diff --git a/pallets/channel-commission/src/benchmarking.rs b/pallets/channel-commission/src/benchmarking.rs
index 1930af0f92..12f183048b 100644
--- a/pallets/channel-commission/src/benchmarking.rs
+++ b/pallets/channel-commission/src/benchmarking.rs
@@ -46,7 +46,7 @@ benchmarks! {
 			let commission_token = CurrencyId::Token2(i);
 			assert_ok!(ChannelCommission::<T>::set_commission_tokens(
 				origin.clone(),
-				vtoken, commission_token
+				vtoken, Some(commission_token)
 			));
 		}
 
@@ -89,7 +89,7 @@ benchmarks! {
 
 		assert_ok!(ChannelCommission::<T>::set_commission_tokens(
 			origin.clone(),
-			vtoken, commission_token
+			vtoken, Some(commission_token)
 		));
 
 		assert_ok!(ChannelCommission::<T>::register_channel(
@@ -103,7 +103,7 @@ benchmarks! {
 		let commission_token = CurrencyId::Token2(0);
 		let vtoken = CurrencyId::VToken2(0);
 
-	}: _<T::RuntimeOrigin>(origin.clone(), vtoken, commission_token)
+	}: _<T::RuntimeOrigin>(origin.clone(), vtoken, Some(commission_token))
 
 	claim_commissions {
 		let test_account: T::AccountId = account("seed",1,1);
@@ -117,7 +117,7 @@ benchmarks! {
 
 		assert_ok!(ChannelCommission::<T>::set_commission_tokens(
 			origin.clone(),
-			vtoken, commission_token
+			vtoken, Some(commission_token)
 		));
 
 		assert_ok!(ChannelCommission::<T>::register_channel(
@@ -153,7 +153,7 @@ benchmarks! {
 			// set_commission_tokens
 			assert_ok!(ChannelCommission::<T>::set_commission_tokens(
 				origin.clone(),
-				vtoken, commission_token
+				vtoken, Some(commission_token)
 			));
 
 			let old_amount: BalanceOf<T> = 9000u128.unique_saturated_into();
@@ -202,7 +202,7 @@ benchmarks! {
 		// set_commission_tokens
 		assert_ok!(ChannelCommission::<T>::set_commission_tokens(
 			origin.clone(),
-			vtoken_set, CurrencyId::Token2(0)
+			vtoken_set, Some(CurrencyId::Token2(0))
 		));
 
 		// register channels
diff --git a/pallets/channel-commission/src/lib.rs b/pallets/channel-commission/src/lib.rs
index 4e7d1d0306..948cc88f14 100644
--- a/pallets/channel-commission/src/lib.rs
+++ b/pallets/channel-commission/src/lib.rs
@@ -453,31 +453,65 @@ pub mod pallet {
 		pub fn set_commission_tokens(
 			origin: OriginFor<T>,
 			vtoken: CurrencyId,
-			commission_token: CurrencyId,
+			commission_token_op: Option<CurrencyId>,
 		) -> DispatchResult {
 			T::ControlOrigin::ensure_origin(origin)?;
-
 			ensure!(vtoken.is_vtoken(), Error::<T>::InvalidVtoken);
 
-			// if old commission token is the same as the new one, do nothing
-			if let Some(old_commission_token) = CommissionTokens::<T>::get(vtoken) {
-				if old_commission_token == commission_token {
-					return Ok(());
+			if let Some(commission_token) = commission_token_op {
+				// if old commission token is the same as the new one, do nothing
+				if let Some(old_commission_token) = CommissionTokens::<T>::get(vtoken) {
+					if old_commission_token == commission_token {
+						return Ok(());
+					}
 				}
-			}
 
-			// set the commission token
-			CommissionTokens::<T>::insert(vtoken, commission_token);
+				// set the commission token
+				CommissionTokens::<T>::insert(vtoken, commission_token);
 
-			// set VtokenIssuanceSnapshots for the vtoken
-			let issuance = T::MultiCurrency::total_issuance(vtoken);
-			let zero_balance: BalanceOf<T> = Zero::zero();
-			VtokenIssuanceSnapshots::<T>::insert(vtoken, (zero_balance, issuance));
+				// set VtokenIssuanceSnapshots for the vtoken
+				let issuance = T::MultiCurrency::total_issuance(vtoken);
+				let zero_balance: BalanceOf<T> = Zero::zero();
+				VtokenIssuanceSnapshots::<T>::insert(vtoken, (zero_balance, issuance));
 
-			Self::deposit_event(Event::CommissionTokenSet {
-				vtoken,
-				commission_token: Some(commission_token),
-			});
+				Self::deposit_event(Event::CommissionTokenSet {
+					vtoken,
+					commission_token: Some(commission_token),
+				});
+			} else {
+				// remove the commission token
+				let _ = CommissionTokens::<T>::remove(vtoken);
+
+				// remove the vtoken from VtokenIssuanceSnapshots
+				let _ = VtokenIssuanceSnapshots::<T>::remove(vtoken);
+
+				// remove the vtoken from PeriodVtokenTotalMint storage
+				let _ = PeriodVtokenTotalMint::<T>::remove(vtoken);
+
+				// remove the vtoken from PeriodVtokenTotalRedeem storage
+				let _ = PeriodVtokenTotalRedeem::<T>::remove(vtoken);
+
+				// for all channel_ids
+				Channels::<T>::iter_keys().for_each(|channel_id| {
+					// remove the vtoken from ChannelCommissionTokenRates storage
+					let _ = ChannelCommissionTokenRates::<T>::remove(channel_id, vtoken);
+					// remove the vtoken from ChannelVtokenShares storage
+					let _ = ChannelVtokenShares::<T>::remove(channel_id, vtoken);
+					// remove the vtoken from PeriodChannelVtokenMint storage
+					let _ = PeriodChannelVtokenMint::<T>::remove(channel_id, vtoken);
+				});
+
+				// remove the vtoken from PeriodTotalCommissions storage
+				let _ = PeriodTotalCommissions::<T>::remove(vtoken);
+
+				// remove the vtoken from PeriodClearedCommissions storage
+				let _ = PeriodClearedCommissions::<T>::remove(vtoken);
+
+				// only ChannelClaimableCommissions not removed. Channel can still claim the
+				// previous commission
+
+				Self::deposit_event(Event::CommissionTokenSet { vtoken, commission_token: None });
+			}
 
 			Ok(())
 		}
diff --git a/pallets/channel-commission/src/tests.rs b/pallets/channel-commission/src/tests.rs
index b8b9f8b8cc..3ab8bd008f 100644
--- a/pallets/channel-commission/src/tests.rs
+++ b/pallets/channel-commission/src/tests.rs
@@ -32,10 +32,18 @@ const CHANNEL_A_BACKUP_RECEIVER: AccountId = AccountId32::new([5u8; 32]);
 
 fn setup() {
 	// set commission tokens: VKSM -> KSM
-	assert_ok!(ChannelCommission::set_commission_tokens(RuntimeOrigin::signed(ALICE), VKSM, KSM,));
+	assert_ok!(ChannelCommission::set_commission_tokens(
+		RuntimeOrigin::signed(ALICE),
+		VKSM,
+		Some(KSM),
+	));
 
 	// set commission tokens: VBNC -> BNC
-	assert_ok!(ChannelCommission::set_commission_tokens(RuntimeOrigin::signed(ALICE), VBNC, BNC,));
+	assert_ok!(ChannelCommission::set_commission_tokens(
+		RuntimeOrigin::signed(ALICE),
+		VBNC,
+		Some(BNC),
+	));
 
 	// register channel A
 	assert_ok!(ChannelCommission::register_channel(
@@ -58,11 +66,20 @@ fn set_commission_tokens_should_work() {
 		assert_ok!(ChannelCommission::set_commission_tokens(
 			RuntimeOrigin::signed(ALICE),
 			VKSM,
-			KSM,
+			Some(KSM),
 		));
 
 		// Channel A is registered
 		assert_eq!(CommissionTokens::<Runtime>::get(VKSM), Some(KSM));
+
+		assert_ok!(ChannelCommission::set_commission_tokens(
+			RuntimeOrigin::signed(ALICE),
+			VKSM,
+			None,
+		));
+
+		assert_eq!(CommissionTokens::<Runtime>::get(VKSM), None);
+		assert_eq!(VtokenIssuanceSnapshots::<Runtime>::get(VKSM), Default::default());
 	});
 }
 
@@ -73,14 +90,14 @@ fn register_channel_should_work() {
 		assert_ok!(ChannelCommission::set_commission_tokens(
 			RuntimeOrigin::signed(ALICE),
 			VKSM,
-			KSM,
+			Some(KSM),
 		));
 
 		// set commission tokens: VBNC -> BNC
 		assert_ok!(ChannelCommission::set_commission_tokens(
 			RuntimeOrigin::signed(ALICE),
 			VBNC,
-			BNC,
+			Some(BNC),
 		));
 
 		assert_ok!(ChannelCommission::register_channel(