diff --git a/chain/vm/runtime.go b/chain/vm/runtime.go
index 27d728efa..97b244690 100644
--- a/chain/vm/runtime.go
+++ b/chain/vm/runtime.go
@@ -40,9 +40,12 @@ type Runtime struct {
 	sys runtime.Syscalls
 
 	// address that started invoke chain
-	origin address.Address
+	origin      address.Address
+	originNonce uint64
 
 	internalExecutions []*ExecutionResult
+	// the first internal call has a value of 1 for this field
+	internalCallCounter int64
 }
 
 func (rs *Runtime) ResolveAddress(address address.Address) (ret address.Address, ok bool) {
@@ -158,19 +161,14 @@ func (rs *Runtime) Store() vmr.Store {
 
 func (rt *Runtime) NewActorAddress() address.Address {
 	var b bytes.Buffer
-	if err := rt.Message().Caller().MarshalCBOR(&b); err != nil { // todo: spec says cbor; why not just bytes?
+	if err := rt.origin.MarshalCBOR(&b); err != nil { // todo: spec says cbor; why not just bytes?
 		rt.Abortf(exitcode.ErrSerialization, "writing caller address into a buffer: %v", err)
 	}
 
-	act, err := rt.state.GetActor(rt.origin)
-	if err != nil {
-		rt.Abortf(exitcode.SysErrInternal, "getting top level actor: %v", err)
-	}
-
-	if err := binary.Write(&b, binary.BigEndian, act.Nonce); err != nil {
+	if err := binary.Write(&b, binary.BigEndian, rt.originNonce); err != nil {
 		rt.Abortf(exitcode.ErrSerialization, "writing nonce address into a buffer: %v", err)
 	}
-	if err := binary.Write(&b, binary.BigEndian, uint64(0)); err != nil { // TODO: expose on vm
+	if err := binary.Write(&b, binary.BigEndian, rt.internalCallCounter); err != nil { // TODO: expose on vm
 		rt.Abortf(exitcode.ErrSerialization, "writing callSeqNum address into a buffer: %v", err)
 	}
 	addr, err := address.NewActorAddress(b.Bytes())
@@ -341,6 +339,9 @@ func (rt *Runtime) internalSend(to address.Address, method abi.MethodNum, value
 		Subcalls: subrt.internalExecutions,
 	}
 
+	if subrt != nil {
+		rt.internalCallCounter = subrt.internalCallCounter
+	}
 	rt.internalExecutions = append(rt.internalExecutions, &er)
 	return ret, err
 }
diff --git a/chain/vm/vm.go b/chain/vm/vm.go
index fa890eac7..6b147e573 100644
--- a/chain/vm/vm.go
+++ b/chain/vm/vm.go
@@ -115,18 +115,20 @@ func (bs *gasChargingBlocks) Put(blk block.Block) error {
 	return nil
 }
 
-func (vm *VM) makeRuntime(ctx context.Context, msg *types.Message, origin address.Address, usedGas types.BigInt) *Runtime {
+func (vm *VM) makeRuntime(ctx context.Context, msg *types.Message, origin address.Address, originNonce uint64, usedGas types.BigInt, icc int64) *Runtime {
 	rt := &Runtime{
-		ctx:    ctx,
-		vm:     vm,
-		state:  vm.cstate,
-		msg:    msg,
-		origin: origin,
-		height: vm.blockHeight,
-		sys:    vm.Syscalls,
+		ctx:         ctx,
+		vm:          vm,
+		state:       vm.cstate,
+		msg:         msg,
+		origin:      origin,
+		originNonce: originNonce,
+		height:      vm.blockHeight,
+		sys:         vm.Syscalls,
 
-		gasUsed:      usedGas,
-		gasAvailable: msg.GasLimit,
+		gasUsed:             usedGas,
+		gasAvailable:        msg.GasLimit,
+		internalCallCounter: icc,
 	}
 	rt.cst = &cbor.BasicIpldStore{
 		Blocks: &gasChargingBlocks{rt.ChargeGas, vm.cst.Blocks},
@@ -206,11 +208,15 @@ func (vm *VM) send(ctx context.Context, msg *types.Message, parent *Runtime,
 
 	gasUsed := types.NewInt(gasCharge)
 	origin := msg.From
+	on := msg.Nonce
+	var icc int64 = 0
 	if parent != nil {
 		gasUsed = types.BigAdd(parent.gasUsed, gasUsed)
 		origin = parent.origin
+		on = parent.originNonce
+		icc = parent.internalCallCounter + 1
 	}
-	rt := vm.makeRuntime(ctx, msg, origin, gasUsed)
+	rt := vm.makeRuntime(ctx, msg, origin, on, gasUsed, icc)
 	if parent != nil {
 		defer func() {
 			parent.gasUsed = rt.gasUsed