diff --git a/blockchain/v2/demuxer.go b/blockchain/v2/demuxer.go
deleted file mode 100644
index 5ebb54633..000000000
--- a/blockchain/v2/demuxer.go
+++ /dev/null
@@ -1,164 +0,0 @@
-// nolint:unused
-package v2
-
-import (
-	"fmt"
-	"sync/atomic"
-
-	"github.com/tendermint/tendermint/libs/log"
-)
-
-type scFull struct {
-	priorityHigh
-}
-type pcFull struct {
-	priorityHigh
-}
-
-const demuxerBufferSize = 10
-
-type demuxer struct {
-	input     chan Event
-	scheduler *Routine
-	processor *Routine
-	fin       chan error
-	stopped   chan struct{}
-	rdy       chan struct{}
-	running   *uint32
-	stopping  *uint32
-	logger    log.Logger
-}
-
-func newDemuxer(scheduler *Routine, processor *Routine) *demuxer {
-	return &demuxer{
-		input:     make(chan Event, demuxerBufferSize),
-		scheduler: scheduler,
-		processor: processor,
-		stopped:   make(chan struct{}, 1),
-		fin:       make(chan error, 1),
-		rdy:       make(chan struct{}, 1),
-		running:   new(uint32),
-		stopping:  new(uint32),
-		logger:    log.NewNopLogger(),
-	}
-}
-
-func (dm *demuxer) setLogger(logger log.Logger) {
-	dm.logger = logger
-}
-
-func (dm *demuxer) start() {
-	starting := atomic.CompareAndSwapUint32(dm.running, uint32(0), uint32(1))
-	if !starting {
-		panic("Routine has already started")
-	}
-	dm.logger.Info("demuxer: run")
-	dm.rdy <- struct{}{}
-	for {
-		if !dm.isRunning() {
-			break
-		}
-		select {
-		case event, ok := <-dm.input:
-			if !ok {
-				dm.logger.Info("demuxer: stopping")
-				dm.terminate(fmt.Errorf("stopped"))
-				dm.stopped <- struct{}{}
-				return
-			}
-			oEvent, err := dm.handle(event)
-			if err != nil {
-				dm.terminate(err)
-				return
-			}
-			dm.input <- oEvent
-		case event, ok := <-dm.scheduler.next():
-			if !ok {
-				dm.logger.Info("demuxer: scheduler output closed")
-				continue
-			}
-			oEvent, err := dm.handle(event)
-			if err != nil {
-				dm.terminate(err)
-				return
-			}
-			dm.input <- oEvent
-		case event, ok := <-dm.processor.next():
-			if !ok {
-				dm.logger.Info("demuxer: processor output closed")
-				continue
-			}
-			oEvent, err := dm.handle(event)
-			if err != nil {
-				dm.terminate(err)
-				return
-			}
-			dm.input <- oEvent
-		}
-	}
-}
-
-func (dm *demuxer) handle(event Event) (Event, error) {
-	received := dm.scheduler.trySend(event)
-	if !received {
-		return scFull{}, nil // backpressure
-	}
-
-	received = dm.processor.trySend(event)
-	if !received {
-		return pcFull{}, nil // backpressure
-	}
-
-	return noOp, nil
-}
-
-func (dm *demuxer) trySend(event Event) bool {
-	if !dm.isRunning() || dm.isStopping() {
-		dm.logger.Info("dummuxer isn't running")
-		return false
-	}
-	select {
-	case dm.input <- event:
-		return true
-	default:
-		dm.logger.Info("demuxer channel was full")
-		return false
-	}
-}
-
-func (dm *demuxer) isRunning() bool {
-	return atomic.LoadUint32(dm.running) == 1
-}
-
-func (dm *demuxer) isStopping() bool {
-	return atomic.LoadUint32(dm.stopping) == 1
-}
-
-func (dm *demuxer) ready() chan struct{} {
-	return dm.rdy
-}
-
-func (dm *demuxer) stop() {
-	if !dm.isRunning() {
-		return
-	}
-	stopping := atomic.CompareAndSwapUint32(dm.stopping, uint32(0), uint32(1))
-	if !stopping {
-		panic("Demuxer has already stopped")
-	}
-	dm.logger.Info("demuxer stop")
-	close(dm.input)
-	<-dm.stopped
-}
-
-func (dm *demuxer) terminate(reason error) {
-	stopped := atomic.CompareAndSwapUint32(dm.running, uint32(1), uint32(0))
-	if !stopped {
-		panic("called terminate but already terminated")
-	}
-	dm.fin <- reason
-}
-
-func (dm *demuxer) final() chan error {
-	return dm.fin
-}
diff --git a/blockchain/v2/reactor.go b/blockchain/v2/reactor.go
index 64deb5ce8..cba3f5857 100644
--- a/blockchain/v2/reactor.go
+++ b/blockchain/v2/reactor.go
@@ -16,8 +16,6 @@ func schedulerHandle(event Event) (Event, error) {
 	switch event.(type) {
 	case timeCheck:
 		fmt.Println("scheduler handle timeCheck")
-	case Event:
-		fmt.Println("scheduler handle testEvent")
 	}
 	return noOp, nil
 }
@@ -26,71 +24,94 @@ func processorHandle(event Event) (Event, error) {
 	switch event.(type) {
 	case timeCheck:
 		fmt.Println("processor handle timeCheck")
-	case Event:
-		fmt.Println("processor handle event")
 	}
 	return noOp, nil
+
 }
 
 type Reactor struct {
-	demuxer   *demuxer
+	events    chan Event
+	stopDemux chan struct{}
 	scheduler *Routine
 	processor *Routine
 	ticker    *time.Ticker
+	logger    log.Logger
+}
+
+var bufferSize int = 10
+
+func NewReactor() *Reactor {
+	return &Reactor{
+		events:    make(chan Event, bufferSize),
+		stopDemux: make(chan struct{}),
+		scheduler: newRoutine("scheduler", schedulerHandle),
+		processor: newRoutine("processor", processorHandle),
+		ticker:    time.NewTicker(1 * time.Second),
+		logger:    log.NewNopLogger(),
+	}
 }
 
 // nolint:unused
 func (r *Reactor) setLogger(logger log.Logger) {
+	r.logger = logger
 	r.scheduler.setLogger(logger)
 	r.processor.setLogger(logger)
-	r.demuxer.setLogger(logger)
 }
 
 func (r *Reactor) Start() {
-	r.scheduler = newRoutine("scheduler", schedulerHandle)
-	r.processor = newRoutine("processor", processorHandle)
-	r.demuxer = newDemuxer(r.scheduler, r.processor)
-	r.ticker = time.NewTicker(1 * time.Second)
-
 	go r.scheduler.start()
 	go r.processor.start()
-	go r.demuxer.start()
+	go r.demux()
 
 	<-r.scheduler.ready()
 	<-r.processor.ready()
-	<-r.demuxer.ready()
 
 	go func() {
 		for t := range r.ticker.C {
-			r.demuxer.trySend(timeCheck{time: t})
+			r.events <- timeCheck{time: t}
 		}
 	}()
 }
 
-func (r *Reactor) Wait() {
-	fmt.Println("completed routines")
-	r.Stop()
+func (r *Reactor) demux() {
+	for {
+		select {
+		case event := <-r.events:
+
+			// XXX: check for backpressure
+			r.scheduler.trySend(event)
+			r.processor.trySend(event)
+		case _ = <-r.stopDemux:
+			r.logger.Info("demuxing stopped")
+			return
+		case event := <-r.scheduler.next():
+			r.events <- event
+		case event := <-r.processor.next():
+			r.events <- event
+		case err := <-r.scheduler.final():
+			r.logger.Info(fmt.Sprintf("scheduler final %s", err))
+		case err := <-r.processor.final():
+			r.logger.Info(fmt.Sprintf("processor final %s", err))
+			// XXX: switch to consensus
+		}
+	}
 }
 
 func (r *Reactor) Stop() {
-	fmt.Println("reactor stopping")
+	r.logger.Info("reactor stopping")
 
 	r.ticker.Stop()
-	r.demuxer.stop()
 	r.scheduler.stop()
 	r.processor.stop()
-	// todo: accumulator
-	// todo: io
+	close(r.stopDemux)
+	close(r.events)
 
-	fmt.Println("reactor stopped")
+	r.logger.Info("reactor stopped")
 }
 
 func (r *Reactor) Receive(event Event) {
-	fmt.Println("receive event")
-	sent := r.demuxer.trySend(event)
-	if !sent {
-		fmt.Println("demuxer is full")
-	}
+	// XXX: decode and serialize write events
+	r.events <- event
 }
 
 func (r *Reactor) AddPeer() {
diff --git a/blockchain/v2/reactor_test.go b/blockchain/v2/reactor_test.go
index 2b3e2be1e..e14e618de 100644
--- a/blockchain/v2/reactor_test.go
+++ b/blockchain/v2/reactor_test.go
@@ -1,11 +1,15 @@
 package v2
 
-import "testing"
+import (
+	"testing"
+
+	"github.com/tendermint/tendermint/libs/log"
+)
 
-// XXX: This makes assumptions about the message routing
 func TestReactor(t *testing.T) {
-	reactor := Reactor{}
+	reactor := NewReactor()
 	reactor.Start()
+	reactor.setLogger(log.TestingLogger())
 	script := []Event{
 		// TODO
 	}
@@ -13,5 +17,5 @@ func TestReactor(t *testing.T) {
 	for _, event := range script {
 		reactor.Receive(event)
 	}
-	reactor.Wait()
+	reactor.Stop()
 }
diff --git a/blockchain/v2/routine.go b/blockchain/v2/routine.go
index 9c5b97b18..04cd43c63 100644
--- a/blockchain/v2/routine.go
+++ b/blockchain/v2/routine.go
@@ -20,7 +20,7 @@ type handleFunc = func(event Event) (Event, error)
 // handles the concurrency and messaging guarantees. Events are sent via
 // `trySend` are handled by the `handle` function to produce an iterator
 // `next()`. Calling `close()` on a routine will conclude processing of all
-// sent events and produce `last()` event representing the terminal state.
+// sent events and produce `final()` event representing the terminal state.
 type Routine struct {
 	name    string
 	handle  handleFunc