Abstract: The invention comprises a method and system for encoding and generating transaction-based stimuli event states for the eventual application to the simulation of VLSI circuits. In the invention, each test state input is described by a vector where that vector is characterized by two symbols. The first symbol is the “stride” which references its relative time of reoccurrence among the test state inputs. The second symbol denotes the specific transaction on that stride. The stride is a number that is incommensurate relative to the other strides of the transactions.