diff --git a/app/app.go b/app/app.go
index 3286a58f..67c9f22d 100644
--- a/app/app.go
+++ b/app/app.go
@@ -62,6 +62,7 @@ import (
 
 	memiavlstore "github.com/crypto-org-chain/cronos/store"
 
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
 	"github.com/settlus/chain/app/ante"
 	"github.com/settlus/chain/app/post"
 	"github.com/settlus/chain/app/upgrades/v1"
@@ -77,9 +78,10 @@ func init() {
 	}
 
 	DefaultNodeHome = filepath.Join(userHomeDir, "."+Name)
-
-	// manually update the power reduction by replacing micro (u) -> atto (a) evmos
-	sdk.DefaultPowerReduction = evmostypes.PowerReduction
+	// Set power reduction
+	sdk.DefaultPowerReduction = sdk.NewIntFromUint64(1000000)
+	// Constant reward is true to follow Settlus reward distribution rules
+	sdk.ConstantReward = true
 	// modify fee market parameter defaults through global
 	feemarkettypes.DefaultMinGasPrice = evmosapp.MainnetMinGasPrices
 	feemarkettypes.DefaultMinGasMultiplier = evmosapp.MainnetMinGasMultiplier
@@ -91,10 +93,8 @@ const (
 	Name = "settlus"
 )
 
-var (
-	// DefaultNodeHome default home directories for the application daemon
-	DefaultNodeHome string
-)
+// DefaultNodeHome default home directories for the application daemon
+var DefaultNodeHome string
 
 var (
 	_ runtime.AppI            = (*SettlusApp)(nil)
@@ -262,6 +262,7 @@ func NewSettlus(
 	app.setPostHandler()
 	app.SetEndBlocker(app.EndBlocker)
 	app.setupUpgradeHandlers()
+	app.setUpgradeStoreLoaders()
 
 	if loadLatest {
 		if err := app.LoadLatestVersion(); err != nil {
@@ -485,11 +486,26 @@ func (app *SettlusApp) setupUpgradeHandlers() {
 	app.UpgradeKeeper.SetUpgradeHandler(
 		v1.UpgradeName,
 		v1.CreateUpgradeHandler(
-			app.mm, app.configurator,
+			app.mm, app.configurator, app.AccountKeeper, app.ConsensusParamsKeeper, app.IBCKeeper.ClientKeeper, app.ParamsKeeper, app.appCodec,
 		),
 	)
 }
 
+func (app *SettlusApp) setUpgradeStoreLoaders() {
+	upgradeInfo, err := app.AppKeepers.UpgradeKeeper.ReadUpgradeInfoFromDisk()
+	if err != nil {
+		panic(fmt.Errorf("failed to read upgrade info from disk: %w", err))
+	}
+	if app.AppKeepers.UpgradeKeeper.IsSkipHeight(upgradeInfo.Height) {
+		return
+	}
+
+	if upgradeInfo.Name == v1.UpgradeName {
+		storeUpgrades := v1.StoreUpgrades
+		app.SetStoreLoader(upgradetypes.UpgradeStoreLoader(upgradeInfo.Height, &storeUpgrades))
+	}
+}
+
 // GetKey returns the KVStoreKey for the provided store key.
 //
 // NOTE: This is solely to be used for testing purposes.
diff --git a/app/keepers.go b/app/keepers.go
index 3a071994..c98da5af 100644
--- a/app/keepers.go
+++ b/app/keepers.go
@@ -366,7 +366,7 @@ func NewAppKeeper(
 	// NOTE: app.Erc20Keeper is already initialized elsewhere
 
 	// Override the ICS20 app module
-	//transferModule := transfer.NewAppModule(appKeepers.TransferKeeper)
+	// transferModule := transfer.NewAppModule(appKeepers.TransferKeeper)
 
 	/*
 		Create Transfer Stack
diff --git a/app/test_helpers.go b/app/test_helpers.go
index 37595050..76046fb8 100644
--- a/app/test_helpers.go
+++ b/app/test_helpers.go
@@ -159,7 +159,6 @@ func GenesisStateWithValSet(app *SettlusApp, genesisState simapp.GenesisState,
 			Commission:        stakingtypes.NewCommission(sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec()),
 			MinSelfDelegation: sdk.ZeroInt(),
 			Probono:           false,
-			ProbonoRate:       sdk.ZeroDec(),
 		}
 		validators = append(validators, validator)
 		delegations = append(delegations, stakingtypes.NewDelegation(genAccs[0].GetAddress(), val.Address.Bytes(), sdk.OneDec()))
diff --git a/app/upgrades/v1/constants.go b/app/upgrades/v1/constants.go
index 17bf8bf3..36c1c004 100644
--- a/app/upgrades/v1/constants.go
+++ b/app/upgrades/v1/constants.go
@@ -1,6 +1,19 @@
 package v1
 
+import (
+	store "github.com/cosmos/cosmos-sdk/store/types"
+	consensustypes "github.com/cosmos/cosmos-sdk/x/consensus/types"
+	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
+)
+
 const (
 	// UpgradeName is the shared upgrade plan name for mainnet
 	UpgradeName = "v2.0.0"
 )
+
+var StoreUpgrades = store.StoreUpgrades{
+	Added: []string{
+		consensustypes.ModuleName,
+		crisistypes.ModuleName,
+	},
+}
diff --git a/app/upgrades/v1/upgrades.go b/app/upgrades/v1/upgrades.go
index bb7468a8..d3ae4a71 100644
--- a/app/upgrades/v1/upgrades.go
+++ b/app/upgrades/v1/upgrades.go
@@ -1,18 +1,114 @@
 package v1
 
 import (
+	"fmt"
+
+	"github.com/cosmos/cosmos-sdk/baseapp"
+	"github.com/cosmos/cosmos-sdk/codec"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/types/module"
+	authkeeper "github.com/cosmos/cosmos-sdk/x/auth/keeper"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+	consensuskeeper "github.com/cosmos/cosmos-sdk/x/consensus/keeper"
+	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	govv1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
+	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
+	paramskeeper "github.com/cosmos/cosmos-sdk/x/params/keeper"
+	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	slashingtypes "github.com/cosmos/cosmos-sdk/x/slashing/types"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	ibctransfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
+	ibctmmigrations "github.com/cosmos/ibc-go/v7/modules/light-clients/07-tendermint/migrations"
+	evmtypes "github.com/evmos/evmos/v19/x/evm/types"
+	feemarkettypes "github.com/evmos/evmos/v19/x/feemarket/types"
 )
 
-// CreateUpgradeHandler creates an SDK upgrade handler for v2
 func CreateUpgradeHandler(
 	mm *module.Manager,
 	configurator module.Configurator,
+	ak authkeeper.AccountKeeper,
+	ck consensuskeeper.Keeper,
+	clientKeeper ibctmmigrations.ClientKeeper,
+	pk paramskeeper.Keeper,
+	cdc codec.BinaryCodec,
 ) upgradetypes.UpgradeHandler {
 	return func(ctx sdk.Context, _ upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
-		// Leave modules as-is to avoid running InitGenesis.
+		logger := ctx.Logger().With("upgrade", UpgradeName)
+
+		// Set param key table for params module migration
+		for _, subspace := range pk.GetSubspaces() {
+			var keyTable paramstypes.KeyTable
+			switch subspace.Name() {
+			case authtypes.ModuleName:
+				keyTable = authtypes.ParamKeyTable() //nolint:staticcheck
+			case banktypes.ModuleName:
+				keyTable = banktypes.ParamKeyTable() //nolint:staticcheck,nolintlint
+			case stakingtypes.ModuleName:
+				keyTable = stakingtypes.ParamKeyTable()
+			case minttypes.ModuleName:
+				keyTable = minttypes.ParamKeyTable() //nolint:staticcheck
+			case distrtypes.ModuleName:
+				keyTable = distrtypes.ParamKeyTable() //nolint:staticcheck,nolintlint
+			case slashingtypes.ModuleName:
+				keyTable = slashingtypes.ParamKeyTable() //nolint:staticcheck
+			case govtypes.ModuleName:
+				keyTable = govv1.ParamKeyTable() //nolint:staticcheck
+			case crisistypes.ModuleName:
+				keyTable = crisistypes.ParamKeyTable() //nolint:staticcheck
+			case ibctransfertypes.ModuleName:
+				keyTable = ibctransfertypes.ParamKeyTable()
+			case evmtypes.ModuleName:
+				keyTable = evmtypes.ParamKeyTable() //nolint:staticcheck
+			case feemarkettypes.ModuleName:
+				keyTable = feemarkettypes.ParamKeyTable()
+			default:
+				continue
+			}
+			if !subspace.HasKeyTable() {
+				subspace.WithKeyTable(keyTable)
+			}
+		}
+
+		baseAppLegacySS := pk.Subspace(baseapp.Paramspace).WithKeyTable(paramstypes.ConsensusParamsKeyTable())
+
+		baseapp.MigrateParams(ctx, baseAppLegacySS, &ck)
+
+		// Include this when migrating to ibc-go v7 (optional)
+		// source: https://github.com/cosmos/ibc-go/blob/v7.2.0/docs/migrations/v6-to-v7.md
+		// prune expired tendermint consensus states to save storage space
+		if _, err := ibctmmigrations.PruneExpiredConsensusStates(ctx, cdc, clientKeeper); err != nil {
+			return nil, err
+		}
+
+		if err := MigrateFeeCollector(ak, ctx); err != nil {
+			return nil, err
+		}
+
+		logger.Debug("running module migrations ...")
 		return mm.RunMigrations(ctx, configurator, vm)
 	}
 }
+
+func MigrateFeeCollector(ak authkeeper.AccountKeeper, ctx sdk.Context) error {
+	feeCollectorModuleAccount := ak.GetModuleAccount(ctx, authtypes.FeeCollectorName)
+	if feeCollectorModuleAccount == nil {
+		return fmt.Errorf("fee collector module account not found")
+	}
+
+	modAcc, ok := feeCollectorModuleAccount.(*authtypes.ModuleAccount)
+	if !ok {
+		return fmt.Errorf("fee collector module account is not a module account")
+	}
+
+	// Create a new FeeCollector module account with the same address and balance as the old one.
+	newFeeCollectorModuleAccount := authtypes.NewModuleAccount(modAcc.BaseAccount, authtypes.FeeCollectorName, authtypes.Burner)
+
+	// Override the FeeCollector module account in the auth keeper.
+	ak.SetModuleAccount(ctx, newFeeCollectorModuleAccount)
+
+	return nil
+}
diff --git a/cmd/settlusd/cmd/testnet.go b/cmd/settlusd/cmd/testnet.go
index 236d2c27..4cbfc723 100644
--- a/cmd/settlusd/cmd/testnet.go
+++ b/cmd/settlusd/cmd/testnet.go
@@ -315,7 +315,7 @@ func initTestnetFiles(
 			stakingtypes.NewCommissionRates(sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec()),
 			math.OneInt(),
 			math.ZeroInt(),
-			sdk.ZeroDec(),
+			false,
 		)
 		if err != nil {
 			return err
@@ -428,6 +428,13 @@ func initGenFiles(
 	appGenState[stakingtypes.ModuleName] = clientCtx.Codec.MustMarshalJSON(&stakingGenState)
 
 	var govGenState govv1.GenesisState
+	newPeriod := time.Minute * 2
+	clientCtx.Codec.MustUnmarshalJSON(appGenState[govtypes.ModuleName], &govGenState)
+
+	govGenState.Params.MaxDepositPeriod = &newPeriod
+	govGenState.Params.VotingPeriod = &newPeriod
+	govGenState.Params.MinDeposit[0].Amount = sdk.NewInt(1000)
+	govGenState.Params.MinDeposit[0].Denom = coinDenom
 	clientCtx.Codec.MustUnmarshalJSON(appGenState[govtypes.ModuleName], &govGenState)
 
 	appGenState[govtypes.ModuleName] = clientCtx.Codec.MustMarshalJSON(&govGenState)
@@ -436,7 +443,7 @@ func initGenFiles(
 	clientCtx.Codec.MustUnmarshalJSON(appGenState[minttypes.ModuleName], &mintGenState)
 
 	mintGenState.Params.MintDenom = coinDenom
-	mintGenState.Params.BlockReward = sdk.NewInt(5000000000000000000)
+	mintGenState.Params.BlockReward = sdk.NewInt(3000000000000000000)
 	appGenState[minttypes.ModuleName] = clientCtx.Codec.MustMarshalJSON(&mintGenState)
 
 	var crisisGenState crisistypes.GenesisState
diff --git a/go.mod b/go.mod
index 9b63557d..9215bf73 100644
--- a/go.mod
+++ b/go.mod
@@ -2,8 +2,6 @@ module github.com/settlus/chain
 
 go 1.22.2
 
-toolchain go1.22.5
-
 require (
 	cosmossdk.io/api v0.3.1
 	cosmossdk.io/errors v1.0.1
@@ -253,11 +251,11 @@ replace (
 	// use cosmos fork of keyring
 	github.com/99designs/keyring => github.com/cosmos/keyring v1.2.0
 	// use Settlus flavored Cosmos-SDK https://github.com/settlus/cosmos-sdk/releases
-	github.com/cosmos/cosmos-sdk => github.com/settlus/cosmos-sdk v0.47.12-settlus-alpha
+	github.com/cosmos/cosmos-sdk => github.com/settlus/cosmos-sdk v0.47.12-settlus.2
 	// use Evmos geth fork
 	github.com/ethereum/go-ethereum => github.com/evmos/go-ethereum v1.10.26-evmos-rc4
 	// use Settlus flavored Evmos
-	github.com/evmos/evmos/v19 => github.com/settlus/evmos/v19 v19.0.0-settlus.1
+	github.com/evmos/evmos/v19 => github.com/settlus/evmos/v19 v19.0.0-settlus.3.rc
 	// Security Advisory https://github.com/advisories/GHSA-h395-qcrw-5vmq
 	github.com/gin-gonic/gin => github.com/gin-gonic/gin v1.9.1
 	// use cosmos flavored protobufs
diff --git a/go.sum b/go.sum
index 1c2cf1b8..78f477f5 100644
--- a/go.sum
+++ b/go.sum
@@ -1213,10 +1213,10 @@ github.com/segmentio/fasthash v1.0.3/go.mod h1:waKX8l2N8yckOgmSsXJi7x1ZfdKZ4x7KR
 github.com/segmentio/kafka-go v0.1.0/go.mod h1:X6itGqS9L4jDletMsxZ7Dz+JFWxM6JHfPOCvTvk+EJo=
 github.com/segmentio/kafka-go v0.2.0/go.mod h1:X6itGqS9L4jDletMsxZ7Dz+JFWxM6JHfPOCvTvk+EJo=
 github.com/sergi/go-diff v1.0.0/go.mod h1:0CfEIISq7TuYL3j771MWULgwwjU+GofnZX9QAmXWZgo=
-github.com/settlus/cosmos-sdk v0.47.12-settlus-alpha h1:8XEuwxKhRIA1mZvL3y71wz0jSnqazZTWCNZv06Ja+f4=
-github.com/settlus/cosmos-sdk v0.47.12-settlus-alpha/go.mod h1:ADjORYzUQqQv/FxDi0H0K5gW/rAk1CiDR3ZKsExfJV0=
-github.com/settlus/evmos/v19 v19.0.0-settlus.1 h1:/Mflt1By3l92QiJiSXg4exUzmAjji1YVRZSQXtQ4i4I=
-github.com/settlus/evmos/v19 v19.0.0-settlus.1/go.mod h1:BjlwXOxPrB+9o3zdxseaPV7gylV1XHoJrJYQIYshQ6E=
+github.com/settlus/cosmos-sdk v0.47.12-settlus.2 h1:ho5ED+o0UI3ITiEckNdlqxgIxE++tYU2CgwfBanbttA=
+github.com/settlus/cosmos-sdk v0.47.12-settlus.2/go.mod h1:ADjORYzUQqQv/FxDi0H0K5gW/rAk1CiDR3ZKsExfJV0=
+github.com/settlus/evmos/v19 v19.0.0-settlus.3.rc h1:z9ctKKoVsTw18fhFLW+OTUqwA76gMK63f/1ECU8T0dY=
+github.com/settlus/evmos/v19 v19.0.0-settlus.3.rc/go.mod h1:cH2IV7ZrZlp+2KfeExMvtlQe8sxOYt2cC4J3ZiiwJHU=
 github.com/shirou/gopsutil v3.21.4-0.20210419000835-c7a38de76ee5+incompatible h1:Bn1aCHHRnjv4Bl16T8rcaFjYSrGrIZvpiGO6P3Q4GpU=
 github.com/shirou/gopsutil v3.21.4-0.20210419000835-c7a38de76ee5+incompatible/go.mod h1:5b4v6he4MtMOwMlS0TUMTu2PcXUg8+E1lC7eC3UO/RA=
 github.com/shurcooL/sanitized_anchor_name v1.0.0/go.mod h1:1NzhyTcUVG4SuEtjjoZeVRXNmyL/1OwPU0+IJeTBvfc=
diff --git a/testutil/network/network.go b/testutil/network/network.go
index 355a1baf..f8e9a00e 100644
--- a/testutil/network/network.go
+++ b/testutil/network/network.go
@@ -430,7 +430,7 @@ func New(l Logger, baseDir string, cfg Config) (*Network, error) {
 			stakingtypes.NewCommissionRates(commission, sdk.ZeroDec(), sdk.ZeroDec()),
 			math.OneInt(),
 			math.ZeroInt(),
-			sdk.ZeroDec(),
+			false,
 		)
 
 		if err != nil {
diff --git a/types/hex_address.go b/types/hex_address.go
index 001293ce..85f65f34 100644
--- a/types/hex_address.go
+++ b/types/hex_address.go
@@ -14,7 +14,7 @@ func NewHexAddrFromBytes(addr []byte) HexAddressString {
 	return HexAddressString(common.BytesToAddress(addr).Hex())
 }
 
-func NoramlizeHexAddress(addr string) HexAddressString {
+func NormalizeHexAddress(addr string) HexAddressString {
 	return HexAddressString(common.HexToAddress(addr).Hex())
 }
 
diff --git a/types/nft.go b/types/nft.go
index e74c03ba..360a0df9 100644
--- a/types/nft.go
+++ b/types/nft.go
@@ -14,8 +14,8 @@ func ParseNftId(nftId string) (Nft, error) {
 
 	return Nft{
 		ChainId:      data[0],
-		ContractAddr: NoramlizeHexAddress(data[1]),
-		TokenId:      NoramlizeHexAddress(data[2]),
+		ContractAddr: NormalizeHexAddress(data[1]),
+		TokenId:      NormalizeHexAddress(data[2]),
 	}, nil
 }
 
diff --git a/x/oracle/keeper/feeder.go b/x/oracle/keeper/feeder.go
index 718c8874..a2702d01 100644
--- a/x/oracle/keeper/feeder.go
+++ b/x/oracle/keeper/feeder.go
@@ -313,7 +313,7 @@ func (k Keeper) RewardBallotWinners(ctx sdk.Context, validatorClaimMap map[strin
 		}
 
 		if !rewardCoins.IsZero() {
-			if receiverVal.Probono {
+			if receiverVal.IsProbono() {
 				probonoReward = probonoReward.Add(rewardCoins...)
 				continue
 			}
diff --git a/x/oracle/keeper/keeper_test.go b/x/oracle/keeper/keeper_test.go
index a43c4363..0fa18b09 100644
--- a/x/oracle/keeper/keeper_test.go
+++ b/x/oracle/keeper/keeper_test.go
@@ -157,7 +157,7 @@ func (suite *OracleTestSuite) NewValidator(amt sdkmath.Int) *stakingtypes.MsgCre
 		stakingtypes.NewCommissionRates(sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec()),
 		sdkmath.OneInt(),
 		sdkmath.ZeroInt(),
-		sdk.ZeroDec(),
+		false,
 	)
 	suite.Require().NoError(err)
 	return msgCreate
@@ -499,7 +499,7 @@ func (suite *OracleTestSuite) TestKeeper_RewardBallotWinners_WithProbono() {
 			s.NoError(err)
 
 			for _, validator := range s.validators {
-				if validator.Probono {
+				if validator.IsProbono() {
 					probonoRewards = probonoRewards.Add(tt.rewardMap[validator.GetOperator().String()].AmountOf("asetl"))
 					validator.Probono = false
 					continue
diff --git a/x/oracle/types/vote_data.go b/x/oracle/types/vote_data.go
index b9cd83ea..1d06083c 100644
--- a/x/oracle/types/vote_data.go
+++ b/x/oracle/types/vote_data.go
@@ -47,7 +47,7 @@ func StringToOwnershipData(voteString string) (ctypes.Nft, ctypes.HexAddressStri
 		return ctypes.Nft{}, "", fmt.Errorf("invalid nftId: %s", data[0])
 	}
 
-	owner := ctypes.NoramlizeHexAddress(data[1])
+	owner := ctypes.NormalizeHexAddress(data[1])
 
 	return nft, owner, err
 }
diff --git a/x/oracle/types/vote_data_test.go b/x/oracle/types/vote_data_test.go
index 683e3dc4..a1543da4 100644
--- a/x/oracle/types/vote_data_test.go
+++ b/x/oracle/types/vote_data_test.go
@@ -30,10 +30,10 @@ func TestStringToOwnershipData(t *testing.T) {
 			expected: Result{
 				nft: ctypes.Nft{
 					ChainId:      "1",
-					ContractAddr: ctypes.NoramlizeHexAddress("0x123"),
-					TokenId:      ctypes.NoramlizeHexAddress("0x0"),
+					ContractAddr: ctypes.NormalizeHexAddress("0x123"),
+					TokenId:      ctypes.NormalizeHexAddress("0x0"),
 				},
-				owner: ctypes.NoramlizeHexAddress("0x777"),
+				owner: ctypes.NormalizeHexAddress("0x777"),
 				err:   false,
 			},
 		},
@@ -43,10 +43,10 @@ func TestStringToOwnershipData(t *testing.T) {
 			expected: Result{
 				nft: ctypes.Nft{
 					ChainId:      "1",
-					ContractAddr: ctypes.NoramlizeHexAddress("0x123"),
-					TokenId:      ctypes.NoramlizeHexAddress("0xa"),
+					ContractAddr: ctypes.NormalizeHexAddress("0x123"),
+					TokenId:      ctypes.NormalizeHexAddress("0xa"),
 				},
-				owner: ctypes.NoramlizeHexAddress("777"),
+				owner: ctypes.NormalizeHexAddress("777"),
 				err:   false,
 			},
 		},
diff --git a/x/settlement/keeper/msg_server.go b/x/settlement/keeper/msg_server.go
index 3dda2d0f..386f6423 100644
--- a/x/settlement/keeper/msg_server.go
+++ b/x/settlement/keeper/msg_server.go
@@ -53,8 +53,8 @@ func (k msgServer) Record(goCtx context.Context, msg *types.MsgRecord) (*types.M
 	}
 
 	payoutBlock := uint64(ctx.BlockHeight())
-	contractAddr := ctypes.NoramlizeHexAddress(msg.ContractAddress)
-	tokenId := ctypes.NoramlizeHexAddress(msg.TokenIdHex)
+	contractAddr := ctypes.NormalizeHexAddress(msg.ContractAddress)
+	tokenId := ctypes.NormalizeHexAddress(msg.TokenIdHex)
 	utxrId, err := k.CreateUTXR(
 		ctx,
 		msg.TenantId,