diff --git a/tools/walletextension/api/static/favicon.ico b/tools/walletextension/api/static/favicon.ico
deleted file mode 100644
index 1bb8f324a1..0000000000
Binary files a/tools/walletextension/api/static/favicon.ico and /dev/null differ
diff --git a/tools/walletextension/frontend/next.config.js b/tools/walletextension/frontend/next.config.js
index 45ddca84d4..ad89bad6ad 100644
--- a/tools/walletextension/frontend/next.config.js
+++ b/tools/walletextension/frontend/next.config.js
@@ -1,8 +1,10 @@
 /** @type {import('next').NextConfig} */
 const nextConfig = {
   reactStrictMode: true,
-  output: 'export',
-  distDir: '../api/static'
-}
+  output: "export",
+  // distDir is where the static files are generated
+  // on dev mode, it is generated in .next folder in the root directory
+  // distDir: '../api/static'
+};
 
-module.exports = nextConfig
+module.exports = nextConfig;