diff --git a/app/app.go b/app/app.go
index d0ef500da2..e20f97f2c7 100644
--- a/app/app.go
+++ b/app/app.go
@@ -28,12 +28,16 @@ type Basecoin struct {
 	state *Store
 
 	handler sdk.Handler
+	tick    Ticker
 
 	pending []*abci.Validator
 	height  uint64
 	logger  log.Logger
 }
 
+// Ticker - tick function
+type Ticker func(sm.SimpleDB) ([]*abci.Validator, error)
+
 var _ abci.Application = &Basecoin{}
 
 // NewBasecoin - create a new instance of the basecoin application
@@ -46,6 +50,17 @@ func NewBasecoin(handler sdk.Handler, store *Store, logger log.Logger) *Basecoin
 	}
 }
 
+// NewBasecoinTick - create a new instance of the basecoin application with tick functionality
+func NewBasecoinTick(handler sdk.Handler, store *Store, logger log.Logger, tick Ticker) *Basecoin {
+	return &Basecoin{
+		handler: handler,
+		info:    sm.NewChainState(),
+		state:   store,
+		logger:  logger,
+		tick:    tick,
+	}
+}
+
 // GetChainID returns the currently stored chain
 func (app *Basecoin) GetChainID() string {
 	return app.info.GetChainID(app.state.Committed())
@@ -168,9 +183,18 @@ func (app *Basecoin) InitChain(req abci.RequestInitChain) {
 // BeginBlock - ABCI
 func (app *Basecoin) BeginBlock(req abci.RequestBeginBlock) {
 	app.height++
+
 	// for _, plugin := range app.plugins.GetList() {
 	// 	plugin.BeginBlock(app.state, hash, header)
 	// }
+
+	if app.tick != nil {
+		diff, err := app.tick(app.state.Append())
+		if err != nil {
+			panic(err)
+		}
+		app.addValChange(diff)
+	}
 }
 
 // EndBlock - ABCI
diff --git a/examples/eyes/cmd/eyes/init.go b/examples/eyes/cmd/eyes/init.go
index 0fbe5f51ca..29e682193b 100644
--- a/examples/eyes/cmd/eyes/init.go
+++ b/examples/eyes/cmd/eyes/init.go
@@ -35,7 +35,7 @@ func initCmd(cmd *cobra.Command, args []string) error {
 	}
 
 	genesis := getGenesisJSON(viper.GetString(commands.FlagChainID))
-	return commands.CreateGenesisValidatorFiles(cfg, genesis, cmd.Root().Name())
+	return commands.CreateGenesisValidatorFiles(cfg, genesis, commands.StaticPrivValJSON, cmd.Root().Name())
 }
 
 // TODO: better, auto-generate validator...
diff --git a/server/commands/init.go b/server/commands/init.go
index f913798d39..0935463ecd 100644
--- a/server/commands/init.go
+++ b/server/commands/init.go
@@ -2,6 +2,7 @@ package commands
 
 import (
 	"encoding/hex"
+	"encoding/json"
 	"fmt"
 	"io/ioutil"
 	"os"
@@ -13,25 +14,33 @@ import (
 
 	tcmd "github.com/tendermint/tendermint/cmd/tendermint/commands"
 	"github.com/tendermint/tendermint/config"
+	"github.com/tendermint/tendermint/types"
 	cmn "github.com/tendermint/tmlibs/common"
 )
 
-// InitCmd - node initialization command
-var InitCmd = &cobra.Command{
-	Use:   "init [address]",
-	Short: "Initialize genesis files for a blockchain",
-	RunE:  initCmd,
-}
-
-//nolint - flags
 var (
+	// InitCmd - node initialization command
+	InitCmd = GetInitCmd("mycoin")
+
+	//nolint - flags
 	FlagChainID = "chain-id" //TODO group with other flags or remove? is this already a flag here?
+	FlagDenom   = "denom"    //TODO group with other flags or remove? is this already a flag here?
 	FlagOption  = "option"
+	FlagStatic  = "static"
 )
 
-func init() {
-	InitCmd.Flags().String(FlagChainID, "test_chain_id", "Chain ID")
-	InitCmd.Flags().StringSliceP(FlagOption, "p", []string{}, "Genesis option in the format <app>/<option>/<value>")
+// GetInitCmd - get the node initialization command, with a custom genesis account denom
+func GetInitCmd(defaultDenom string) *cobra.Command {
+	initCmd := &cobra.Command{
+		Use:   "init [address]",
+		Short: "Initialize genesis files for a blockchain",
+		RunE:  initCmd,
+	}
+	initCmd.Flags().String(FlagChainID, "test_chain_id", "Chain ID")
+	initCmd.Flags().String(FlagDenom, defaultDenom, "Coin denomination for genesis account")
+	initCmd.Flags().StringSliceP(FlagOption, "p", []string{}, "Genesis option in the format <app>/<option>/<value>")
+	initCmd.Flags().Bool(FlagStatic, false, "use a static private validator")
+	return initCmd
 }
 
 // returns 1 iff it set a file, otherwise 0 (so we can add them)
@@ -91,37 +100,31 @@ func initCmd(cmd *cobra.Command, args []string) error {
 		optionsStr = sep + strings.Join(options[:], sep)
 	}
 
-	genesis := GetGenesisJSON(viper.GetString(FlagChainID), userAddr, optionsStr)
-	return CreateGenesisValidatorFiles(cfg, genesis, cmd.Root().Name())
-}
-
-// CreateGenesisValidatorFiles creates a genesis file with these
-// contents and a private validator file
-func CreateGenesisValidatorFiles(cfg *config.Config, genesis, appName string) error {
-	genesisFile := cfg.GenesisFile()
-	privValFile := cfg.PrivValidatorFile()
-
-	mod1, err := setupFile(genesisFile, genesis, 0644)
-	if err != nil {
-		return err
-	}
-	mod2, err := setupFile(privValFile, PrivValJSON, 0400)
-	if err != nil {
-		return err
-	}
-
-	if (mod1 + mod2) > 0 {
-		msg := fmt.Sprintf("Initialized %s", appName)
-		logger.Info(msg, "genesis", genesisFile, "priv_validator", privValFile)
+	var privValJSON, pubkey string
+	if viper.GetBool(FlagStatic) {
+		privValJSON = StaticPrivValJSON
+		pubkey = StaticPK
 	} else {
-		logger.Info("Already initialized", "priv_validator", privValFile)
+
+		privVal := types.GenPrivValidatorFS("")
+		pubkey = strings.ToUpper(hex.EncodeToString(privVal.PubKey.Bytes()[1:]))
+		pvBytes, err := json.Marshal(privVal)
+		if err != nil {
+			return err
+		}
+		privValJSON = string(pvBytes)
 	}
 
-	return nil
+	genesis := GetGenesisJSON(pubkey, viper.GetString(FlagChainID), viper.GetString(FlagDenom),
+		userAddr, optionsStr)
+	return CreateGenesisValidatorFiles(cfg, genesis, privValJSON, cmd.Root().Name())
 }
 
-// PrivValJSON - validator private key file contents in json
-var PrivValJSON = `{
+// StaticPK - static public key for test cases
+var StaticPK = "7B90EA87E7DC0C7145C8C48C08992BE271C7234134343E8A8E8008E617DE7B30"
+
+// StaticPrivValJSON - static validator private key file contents in json
+var StaticPrivValJSON = `{
   "address": "7A956FADD20D3A5B2375042B2959F8AB172A058F",
   "last_height": 0,
   "last_round": 0,
@@ -138,10 +141,35 @@ var PrivValJSON = `{
   }
 }`
 
+// CreateGenesisValidatorFiles creates a genesis file with these
+// contents and a private validator file
+func CreateGenesisValidatorFiles(cfg *config.Config, genesis, privVal, appName string) error {
+	privValFile := cfg.PrivValidatorFile()
+	genesisFile := cfg.GenesisFile()
+
+	mod1, err := setupFile(genesisFile, genesis, 0644)
+	if err != nil {
+		return err
+	}
+	mod2, err := setupFile(privValFile, privVal, 0400)
+	if err != nil {
+		return err
+	}
+
+	if (mod1 + mod2) > 0 {
+		msg := fmt.Sprintf("Initialized %s", appName)
+		logger.Info(msg, "genesis", genesisFile, "priv_validator", privValFile)
+	} else {
+		logger.Info("Already initialized", "priv_validator", privValFile)
+	}
+
+	return nil
+}
+
 // GetGenesisJSON returns a new tendermint genesis with Basecoin app_options
 // that grant a large amount of "mycoin" to a single address
 // TODO: A better UX for generating genesis files
-func GetGenesisJSON(chainID, addr string, options string) string {
+func GetGenesisJSON(pubkey, chainID, denom, addr string, options string) string {
 	return fmt.Sprintf(`{
   "app_hash": "",
   "chain_id": "%s",
@@ -152,7 +180,7 @@ func GetGenesisJSON(chainID, addr string, options string) string {
       "name": "",
       "pub_key": {
         "type": "ed25519",
-        "data": "7B90EA87E7DC0C7145C8C48C08992BE271C7234134343E8A8E8008E617DE7B30"
+        "data": "%s"
       }
     }
   ],
@@ -161,7 +189,7 @@ func GetGenesisJSON(chainID, addr string, options string) string {
       "address": "%s",
       "coins": [
         {
-          "denom": "mycoin",
+          "denom": "%s",
           "amount": 9007199254740992
         }
       ]
@@ -170,5 +198,5 @@ func GetGenesisJSON(chainID, addr string, options string) string {
       "coin/issuer", {"app": "sigs", "addr": "%s"}%s
     ]
   }
-}`, chainID, addr, addr, options)
+}`, chainID, pubkey, addr, denom, addr, options)
 }
diff --git a/server/commands/start.go b/server/commands/start.go
index 949e57f068..494660300a 100644
--- a/server/commands/start.go
+++ b/server/commands/start.go
@@ -9,8 +9,8 @@ import (
 	"github.com/spf13/cobra"
 	"github.com/spf13/viper"
 
-	sdk "github.com/cosmos/cosmos-sdk"
 	"github.com/tendermint/abci/server"
+	abci "github.com/tendermint/abci/types"
 	"github.com/tendermint/tmlibs/cli"
 	cmn "github.com/tendermint/tmlibs/common"
 
@@ -19,6 +19,7 @@ import (
 	"github.com/tendermint/tendermint/proxy"
 	"github.com/tendermint/tendermint/types"
 
+	sdk "github.com/cosmos/cosmos-sdk"
 	"github.com/cosmos/cosmos-sdk/app"
 )
 
@@ -29,6 +30,18 @@ var StartCmd = &cobra.Command{
 	RunE:  startCmd,
 }
 
+// GetTickStartCmd - initialize a command as the start command with tick
+func GetTickStartCmd(tick app.Ticker) *cobra.Command {
+	startCmd := &cobra.Command{
+		Use:   "start",
+		Short: "Start this full node",
+		RunE:  startCmd,
+	}
+	startCmd.RunE = tickStartCmd(tick)
+	addStartFlag(startCmd)
+	return startCmd
+}
+
 // nolint TODO: move to config file
 const EyesCacheSize = 10000
 
@@ -45,11 +58,35 @@ var (
 )
 
 func init() {
-	flags := StartCmd.Flags()
+	addStartFlag(StartCmd)
+}
+
+func addStartFlag(startCmd *cobra.Command) {
+	flags := startCmd.Flags()
 	flags.String(FlagAddress, "tcp://0.0.0.0:46658", "Listen address")
 	flags.Bool(FlagWithoutTendermint, false, "Only run abci app, assume external tendermint process")
 	// add all standard 'tendermint node' flags
-	tcmd.AddNodeFlags(StartCmd)
+	tcmd.AddNodeFlags(startCmd)
+}
+
+//returns the start command which uses the tick
+func tickStartCmd(tick app.Ticker) func(cmd *cobra.Command, args []string) error {
+	return func(cmd *cobra.Command, args []string) error {
+		rootDir := viper.GetString(cli.HomeFlag)
+
+		store, err := app.NewStore(
+			path.Join(rootDir, "data", "merkleeyes.db"),
+			EyesCacheSize,
+			logger.With("module", "store"),
+		)
+		if err != nil {
+			return err
+		}
+
+		// Create Basecoin app
+		basecoinApp := app.NewBasecoinTick(Handler, store, logger.With("module", "app"), tick)
+		return start(rootDir, store, basecoinApp)
+	}
 }
 
 func startCmd(cmd *cobra.Command, args []string) error {
@@ -63,9 +100,12 @@ func startCmd(cmd *cobra.Command, args []string) error {
 	if err != nil {
 		return err
 	}
-
 	// Create Basecoin app
 	basecoinApp := app.NewBasecoin(Handler, store, logger.With("module", "app"))
+	return start(rootDir, store, basecoinApp)
+}
+
+func start(rootDir string, store *app.Store, basecoinApp *app.Basecoin) error {
 
 	// if chain_id has not been set yet, load the genesis.
 	// else, assume it's been loaded
@@ -93,7 +133,7 @@ func startCmd(cmd *cobra.Command, args []string) error {
 	return startTendermint(rootDir, basecoinApp)
 }
 
-func startBasecoinABCI(basecoinApp *app.Basecoin) error {
+func startBasecoinABCI(basecoinApp abci.Application) error {
 	// Start the ABCI listener
 	addr := viper.GetString(FlagAddress)
 	svr, err := server.NewServer(addr, "socket", basecoinApp)
@@ -111,7 +151,7 @@ func startBasecoinABCI(basecoinApp *app.Basecoin) error {
 	return nil
 }
 
-func startTendermint(dir string, basecoinApp *app.Basecoin) error {
+func startTendermint(dir string, basecoinApp abci.Application) error {
 	cfg, err := tcmd.ParseConfig()
 	if err != nil {
 		return err
diff --git a/stack/context.go b/stack/context.go
index 18e76680f1..f923e89ad9 100644
--- a/stack/context.go
+++ b/stack/context.go
@@ -34,7 +34,7 @@ var _ sdk.Context = secureContext{}
 func (c secureContext) WithPermissions(perms ...sdk.Actor) sdk.Context {
 	// the guard makes sure you only set permissions for the app you are inside
 	for _, p := range perms {
-		if !c.validPermisison(p) {
+		if !c.validPermission(p) {
 			err := errors.Errorf("Cannot set permission for %s/%s on (app=%s, ibc=%b)",
 				p.ChainID, p.App, c.app, c.ibc)
 			panic(err)
@@ -48,7 +48,7 @@ func (c secureContext) WithPermissions(perms ...sdk.Actor) sdk.Context {
 	}
 }
 
-func (c secureContext) validPermisison(p sdk.Actor) bool {
+func (c secureContext) validPermission(p sdk.Actor) bool {
 	// if app is set, then it must match
 	if c.app != "" && c.app != p.App {
 		return false
diff --git a/tests/cli/common.sh b/tests/cli/common.sh
index e9db332152..b7a4ea9834 100644
--- a/tests/cli/common.sh
+++ b/tests/cli/common.sh
@@ -65,7 +65,7 @@ initServer() {
     SERVER_LOG=$1/${SERVER_EXE}.log
 
     GENKEY=$(${CLIENT_EXE} keys get ${RICH} | awk '{print $2}')
-    ${SERVER_EXE} init --chain-id $CHAIN $GENKEY --home=$SERVE_DIR >>$SERVER_LOG
+    ${SERVER_EXE} init --static --chain-id $CHAIN $GENKEY --home=$SERVE_DIR >>$SERVER_LOG
 
     # optionally set the port
     if [ -n "$3" ]; then