diff --git a/CHANGELOG.md b/CHANGELOG.md
index 51fa8261..0fab74c5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,11 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 # Changelog
 
+## [Unreleased]
+
+### Improvements
+
+- (chore) [#157](https://github.com/realiotech/realio-network/pull/157): update the validators' commissions if their commissions are less than 5%
 
 ## [v0.9.0] - 2024-03-27
 
diff --git a/app/ante/utils_test.go b/app/ante/utils_test.go
index 5c7d1845..17e1adf7 100644
--- a/app/ante/utils_test.go
+++ b/app/ante/utils_test.go
@@ -72,7 +72,7 @@ func (suite *AnteTestSuite) SetupTest() {
 	consAddress := sdk.ConsAddress(privCons.PubKey().Address())
 
 	isCheckTx := false
-	suite.app = app.Setup(isCheckTx, feemarkettypes.DefaultGenesisState())
+	suite.app = app.Setup(isCheckTx, feemarkettypes.DefaultGenesisState(), 1)
 	suite.Require().NotNil(suite.app.AppCodec())
 
 	suite.ctx = suite.app.BaseApp.NewContext(isCheckTx, tmproto.Header{
diff --git a/app/fork_test.go b/app/fork_test.go
index 7ea76277..6466ddb2 100644
--- a/app/fork_test.go
+++ b/app/fork_test.go
@@ -13,7 +13,7 @@ import (
 )
 
 func TestFork(t *testing.T) {
-	realio := Setup(false, nil)
+	realio := Setup(false, nil, 1)
 
 	ctx := realio.BaseApp.NewContext(false, tmproto.Header{Height: ForkHeight})
 	stakingKeeper := realio.StakingKeeper
diff --git a/app/test_helpers.go b/app/test_helpers.go
index 970f9c2b..c9541181 100644
--- a/app/test_helpers.go
+++ b/app/test_helpers.go
@@ -81,14 +81,11 @@ func init() {
 func Setup(
 	isCheckTx bool,
 	feemarketGenesis *feemarkettypes.GenesisState,
+	numberVals int,
 ) *RealioNetwork {
-	privVal := mock.NewPV()
-	pubKey, _ := privVal.GetPubKey()
 	encCdc := MakeEncodingConfig()
 
-	// create validator set with single validator
-	validator := tmtypes.NewValidator(pubKey, 1)
-	valSet := tmtypes.NewValidatorSet([]*tmtypes.Validator{validator})
+	valSet := GenValSet(numberVals)
 
 	// generate genesis account
 	senderPrivKey := secp256k1.GenPrivKey()
@@ -242,3 +239,16 @@ func SetupTestingApp() (ibctesting.TestingApp, map[string]json.RawMessage) {
 	app := New(log.NewNopLogger(), db, nil, true, map[int64]bool{}, DefaultNodeHome, 5, cfg, simapp.EmptyAppOptions{})
 	return app, simapp.NewDefaultGenesisState(cfg.Codec)
 }
+
+func GenValSet(nums int) *tmtypes.ValidatorSet {
+	vals := []*tmtypes.Validator{}
+
+	for i := 0; i < nums; i++ {
+		privVal := mock.NewPV()
+		pubKey, _ := privVal.GetPubKey()
+		vals = append(vals, tmtypes.NewValidator(pubKey, 1))
+	}
+	valSet := tmtypes.NewValidatorSet(vals)
+
+	return valSet
+}
diff --git a/app/upgrades.go b/app/upgrades.go
index 577b7b68..a4ff9556 100644
--- a/app/upgrades.go
+++ b/app/upgrades.go
@@ -6,6 +6,7 @@ import (
 	servertypes "github.com/cosmos/cosmos-sdk/server/types"
 	storetypes "github.com/cosmos/cosmos-sdk/store/types"
 	multistakingtypes "github.com/realio-tech/multi-staking-module/x/multi-staking/types"
+	"github.com/realiotech/realio-network/app/upgrades/commission"
 	multistaking "github.com/realiotech/realio-network/app/upgrades/multi-staking"
 
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
@@ -24,6 +25,15 @@ func (app *RealioNetwork) setupUpgradeHandlers(appOpts servertypes.AppOptions) {
 		),
 	)
 
+	app.UpgradeKeeper.SetUpgradeHandler(
+		commission.UpgradeName,
+		commission.CreateUpgradeHandler(
+			app.mm,
+			app.configurator,
+			&app.StakingKeeper,
+		),
+	)
+
 	upgradeInfo, err := app.UpgradeKeeper.ReadUpgradeInfoFromDisk()
 	if err != nil {
 		panic(fmt.Errorf("failed to read upgrade info from disk: %w", err))
diff --git a/app/upgrades/commission/constants.go b/app/upgrades/commission/constants.go
new file mode 100644
index 00000000..ad3cb6f0
--- /dev/null
+++ b/app/upgrades/commission/constants.go
@@ -0,0 +1,7 @@
+package commission
+
+const (
+	// UpgradeName defines the on-chain upgrade name.
+	UpgradeName         = "Commission"
+	NewMinCommisionRate = "0.05"
+)
diff --git a/app/upgrades/commission/upgrades.go b/app/upgrades/commission/upgrades.go
new file mode 100644
index 00000000..e2cedaa0
--- /dev/null
+++ b/app/upgrades/commission/upgrades.go
@@ -0,0 +1,64 @@
+package commission
+
+import (
+	"fmt"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	stakingkeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+)
+
+func CreateUpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+	sk *stakingkeeper.Keeper,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
+		ctx.Logger().Info("Starting upgrade for multi staking...")
+		fixMinCommisionRate(ctx, sk)
+		return mm.RunMigrations(ctx, configurator, vm)
+	}
+}
+
+func fixMinCommisionRate(ctx sdk.Context, staking *stakingkeeper.Keeper) {
+	// Upgrade every validators min-commission rate
+	validators := staking.GetAllValidators(ctx)
+	minComm := sdk.MustNewDecFromStr(NewMinCommisionRate)
+
+	for _, v := range validators {
+		//nolint
+		if v.Commission.Rate.LT(minComm) {
+			comm, err := updateValidatorCommission(ctx, staking, v, minComm)
+			if err != nil {
+				panic(err)
+			}
+
+			// call the before-modification hook since we're about to update the commission
+			staking.BeforeValidatorModified(ctx, v.GetOperator())
+			v.Commission = comm
+			staking.SetValidator(ctx, v)
+		}
+	}
+}
+
+func updateValidatorCommission(ctx sdk.Context, staking *stakingkeeper.Keeper,
+	validator stakingtypes.Validator, newRate sdk.Dec,
+) (stakingtypes.Commission, error) {
+	commission := validator.Commission
+	blockTime := ctx.BlockHeader().Time
+
+	if newRate.LT(staking.MinCommissionRate(ctx)) {
+		return commission, fmt.Errorf("cannot set validator commission to less than minimum rate of %s", staking.MinCommissionRate(ctx))
+	}
+
+	commission.Rate = newRate
+	if commission.MaxRate.LT(newRate) {
+		commission.MaxRate = newRate
+	}
+
+	commission.UpdateTime = blockTime
+
+	return commission, nil
+}
diff --git a/app/upgrades_test.go b/app/upgrades_test.go
new file mode 100644
index 00000000..6fdf8432
--- /dev/null
+++ b/app/upgrades_test.go
@@ -0,0 +1,70 @@
+package app
+
+import (
+	"testing"
+	"time"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	"github.com/realiotech/realio-network/app/upgrades/commission"
+	"github.com/stretchr/testify/require"
+	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
+)
+
+func TestCommissionUpgrade(t *testing.T) {
+	app := Setup(false, nil, 4)
+	ctx := app.BaseApp.NewContext(false, tmproto.Header{Height: app.LastBlockHeight() + 1})
+	validators := app.StakingKeeper.GetAllValidators(ctx)
+
+	comm0 := stakingtypes.CommissionRates{
+		Rate:          sdk.MustNewDecFromStr("0.01"),
+		MaxRate:       sdk.MustNewDecFromStr("0.01"),
+		MaxChangeRate: sdk.MustNewDecFromStr("0.02"),
+	}
+	comm1 := stakingtypes.CommissionRates{
+		Rate:          sdk.MustNewDecFromStr("0.02"),
+		MaxRate:       sdk.MustNewDecFromStr("0.03"),
+		MaxChangeRate: sdk.MustNewDecFromStr("0.02"),
+	}
+	comm2 := stakingtypes.CommissionRates{
+		Rate:          sdk.MustNewDecFromStr("0.06"),
+		MaxRate:       sdk.MustNewDecFromStr("0.07"),
+		MaxChangeRate: sdk.MustNewDecFromStr("0.02"),
+	}
+	comm3 := stakingtypes.CommissionRates{
+		Rate:          sdk.MustNewDecFromStr("0.1"),
+		MaxRate:       sdk.MustNewDecFromStr("0.2"),
+		MaxChangeRate: sdk.MustNewDecFromStr("0.1"),
+	}
+
+	validators[0].Commission.CommissionRates = comm0
+	validators[1].Commission.CommissionRates = comm1
+	validators[2].Commission.CommissionRates = comm2
+	validators[3].Commission.CommissionRates = comm3
+
+	app.StakingKeeper.SetValidator(ctx, validators[0])
+	app.StakingKeeper.SetValidator(ctx, validators[1])
+	app.StakingKeeper.SetValidator(ctx, validators[2])
+	app.StakingKeeper.SetValidator(ctx, validators[3])
+
+	upgradePlan := upgradetypes.Plan{
+		Name:   commission.UpgradeName,
+		Height: ctx.BlockHeight(),
+	}
+	err := app.UpgradeKeeper.ScheduleUpgrade(ctx, upgradePlan)
+
+	require.NoError(t, err)
+	ctx = ctx.WithBlockHeader(tmproto.Header{Time: time.Now()})
+	app.UpgradeKeeper.ApplyUpgrade(ctx, upgradePlan)
+
+	validatorsAfter := app.StakingKeeper.GetAllValidators(ctx)
+
+	upgradeMinCommRate := sdk.MustNewDecFromStr(commission.NewMinCommisionRate)
+	require.Equal(t, validatorsAfter[0].Commission.CommissionRates.Rate, upgradeMinCommRate)
+	require.Equal(t, validatorsAfter[1].Commission.CommissionRates.Rate, upgradeMinCommRate)
+	require.Equal(t, validatorsAfter[0].Commission.CommissionRates.MaxRate, upgradeMinCommRate)
+	require.Equal(t, validatorsAfter[1].Commission.CommissionRates.MaxRate, upgradeMinCommRate)
+	require.Equal(t, validatorsAfter[2].Commission.CommissionRates.Rate, validators[2].Commission.CommissionRates.Rate)
+	require.Equal(t, validatorsAfter[3].Commission.CommissionRates.Rate, validators[3].Commission.CommissionRates.Rate)
+}
diff --git a/x/asset/genesis_test.go b/x/asset/genesis_test.go
index 82416a45..d8c982a4 100644
--- a/x/asset/genesis_test.go
+++ b/x/asset/genesis_test.go
@@ -32,7 +32,7 @@ func (suite *GenesisTestSuite) SetupTest() {
 	// consensus key
 	consAddress := sdk.ConsAddress(testutil.GenAddress().Bytes())
 
-	suite.app = app.Setup(false, feemarkettypes.DefaultGenesisState())
+	suite.app = app.Setup(false, feemarkettypes.DefaultGenesisState(), 1)
 	suite.ctx = suite.app.BaseApp.NewContext(false, tmproto.Header{
 		Height:          1,
 		ChainID:         realiotypes.MainnetChainID,
diff --git a/x/asset/keeper/keeper_test.go b/x/asset/keeper/keeper_test.go
index 4715b08f..34364f76 100644
--- a/x/asset/keeper/keeper_test.go
+++ b/x/asset/keeper/keeper_test.go
@@ -59,7 +59,7 @@ func (suite *KeeperTestSuite) DoSetupTest(t *testing.T) {
 	consAddress := sdk.ConsAddress(priv.PubKey().Address())
 
 	// init app
-	suite.app = app.Setup(checkTx, nil)
+	suite.app = app.Setup(checkTx, nil, 1)
 
 	// Set Context
 	suite.ctx = suite.app.BaseApp.NewContext(checkTx, tmproto.Header{
diff --git a/x/mint/keeper/keeper_test.go b/x/mint/keeper/keeper_test.go
index ed476e94..011dcdbb 100644
--- a/x/mint/keeper/keeper_test.go
+++ b/x/mint/keeper/keeper_test.go
@@ -53,7 +53,7 @@ func (suite *KeeperTestSuite) DoSetupTest(t *testing.T) {
 	consAddress := sdk.ConsAddress(priv.PubKey().Address())
 
 	// init app
-	suite.app = app.Setup(checkTx, nil)
+	suite.app = app.Setup(checkTx, nil, 1)
 
 	// Set Context
 	suite.ctx = suite.app.BaseApp.NewContext(checkTx, tmproto.Header{
diff --git a/x/mint/module_test.go b/x/mint/module_test.go
index 7115a762..1a0afc8b 100644
--- a/x/mint/module_test.go
+++ b/x/mint/module_test.go
@@ -12,7 +12,7 @@ import (
 )
 
 func TestItCreatesModuleAccountOnInitBlock(t *testing.T) {
-	realio := app.Setup(false, nil)
+	realio := app.Setup(false, nil, 1)
 	ctx := realio.BaseApp.NewContext(false, tmproto.Header{})
 	acc := realio.AccountKeeper.GetAccount(ctx, authtypes.NewModuleAddress(types.ModuleName))
 	require.NotNil(t, acc)