diff --git a/x/staking/types/commission.go b/x/staking/types/commission.go
index 3df490e56bc0..6182655c82d2 100644
--- a/x/staking/types/commission.go
+++ b/x/staking/types/commission.go
@@ -53,7 +53,7 @@ func (cr CommissionRates) Validate() error {
 		return ErrCommissionGTMaxRate
 
 	case cr.Rate.LT(MinCommissionRate):
-		// rate cannot be less than 2%
+		// rate cannot be less than 5%
 		return ErrCommissionTooSmall
 
 	case cr.MaxChangeRate.IsNegative():
diff --git a/x/staking/types/params.go b/x/staking/types/params.go
index 599a7e9df0b3..9e29ef7ccda6 100644
--- a/x/staking/types/params.go
+++ b/x/staking/types/params.go
@@ -35,7 +35,7 @@ var (
 	// DefaultMinCommissionRate is set to 0%
 	DefaultMinCommissionRate = math.LegacyZeroDec()
 
-	MinCommissionRate = math.LegacyMustNewDecFromStr("0.02")
+	MinCommissionRate = math.LegacyMustNewDecFromStr("0.05")
 )
 
 // NewParams creates a new Params instance