisParse("").TraceCause(err, "")
-		}
-
-		for _, gacc := range genesisState.Accounts {
-			acc, err := gacc.toAppAccount()
-			if err != nil {
-				return sdk.ErrGenesisParse("").TraceCause(err, "")
-			}
-			accountMapper.SetAccount(ctx, acc)
-		}
-		return nil
-	})
-}
-
-//-----------------------------------------------------
-
-// State to Unmarshal
-type GenesisState struct {
-	Accounts []*GenesisAccount `accounts`
-}
-
-// GenesisAccount doesn't need pubkey or sequence
-type GenesisAccount struct {
-	Name    string         `json:"name"`
-	Address crypto.Address `json:"address"`
-	Coins   sdk.Coins      `json:"coins"`
-}
-
-func NewGenesisAccount(aa *types.AppAccount) *GenesisAccount {
-	return &GenesisAccount{
-		Name:    aa.Name,
-		Address: aa.Address,
-		Coins:   aa.Coins,
-	}
-}
-
-// convert GenesisAccount to AppAccount
-func (ga *GenesisAccount) toAppAccount() (acc *types.AppAccount, err error) {
-	baseAcc := auth.BaseAccount{
-		Address: ga.Address,
-		Coins:   ga.Coins,
-	}
-	return &types.AppAccount{
-		BaseAccount: baseAcc,
-		Name:        ga.Name,
-	}, nil
-}
diff --git a/examples/basecoin/app/init_capkeys.go b/examples/basecoin/app/init_capkeys.go
deleted file mode 100644
index 7327c61843..0000000000
--- a/examples/basecoin/app/init_capkeys.go
+++ /dev/null
@@ -1,16 +0,0 @@
-package app
-
-import (
-	sdk "github.com/cosmos/cosmos-sdk/types"
-)
-
-// initCapKeys, initBaseApp, initStores, initHandlers.
-func (app *BasecoinApp) initCapKeys() {
-
-	// All top-level capabilities keys
-	// should be constructed here.
-	// For more information, see http://www.erights.org/elib/capability/ode/ode.pdf.
-	app.capKeyMainStore = sdk.NewKVStoreKey("main")
-	app.capKeyIBCStore = sdk.NewKVStoreKey("ibc")
-
-}
diff --git a/examples/basecoin/app/init_handlers.go b/examples/basecoin/app/init_handlers.go
deleted file mode 100644
index 62831514b1..0000000000
--- a/examples/basecoin/app/init_handlers.go
+++ /dev/null
@@ -1,30 +0,0 @@
-package app
-
-import (
-	"github.com/cosmos/cosmos-sdk/x/auth"
-	"github.com/cosmos/cosmos-sdk/x/bank"
-	"github.com/cosmos/cosmos-sdk/x/sketchy"
-)
-
-// initCapKeys, initBaseApp, initStores, initHandlers.
-func (app *BasecoinApp) initHandlers() {
-	app.initDefaultAnteHandler()
-	app.initRouterHandlers()
-}
-
-func (app *BasecoinApp) initDefaultAnteHandler() {
-
-	// Deducts fee from payer.
-	// Verifies signatures and nonces.
-	// Sets Signers to ctx.
-	app.BaseApp.SetDefaultAnteHandler(
-		auth.NewAnteHandler(app.accountMapper))
-}
-
-func (app *BasecoinApp) initRouterHandlers() {
-
-	// All handlers must be added here.
-	// The order matters.
-	app.router.AddRoute("bank", bank.NewHandler(bank.NewCoinKeeper(app.accountMapper)))
-	app.router.AddRoute("sketchy", sketchy.NewHandler())
-}
diff --git a/examples/basecoin/app/init_stores.go b/examples/basecoin/app/init_stores.go
deleted file mode 100644
index e819ecd2c5..0000000000
--- a/examples/basecoin/app/init_stores.go
+++ /dev/null
@@ -1,38 +0,0 @@
-package app
-
-import (
-	"github.com/cosmos/cosmos-sdk/examples/basecoin/types"
-	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/cosmos/cosmos-sdk/x/auth"
-)
-
-// initCapKeys, initBaseApp, initStores, initHandlers.
-func (app *BasecoinApp) initStores() {
-	app.mountStores()
-	app.initAccountMapper()
-}
-
-// Initialize root stores.
-func (app *BasecoinApp) mountStores() {
-
-	// Create MultiStore mounts.
-	app.BaseApp.MountStore(app.capKeyMainStore, sdk.StoreTypeIAVL)
-	app.BaseApp.MountStore(app.capKeyIBCStore, sdk.StoreTypeIAVL)
-}
-
-// Initialize the AccountMapper.
-func (app *BasecoinApp) initAccountMapper() {
-
-	var accountMapper = auth.NewAccountMapper(
-		app.capKeyMainStore, // target store
-		&types.AppAccount{}, // prototype
-	)
-
-	// Register all interfaces and concrete types that
-	// implement those interfaces, here.
-	cdc := accountMapper.WireCodec()
-	auth.RegisterWireBaseAccount(cdc)
-
-	// Make accountMapper's WireCodec() inaccessible.
-	app.accountMapper = accountMapper.Seal()
-}
diff --git a/examples/basecoin/app/msgs.go b/examples/basecoin/app/msgs.go
index a8ec883bdf..c1273dfbce 100644
--- a/examples/basecoin/app/msgs.go
+++ b/examples/basecoin/app/msgs.go
@@ -6,7 +6,7 @@ import (
 	wire "github.com/tendermint/go-wire"
 )
 
-// Wire requires registration of interfaces & concrete types.  All
+// Wire requires registration of interfaces & concrete types. All
 // interfaces to be encoded/decoded in a Msg must be registered
 // here, along with all the concrete types that implement them.
 func makeTxCodec() (cdc *wire.Codec) {
diff --git a/examples/basecoin/app/testapp.go b/examples/basecoin/app/testapp.go
deleted file mode 100644
index 8603911d51..0000000000
--- a/examples/basecoin/app/testapp.go
+++ /dev/null
@@ -1,19 +0,0 @@
-package app
-
-import (
-	bam "github.com/cosmos/cosmos-sdk/baseapp"
-)
-
-type testBasecoinApp struct {
-	*BasecoinApp
-	*bam.TestApp
-}
-
-func newTestBasecoinApp() *testBasecoinApp {
-	app := NewBasecoinApp("")
-	tba := &testBasecoinApp{
-		BasecoinApp: app,
-	}
-	tba.TestApp = bam.NewTestApp(app.BaseApp)
-	return tba
-}
diff --git a/examples/basecoin/cmd/basecoind/main.go b/examples/basecoin/cmd/basecoind/main.go
index 623bb35e45..dff41d0b81 100644
--- a/examples/basecoin/cmd/basecoind/main.go
+++ b/examples/basecoin/cmd/basecoind/main.go
@@ -1,10 +1,13 @@
 package main
 
-import "github.com/cosmos/cosmos-sdk/examples/basecoin/app"
+import (
+	"github.com/cosmos/cosmos-sdk/baseapp"
+	"github.com/cosmos/cosmos-sdk/examples/basecoin/app"
+)
 
 func main() {
 	// TODO CREATE CLI
 
 	bapp := app.NewBasecoinApp("")
-	bapp.RunForever()
+	baseapp.RunForever(bapp)
 }
diff --git a/examples/basecoin/types/account.go b/examples/basecoin/types/account.go
index d4bc7fba41..3177f99122 100644
--- a/examples/basecoin/types/account.go
+++ b/examples/basecoin/types/account.go
@@ -4,7 +4,6 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/x/auth"
 	crypto "github.com/tendermint/go-crypto"
-	cmn "github.com/tendermint/tmlibs/common"
 )
 
 var _ sdk.Account = (*AppAccount)(nil)
@@ -25,36 +24,31 @@ func (acc *AppAccount) SetName(name string) { acc.Name = name }
 
 //___________________________________________________________________________________
 
-// We use GenesisAccount instead of AppAccount for cleaner json input of PubKey
+// State to Unmarshal
+type GenesisState struct {
+	Accounts []*GenesisAccount `json:"accounts"`
+}
+
+// GenesisAccount doesn't need pubkey or sequence
 type GenesisAccount struct {
-	Name     string         `json:"name"`
-	Address  crypto.Address `json:"address"`
-	Coins    sdk.Coins      `json:"coins"`
-	PubKey   cmn.HexBytes   `json:"public_key"`
-	Sequence int64          `json:"sequence"`
+	Name    string         `json:"name"`
+	Address crypto.Address `json:"address"`
+	Coins   sdk.Coins      `json:"coins"`
 }
 
 func NewGenesisAccount(aa *AppAccount) *GenesisAccount {
 	return &GenesisAccount{
-		Name:     aa.Name,
-		Address:  aa.Address,
-		Coins:    aa.Coins,
-		PubKey:   aa.PubKey.Bytes(),
-		Sequence: aa.Sequence,
+		Name:    aa.Name,
+		Address: aa.Address,
+		Coins:   aa.Coins,
 	}
 }
 
 // convert GenesisAccount to AppAccount
-func (ga *GenesisAccount) toAppAccount() (acc *AppAccount, err error) {
-	pk, err := crypto.PubKeyFromBytes(ga.PubKey)
-	if err != nil {
-		return
-	}
+func (ga *GenesisAccount) ToAppAccount() (acc *AppAccount, err error) {
 	baseAcc := auth.BaseAccount{
-		Address:  ga.Address,
-		Coins:    ga.Coins,
-		PubKey:   pk,
-		Sequence: ga.Sequence,
+		Address: ga.Address,
+		Coins:   ga.Coins,
 	}
 	return &AppAccount{
 		BaseAccount: baseAcc,