diff --git a/casper.py b/casper.py
new file mode 100644
index 0000000..1ba7354
--- /dev/null
+++ b/casper.py
@@ -0,0 +1,242 @@
+import copy, random, hashlib
+# GhostTable: { block number: { block: validators } }
+# The ghost table represents the entire current "view" of a user, and
+# every block produced contains the producer's ghost table at the time.
+
+# Signature slashing rules (not implemented)
+# 1. Sign two blocks at the same height
+# 2. Sign an invalid block
+# 3. Sign a block which fully confirms A at height H, and sign B at height H
+
+h = [3**50]
+ids = [0]
+
+# Number of validators
+NUM_VALIDATORS = 50
+# Block time in ticks (eg. 1 tick = 0.1 seconds)
+BLKTIME = 30
+# Disparity in the blocks of nodes
+CLOCK_DISPARITY = 10
+# An exponential distribution for latency offset by a minimum
+LATENCY_MIN = 4
+LATENCY_BASE = 2
+LATENCY_PROB = 0.25
+
+
+def assign_hash():
+    h[0] = (h[0] * 3) % 2**48
+    return h[0]
+
+
+def assign_id():
+    ids[0] += 1
+    return ids[0] - 1
+
+
+def latency_distribution_sample():
+    v = LATENCY_BASE
+    while random.random() > LATENCY_PROB:
+        v *= 2
+    return v + LATENCY_MIN
+
+
+def clock_offset_distribution_sample():
+    return random.randrange(-CLOCK_DISPARITY, CLOCK_DISPARITY)
+
+
+# A signature represents the entire "view" of a signer,
+# where the view is the set of blocks that the signer
+# considered most likely to be valid at the time that
+# they were produced
+class Signature():
+
+    def __init__(self, signer, view):
+        self.signer = signer
+        self.view = copy.deepcopy(view)
+
+
+# A ghost table represents the view that a user had of the signatures
+# available at the time that the block was produced.
+class GhostTable():
+
+    def __init__(self):
+        self.confirmed = []
+        self.unconfirmed = []
+
+    def process_signature(self, sig):
+        # Process every block height in the signature
+        for i in range(len(self.confirmed), len(sig.view)):
+            # A ghost table entry at a height is a mapping of
+            # block hash -> signers
+            if i >= len(self.unconfirmed):
+                self.unconfirmed.append({})
+            cur_entry = self.unconfirmed[i]
+            # If the block hash is not yet in the ghost table, add it, and
+            # initialize it with an empty signer set
+            if sig.view[i] not in cur_entry:
+                cur_entry[sig.view[i]] = {}
+            # Add the signer
+            cur_entry[sig.view[i]][sig.signer] = True
+            # If it has 67% signatures, finalize
+            if len(cur_entry[sig.view[i]]) > NUM_VALIDATORS * 2 / 3:
+                prevgt = block_map[sig.view[i]].gt
+                print 'confirmed', block_map[sig.view[i]].height, sig.view[i], prevgt.hash()
+                # Update blocks between the previous confirmation and the
+                # current confirmation based on the newly confirmed block's
+                # ghost table
+                for j in range(len(self.confirmed), i):
+                    # At each intermediate height, add the block for which we
+                    # havethe most signatures
+                    maxkey, maxval = 0, 0
+                    for k in prevgt.unconfirmed[j]:
+                        if len(prevgt.unconfirmed[j][k]) > maxval:
+                            maxkey, maxval = k, len(prevgt.unconfirmed[j][k])
+                    self.confirmed.append(maxkey)
+                    print j, {k: len(prevgt.unconfirmed[j][k]) for k in prevgt.unconfirmed[j]}
+                # Then add the new block that got 67% signatures
+                print i, sig.view[i]
+                self.confirmed.append(sig.view[i])
+
+    def hash(self):
+        print hashlib.sha256(repr(self.unconfirmed) +
+                             repr(self.confirmed)).hexdigest()[:15]
+
+    # Create a new ghost table that appends to an existing ghost table, adding
+    # some set of signatures
+    def append(self, sigs):
+        x = GhostTable()
+        x.confirmed = copy.deepcopy(self.confirmed)
+        x.unconfirmed = copy.deepcopy(self.unconfirmed)
+        for sig in sigs:
+            x.process_signature(sig)
+        return x
+
+
+class Block():
+
+    def __init__(self, h, gt, maker):
+        self.gt = gt
+        self.height = h
+        self.maker = maker
+        self.hash = assign_hash()
+
+
+class Validator():
+
+    def __init__(self):
+        self.gt = GhostTable()
+        self.view = []
+        self.id = assign_id()
+        self.new_sigs = []
+        self.clock_offset = clock_offset_distribution_sample()
+        self.last_block_produced = -99999
+        self.last_unseen = 0
+
+    # Is this block compatible with our view?
+    def is_compatible_with_view(self, block):
+        return block.height >= len(self.view) or \
+            self.view[block.height] is None
+
+    # Add a block to this validator's view of probably valid
+    # blocks
+    def add_to_view(self, block):
+        while len(self.view) <= block.height:
+            self.view.append(None)
+        self.view[block.height] = block.hash
+        while self.last_unseen < len(self.view) and \
+                self.view[self.last_unseen] is not None:
+            self.last_unseen += 1
+
+    # Make a block
+    def produce_block(self):
+        self.gt = self.gt.append(self.new_sigs)
+        newblk = Block(self.last_unseen, self.gt, self.id)
+        print 'newblk', newblk.height
+        self.add_to_view(newblk)
+        publish(newblk)
+        newsig = Signature(self.id, self.view[:self.last_unseen])
+        self.new_sigs = [newsig]
+        publish(newsig)
+
+    # Callback function upon receiving a block
+    def on_receive(self, obj):
+        if isinstance(obj, Block):
+            desired_maker = (self.time() // BLKTIME) % NUM_VALIDATORS
+            if 0 <= (desired_maker - obj.maker) % 100 <= 0:
+                if self.is_compatible_with_view(obj):
+                    self.add_to_view(obj)
+                    publish(Signature(self.id, self.view[:self.last_unseen]))
+        if isinstance(obj, Signature):
+            self.new_sigs.append(obj)
+
+    # Do everything that you need to do in this particular round
+    def tick(self):
+        if (self.time() // BLKTIME) % NUM_VALIDATORS == self.id:
+            if self.time() - self.last_block_produced > \
+                    BLKTIME * NUM_VALIDATORS:
+                self.produce_block()
+                self.last_block_produced = self.time()
+
+    # Calculate the validator's own clock based on the actual time
+    # plus a time offset that this validator happens to be wrong by
+    # (eg. +1 second)
+    def time(self):
+        return real_time[0] + self.clock_offset
+
+
+block_map = {}
+listening_queue = {}
+real_time = [0]
+validators = {}
+
+
+# Publish a block or a signature
+def publish(obj):
+    if isinstance(obj, Block):
+        block_map[obj.hash] = obj
+    # For every validator, add it to the validator's listening queue
+    # at a time randomly sampled from the latency distribution
+    for v in validators:
+        arrival_time = real_time[0] + latency_distribution_sample()
+        if arrival_time not in listening_queue:
+            listening_queue[arrival_time] = []
+        listening_queue[arrival_time].append((v, obj))
+
+
+# One round of the clock ticking
+def tick():
+    for _, v in validators.items():
+        v.tick()
+    if real_time[0] in listening_queue:
+        for validator_id, obj in listening_queue[real_time[0]]:
+            validators[validator_id].on_receive(obj)
+    real_time[0] += 1
+    print real_time[0]
+
+
+# Main function: run(7000) = simulate casper for 7000 ticks
+def run(steps):
+    for k in block_map.keys():
+        del block_map[k]
+    for k in listening_queue.keys():
+        del listening_queue[k]
+    for k in validators.keys():
+        del validators[k]
+    real_time[0] = 0
+    ids[0] = 0
+    for i in range(NUM_VALIDATORS):
+        v = Validator()
+        validators[v.id] = v
+    for i in range(steps):
+        tick()
+    c = []
+    for _, v in validators.items():
+        for i, b in enumerate(v.gt.confirmed):
+            assert block_map[b].height == i
+        if v.gt.confirmed[:len(c)] != c[:len(v.gt.confirmed)]:
+            for i in range(min(len(c), len(v.gt.confirmed))):
+                if c[i] != v.gt.confirmed[i]:
+                    print i, c[i], v.gt.confirmed[i]
+            raise Exception("Confirmed block list mismatch")
+        c.extend(v.gt.confirmed[len(c):])
+    print c
diff --git a/ghost.py b/ghost.py
index b4cb474..7db8a19 100644
--- a/ghost.py
+++ b/ghost.py
@@ -1,11 +1,12 @@
 # Time between successful PoW solutions
-POW_SOLUTION_TIME = 6
+POW_SOLUTION_TIME = 12
 # Time for a block to traverse the network
-TRANSIT_TIME = 12
+TRANSIT_TIME = 8
 # Max uncle depth
 UNCLE_DEPTH = 4
 # Uncle block reward (normal block reward = 1)
-UNCLE_REWARD_COEFF = 29/32.
+UNCLE_REWARD_COEFF = 32/32.
+UNCLE_DEPTH_PENALTY = 4/32.
 # Reward for including uncles
 NEPHEW_REWARD_COEFF = 1/32.
 # Rounds to test
@@ -104,13 +105,13 @@ def cousin_degree(miner, b1, b2):
 profiles = [
     # (hashpower, strategy, count)
     (1, 0, 20),
-    (1, -1, 4),  # cheaters, mine 1/2/4 blocks back to reduce
-    (1, -2, 3),  # chance of being in a two-block fork
-    (1, -4, 3),
-    (5, 4, 1),
-    (10, 1, 1),
-    (15, 1, 1),
-    (25, 1, 1),
+    (1, 1, 4),  # cheaters, mine 1/2/4 blocks back to reduce
+    (1, 2, 3),  # chance of being in a two-block fork
+    (1, 4, 3),
+    (5, 0, 1),
+    (10, 0, 1),
+    (15, 0, 1),
+    (25, 0, 1),
 ]
 
 total_pct = 0
@@ -157,7 +158,8 @@ while h["id"] > UNCLE_DEPTH + 2:
     for u in h["uncles"]:
         ZORO[u] = True
         u2 = miners[0].blocks[u]
-        profit[u2["miner"]] = profit.get(u2["miner"], 0) + UNCLE_REWARD_COEFF
+        profit[u2["miner"]] \
+            = profit.get(u2["miner"], 0) + UNCLE_REWARD_COEFF - UNCLE_DEPTH_PENALTY * (h["height"] - u2["height"])
     h = miners[0].blocks[h["parent"]]
 
 print "### PRINTING HEADS ###"