diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index 13e8ee6d..5a3ef561 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -16,10 +16,11 @@ jobs:
       # Build crates and whatever else.
       - run: make
       # Test all crates, except those that force-target WASM.
-      - run: cargo test --workspace --exclude example_contract --exclude example_contract_permissioned --exclude starstream_sys --exclude starstream_sandbox
+      - run: cargo test --workspace --exclude example_contract --exclude example_contract_permissioned --exclude impact_vm_example --exclude starstream_sys --exclude starstream_sandbox
       # Run split test scripts.
       - run: ./test
       - run: ./test_permissioned
+      - run: ./test_impact
       # Cosmetic checks.
       - run: cargo clippy
       - run: cargo fmt --check
diff --git a/Cargo.lock b/Cargo.lock
index a8c1f930..fa885c18 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -811,6 +811,14 @@ dependencies = [
  "windows-sys 0.59.0",
 ]
 
+[[package]]
+name = "impact_vm_example"
+version = "0.0.0"
+dependencies = [
+ "stack_dst",
+ "starstream_sys",
+]
+
 [[package]]
 name = "indexmap"
 version = "2.9.0"
diff --git a/Cargo.toml b/Cargo.toml
index aa2e0456..b34572a1 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -2,6 +2,7 @@
 members = [
     "example_contract",
     "example_contract_permissioned",
+    "impact_vm_example",
     "starstream_cli",
     "starstream_compiler",
     "starstream_sandbox",
diff --git a/Makefile b/Makefile
index 6f64c425..33ff469e 100644
--- a/Makefile
+++ b/Makefile
@@ -13,3 +13,5 @@ vsc:
 target/debug/examples/self_test: cargo
 
 target/debug/examples/self_test_permissioned: cargo
+
+target/debug/examples/impact_vm: cargo
diff --git a/impact_vm_example/Cargo.toml b/impact_vm_example/Cargo.toml
new file mode 100644
index 00000000..9fd6990c
--- /dev/null
+++ b/impact_vm_example/Cargo.toml
@@ -0,0 +1,12 @@
+cargo-features = ["per-package-target"]
+
+[package]
+name = "impact_vm_example"
+version = "0.0.0"
+edition = "2024"
+
+forced-target = "wasm32-unknown-unknown"
+
+[dependencies]
+stack_dst = { version = "0.8.1", default-features = false, features = ["const_generics"] }
+starstream_sys = { path = "../starstream_sys" }
diff --git a/impact_vm_example/build.rs b/impact_vm_example/build.rs
new file mode 100644
index 00000000..1dc381b8
--- /dev/null
+++ b/impact_vm_example/build.rs
@@ -0,0 +1,20 @@
+use std::env;
+use std::path::Path;
+
+fn main() {
+    let lib_name = "impact_vm";
+
+    let dir = env::var("CARGO_MANIFEST_DIR").unwrap();
+
+    let lib_dir = Path::new(&dir).join("libs");
+
+    println!("cargo:rustc-link-search=native={}", lib_dir.display());
+
+    println!("cargo:rustc-link-lib=static={}", lib_name);
+
+    println!(
+        "cargo:rerun-if-changed={}/{}.a",
+        lib_dir.display(),
+        lib_name
+    );
+}
diff --git a/impact_vm_example/libs/libimpact_vm.a b/impact_vm_example/libs/libimpact_vm.a
new file mode 100644
index 00000000..36eea318
Binary files /dev/null and b/impact_vm_example/libs/libimpact_vm.a differ
diff --git a/impact_vm_example/src/defs.rs b/impact_vm_example/src/defs.rs
new file mode 100644
index 00000000..4a3f465f
--- /dev/null
+++ b/impact_vm_example/src/defs.rs
@@ -0,0 +1,56 @@
+use starstream::utxo_import;
+
+#[link(name = "impact_vm", kind = "static")]
+unsafe extern "C" {
+    pub fn run_program(
+        program: *const u8,
+        size: usize,
+        state_in: *const (),
+        out_ptr: *mut *const (),
+    ) -> u32;
+    pub fn deserialize_state(
+        buffer: *const u8,
+        buffer_len: usize,
+        state_out_ptr: *mut *const (),
+    ) -> u32;
+    pub fn serialize_state(
+        state_in_ptr: *const (),
+        buffer: *mut *const u8,
+        buffer_len: *mut usize,
+    ) -> u32;
+    pub fn free_state(state_ptr: *const ());
+    pub fn free_buffer(buffer: *const u8, len: usize);
+}
+
+#[link(wasm_import_module = "starstream_utxo:impact_vm_example")]
+unsafe extern "C" {
+    safe fn starstream_new_ImpactVM_new() -> ImpactVM;
+    safe fn starstream_mutate_ImpactVM_increment(utxo: ImpactVM);
+    safe fn starstream_query_ImpactVM_get_counter(utxo: ImpactVM) -> u32;
+}
+
+utxo_import! {
+    "starstream_utxo:impact_vm_example";
+    ImpactVM;
+    starstream_status_ImpactVM;
+    starstream_resume_ImpactVM;
+    ();
+}
+
+impl ImpactVM {
+    #[inline]
+    #[allow(clippy::new_without_default)]
+    pub fn new() -> Self {
+        starstream_new_ImpactVM_new()
+    }
+
+    #[inline]
+    pub fn increment(self) {
+        starstream_mutate_ImpactVM_increment(self);
+    }
+
+    #[inline]
+    pub fn get_counter(self) -> u32 {
+        starstream_query_ImpactVM_get_counter(self)
+    }
+}
diff --git a/impact_vm_example/src/main.rs b/impact_vm_example/src/main.rs
new file mode 100644
index 00000000..61916d0d
--- /dev/null
+++ b/impact_vm_example/src/main.rs
@@ -0,0 +1,156 @@
+#![no_main]
+
+mod defs;
+
+use defs::{deserialize_state, free_buffer, free_state, run_program, serialize_state};
+use starstream::eprintln;
+
+// TODO: don't really know how to setup the panic handler without no_std
+pub fn hook(info: &std::panic::PanicHookInfo) {
+    #[link(wasm_import_module = "env")]
+    unsafe extern "C" {
+        unsafe fn abort();
+    }
+
+    unsafe {
+        eprintln!("{info}");
+
+        abort();
+        #[allow(clippy::empty_loop)]
+        loop {}
+    }
+}
+
+#[inline]
+pub fn set_once() {
+    use std::sync::Once;
+    static SET_HOOK: Once = Once::new();
+    SET_HOOK.call_once(|| {
+        std::panic::set_hook(Box::new(hook));
+    });
+}
+
+pub struct ImpactVM {
+    // this is a pointer to the heap allocated state.
+    //
+    // since the library is statically linked it shares memory with the utxo.
+    // otherwise this could hold a serialized versioned of the current state.
+    current_state: *const (),
+}
+
+impl ImpactVM {
+    #[allow(clippy::new_ret_no_self)]
+    pub fn new(sleep: fn(&mut Self), current_state: *const ()) {
+        let mut this = ImpactVM { current_state };
+        sleep(&mut this);
+    }
+}
+
+#[unsafe(no_mangle)]
+pub extern "C" fn starstream_new_ImpactVM_new() {
+    // an array with a cell with a number set to 1.
+    // this in most cases be an input to the coordination script.
+    let initial_state = [
+        0, 2, 2, 225, 1, 1, 3, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 3, 0, 0, 0, 1, 1, 65, 1, 0, 0, 0,
+        32, 0, 0, 0, 201, 170, 41, 9, 144, 82, 87, 49, 160, 49, 144, 30, 239, 178, 231, 84, 119,
+        202, 205, 66, 153, 73, 239, 83, 224, 62, 167, 161, 12, 99, 232, 187, 1, 0, 0, 0, 1, 1, 0,
+        0, 0, 32, 0, 0, 0, 235, 20, 33, 218, 247, 211, 225, 169, 176, 105, 251, 68, 191, 56, 15,
+        145, 40, 40, 175, 74, 10, 210, 163, 206, 65, 152, 68, 89, 161, 106, 141, 101, 7, 0, 0, 0,
+        3, 1, 1, 0, 0, 0, 0,
+    ];
+
+    let mut current_state = std::ptr::null::<()>();
+
+    unsafe {
+        assert_eq!(
+            deserialize_state(
+                initial_state.as_ptr(),
+                initial_state.len(),
+                &mut current_state as *mut _,
+            ),
+            0
+        )
+    };
+
+    ImpactVM::new(starstream::sleep_mut::<(), ImpactVM>, current_state)
+}
+
+#[unsafe(no_mangle)]
+pub extern "C" fn starstream_mutate_ImpactVM_increment(this: &mut ImpactVM) {
+    // serialized version of:
+    //
+    // dup 0
+    // idx [<[-]: f>]
+    // addi 1
+    // pushs <[-]: f>
+    // swap 0
+    // ins 1
+    let program = [
+        0u8, 6, 0, 0, 0, 2, 2, 48, 2, 2, 80, 64, 65, 2, 2, 14, 1, 2, 2, 17, 64, 65, 2, 2, 64, 2, 2,
+        145,
+    ];
+
+    unsafe {
+        let mut out = std::ptr::null::<()>();
+        assert!(
+            run_program(
+                program.as_ptr(),
+                program.len(),
+                this.current_state,
+                &mut out as *mut _
+            ) == 0
+        );
+
+        assert!(!out.is_null());
+
+        free_state(this.current_state);
+
+        this.current_state = out;
+    }
+}
+
+#[unsafe(no_mangle)]
+pub extern "C" fn starstream_query_ImpactVM_get_counter(this: &mut ImpactVM) -> u32 {
+    unsafe {
+        let mut serialized_state_ptr = std::ptr::null::<u8>();
+        let mut serialized_state_len = 0usize;
+
+        assert_eq!(
+            serialize_state(
+                this.current_state,
+                &mut serialized_state_ptr as *mut _,
+                &mut serialized_state_len as *mut _,
+            ),
+            0
+        );
+
+        let buffer = std::slice::from_raw_parts(serialized_state_ptr, serialized_state_len);
+
+        // TODO: this only works as long as the value fits in a byte. but this
+        // is mostly here for debugging purposes, since it's probably not worth
+        // writing bindings for deserialization as that would be done in the
+        // frontend.
+        let counter = buffer[23] as u32;
+
+        free_buffer(serialized_state_ptr, serialized_state_len);
+
+        counter
+    }
+}
+
+// ----------------------------------------------------------------------------
+// Coordination script
+#[unsafe(no_mangle)]
+pub extern "C" fn new_counter() -> defs::ImpactVM {
+    defs::ImpactVM::new()
+}
+
+#[unsafe(no_mangle)]
+pub extern "C" fn increase_counter(utxo: defs::ImpactVM) {
+    utxo.increment();
+}
+
+#[unsafe(no_mangle)]
+pub extern "C" fn get_counter(utxo: defs::ImpactVM) -> u32 {
+    utxo.get_counter()
+}
diff --git a/starstream_vm/examples/impact_vm.rs b/starstream_vm/examples/impact_vm.rs
new file mode 100644
index 00000000..cb89ae07
--- /dev/null
+++ b/starstream_vm/examples/impact_vm.rs
@@ -0,0 +1,21 @@
+use starstream_vm::*;
+
+pub fn main() {
+    let mut tx = Transaction::new();
+
+    let example_contract = tx.code_cache().load_debug("impact_vm_example");
+
+    let utxo = tx.run_coordination_script(&example_contract, "new_counter", vec![]);
+
+    let counter = tx.run_coordination_script(&example_contract, "get_counter", vec![utxo.clone()]);
+    assert_eq!(counter.i32().expect("invalid counter type") as u32, 1);
+
+    tx.run_coordination_script(&example_contract, "increase_counter", vec![utxo.clone()]);
+
+    let counter = tx.run_coordination_script(&example_contract, "get_counter", vec![utxo.clone()]);
+    assert_eq!(counter.i32().expect("invalid counter type") as u32, 2);
+
+    tx.run_coordination_script(&example_contract, "increase_counter", vec![utxo.clone()]);
+    let counter = tx.run_coordination_script(&example_contract, "get_counter", vec![utxo.clone()]);
+    assert_eq!(counter.i32().expect("invalid counter type") as u32, 3);
+}
diff --git a/test_impact b/test_impact
new file mode 100755
index 00000000..144ed842
--- /dev/null
+++ b/test_impact
@@ -0,0 +1,4 @@
+#!/bin/bash
+set -euo pipefail
+make target/debug/examples/impact_vm
+exec target/debug/examples/impact_vm "$@"