diff --git a/CHANGELOG.md b/CHANGELOG.md
index dd97bdf733..1d6ddb935b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -97,6 +97,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - [1319](https://github.com/umee-network/umee/pull/1319) Implemented MaxSupply.
 - [1331](https://github.com/umee-network/umee/pull/1331) Implemented MinCollateralLiquidity.
 - [1343](https://github.com/umee-network/umee/pull/1343) RepayBadDebt and Liquidate automatically clear blacklisted collateral.
+- [1379](https://github.com/umee-network/umee/pull/1379) Add `mininumCommissionRate` update to all validators.
 
 ### Improvements
 
diff --git a/app/upgrades.go b/app/upgrades.go
index 96c96b9a47..2f8e466840 100644
--- a/app/upgrades.go
+++ b/app/upgrades.go
@@ -11,6 +11,7 @@ import (
 
 	bech32ibckeeper "github.com/osmosis-labs/bech32-ibc/x/bech32ibc/keeper"
 	bech32ibctypes "github.com/osmosis-labs/bech32-ibc/x/bech32ibc/types"
+	v3upgrades "github.com/umee-network/umee/v3/app/upgrades/v3"
 	leveragetypes "github.com/umee-network/umee/v3/x/leverage/types"
 	oracletypes "github.com/umee-network/umee/v3/x/oracle/types"
 )
@@ -30,7 +31,30 @@ func (app UmeeApp) RegisterUpgradeHandlers() {
 			}
 
 			ctx.Logger().Info("Upgrade handler execution finished, running migrations", "name", UpgradeV3_0Plan)
-			return app.mm.RunMigrations(ctx, app.configurator, fromVM)
+			vm, err := app.mm.RunMigrations(ctx, app.configurator, fromVM)
+			if err != nil {
+				return vm, err
+			}
+
+			ctx.Logger().Info("Upgrade handler execution finished, updating minimum commission rate param of staking module",
+				"name", UpgradeV3_0Plan)
+			minCommissionRate, err := v3upgrades.UpdateMinimumCommissionRateParam(ctx, app.StakingKeeper)
+			if err != nil {
+				return vm, sdkerrors.Wrapf(
+					err, "Calypso %q Upgrade: Unable to upgrade, failed to update minimum commission rate param of staking module",
+					UpgradeV3_0Plan)
+			}
+
+			ctx.Logger().Info("Upgrade handler execution finished, updating minimum commission rate of all validators",
+				"name", UpgradeV3_0Plan)
+			err = v3upgrades.SetMinimumCommissionRateToValidatros(ctx, app.StakingKeeper, minCommissionRate)
+			if err != nil {
+				return vm, sdkerrors.Wrapf(
+					err, "Calypso %q Upgrade: Unable to upgrade, failed to update minimum commission rate for validators",
+					UpgradeV3_0Plan)
+			}
+
+			return vm, err
 		})
 
 	upgradeInfo, err := app.UpgradeKeeper.ReadUpgradeInfoFromDisk()
diff --git a/app/upgrades/v3/expected_types.go b/app/upgrades/v3/expected_types.go
new file mode 100644
index 0000000000..9526cc6038
--- /dev/null
+++ b/app/upgrades/v3/expected_types.go
@@ -0,0 +1,15 @@
+package v3
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/x/staking/types"
+)
+
+type StakingKeeper interface {
+	GetParams(ctx sdk.Context) types.Params
+	SetParams(ctx sdk.Context, params types.Params)
+	GetAllValidators(ctx sdk.Context) (validators []types.Validator)
+	BeforeValidatorModified(ctx sdk.Context, valAddr sdk.ValAddress) error
+	SetValidator(ctx sdk.Context, validator types.Validator)
+	GetValidator(ctx sdk.Context, addr sdk.ValAddress) (types.Validator, bool)
+}
diff --git a/app/upgrades/v3/min_commission.go b/app/upgrades/v3/min_commission.go
new file mode 100644
index 0000000000..7c4f479b8e
--- /dev/null
+++ b/app/upgrades/v3/min_commission.go
@@ -0,0 +1,42 @@
+package v3
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+var (
+	minCommissionRate = sdk.MustNewDecFromStr("0.05")
+)
+
+// UpdateMinimumCommissionRateParam is update the minimum commission rate param of staking.
+func UpdateMinimumCommissionRateParam(ctx sdk.Context, keeper StakingKeeper) (sdk.Dec, error) {
+	params := keeper.GetParams(ctx)
+	// update the minCommissionRate param
+	params.MinCommissionRate = minCommissionRate
+
+	keeper.SetParams(ctx, params)
+
+	return minCommissionRate, nil
+}
+
+// SetMinimumCommissionRateToValidatros is update the minimum commission rate to the validators rate
+// whose commission rate is below the minimum commission rate.
+func SetMinimumCommissionRateToValidatros(
+	ctx sdk.Context, keeper StakingKeeper, minCommissionRate sdk.Dec) error {
+	validators := keeper.GetAllValidators(ctx)
+
+	for _, validator := range validators {
+		if validator.Commission.Rate.IsNil() || validator.Commission.Rate.LT(minCommissionRate) {
+			if err := keeper.BeforeValidatorModified(ctx, validator.GetOperator()); err != nil {
+				return err
+			}
+
+			validator.Commission.Rate = minCommissionRate
+			validator.Commission.UpdateTime = ctx.BlockTime()
+
+			keeper.SetValidator(ctx, validator)
+		}
+	}
+
+	return nil
+}
diff --git a/app/upgrades/v3/min_commission_test.go b/app/upgrades/v3/min_commission_test.go
new file mode 100644
index 0000000000..6aeefcbe15
--- /dev/null
+++ b/app/upgrades/v3/min_commission_test.go
@@ -0,0 +1,51 @@
+package v3
+
+import (
+	"testing"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/x/staking/types"
+	"github.com/stretchr/testify/require"
+	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
+)
+
+func TestUpdateMinimumCommissionRateParam(t *testing.T) {
+	ctx := sdk.NewContext(nil, tmproto.Header{}, false, nil)
+	_, sk := GenerateRandomTestCase()
+
+	// check default min commission rate
+	oldParams := sk.GetParams(ctx)
+	require.Equal(t, types.DefaultMinCommissionRate, oldParams.MinCommissionRate)
+
+	//  update the min commission rate
+	_, err := UpdateMinimumCommissionRateParam(ctx, &sk)
+	require.NoError(t, err)
+
+	// get the updated params
+	updatedParams := sk.GetParams(ctx)
+	require.Equal(t, minCommissionRate, updatedParams.MinCommissionRate)
+}
+
+func TestSetMinimumCommissionRateToValidatros(t *testing.T) {
+	ctx := sdk.NewContext(nil, tmproto.Header{}, false, nil)
+	valAddrs, sk := GenerateRandomTestCase()
+
+	// update the min commission rate
+	minCommissionRate, err := UpdateMinimumCommissionRateParam(ctx, &sk)
+	require.NoError(t, err)
+	require.NotNil(t, minCommissionRate)
+
+	// update min commisson rate to all validators
+	err = SetMinimumCommissionRateToValidatros(ctx, &sk, minCommissionRate)
+	require.NoError(t, err)
+
+	// get the validator
+	validator, found := sk.GetValidator(ctx, valAddrs[0])
+	require.True(t, found)
+	require.True(t, minCommissionRate.Equal(validator.Commission.Rate))
+
+	validator2, found := sk.GetValidator(ctx, valAddrs[1])
+	require.True(t, found)
+	// validator2 commission rate should be greater than minCommissionRate
+	require.True(t, minCommissionRate.LT(validator2.Commission.Rate))
+}
diff --git a/app/upgrades/v3/staking_util_test.go b/app/upgrades/v3/staking_util_test.go
new file mode 100644
index 0000000000..039f69bf62
--- /dev/null
+++ b/app/upgrades/v3/staking_util_test.go
@@ -0,0 +1,106 @@
+package v3
+
+import (
+	"crypto/rand"
+	"math/big"
+
+	"github.com/cosmos/cosmos-sdk/crypto/keys/secp256k1"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/x/staking/types"
+)
+
+var (
+	_ StakingKeeper = &MockStakingKeeper{}
+)
+
+// MockStakingKeeper imlements the StakingKeeper interface.
+type MockStakingKeeper struct {
+	validators []types.Validator
+	params     types.Params
+}
+
+// GetValidator implements StakingKeeper
+func (m *MockStakingKeeper) GetValidator(ctx sdk.Context, addr sdk.ValAddress) (types.Validator, bool) {
+	var (
+		validator types.Validator
+		found     bool
+	)
+
+	for _, v := range m.validators {
+		if v.GetOperator().Equals(addr) {
+			found = true
+			validator = v
+			break
+		}
+	}
+
+	return validator, found
+}
+
+// BeforeValidatorModified implements StakingKeeper
+func (*MockStakingKeeper) BeforeValidatorModified(ctx sdk.Context, valAddr sdk.ValAddress) error {
+	return nil
+}
+
+// GetAllValidators implements StakingKeeper
+func (m *MockStakingKeeper) GetAllValidators(ctx sdk.Context) (validators []types.Validator) {
+	return m.validators
+}
+
+// GetParams implements StakingKeeper
+func (m *MockStakingKeeper) GetParams(ctx sdk.Context) types.Params {
+	return m.params
+}
+
+// SetParams implements StakingKeeper
+func (m *MockStakingKeeper) SetParams(ctx sdk.Context, params types.Params) {
+	m.params = params
+}
+
+// SetValidator implements StakingKeeper
+func (m *MockStakingKeeper) SetValidator(ctx sdk.Context, validator types.Validator) {
+	for index, v := range m.validators {
+		if v.GetOperator().Equals(validator.GetOperator()) {
+			m.validators[index] = validator
+			break
+		}
+	}
+}
+
+// GenerateRandomTestCase
+func GenerateRandomTestCase() ([]sdk.ValAddress, MockStakingKeeper) {
+	mockValidators := []types.Validator{}
+
+	var valAddrs []sdk.ValAddress
+	randNum, _ := rand.Int(rand.Reader, big.NewInt(10000))
+	numInputs := 10 + int((randNum.Int64() % 100))
+	for i := 0; i < numInputs; i++ {
+		pubKey := secp256k1.GenPrivKey().PubKey()
+		valValAddr := sdk.ValAddress(pubKey.Address())
+		mockValidator, _ := types.NewValidator(valValAddr, pubKey, types.Description{})
+		mockValidators = append(mockValidators, mockValidator)
+	}
+
+	// adding 0.01 to first validator
+	val := mockValidators[0]
+	val.Commission.Rate = sdk.MustNewDecFromStr("0.01")
+	mockValidators[0] = val
+
+	// adding more then minimumCommissionRate to validator 2
+	val = mockValidators[1]
+	val.Commission.Rate = types.DefaultMinCommissionRate.Add(sdk.MustNewDecFromStr("1"))
+	mockValidators[1] = val
+
+	valAddrs = []sdk.ValAddress{mockValidators[0].GetOperator(), mockValidators[1].GetOperator()}
+
+	stakingKeeper := NewMockStakingKeeper(mockValidators)
+
+	return valAddrs, stakingKeeper
+}
+
+func NewMockStakingKeeper(validatros []types.Validator) MockStakingKeeper {
+	return MockStakingKeeper{
+		validators: validatros,
+		params:     types.DefaultParams(),
+	}
+}