diff --git a/Makefile b/Makefile
index 1f00ae4c..382d9bf9 100644
--- a/Makefile
+++ b/Makefile
@@ -3,6 +3,10 @@
 BRANCH := $(shell git rev-parse --abbrev-ref HEAD)
 COMMIT := $(shell git log -1 --format='%H')
 
+APP_DIR = ./app
+BINDIR ?= ~/go/bin
+RUNSIM  = $(BINDIR)/runsim
+
 ifeq (,$(VERSION))
   VERSION := $(shell git describe --tags)
   # if VERSION is empty, then populate it with branch's name and raw commit hash
@@ -13,7 +17,7 @@ endif
 
 LEDGER_ENABLED ?= true
 SDK_PACK := $(shell go list -m github.com/cosmos/cosmos-sdk | sed  's/ /\@/g')
-TM_VERSION := $(shell go list -m github.com/tendermint/tendermint | sed 's:.* ::') 
+TM_VERSION := $(shell go list -m github.com/cometbft/cometbft | sed 's:.* ::')
 DOCKER := $(shell which docker)
 DOCKER_BUF := $(DOCKER) run --rm -v $(CURDIR):/workspace --workdir /workspace bufbuild/buf
 BUILDDIR ?= $(CURDIR)/build
@@ -64,7 +68,7 @@ ldflags = -X github.com/cosmos/cosmos-sdk/version.Name=migaloo \
 		  -X github.com/cosmos/cosmos-sdk/version.Version=$(VERSION) \
 		  -X github.com/cosmos/cosmos-sdk/version.Commit=$(COMMIT) \
 		  -X "github.com/cosmos/cosmos-sdk/version.BuildTags=$(build_tags_comma_sep)" \
-			-X github.com/tendermint/tendermint/version.TMCoreSemVer=$(TM_VERSION)
+			-X github.com/cometbft/cometbft/version.TMCoreSemVer=$(TM_VERSION)
 
 ifeq (cleveldb,$(findstring cleveldb,$(COSMOS_BUILD_OPTIONS)))
   ldflags += -X github.com/cosmos/cosmos-sdk/types.DBBackend=cleveldb
@@ -92,3 +96,53 @@ install: go.sum
 
 build:
 	go build $(BUILD_FLAGS) -o bin/migalood ./cmd/migalood
+
+docker-build-debug:
+	@DOCKER_BUILDKIT=1 docker build -t migaloo:debug -f Dockerfile .
+
+runsim: $(RUNSIM)
+$(RUNSIM):
+	@echo "Installing runsim..."
+	@go install github.com/cosmos/tools/cmd/runsim@v1.0.0
+
+test-sim-import-export: runsim
+	@echo "Running application import/export simulation. This may take several minutes..."
+	@$(BINDIR)/runsim -Jobs=4 -SimAppPkg=$(APP_DIR) 50 5 TestAppImportExport
+
+test-sim-custom-genesis-multi-seed: runsim
+	@echo "Running multi-seed custom genesis simulation..."
+	@echo "By default, ${HOME}/.migalood/config/genesis.json will be used."
+	@$(BINDIR)/runsim -Genesis=${HOME}/.migalood/config/genesis.json -SimAppPkg=$(APP_DIR) 400 5 TestFullAppSimulation
+
+test-sim-multi-seed-long: runsim
+	@echo "Running long multi-seed application simulation. This may take awhile!"
+	@$(BINDIR)/runsim -Jobs=4 -SimAppPkg=$(APP_DIR) 500 50 TestFullAppSimulation
+
+test-sim-multi-seed-short: runsim
+	@echo "Running short multi-seed application simulation. This may take awhile!"
+	@$(BINDIR)/runsim -Jobs=4 -SimAppPkg=$(APP_DIR) 50 10 TestFullAppSimulation
+
+test-sim-custom-genesis-fast:
+	@echo "Running custom genesis simulation..."
+	@echo "By default, ${HOME}/.migalood/config/genesis.json will be used."
+	@go test $(TEST_FLAGS) -mod=readonly $(SIMAPP) -run TestFullAppSimulation \
+		-Enabled=true -NumBlocks=100 -BlockSize=200 -Commit=true -Seed=99 -Period=5 -v -timeout 24h
+
+###############################################################################
+###                             Interchain test                             ###
+###############################################################################
+
+# Executes start chain tests via interchaintest
+ictest-start-cosmos:
+	cd tests/interchaintest && go test -race -v -run TestStartMigaloo .
+
+ictest-ibc:
+	cd tests/interchaintest && go test -race -v -run TestMigalooGaiaIBCTransfer .
+
+ictest-ibc-hooks:
+	cd tests/interchaintest && go test -race -v -run TestIBCHooks .
+
+# Executes all tests via interchaintest after compling a local image as migaloo:local
+ictest-all: ictest-start-cosmos ictest-ibc
+
+.PHONY: ictest-start-cosmos ictest-all ictest-ibc-hooks ictest-ibc
diff --git a/app/app.go b/app/app.go
index d582f5c8..d3e393e7 100644
--- a/app/app.go
+++ b/app/app.go
@@ -3,12 +3,6 @@ package app
 import (
 	"encoding/json"
 	"fmt"
-	"io"
-	"net/http"
-	"os"
-	"path/filepath"
-	"sort"
-
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
 	"github.com/cosmos/cosmos-sdk/baseapp"
 	"github.com/cosmos/cosmos-sdk/client"
@@ -44,9 +38,15 @@ import (
 	crisiskeeper "github.com/cosmos/cosmos-sdk/x/crisis/keeper"
 	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
 	distr "github.com/cosmos/cosmos-sdk/x/distribution"
+	govtypesv1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
 	solomachine "github.com/cosmos/ibc-go/v7/modules/light-clients/06-solomachine"
 	ibctm "github.com/cosmos/ibc-go/v7/modules/light-clients/07-tendermint"
 	icq "github.com/strangelove-ventures/async-icq/v7"
+	"io"
+	"net/http"
+	"os"
+	"path/filepath"
+	"sort"
 
 	distrkeeper "github.com/cosmos/cosmos-sdk/x/distribution/keeper"
 	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
@@ -62,7 +62,6 @@ import (
 	govclient "github.com/cosmos/cosmos-sdk/x/gov/client"
 	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
-	govv1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
 	govv1beta1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1beta1"
 	"github.com/cosmos/cosmos-sdk/x/mint"
 	mintkeeper "github.com/cosmos/cosmos-sdk/x/mint/keeper"
@@ -102,7 +101,8 @@ import (
 	ibcclient "github.com/cosmos/ibc-go/v7/modules/core/02-client"
 	ibcclientclient "github.com/cosmos/ibc-go/v7/modules/core/02-client/client"
 	ibcclienttypes "github.com/cosmos/ibc-go/v7/modules/core/02-client/types"
-	porttypes "github.com/cosmos/ibc-go/v7/modules/core/05-port/types"
+	ibcporttypes "github.com/cosmos/ibc-go/v7/modules/core/05-port/types"
+
 	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
 	ibckeeper "github.com/cosmos/ibc-go/v7/modules/core/keeper"
 
@@ -113,7 +113,7 @@ import (
 	routerkeeper "github.com/strangelove-ventures/packet-forward-middleware/v7/router/keeper"
 	routertypes "github.com/strangelove-ventures/packet-forward-middleware/v7/router/types"
 
-	bank "github.com/terra-money/core/v2/custom/bank"
+	terracustombank "github.com/terra-money/core/v2/custom/bank"
 	custombankkeeper "github.com/terra-money/core/v2/custom/bank/keeper"
 
 	ibchooks "github.com/cosmos/ibc-apps/modules/ibc-hooks/v7"
@@ -151,11 +151,9 @@ import (
 	// unnamed import of statik for swagger UI support
 	_ "github.com/cosmos/cosmos-sdk/client/docs/statik"
 
-	// Upgrade Handler
-	upgrades "github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app/upgrades"
 	v2 "github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app/upgrades/v2"
-	"github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app/upgrades/v2_2_5"
 	v3_0_2 "github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app/upgrades/v3_0_2"
+	v4 "github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app/upgrades/v4_1_0"
 )
 
 const (
@@ -165,8 +163,7 @@ const (
 
 // We pull these out so we can set them with LDFLAGS in the Makefile
 var (
-	NodeDir  = ".migalood"
-	Upgrades = []upgrades.Upgrade{v2.Upgrade, v2_2_5.Upgrade, v3_0_2.Upgrade}
+	NodeDir = ".migalood"
 )
 
 // These constants are derived from the above variables.
@@ -185,7 +182,7 @@ var (
 		auth.AppModuleBasic{},
 		alliancemodule.AppModuleBasic{},
 		genutil.NewAppModuleBasic(genutiltypes.DefaultMessageValidator),
-		bank.AppModule{},
+		terracustombank.AppModule{},
 		capability.AppModuleBasic{},
 		consensus.AppModuleBasic{},
 		staking.AppModuleBasic{},
@@ -314,6 +311,11 @@ type MigalooApp struct {
 	configurator module.Configurator
 }
 
+func (app *MigalooApp) Close() error {
+	//TODO implement me
+	panic("implement me")
+}
+
 func (app *MigalooApp) RegisterNodeService(clientCtx client.Context) {
 	nodeservice.RegisterNodeService(clientCtx, app.GRPCQueryRouter())
 }
@@ -329,7 +331,7 @@ func NewMigalooApp(
 	invCheckPeriod uint,
 	encodingConfig appparams.EncodingConfig,
 	appOpts servertypes.AppOptions,
-	wasmOpts []wasm.Option,
+	wasmOpts []wasmkeeper.Option,
 	baseAppOptions ...func(*baseapp.BaseApp),
 ) *MigalooApp {
 	appCodec, legacyAmino, txConfig := encodingConfig.Codec, encodingConfig.Amino, encodingConfig.TxConfig
@@ -643,7 +645,7 @@ func NewMigalooApp(
 	)
 
 	// Create Transfer Stack
-	var transferStack porttypes.IBCModule
+	var transferStack ibcporttypes.IBCModule
 	transferStack = transfer.NewIBCModule(app.TransferKeeper)
 	transferStack = ibcfee.NewIBCMiddleware(transferStack, app.IBCFeeKeeper)
 	transferStack = router.NewIBCMiddleware(
@@ -663,14 +665,14 @@ func NewMigalooApp(
 
 	// Note: please do your research before using this in production app, this is a demo and not an officially
 	// supported IBC team implementation. Do your own research before using it.
-	var icaControllerStack porttypes.IBCModule
+	var icaControllerStack ibcporttypes.IBCModule
 	// You will likely want to use your own reviewed and maintained ica auth module
 	icaControllerStack = icacontroller.NewIBCMiddleware(icaControllerStack, app.ICAControllerKeeper)
 	icaControllerStack = ibcfee.NewIBCMiddleware(icaControllerStack, app.IBCFeeKeeper)
 
 	// RecvPacket, message that originates from core IBC and goes down to app, the flow is:
 	// channel.RecvPacket -> fee.OnRecvPacket -> icaHost.OnRecvPacket
-	var icaHostStack porttypes.IBCModule
+	var icaHostStack ibcporttypes.IBCModule
 	icaHostStack = icahost.NewIBCModule(app.ICAHostKeeper)
 	icaHostStack = ibcfee.NewIBCMiddleware(icaHostStack, app.IBCFeeKeeper)
 
@@ -679,13 +681,13 @@ func NewMigalooApp(
 	icqStack := icq.NewIBCModule(app.ICQKeeper)
 
 	// Create fee enabled wasm ibc Stack
-	var wasmStack porttypes.IBCModule
+	var wasmStack ibcporttypes.IBCModule
 	wasmStack = wasm.NewIBCHandler(app.WasmKeeper, app.IBCKeeper.ChannelKeeper, app.IBCFeeKeeper)
 	wasmStack = ibcfee.NewIBCMiddleware(wasmStack, app.IBCFeeKeeper)
 
 	// Create static IBC router, add app routes, then set and seal it
-	ibcRouter := porttypes.NewRouter().
-		AddRoute(ibctransfertypes.ModuleName, hooksTransferStack).
+	ibcRouter := ibcporttypes.NewRouter().
+		AddRoute(ibctransfertypes.ModuleName, transferStack).
 		AddRoute(wasmtypes.ModuleName, wasmStack).
 		AddRoute(icahosttypes.SubModuleName, icaHostStack).
 		AddRoute(icqtypes.ModuleName, icqStack)
@@ -707,6 +709,7 @@ func NewMigalooApp(
 		govConfig,
 		authtypes.NewModuleAddress(govtypes.ModuleName).String(),
 	)
+	govKeeper.SetLegacyRouter(govRouter)
 
 	app.GovKeeper = *govKeeper.SetHooks(
 		govtypes.NewMultiGovHooks(
@@ -734,13 +737,14 @@ func NewMigalooApp(
 		),
 		auth.NewAppModule(appCodec, app.AccountKeeper, authsims.RandomGenesisAccounts, app.GetSubspace(authtypes.ModuleName)),
 		vesting.NewAppModule(app.AccountKeeper, app.BankKeeper),
-		bank.NewAppModule(appCodec, app.BankKeeper, app.AccountKeeper, app.GetSubspace(banktypes.ModuleName)),
+		terracustombank.NewAppModule(appCodec, app.BankKeeper, app.AccountKeeper, app.GetSubspace(banktypes.ModuleName)),
 		capability.NewAppModule(appCodec, *app.CapabilityKeeper, false),
 		gov.NewAppModule(appCodec, &app.GovKeeper, app.AccountKeeper, app.BankKeeper, app.GetSubspace(govtypes.ModuleName)),
 		mint.NewAppModule(appCodec, app.MintKeeper, app.AccountKeeper, nil, app.GetSubspace(minttypes.ModuleName)),
 		slashing.NewAppModule(appCodec, app.SlashingKeeper, app.AccountKeeper, app.BankKeeper, app.StakingKeeper, app.GetSubspace(slashingtypes.ModuleName)),
 		distr.NewAppModule(appCodec, app.DistrKeeper, app.AccountKeeper, app.BankKeeper, app.StakingKeeper, app.GetSubspace(distrtypes.ModuleName)),
 		staking.NewAppModule(appCodec, app.StakingKeeper, app.AccountKeeper, app.BankKeeper, app.GetSubspace(stakingtypes.ModuleName)),
+		consensus.NewAppModule(appCodec, app.ConsensusParamsKeeper),
 		upgrade.NewAppModule(&app.UpgradeKeeper),
 		wasm.NewAppModule(appCodec, &app.WasmKeeper, app.StakingKeeper, app.AccountKeeper, app.BankKeeper, app.MsgServiceRouter(), app.GetSubspace(wasmtypes.ModuleName)),
 		evidence.NewAppModule(app.EvidenceKeeper),
@@ -783,15 +787,16 @@ func NewMigalooApp(
 		vestingtypes.ModuleName,
 		icqtypes.ModuleName,
 		// additional non simd modules
-		routertypes.ModuleName,
 		ibctransfertypes.ModuleName,
 		ibcexported.ModuleName,
 		icatypes.ModuleName,
 		ibcfeetypes.ModuleName,
+		routertypes.ModuleName,
+		ibchookstypes.ModuleName,
 		wasmtypes.ModuleName,
 		tokenfactorytypes.ModuleName,
 		alliancemoduletypes.ModuleName,
-		ibchookstypes.ModuleName,
+		consensusparamtypes.ModuleName,
 	)
 
 	app.mm.SetOrderEndBlockers(
@@ -818,10 +823,11 @@ func NewMigalooApp(
 		ibcexported.ModuleName,
 		icatypes.ModuleName,
 		ibcfeetypes.ModuleName,
+		ibchookstypes.ModuleName,
 		wasmtypes.ModuleName,
 		tokenfactorytypes.ModuleName,
 		alliancemoduletypes.ModuleName,
-		ibchookstypes.ModuleName,
+		consensusparamtypes.ModuleName,
 	)
 
 	// NOTE: The genutils module must occur after staking so that pools are
@@ -857,9 +863,10 @@ func NewMigalooApp(
 		ibcfeetypes.ModuleName,
 		tokenfactorytypes.ModuleName,
 		// wasm after ibc transfer
+		ibchookstypes.ModuleName,
 		wasmtypes.ModuleName,
 		alliancemoduletypes.ModuleName,
-		ibchookstypes.ModuleName,
+		consensusparamtypes.ModuleName,
 	)
 
 	// Uncomment if you want to set a custom migration order here.
@@ -929,6 +936,9 @@ func NewMigalooApp(
 	app.ScopedICAControllerKeeper = scopedICAControllerKeeper
 	app.ScopedICQKeeper = scopedICQKeeper
 
+	// set the contract keeper for the Ics20WasmHooks
+	app.Ics20WasmHooks.ContractKeeper = &app.WasmKeeper
+
 	if loadLatest {
 		if err := app.LoadLatestVersion(); err != nil {
 			tmos.Exit(fmt.Sprintf("failed to load latest version: %s", err))
@@ -1028,6 +1038,7 @@ func (app *MigalooApp) LegacyAmino() *codec.LegacyAmino {
 // NOTE: This is solely to be used for testing purposes.
 func (app *MigalooApp) GetSubspace(moduleName string) paramstypes.Subspace {
 	subspace, _ := app.ParamsKeeper.GetSubspace(moduleName)
+	fmt.Println(moduleName, subspace)
 	return subspace
 }
 
@@ -1085,27 +1096,66 @@ func RegisterSwaggerAPI(rtr *mux.Router) {
 
 // Setup Upgrade Handler
 func (app *MigalooApp) setupUpgradeHandlers(cfg module.Configurator) {
+	app.UpgradeKeeper.SetUpgradeHandler(
+		v2.UpgradeName,
+		v2.CreateUpgradeHandler(app.mm, app.configurator),
+	)
+
+	app.UpgradeKeeper.SetUpgradeHandler(
+		v3_0_2.UpgradeName,
+		v3_0_2.CreateUpgradeHandler(app.mm, app.configurator),
+	)
+
+	// !! ATTENTION !!
+	// v4 upgrade handler
+	// !! WHEN UPGRADING TO SDK v0.47 MAKE SURE TO INCLUDE THIS
+	// source: https://github.com/cosmos/cosmos-sdk/blob/release/v0.47.x/UPGRADING.md#xconsensus
+	app.UpgradeKeeper.SetUpgradeHandler(
+		v4.UpgradeName,
+		v4.CreateUpgradeHandler(
+			app.mm,
+			app.configurator,
+			app.IBCKeeper.ClientKeeper,
+			app.ParamsKeeper,
+			app.ConsensusParamsKeeper,
+			app.ICAControllerKeeper,
+		),
+	)
+
+	// When a planned update height is reached, the old binary will panic
+	// writing on disk the height and name of the update that triggered it
+	// This will read that value, and execute the preparations for the upgrade.
 	upgradeInfo, err := app.UpgradeKeeper.ReadUpgradeInfoFromDisk()
 	if err != nil {
-		panic(fmt.Sprintf("failed to read upgrade info from disk %s", err))
+		panic(fmt.Errorf("failed to read upgrade info from disk: %w", err))
 	}
 
 	if app.UpgradeKeeper.IsSkipHeight(upgradeInfo.Height) {
 		return
 	}
 
-	for _, upgrade := range Upgrades {
-		upgrade := upgrade
-		if upgradeInfo.Name == upgrade.UpgradeName {
-			app.SetStoreLoader(upgradetypes.UpgradeStoreLoader(upgradeInfo.Height, &upgrade.StoreUpgrades))
+	var storeUpgrades *storetypes.StoreUpgrades
+
+	switch upgradeInfo.Name {
+	case v4.UpgradeName:
+		// !! ATTENTION !!
+		// !! WHEN UPGRADING TO SDK v0.47 MAKE SURE TO INCLUDE THIS
+		// source: https://github.com/cosmos/cosmos-sdk/blob/release/v0.47.x/UPGRADING.md
+		storeUpgrades = &storetypes.StoreUpgrades{
+			Added: []string{
+				consensusparamtypes.StoreKey,
+				crisistypes.StoreKey,
+				icqtypes.StoreKey,
+			},
+			Deleted: []string{
+				"intertx",
+			},
 		}
-		app.UpgradeKeeper.SetUpgradeHandler(
-			upgrade.UpgradeName,
-			upgrade.CreateUpgradeHandler(
-				app.mm,
-				cfg,
-			),
-		)
+	}
+
+	if storeUpgrades != nil {
+		// configure store loader that checks if version == upgradeHeight and applies store upgrades
+		app.SetStoreLoader(upgradetypes.UpgradeStoreLoader(upgradeInfo.Height, storeUpgrades))
 	}
 }
 
@@ -1131,22 +1181,22 @@ func stringMapKeys(m map[string][]string) []string {
 func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino, key, tkey storetypes.StoreKey) paramskeeper.Keeper {
 	paramsKeeper := paramskeeper.NewKeeper(appCodec, legacyAmino, key, tkey)
 
-	paramsKeeper.Subspace(authtypes.ModuleName)
-	paramsKeeper.Subspace(banktypes.ModuleName)
-	paramsKeeper.Subspace(stakingtypes.ModuleName)
-	paramsKeeper.Subspace(minttypes.ModuleName)
-	paramsKeeper.Subspace(distrtypes.ModuleName)
-	paramsKeeper.Subspace(slashingtypes.ModuleName)
-	paramsKeeper.Subspace(govtypes.ModuleName).WithKeyTable(govv1.ParamKeyTable())
-	paramsKeeper.Subspace(crisistypes.ModuleName)
+	paramsKeeper.Subspace(authtypes.ModuleName).WithKeyTable(authtypes.ParamKeyTable())
+	paramsKeeper.Subspace(banktypes.ModuleName).WithKeyTable(banktypes.ParamKeyTable())
+	paramsKeeper.Subspace(stakingtypes.ModuleName).WithKeyTable(stakingtypes.ParamKeyTable())
+	paramsKeeper.Subspace(minttypes.ModuleName).WithKeyTable(minttypes.ParamKeyTable())
+	paramsKeeper.Subspace(distrtypes.ModuleName).WithKeyTable(distrtypes.ParamKeyTable())
+	paramsKeeper.Subspace(slashingtypes.ModuleName).WithKeyTable(slashingtypes.ParamKeyTable())
+	paramsKeeper.Subspace(govtypes.ModuleName).WithKeyTable(govtypesv1.ParamKeyTable())
+	paramsKeeper.Subspace(crisistypes.ModuleName).WithKeyTable(crisistypes.ParamKeyTable())
 	paramsKeeper.Subspace(ibctransfertypes.ModuleName)
 	paramsKeeper.Subspace(ibcexported.ModuleName)
 	paramsKeeper.Subspace(icahosttypes.SubModuleName)
-	paramsKeeper.Subspace(tokenfactorytypes.ModuleName)
+	paramsKeeper.Subspace(tokenfactorytypes.ModuleName).WithKeyTable(tokenfactorytypes.ParamKeyTable())
 	paramsKeeper.Subspace(icacontrollertypes.SubModuleName)
 	paramsKeeper.Subspace(icqtypes.ModuleName)
-	paramsKeeper.Subspace(wasmtypes.ModuleName)
-	paramsKeeper.Subspace(routertypes.ModuleName)
+	paramsKeeper.Subspace(wasmtypes.ModuleName).WithKeyTable(wasmtypes.ParamKeyTable())
+	paramsKeeper.Subspace(routertypes.ModuleName).WithKeyTable(routertypes.ParamKeyTable())
 	paramsKeeper.Subspace(alliancemoduletypes.ModuleName).WithKeyTable(alliancemoduletypes.ParamKeyTable())
 
 	return paramsKeeper
diff --git a/app/app_test.go b/app/app_test.go
index 4a22563b..e9e3bb8e 100644
--- a/app/app_test.go
+++ b/app/app_test.go
@@ -2,6 +2,7 @@ package app
 
 import (
 	"encoding/json"
+	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	"os"
 	"testing"
 	"time"
@@ -21,11 +22,9 @@ import (
 	alliancemoduletypes "github.com/terra-money/alliance/x/alliance/types"
 
 	abci "github.com/cometbft/cometbft/abci/types"
-
-	"github.com/CosmWasm/wasmd/x/wasm"
 )
 
-var emptyWasmOpts []wasm.Option
+var emptyWasmOpts []wasmkeeper.Option
 
 func TestWasmdExport(t *testing.T) {
 	db := db.NewMemDB()
@@ -91,7 +90,7 @@ func TestGetMaccPerms(t *testing.T) {
 	require.Equal(t, maccPerms, dup, "duplicated module account permissions differed from actual module account permissions")
 }
 
-func SetupGenesisValSet(t *testing.T, valSet *tmtypes.ValidatorSet, genAccs []authtypes.GenesisAccount, _ []wasm.Option, app *MigalooApp, balances ...banktypes.Balance) GenesisState {
+func SetupGenesisValSet(t *testing.T, valSet *tmtypes.ValidatorSet, genAccs []authtypes.GenesisAccount, _ []wasmkeeper.Option, app *MigalooApp, balances ...banktypes.Balance) GenesisState {
 	genesisState := NewDefaultGenesisState()
 	// set genesis accounts
 	authGenesis := authtypes.NewGenesisState(authtypes.DefaultParams(), genAccs)
diff --git a/app/test_helpers.go b/app/test_helpers.go
index fd6940cc..e3f5c463 100644
--- a/app/test_helpers.go
+++ b/app/test_helpers.go
@@ -5,13 +5,13 @@ import (
 	"encoding/hex"
 	"encoding/json"
 	"fmt"
+	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	"math/rand"
 	"path/filepath"
 	"strconv"
 	"testing"
 	"time"
 
-	"github.com/CosmWasm/wasmd/x/wasm"
 	"github.com/cosmos/ibc-go/v7/testing/mock"
 	"github.com/stretchr/testify/require"
 
@@ -61,7 +61,7 @@ var DefaultConsensusParams = &tmproto.ConsensusParams{
 	},
 }
 
-func setup(tb testing.TB, withGenesis bool, invCheckPeriod uint, opts ...wasm.Option) (*MigalooApp, GenesisState) {
+func setup(tb testing.TB, withGenesis bool, invCheckPeriod uint, opts ...wasmkeeper.Option) (*MigalooApp, GenesisState) {
 	tb.Helper()
 	nodeHome := tb.TempDir()
 	snapshotDir := filepath.Join(nodeHome, "data", "snapshots")
@@ -80,7 +80,7 @@ func setup(tb testing.TB, withGenesis bool, invCheckPeriod uint, opts ...wasm.Op
 	return app, GenesisState{}
 }
 
-func setupWithChainID(tb testing.TB, withGenesis bool, invCheckPeriod uint, chainID string, opts ...wasm.Option) (*MigalooApp, GenesisState) {
+func setupWithChainID(tb testing.TB, withGenesis bool, invCheckPeriod uint, chainID string, opts ...wasmkeeper.Option) (*MigalooApp, GenesisState) {
 	tb.Helper()
 	nodeHome := tb.TempDir()
 	snapshotDir := filepath.Join(nodeHome, "data", "snapshots")
@@ -109,7 +109,7 @@ func setupWithChainID(tb testing.TB, withGenesis bool, invCheckPeriod uint, chai
 }
 
 // Setup initializes a new MigalooApp with DefaultNodeHome for integration tests
-func Setup(isCheckTx bool, opts ...wasm.Option) *MigalooApp {
+func Setup(isCheckTx bool, opts ...wasmkeeper.Option) *MigalooApp {
 	db := dbm.NewMemDB()
 	app := NewMigalooApp(log.NewNopLogger(), db, nil, true, map[int64]bool{}, DefaultNodeHome, 5, MakeEncodingConfig(), EmptyBaseAppOptions{}, opts)
 
@@ -161,7 +161,7 @@ func SetupMigalooAppWithValSet(t *testing.T) *MigalooApp {
 // that also act as delegators. For simplicity, each validator is bonded with a delegation
 // of one consensus engine unit (10^6) in the default token of the MigalooApp from first genesis
 // account. A Nop logger is set in MigalooApp.
-func SetupWithGenesisValSet(t *testing.T, valSet *tmtypes.ValidatorSet, genAccs []authtypes.GenesisAccount, chainID string, opts []wasm.Option, balances ...banktypes.Balance) *MigalooApp {
+func SetupWithGenesisValSet(t *testing.T, valSet *tmtypes.ValidatorSet, genAccs []authtypes.GenesisAccount, chainID string, opts []wasmkeeper.Option, balances ...banktypes.Balance) *MigalooApp {
 	t.Helper()
 	app, genesisState := setupWithChainID(t, true, 5, chainID, opts...)
 	genesisState, err := simtestutil.GenesisStateWithValSet(app.AppCodec(), genesisState, valSet, genAccs, balances...)
diff --git a/app/upgrades/v4_1_0/constants.go b/app/upgrades/v4_1_0/constants.go
new file mode 100644
index 00000000..07b276ad
--- /dev/null
+++ b/app/upgrades/v4_1_0/constants.go
@@ -0,0 +1,5 @@
+package v3
+
+// UpgradeName defines the on-chain upgrade name for the Migaloo v3.0.2 upgrade.
+// this upgrade includes the fix for pfm
+const UpgradeName = "v4.1.0"
diff --git a/app/upgrades/v4_1_0/upgrades.go b/app/upgrades/v4_1_0/upgrades.go
new file mode 100644
index 00000000..d850891d
--- /dev/null
+++ b/app/upgrades/v4_1_0/upgrades.go
@@ -0,0 +1,42 @@
+package v3
+
+import (
+	"github.com/cosmos/cosmos-sdk/baseapp"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	consensuskeeper "github.com/cosmos/cosmos-sdk/x/consensus/keeper"
+	paramskeeper "github.com/cosmos/cosmos-sdk/x/params/keeper"
+	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	icacontrollerkeeper "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/controller/keeper"
+	icacontrollertypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/controller/types"
+	clientkeeper "github.com/cosmos/ibc-go/v7/modules/core/02-client/keeper"
+	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
+)
+
+// small security fix, can be a no-op, running mm.RunMigarions just to be sure
+func CreateUpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+	clientKeeper clientkeeper.Keeper,
+	paramsKeeper paramskeeper.Keeper,
+	consensusParamsKeeper consensuskeeper.Keeper,
+	icacontrollerKeeper icacontrollerkeeper.Keeper,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _plan upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		// READ: https://github.com/cosmos/cosmos-sdk/blob/v0.47.4/UPGRADING.md#xconsensus
+		baseAppLegacySS := paramsKeeper.Subspace(baseapp.Paramspace).
+			WithKeyTable(paramstypes.ConsensusParamsKeyTable())
+		baseapp.MigrateParams(ctx, baseAppLegacySS, &consensusParamsKeeper)
+
+		// READ: https://github.com/cosmos/ibc-go/blob/v7.2.0/docs/migrations/v7-to-v7_1.md#chains
+		params := clientKeeper.GetParams(ctx)
+		params.AllowedClients = append(params.AllowedClients, ibcexported.Localhost)
+		clientKeeper.SetParams(ctx, params)
+
+		// READ: https://github.com/terra-money/core/issues/166
+		icacontrollerKeeper.SetParams(ctx, icacontrollertypes.DefaultParams())
+
+		return mm.RunMigrations(ctx, configurator, fromVM)
+	}
+}
diff --git a/cmd/migalood/cmd/root.go b/cmd/migalood/cmd/root.go
index 993bbc60..9d798519 100644
--- a/cmd/migalood/cmd/root.go
+++ b/cmd/migalood/cmd/root.go
@@ -25,7 +25,6 @@ import (
 	snapshottypes "github.com/cosmos/cosmos-sdk/snapshots/types"
 	"github.com/spf13/cobra"
 
-	"github.com/CosmWasm/wasmd/x/wasm"
 	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	"github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app"
 	"github.com/White-Whale-Defi-Platform/migaloo-chain/v3/app/params"
@@ -281,7 +280,7 @@ func (a appCreator) newApp(logger log.Logger, db dbm.DB, traceStore io.Writer, a
 	if err != nil {
 		panic(err)
 	}
-	var wasmOpts []wasm.Option
+	var wasmOpts []wasmkeeper.Option
 	if cast.ToBool(appOpts.Get("telemetry.enabled")) {
 		wasmOpts = append(wasmOpts, wasmkeeper.WithVMCacheMetrics(prometheus.DefaultRegisterer))
 	}
@@ -347,7 +346,7 @@ func (a appCreator) appExport(
 	}
 
 	loadLatest := height == -1
-	var emptyWasmOpts []wasm.Option
+	var emptyWasmOpts []wasmkeeper.Option
 	migalooApp = app.NewMigalooApp(
 		logger,
 		db,
@@ -361,11 +360,5 @@ func (a appCreator) appExport(
 		emptyWasmOpts,
 	)
 
-	if height != -1 {
-		if err := migalooApp.LoadHeight(height); err != nil {
-			return servertypes.ExportedApp{}, err
-		}
-	}
-
 	return migalooApp.ExportAppStateAndValidators(forZeroHeight, jailAllowedAddrs, modulesToExport)
 }
diff --git a/cmd/migalood/cmd/testnet.go b/cmd/migalood/cmd/testnet.go
index e60f2d39..e85c3797 100644
--- a/cmd/migalood/cmd/testnet.go
+++ b/cmd/migalood/cmd/testnet.go
@@ -80,7 +80,7 @@ func addTestnetFlagsToCmd(cmd *cobra.Command) {
 	cmd.Flags().Int(flagNumValidators, 4, "Number of validators to initialize the testnet with")
 	cmd.Flags().StringP(flagOutputDir, "o", "./.testnets", "Directory to store initialization data for the testnet")
 	cmd.Flags().String(flags.FlagChainID, "", "genesis file chain-id, if left blank will be randomly created")
-	cmd.Flags().String(server.FlagMinGasPrices, fmt.Sprintf("0.000006%s", sdk.DefaultBondDenom), "Minimum gas prices to accept for transactions; All fees in a tx must meet this minimum (e.g. 0.01photino,0.001stake)")
+	cmd.Flags().String(server.FlagMinGasPrices, fmt.Sprintf("0.000006%s", sdk.DefaultBondDenom), "Minimum gas prices to accept for transactions; All fees in a tx must meet this minimum (e.g. 0.001uwhale)")
 	cmd.Flags().String(flagKeyAlgorithm, string(hd.Secp256k1Type), "Key signing algorithm to generate keys for")
 }
 
diff --git a/cmd/migalood/main.go b/cmd/migalood/main.go
index 5278e631..e06673b6 100644
--- a/cmd/migalood/main.go
+++ b/cmd/migalood/main.go
@@ -12,7 +12,7 @@ import (
 func main() {
 	rootCmd, _ := cmd.NewRootCmd()
 
-	if err := svrcmd.Execute(rootCmd, "", app.DefaultNodeHome); err != nil {
+	if err := svrcmd.Execute(rootCmd, "MIGALOOD", app.DefaultNodeHome); err != nil {
 		switch e := err.(type) {
 		case server.ErrorCode:
 			os.Exit(e.Code)
diff --git a/go.mod b/go.mod
index b8139786..e9f079ce 100644
--- a/go.mod
+++ b/go.mod
@@ -22,7 +22,7 @@ require (
 	github.com/strangelove-ventures/packet-forward-middleware/v7 v7.0.0-20230523193151-73dea436e53f
 	github.com/stretchr/testify v1.8.4
 	github.com/terra-money/alliance v0.3.2
-	github.com/terra-money/core/v2 v2.0.0-00010101000000-000000000000
+	github.com/terra-money/core/v2 v2.5.0
 )
 
 require (
@@ -192,8 +192,6 @@ require (
 replace (
 	// use cosmos fork of keyring
 	github.com/99designs/keyring => github.com/cosmos/keyring v1.2.0
-	// use notional's wasmd fork with token factory
-	github.com/CosmWasm/wasmd => github.com/notional-labs/wasmd v0.45.0-tf.rc0
 	// downgraded to avoid some annoying warning messages
 	// should be fixed after sdk 0.47.3 and gogoproto 1.4.10
 	// https://github.com/cosmos/gogoproto/issues/66
diff --git a/go.sum b/go.sum
index e261d352..787ac4f8 100644
--- a/go.sum
+++ b/go.sum
@@ -420,6 +420,8 @@ github.com/BurntSushi/toml v0.3.1/go.mod h1:xHWCNGjB5oqiDr8zfno3MHue2Ht5sIBksp03
 github.com/BurntSushi/xgb v0.0.0-20160522181843-27f122750802/go.mod h1:IVnqGOEym/WlBOVXweHU+Q+/VP0lqqI8lqeDx9IjBqo=
 github.com/ChainSafe/go-schnorrkel v1.0.0 h1:3aDA67lAykLaG1y3AOjs88dMxC88PgUuHRrLeDnvGIM=
 github.com/ChainSafe/go-schnorrkel v1.0.0/go.mod h1:dpzHYVxLZcp8pjlV+O+UR8K0Hp/z7vcchBSbMBEhCw4=
+github.com/CosmWasm/wasmd v0.45.0 h1:9zBqrturKJwC2kVsfHvbrA++EN0PS7UTXCffCGbg6JI=
+github.com/CosmWasm/wasmd v0.45.0/go.mod h1:RnSAiqbNIZu4QhO+0pd7qGZgnYAMBPGmXpzTADag944=
 github.com/CosmWasm/wasmvm v1.5.0 h1:3hKeT9SfwfLhxTGKH3vXaKFzBz1yuvP8SlfwfQXbQfw=
 github.com/CosmWasm/wasmvm v1.5.0/go.mod h1:fXB+m2gyh4v9839zlIXdMZGeLAxqUdYdFQqYsTha2hc=
 github.com/DataDog/datadog-go v3.2.0+incompatible/go.mod h1:LButxg5PwREeZtORoXG3tL4fMGNddJ+vMq1mwgfaqoQ=
@@ -1026,8 +1028,6 @@ github.com/nats-io/nkeys v0.1.0/go.mod h1:xpnFELMwJABBLVhffcfd1MZx6VsNRFpEugbxzi
 github.com/nats-io/nkeys v0.1.3/go.mod h1:xpnFELMwJABBLVhffcfd1MZx6VsNRFpEugbxziKVo7w=
 github.com/nats-io/nuid v1.0.1/go.mod h1:19wcPz3Ph3q0Jbyiqsd0kePYG7A95tJPxeL+1OSON2c=
 github.com/niemeyer/pretty v0.0.0-20200227124842-a10e7caefd8e/go.mod h1:zD1mROLANZcx1PVRCS0qkT7pwLkGfwJo4zjcN/Tysno=
-github.com/notional-labs/wasmd v0.45.0-tf.rc0 h1:JCMD7GY/C2Pk7klQNpjpgU5FW4zn0KL6Du1W5rP2OKM=
-github.com/notional-labs/wasmd v0.45.0-tf.rc0/go.mod h1:nMVHI6PFNpaMqMw4pj6fThldCP3mmf9LcrmYw1nNG5Y=
 github.com/nxadm/tail v1.4.4/go.mod h1:kenIhsEOeOJmVchQTgglprH7qJGnHDVpk1VPCcaMI8A=
 github.com/nxadm/tail v1.4.8 h1:nPr65rt6Y5JFSKQO7qToXr7pePgD6Gwiw05lkbyAQTE=
 github.com/nxadm/tail v1.4.8/go.mod h1:+ncqLTQzXmGhMZNUePPaPqPvBxHAIsmXswZKocGu+AU=
diff --git a/scripts/local_node.sh b/scripts/local_node.sh
new file mode 100755
index 00000000..cd20b6ed
--- /dev/null
+++ b/scripts/local_node.sh
@@ -0,0 +1,98 @@
+#!/bin/bash
+
+KEY="mykey"
+CHAINID="migaloo-1"
+MONIKER="localtestnet"
+KEYALGO="secp256k1"
+KEYRING="test"
+LOGLEVEL="info"
+# to trace evm
+#TRACE="--trace"
+TRACE=""
+
+HOMEDIR="$HOME/.migaloo-tmp"
+
+CONFIG=$HOMEDIR/config/config.toml
+GENESIS=$HOMEDIR/config/genesis.json
+TMP_GENESIS=$HOMEDIR/config/tmp_genesis.json
+
+# validate dependencies are installed
+command -v jq >/dev/null 2>&1 || {
+	echo >&2 "jq not installed. More info: https://stedolan.github.io/jq/download/"
+	exit 1
+}
+
+# used to exit on first error (any non-zero exit code)
+set -e
+
+rm -rf "$HOMEDIR"
+
+migalood config keyring-backend $KEYRING --home $HOMEDIR
+migalood config chain-id $CHAINID --home $HOMEDIR
+
+# if $KEY exists it should be deleted
+migalood keys add $KEY --keyring-backend $KEYRING --algo $KEYALGO --home $HOMEDIR
+
+migalood init $MONIKER --chain-id $CHAINID --home $HOMEDIR
+
+# Change parameter token denominations to uwhale
+jq '.app_state["staking"]["params"]["bond_denom"]="uwhale"' "$GENESIS" >"$TMP_GENESIS" && mv "$TMP_GENESIS" "$GENESIS"
+jq '.app_state["mint"]["params"]["mint_denom"]="uwhale"' "$GENESIS" >"$TMP_GENESIS" && mv "$TMP_GENESIS" "$GENESIS"
+jq '.app_state["crisis"]["constant_fee"]["denom"]="uwhale"' "$GENESIS" >"$TMP_GENESIS" && mv "$TMP_GENESIS" "$GENESIS"
+jq '.app_state["gov"]["deposit_params"]["min_deposit"][0]["denom"]="uwhale"' "$GENESIS" >"$TMP_GENESIS" && mv "$TMP_GENESIS" "$GENESIS"
+jq '.app_state["tokenfactory"]["params"]["denom_creation_fee"][0]["denom"]="uwhale"' "$GENESIS" >"$TMP_GENESIS" && mv "$TMP_GENESIS" "$GENESIS"
+
+
+# Set gas limit in genesis
+jq '.consensus_params["block"]["max_gas"]="10000000"' "$GENESIS" >"$TMP_GENESIS" && mv "$TMP_GENESIS" "$GENESIS"
+
+if [[ $1 == "pending" ]]; then
+    if [[ "$OSTYPE" == "darwin"* ]]; then
+        sed -i '' 's/timeout_propose = "3s"/timeout_propose = "30s"/g' "$CONFIG"
+        sed -i '' 's/timeout_propose_delta = "500ms"/timeout_propose_delta = "5s"/g' "$CONFIG"
+        sed -i '' 's/timeout_prevote = "1s"/timeout_prevote = "10s"/g' "$CONFIG"
+        sed -i '' 's/timeout_prevote_delta = "500ms"/timeout_prevote_delta = "5s"/g' "$CONFIG"
+        sed -i '' 's/timeout_precommit = "1s"/timeout_precommit = "10s"/g' "$CONFIG"
+        sed -i '' 's/timeout_precommit_delta = "500ms"/timeout_precommit_delta = "5s"/g' "$CONFIG"
+        sed -i '' 's/timeout_commit = "5s"/timeout_commit = "150s"/g' "$CONFIG"
+        sed -i '' 's/timeout_broadcast_tx_commit = "10s"/timeout_broadcast_tx_commit = "150s"/g' "$CONFIG"
+    else
+        sed -i 's/timeout_propose = "3s"/timeout_propose = "30s"/g' "$CONFIG"
+        sed -i 's/timeout_propose_delta = "500ms"/timeout_propose_delta = "5s"/g' "$CONFIG"
+        sed -i 's/timeout_prevote = "1s"/timeout_prevote = "10s"/g' "$CONFIG"
+        sed -i 's/timeout_prevote_delta = "500ms"/timeout_prevote_delta = "5s"/g' "$CONFIG"
+        sed -i 's/timeout_precommit = "1s"/timeout_precommit = "10s"/g' "$CONFIG"
+        sed -i 's/timeout_precommit_delta = "500ms"/timeout_precommit_delta = "5s"/g' "$CONFIG"
+        sed -i 's/timeout_commit = "5s"/timeout_commit = "150s"/g' "$CONFIG"
+        sed -i 's/timeout_broadcast_tx_commit = "10s"/timeout_broadcast_tx_commit = "150s"/g' "$CONFIG"
+    fi
+fi
+
+if [[ "$OSTYPE" == "darwin"* ]]; then
+    sed -i '' 's/laddr = "tcp:\/\/127.0.0.1:26657"/laddr = "tcp:\/\/0.0.0.0:26657"/g' "$CONFIG"
+else
+    sed -i 's/laddr = "tcp:\/\/127.0.0.1:26657"/laddr = "tcp:\/\/0.0.0.0:26657"/g' "$CONFIG"
+fi
+
+# Allocate genesis accounts (cosmos formatted addresses)
+migalood add-genesis-account $KEY 100000000000000000000000000uwhale --keyring-backend $KEYRING --home $HOMEDIR
+
+# Sign genesis transaction
+migalood gentx $KEY 1000000000000000000000uwhale --keyring-backend $KEYRING --chain-id $CHAINID --home $HOMEDIR
+
+# Collect genesis tx
+migalood collect-gentxs --home $HOMEDIR
+
+# Run this to ensure everything worked and that the genesis file is setup correctly
+migalood validate-genesis --home $HOMEDIR
+
+if [[ $1 == "pending" ]]; then
+  echo "pending mode is on, please wait for the first block committed."
+fi
+
+# update request max size so that we can upload the light client
+# '' -e is a must have params on mac, if use linux please delete before run
+sed -i'' -e 's/max_body_bytes = /max_body_bytes = 1/g' "$CONFIG"
+
+# Start the node (remove the --pruning=nothing flag if historical queries are not needed)
+# migalood start --pruning=nothing  --minimum-gas-prices=0.0001uwhale --rpc.laddr tcp://0.0.0.0:26657 --home $HOMEDIR
\ No newline at end of file
diff --git a/scripts/run-node.sh b/scripts/run-node.sh
new file mode 100755
index 00000000..38ccefa4
--- /dev/null
+++ b/scripts/run-node.sh
@@ -0,0 +1,83 @@
+#!/bin/bash
+
+BINARY=$1
+CONTINUE=${CONTINUE:-"false"}
+HOME_DIR=mytestnet
+ENV=${ENV:-""}
+
+if [ "$CONTINUE" == "true" ]; then
+    $BINARY start --home $HOME_DIR --log_level debug
+    exit 0
+fi
+
+rm -rf mytestnet
+pkill migalood
+
+# check DENOM is set. If not, set to uwhale
+DENOM=${2:-uwhale}
+
+COMMISSION_RATE=0.01
+COMMISSION_MAX_RATE=0.02
+
+SED_BINARY=sed
+# check if this is OS X
+if [[ "$OSTYPE" == "darwin"* ]]; then
+    # check if gsed is installed
+    if ! command -v gsed &> /dev/null
+    then
+        echo "gsed could not be found. Please install it with 'brew install gnu-sed'"
+        exit
+    else
+        SED_BINARY=gsed
+    fi
+fi
+
+# check BINARY is set. If not, build migalood and set BINARY
+if [ -z "$BINARY" ]; then
+    make build
+    BINARY=build/migalood
+fi
+
+CHAIN_ID="localmigaloo"
+KEYRING="test"
+KEY="test0"
+KEY1="test1"
+KEY2="test2"
+
+# Function updates the config based on a jq argument as a string
+update_test_genesis () {
+    # update_test_genesis '.consensus_params["block"]["max_gas"]="100000000"'
+    cat $HOME_DIR/config/genesis.json | jq "$1" > $HOME_DIR/config/tmp_genesis.json && mv $HOME_DIR/config/tmp_genesis.json $HOME_DIR/config/genesis.json
+}
+
+$BINARY init --chain-id $CHAIN_ID moniker --home $HOME_DIR
+
+$BINARY keys add $KEY --keyring-backend $KEYRING --home $HOME_DIR
+$BINARY keys add $KEY1 --keyring-backend $KEYRING --home $HOME_DIR
+$BINARY keys add $KEY2 --keyring-backend $KEYRING --home $HOME_DIR
+
+# Allocate genesis accounts (cosmos formatted addresses)
+$BINARY add-genesis-account $KEY "1000000000000${DENOM}" --keyring-backend $KEYRING --home $HOME_DIR
+$BINARY add-genesis-account $KEY1 "1000000000000${DENOM}" --keyring-backend $KEYRING --home $HOME_DIR
+$BINARY add-genesis-account $KEY2 "1000000000000${DENOM}" --keyring-backend $KEYRING --home $HOME_DIR
+
+update_test_genesis '.app_state["gov"]["voting_params"]["voting_period"]="20s"'
+update_test_genesis '.app_state["mint"]["params"]["mint_denom"]="'$DENOM'"'
+update_test_genesis '.app_state["gov"]["deposit_params"]["min_deposit"]=[{"denom":"'$DENOM'","amount": "1000000"}]'
+update_test_genesis '.app_state["crisis"]["constant_fee"]={"denom":"'$DENOM'","amount":"1000"}'
+update_test_genesis '.app_state["staking"]["params"]["bond_denom"]="'$DENOM'"'
+
+# enable rest server and swagger
+$SED_BINARY -i '0,/enable = false/s//enable = true/' $HOME_DIR/config/app.toml
+$SED_BINARY -i 's/swagger = false/swagger = true/' $HOME_DIR/config/app.toml
+
+# Sign genesis transaction
+$BINARY gentx $KEY "1000000${DENOM}" --commission-rate=$COMMISSION_RATE --commission-max-rate=$COMMISSION_MAX_RATE --keyring-backend $KEYRING --chain-id $CHAIN_ID --home $HOME_DIR
+
+# Collect genesis tx
+$BINARY collect-gentxs --home $HOME_DIR
+
+# Run this to ensure everything worked and that the genesis file is setup correctly
+$BINARY validate-genesis --home $HOME_DIR
+
+$BINARY start --home $HOME_DIR
\ No newline at end of file
diff --git a/scripts/upgrade_test.sh b/scripts/upgrade_test.sh
new file mode 100755
index 00000000..36a91c76
--- /dev/null
+++ b/scripts/upgrade_test.sh
@@ -0,0 +1,169 @@
+#!/bin/bash
+
+# the upgrade is a fork, "true" otherwise
+FORK=${FORK:-"false"}
+
+OLD_VERSION=v3.0.2
+UPGRADE_WAIT=${UPGRADE_WAIT:-20}
+HOME=mytestnet
+ROOT=$(pwd)
+DENOM=uwhale
+CHAIN_ID=localmigaloo
+SOFTWARE_UPGRADE_NAME="v4.1.0"
+ADDITIONAL_PRE_SCRIPTS=${ADDITIONAL_PRE_SCRIPTS:-""}
+ADDITIONAL_AFTER_SCRIPTS=${ADDITIONAL_AFTER_SCRIPTS:-""}
+
+if [[ "$FORK" == "true" ]]; then
+    export MIGALOO_HALT_HEIGHT=20
+fi
+
+# underscore so that go tool will not take gocache into account
+mkdir -p _build/gocache
+export GOMODCACHE=$ROOT/_build/gocache
+
+# install old binary if not exist
+if [ ! -f "_build/$OLD_VERSION.zip" ] &> /dev/null
+then
+    mkdir -p _build/old
+    wget -c "https://github.com/White-Whale-Defi-Platform/migaloo-chain/archive/refs/tags/${OLD_VERSION}.zip" -O _build/${OLD_VERSION}.zip
+    unzip _build/${OLD_VERSION}.zip -d _build
+fi
+
+# reinstall old binary
+if [ $# -eq 1 ] && [ $1 == "--reinstall-old" ] || ! command -v _build/old/migalood &> /dev/null; then
+    cd ./_build/migaloo-chain-${OLD_VERSION:1}
+    GOBIN="$ROOT/_build/old" go install -mod=readonly ./...
+    cd ../..
+fi
+
+# install new binary
+if ! command -v _build/new/migalood &> /dev/null
+then
+    mkdir -p _build/new
+    GOBIN="$ROOT/_build/new" go install -mod=readonly ./...
+fi
+
+# run old node
+if [[ "$OSTYPE" == "darwin"* ]]; then
+    screen -L -dmS node1 bash scripts/run-node.sh _build/old/migalood $DENOM
+else
+    screen -L -Logfile $HOME/log-screen.txt -dmS node1 bash scripts/run-node.sh _build/old/migalood $DENOM
+fi
+
+sleep 20
+
+# execute additional pre scripts
+if [ ! -z "$ADDITIONAL_PRE_SCRIPTS" ]; then
+    # slice ADDITIONAL_SCRIPTS by ,
+    SCRIPTS=($(echo "$ADDITIONAL_PRE_SCRIPTS" | tr ',' ' '))
+    for SCRIPT in "${SCRIPTS[@]}"; do
+         # check if SCRIPT is a file
+        if [ -f "$SCRIPT" ]; then
+            echo "executing additional pre scripts from $SCRIPT"
+            source $SCRIPT
+            sleep 5
+        else
+            echo "$SCRIPT is not a file"
+        fi
+    done
+fi
+
+run_fork () {
+    echo "forking"
+
+    while true; do
+        BLOCK_HEIGHT=$(./_build/old/migalood status | jq '.SyncInfo.latest_block_height' -r)
+        # if BLOCK_HEIGHT is not empty
+        if [ ! -z "$BLOCK_HEIGHT" ]; then
+            echo "BLOCK_HEIGHT = $BLOCK_HEIGHT"
+            sleep 10
+        else
+            echo "BLOCK_HEIGHT is empty, forking"
+            break
+        fi
+    done
+}
+
+run_upgrade () {
+    echo "start upgrading"
+
+    STATUS_INFO=($(./_build/old/migalood status --home $HOME | jq -r '.NodeInfo.network,.SyncInfo.latest_block_height'))
+    UPGRADE_HEIGHT=$((STATUS_INFO[1] + 12))
+
+    tar -cf ./_build/new/migalood.tar -C ./_build/new migalood
+    SUM=$(shasum -a 256 ./_build/new/migalood.tar | cut -d ' ' -f1)
+    UPGRADE_INFO=$(jq -n '
+    {
+        "binaries": {
+            "linux/amd64": "file://'$(pwd)'/_build/new/migalood.tar?checksum=sha256:'"$SUM"'",
+        }
+    }')
+
+    ./_build/old/migalood keys list --home $HOME --keyring-backend test
+
+    ./_build/old/migalood tx gov submit-legacy-proposal software-upgrade "$SOFTWARE_UPGRADE_NAME" --upgrade-height $UPGRADE_HEIGHT --upgrade-info "$UPGRADE_INFO" --title "upgrade" --description "upgrade"  --from test1 --keyring-backend test --chain-id $CHAIN_ID --home $HOME -y
+
+    sleep 5
+
+    ./_build/old/migalood tx gov deposit 1 "20000000${DENOM}" --from test1 --keyring-backend test --chain-id $CHAIN_ID --home $HOME -y
+
+    sleep 5
+
+    ./_build/old/migalood tx gov vote 1 yes --from test0 --keyring-backend test --chain-id $CHAIN_ID --home $HOME -y
+
+    sleep 5
+
+    ./_build/old/migalood tx gov vote 1 yes --from test1 --keyring-backend test --chain-id $CHAIN_ID --home $HOME -y
+
+    sleep 5
+
+    # determine block_height to halt
+    while true; do
+        BLOCK_HEIGHT=$(./_build/old/migalood status | jq '.SyncInfo.latest_block_height' -r)
+        if [ $BLOCK_HEIGHT = "$UPGRADE_HEIGHT" ]; then
+            # assuming running only 1 migalood
+            echo "BLOCK HEIGHT = $UPGRADE_HEIGHT REACHED, KILLING OLD ONE"
+            pkill migalood
+            break
+        else
+            ./_build/old/migalood q gov proposal 1 --output=json | jq ".status"
+            echo "BLOCK_HEIGHT = $BLOCK_HEIGHT"
+            sleep 10
+        fi
+    done
+}
+
+# if FORK = true
+if [[ "$FORK" == "true" ]]; then
+    run_fork
+    unset MIGALOO_HALT_HEIGHT
+else
+    run_upgrade
+fi
+
+sleep 5
+
+# run new node
+if [[ "$OSTYPE" == "darwin"* ]]; then
+    CONTINUE="true" screen -L -dmS node1 bash scripts/run-node.sh _build/new/migalood $DENOM
+else
+    CONTINUE="true" screen -L -Logfile $HOME/log-screen.txt -dmS node1 bash scripts/run-node.sh _build/new/migalood $DENOM
+fi
+
+sleep 20
+
+# execute additional after scripts
+if [ ! -z "$ADDITIONAL_AFTER_SCRIPTS" ]; then
+    # slice ADDITIONAL_SCRIPTS by ,
+    SCRIPTS=($(echo "$ADDITIONAL_AFTER_SCRIPTS" | tr ',' ' '))
+    for SCRIPT in "${SCRIPTS[@]}"; do
+         # check if SCRIPT is a file
+        if [ -f "$SCRIPT" ]; then
+            echo "executing additional after scripts from $SCRIPT"
+            source $SCRIPT
+            sleep 5
+        else
+            echo "$SCRIPT is not a file"
+        fi
+    done
+fi
\ No newline at end of file