diff --git a/Makefile b/Makefile
index ea20201704..8a2f2f261f 100644
--- a/Makefile
+++ b/Makefile
@@ -125,12 +125,15 @@ distclean: clean
 ### Testing
 
 
-test: test-unit
+test: test-unit test-app2
 test-all: check test-race test-cover
 
 test-unit:
 	@VERSION=$(VERSION) go test -mod=readonly -tags='ledger test_ledger_mock' ./...
 
+test-app2:
+	@VERSION=$(VERSION) go test -mod=readonly -tags='ledger test_ledger_mock app_v2' ./app/... ./tests/...
+
 test-race:
 	@VERSION=$(VERSION) go test -mod=readonly -race -tags='ledger test_ledger_mock' ./...
 
@@ -200,4 +203,4 @@ proto-check-breaking:
 .PHONY: all install install-debug \
 	go-mod-cache draw-deps clean build format \
 	test test-all test-build test-cover test-unit test-race \
-	test-sim-import-export build-windows-client \
+	test-sim-import-export build-windows-client test-app2 \
diff --git a/app/app.go b/app/app.go
index 55a4d0af73..fc1da4ded8 100644
--- a/app/app.go
+++ b/app/app.go
@@ -1,3 +1,5 @@
+//go:build !app_v2
+
 package app
 
 import (
@@ -42,8 +44,6 @@ import (
 	authtx "github.com/cosmos/cosmos-sdk/x/auth/tx"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	"github.com/cosmos/cosmos-sdk/x/auth/vesting"
-	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
-	"github.com/cosmos/cosmos-sdk/x/authz"
 	authzkeeper "github.com/cosmos/cosmos-sdk/x/authz/keeper"
 	authzmodule "github.com/cosmos/cosmos-sdk/x/authz/module"
 	"github.com/cosmos/cosmos-sdk/x/bank"
@@ -68,7 +68,6 @@ import (
 	feegrantkeeper "github.com/cosmos/cosmos-sdk/x/feegrant/keeper"
 	feegrantmodule "github.com/cosmos/cosmos-sdk/x/feegrant/module"
 	"github.com/cosmos/cosmos-sdk/x/genutil"
-	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
 	"github.com/cosmos/cosmos-sdk/x/gov"
 	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
@@ -79,11 +78,9 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/mint"
 	mintkeeper "github.com/cosmos/cosmos-sdk/x/mint/keeper"
 	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
-	"github.com/cosmos/cosmos-sdk/x/nft"
 	nftkeeper "github.com/cosmos/cosmos-sdk/x/nft/keeper"
 	nftmodule "github.com/cosmos/cosmos-sdk/x/nft/module"
 	"github.com/cosmos/cosmos-sdk/x/params"
-	paramsclient "github.com/cosmos/cosmos-sdk/x/params/client"
 	paramskeeper "github.com/cosmos/cosmos-sdk/x/params/keeper"
 	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
 	paramproposal "github.com/cosmos/cosmos-sdk/x/params/types/proposal"
@@ -94,7 +91,6 @@ import (
 	stakingkeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
 	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 	"github.com/cosmos/cosmos-sdk/x/upgrade"
-	upgradeclient "github.com/cosmos/cosmos-sdk/x/upgrade/client"
 	upgradekeeper "github.com/cosmos/cosmos-sdk/x/upgrade/keeper"
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
 	ica "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts"
@@ -104,7 +100,6 @@ import (
 	icahost "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/host"
 	icahostkeeper "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/host/keeper"
 	icahosttypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/host/types"
-	icatypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/types"
 	ibcfee "github.com/cosmos/ibc-go/v7/modules/apps/29-fee"
 	ibcfeekeeper "github.com/cosmos/ibc-go/v7/modules/apps/29-fee/keeper"
 	ibcfeetypes "github.com/cosmos/ibc-go/v7/modules/apps/29-fee/types"
@@ -113,16 +108,13 @@ import (
 	ibctransfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
 	ibc "github.com/cosmos/ibc-go/v7/modules/core"
 	ibcclient "github.com/cosmos/ibc-go/v7/modules/core/02-client"
-	ibcclientclient "github.com/cosmos/ibc-go/v7/modules/core/02-client/client"
 	ibcclienttypes "github.com/cosmos/ibc-go/v7/modules/core/02-client/types"
 	porttypes "github.com/cosmos/ibc-go/v7/modules/core/05-port/types"
 	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
 	ibckeeper "github.com/cosmos/ibc-go/v7/modules/core/keeper"
-	ibctm "github.com/cosmos/ibc-go/v7/modules/light-clients/07-tendermint"
 	"github.com/spf13/cast"
 
 	"github.com/CosmWasm/wasmd/x/wasm"
-	wasmclient "github.com/CosmWasm/wasmd/x/wasm/client"
 	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
 )
@@ -181,64 +173,6 @@ var (
 	Bech32PrefixConsPub = Bech32Prefix + sdk.PrefixValidator + sdk.PrefixConsensus + sdk.PrefixPublic
 )
 
-var (
-	// ModuleBasics defines the module BasicManager is in charge of setting up basic,
-	// non-dependant module elements, such as codec registration
-	// and genesis verification.
-	ModuleBasics = module.NewBasicManager(
-		auth.AppModuleBasic{},
-		genutil.NewAppModuleBasic(genutiltypes.DefaultMessageValidator),
-		bank.AppModuleBasic{},
-		capability.AppModuleBasic{},
-		staking.AppModuleBasic{},
-		mint.AppModuleBasic{},
-		distr.AppModuleBasic{},
-		gov.NewAppModuleBasic(
-			append(
-				wasmclient.ProposalHandlers,
-				paramsclient.ProposalHandler,
-				upgradeclient.LegacyProposalHandler,
-				upgradeclient.LegacyCancelProposalHandler,
-				ibcclientclient.UpdateClientProposalHandler,
-				ibcclientclient.UpgradeProposalHandler,
-			),
-		),
-		params.AppModuleBasic{},
-		crisis.AppModuleBasic{},
-		slashing.AppModuleBasic{},
-		feegrantmodule.AppModuleBasic{},
-		upgrade.AppModuleBasic{},
-		evidence.AppModuleBasic{},
-		authzmodule.AppModuleBasic{},
-		groupmodule.AppModuleBasic{},
-		vesting.AppModuleBasic{},
-		nftmodule.AppModuleBasic{},
-		consensus.AppModuleBasic{},
-		// non sdk modules
-		wasm.AppModuleBasic{},
-		ibc.AppModuleBasic{},
-		ibctm.AppModuleBasic{},
-		transfer.AppModuleBasic{},
-		ica.AppModuleBasic{},
-		ibcfee.AppModuleBasic{},
-	)
-
-	// module account permissions
-	maccPerms = map[string][]string{
-		authtypes.FeeCollectorName:     nil,
-		distrtypes.ModuleName:          nil,
-		minttypes.ModuleName:           {authtypes.Minter},
-		stakingtypes.BondedPoolName:    {authtypes.Burner, authtypes.Staking},
-		stakingtypes.NotBondedPoolName: {authtypes.Burner, authtypes.Staking},
-		govtypes.ModuleName:            {authtypes.Burner},
-		nft.ModuleName:                 nil,
-		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
-		ibcfeetypes.ModuleName:         nil,
-		icatypes.ModuleName:            nil,
-		wasm.ModuleName:                {authtypes.Burner},
-	}
-)
-
 var (
 	_ runtime.AppI            = (*WasmApp)(nil)
 	_ servertypes.Application = (*WasmApp)(nil)
@@ -385,7 +319,7 @@ func NewWasmApp(
 		appCodec,
 		keys[authtypes.StoreKey],
 		authtypes.ProtoBaseAccount,
-		maccPerms,
+		GetMaccPerms(),
 		Bech32Prefix,
 		authtypes.NewModuleAddress(govtypes.ModuleName).String(),
 	)
@@ -686,62 +620,9 @@ func NewWasmApp(
 		crisis.NewAppModule(app.CrisisKeeper, skipGenesisInvariants, app.GetSubspace(crisistypes.ModuleName)), // always be last to make sure that it checks for all invariants and not only part of them
 	)
 
-	// During begin block slashing happens after distr.BeginBlocker so that
-	// there is nothing left over in the validator fee pool, so as to keep the
-	// CanWithdrawInvariant invariant.
-	// NOTE: staking module is required if HistoricalEntries param > 0
-	// NOTE: capability module's beginblocker must come before any modules using capabilities (e.g. IBC)
-	app.ModuleManager.SetOrderBeginBlockers(
-		upgradetypes.ModuleName, capabilitytypes.ModuleName, minttypes.ModuleName, distrtypes.ModuleName, slashingtypes.ModuleName,
-		evidencetypes.ModuleName, stakingtypes.ModuleName,
-		authtypes.ModuleName, banktypes.ModuleName, govtypes.ModuleName, crisistypes.ModuleName, genutiltypes.ModuleName,
-		authz.ModuleName, feegrant.ModuleName, nft.ModuleName, group.ModuleName,
-		paramstypes.ModuleName, vestingtypes.ModuleName, consensusparamtypes.ModuleName,
-		// additional non simd modules
-		ibctransfertypes.ModuleName,
-		ibcexported.ModuleName,
-		icatypes.ModuleName,
-		ibcfeetypes.ModuleName,
-		wasm.ModuleName,
-	)
-
-	app.ModuleManager.SetOrderEndBlockers(
-		crisistypes.ModuleName, govtypes.ModuleName, stakingtypes.ModuleName,
-		capabilitytypes.ModuleName, authtypes.ModuleName, banktypes.ModuleName, distrtypes.ModuleName,
-		slashingtypes.ModuleName, minttypes.ModuleName,
-		genutiltypes.ModuleName, evidencetypes.ModuleName, authz.ModuleName,
-		feegrant.ModuleName, nft.ModuleName, group.ModuleName,
-		paramstypes.ModuleName, upgradetypes.ModuleName, vestingtypes.ModuleName, consensusparamtypes.ModuleName,
-		// additional non simd modules
-		ibctransfertypes.ModuleName,
-		ibcexported.ModuleName,
-		icatypes.ModuleName,
-		ibcfeetypes.ModuleName,
-		wasm.ModuleName,
-	)
+	app.ModuleManager.SetOrderBeginBlockers(beginBlocker...)
+	app.ModuleManager.SetOrderEndBlockers(endBlocker...)
 
-	// NOTE: The genutils module must occur after staking so that pools are
-	// properly initialized with tokens from genesis accounts.
-	// NOTE: The genutils module must also occur after auth so that it can access the params from auth.
-	// NOTE: Capability module must occur first so that it can initialize any capabilities
-	// so that other modules that want to create or claim capabilities afterwards in InitChain
-	// can do so safely.
-	// NOTE: wasm module should be at the end as it can call other module functionality direct or via message dispatching during
-	// genesis phase. For example bank transfer, auth account check, staking, ...
-	genesisModuleOrder := []string{
-		capabilitytypes.ModuleName, authtypes.ModuleName, banktypes.ModuleName,
-		distrtypes.ModuleName, stakingtypes.ModuleName, slashingtypes.ModuleName, govtypes.ModuleName,
-		minttypes.ModuleName, crisistypes.ModuleName, genutiltypes.ModuleName, evidencetypes.ModuleName, authz.ModuleName,
-		feegrant.ModuleName, nft.ModuleName, group.ModuleName, paramstypes.ModuleName, upgradetypes.ModuleName,
-		vestingtypes.ModuleName, consensusparamtypes.ModuleName,
-		// additional non simd modules
-		ibctransfertypes.ModuleName,
-		ibcexported.ModuleName,
-		icatypes.ModuleName,
-		ibcfeetypes.ModuleName,
-		// wasm after ibc transfer
-		wasm.ModuleName,
-	}
 	app.ModuleManager.SetOrderInitGenesis(genesisModuleOrder...)
 	app.ModuleManager.SetOrderExportGenesis(genesisModuleOrder...)
 
@@ -1017,12 +898,12 @@ func (app *WasmApp) RegisterNodeService(clientCtx client.Context) {
 //
 // NOTE: This is solely to be used for testing purposes.
 func GetMaccPerms() map[string][]string {
-	dupMaccPerms := make(map[string][]string)
-	for k, v := range maccPerms {
-		dupMaccPerms[k] = v
+	dup := make(map[string][]string)
+	for _, perms := range moduleAccPerms {
+		dup[perms.Account] = perms.Permissions
 	}
 
-	return dupMaccPerms
+	return dup
 }
 
 // BlockedAddresses returns all the app's blocked account addresses.
diff --git a/app/app_config.go b/app/app_config.go
new file mode 100644
index 0000000000..0456a58e89
--- /dev/null
+++ b/app/app_config.go
@@ -0,0 +1,204 @@
+package app
+
+import (
+	authmodulev1 "cosmossdk.io/api/cosmos/auth/module/v1"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	"github.com/cosmos/cosmos-sdk/x/auth"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	"github.com/cosmos/cosmos-sdk/x/auth/vesting"
+	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
+	"github.com/cosmos/cosmos-sdk/x/authz"
+	authzmodule "github.com/cosmos/cosmos-sdk/x/authz/module"
+	"github.com/cosmos/cosmos-sdk/x/bank"
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+	"github.com/cosmos/cosmos-sdk/x/capability"
+	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
+	"github.com/cosmos/cosmos-sdk/x/consensus"
+	consensustypes "github.com/cosmos/cosmos-sdk/x/consensus/types"
+	"github.com/cosmos/cosmos-sdk/x/crisis"
+	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
+	distr "github.com/cosmos/cosmos-sdk/x/distribution"
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
+	"github.com/cosmos/cosmos-sdk/x/evidence"
+	evidencetypes "github.com/cosmos/cosmos-sdk/x/evidence/types"
+	"github.com/cosmos/cosmos-sdk/x/feegrant"
+	feegrantmodule "github.com/cosmos/cosmos-sdk/x/feegrant/module"
+	"github.com/cosmos/cosmos-sdk/x/genutil"
+	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
+	"github.com/cosmos/cosmos-sdk/x/gov"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	"github.com/cosmos/cosmos-sdk/x/group"
+	groupmodule "github.com/cosmos/cosmos-sdk/x/group/module"
+	"github.com/cosmos/cosmos-sdk/x/mint"
+	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
+	"github.com/cosmos/cosmos-sdk/x/nft"
+	nftmodule "github.com/cosmos/cosmos-sdk/x/nft/module"
+	"github.com/cosmos/cosmos-sdk/x/params"
+	paramsclient "github.com/cosmos/cosmos-sdk/x/params/client"
+	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	"github.com/cosmos/cosmos-sdk/x/slashing"
+	slashingtypes "github.com/cosmos/cosmos-sdk/x/slashing/types"
+	"github.com/cosmos/cosmos-sdk/x/staking"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	"github.com/cosmos/cosmos-sdk/x/upgrade"
+	upgradeclient "github.com/cosmos/cosmos-sdk/x/upgrade/client"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	ica "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts"
+	icatypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/types"
+	ibcfee "github.com/cosmos/ibc-go/v7/modules/apps/29-fee"
+	ibcfeetypes "github.com/cosmos/ibc-go/v7/modules/apps/29-fee/types"
+	"github.com/cosmos/ibc-go/v7/modules/apps/transfer"
+	ibctransfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
+	ibc "github.com/cosmos/ibc-go/v7/modules/core"
+	ibcclientclient "github.com/cosmos/ibc-go/v7/modules/core/02-client/client"
+	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
+	solomachine "github.com/cosmos/ibc-go/v7/modules/light-clients/06-solomachine"
+	ibctm "github.com/cosmos/ibc-go/v7/modules/light-clients/07-tendermint"
+
+	"github.com/CosmWasm/wasmd/x/wasm"
+	wasmclient "github.com/CosmWasm/wasmd/x/wasm/client"
+	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
+)
+
+var (
+	// ModuleBasics defines the module BasicManager is in charge of setting up basic,
+	// non-dependant module elements, such as codec registration
+	// and genesis verification.
+	ModuleBasics = module.NewBasicManager(
+		auth.AppModuleBasic{},
+		genutil.NewAppModuleBasic(genutiltypes.DefaultMessageValidator),
+		bank.AppModuleBasic{},
+		capability.AppModuleBasic{},
+		staking.AppModuleBasic{},
+		mint.AppModuleBasic{},
+		distr.AppModuleBasic{},
+		gov.NewAppModuleBasic(
+			append(
+				wasmclient.ProposalHandlers,
+				paramsclient.ProposalHandler,
+				upgradeclient.LegacyProposalHandler,
+				upgradeclient.LegacyCancelProposalHandler,
+				ibcclientclient.UpdateClientProposalHandler,
+				ibcclientclient.UpgradeProposalHandler,
+			),
+		),
+		params.AppModuleBasic{},
+		crisis.AppModuleBasic{},
+		slashing.AppModuleBasic{},
+		feegrantmodule.AppModuleBasic{},
+		upgrade.AppModuleBasic{},
+		evidence.AppModuleBasic{},
+		authzmodule.AppModuleBasic{},
+		groupmodule.AppModuleBasic{},
+		vesting.AppModuleBasic{},
+		nftmodule.AppModuleBasic{},
+		consensus.AppModuleBasic{},
+		// non sdk modules
+		wasm.AppModuleBasic{},
+		ibc.AppModuleBasic{},
+		ibctm.AppModuleBasic{},
+		solomachine.AppModuleBasic{},
+		transfer.AppModuleBasic{},
+		ica.AppModuleBasic{},
+		ibcfee.AppModuleBasic{},
+	)
+
+	// module account permissions
+	moduleAccPerms = []*authmodulev1.ModuleAccountPermission{
+		{Account: authtypes.FeeCollectorName},
+		{Account: distrtypes.ModuleName},
+		{Account: minttypes.ModuleName, Permissions: []string{authtypes.Minter}},
+		{Account: stakingtypes.BondedPoolName, Permissions: []string{authtypes.Burner, stakingtypes.ModuleName}},
+		{Account: stakingtypes.NotBondedPoolName, Permissions: []string{authtypes.Burner, stakingtypes.ModuleName}},
+		{Account: govtypes.ModuleName, Permissions: []string{authtypes.Burner}},
+		{Account: nft.ModuleName},
+		{Account: ibctransfertypes.ModuleName, Permissions: []string{authtypes.Minter, authtypes.Burner}},
+		{Account: ibcfeetypes.ModuleName},
+		{Account: icatypes.ModuleName},
+		{Account: wasmtypes.ModuleName, Permissions: []string{authtypes.Burner}},
+	}
+
+	// NOTE: The genutils module must occur after staking so that pools are
+	// properly initialized with tokens from genesis accounts.
+	// NOTE: The genutils module must also occur after auth so that it can access the params from auth.
+	// NOTE: Capability module must occur first so that it can initialize any capabilities
+	// so that other modules that want to create or claim capabilities afterwards in InitChain
+	// can do so safely.
+	// NOTE: wasm module should be at the end as it can call other module functionality direct or via message dispatching during
+	// genesis phase. For example bank transfer, auth account check, staking, ...
+	genesisModuleOrder = []string{
+		capabilitytypes.ModuleName, authtypes.ModuleName, banktypes.ModuleName,
+		distrtypes.ModuleName, stakingtypes.ModuleName, slashingtypes.ModuleName, govtypes.ModuleName,
+		minttypes.ModuleName, crisistypes.ModuleName, genutiltypes.ModuleName, evidencetypes.ModuleName, authz.ModuleName,
+		feegrant.ModuleName, nft.ModuleName, group.ModuleName, paramstypes.ModuleName, upgradetypes.ModuleName,
+		vestingtypes.ModuleName, consensustypes.ModuleName,
+		// additional non simd modules
+		ibctransfertypes.ModuleName,
+		ibcexported.ModuleName,
+		icatypes.ModuleName,
+		ibcfeetypes.ModuleName,
+		// wasm after ibc transfer
+		wasm.ModuleName,
+	}
+
+	// During begin block slashing happens after distr.BeginBlocker so that
+	// there is nothing left over in the validator fee pool, so as to keep the
+	// CanWithdrawInvariant invariant.
+	// NOTE: staking module is required if HistoricalEntries param > 0
+	// NOTE: capability module's begin blocker must come before any modules using capabilities (e.g. IBC)
+	beginBlocker = []string{
+		upgradetypes.ModuleName,
+		capabilitytypes.ModuleName,
+		minttypes.ModuleName,
+		distrtypes.ModuleName,
+		slashingtypes.ModuleName,
+		evidencetypes.ModuleName,
+		stakingtypes.ModuleName,
+		authtypes.ModuleName,
+		banktypes.ModuleName,
+		govtypes.ModuleName,
+		crisistypes.ModuleName,
+		genutiltypes.ModuleName,
+		authz.ModuleName,
+		feegrant.ModuleName,
+		nft.ModuleName,
+		group.ModuleName,
+		paramstypes.ModuleName,
+		vestingtypes.ModuleName,
+		consensustypes.ModuleName,
+		// additional non simd modules
+		ibctransfertypes.ModuleName,
+		ibcexported.ModuleName,
+		icatypes.ModuleName,
+		ibcfeetypes.ModuleName,
+		wasm.ModuleName,
+	}
+
+	endBlocker = []string{
+		crisistypes.ModuleName,
+		govtypes.ModuleName,
+		stakingtypes.ModuleName,
+		capabilitytypes.ModuleName,
+		authtypes.ModuleName,
+		banktypes.ModuleName,
+		distrtypes.ModuleName,
+		slashingtypes.ModuleName,
+		minttypes.ModuleName,
+		genutiltypes.ModuleName,
+		evidencetypes.ModuleName,
+		authz.ModuleName,
+		feegrant.ModuleName,
+		nft.ModuleName,
+		group.ModuleName,
+		paramstypes.ModuleName,
+		consensustypes.ModuleName,
+		upgradetypes.ModuleName,
+		vestingtypes.ModuleName,
+		// additional non simd modules
+		ibctransfertypes.ModuleName,
+		ibcexported.ModuleName,
+		icatypes.ModuleName,
+		ibcfeetypes.ModuleName,
+		wasm.ModuleName,
+	}
+)
diff --git a/app/app_test.go b/app/app_test.go
index dbcae4ee34..301cf0b890 100644
--- a/app/app_test.go
+++ b/app/app_test.go
@@ -48,11 +48,6 @@ func TestBlockedAddrs(t *testing.T) {
 	}
 }
 
-func TestGetMaccPerms(t *testing.T) {
-	dup := GetMaccPerms()
-	require.Equal(t, maccPerms, dup, "duplicated module account permissions differed from actual module account permissions")
-}
-
 func TestGetEnabledProposals(t *testing.T) {
 	cases := map[string]struct {
 		proposalsEnabled string
diff --git a/app/app_v2.go b/app/app_v2.go
new file mode 100644
index 0000000000..00f2200e9e
--- /dev/null
+++ b/app/app_v2.go
@@ -0,0 +1,681 @@
+//go:build app_v2
+
+package app
+
+import (
+	"fmt"
+	"io"
+	"os"
+	"path/filepath"
+	"strings"
+
+	solomachine "github.com/cosmos/ibc-go/v7/modules/light-clients/06-solomachine"
+	ibctm "github.com/cosmos/ibc-go/v7/modules/light-clients/07-tendermint"
+
+	"cosmossdk.io/depinject"
+
+	dbm "github.com/cometbft/cometbft-db"
+	"github.com/cometbft/cometbft/libs/log"
+	tmos "github.com/cometbft/cometbft/libs/os"
+	tmproto "github.com/cometbft/cometbft/proto/tendermint/types"
+	"github.com/cosmos/cosmos-sdk/baseapp"
+	"github.com/cosmos/cosmos-sdk/client"
+	"github.com/cosmos/cosmos-sdk/client/flags"
+	"github.com/cosmos/cosmos-sdk/codec"
+	"github.com/cosmos/cosmos-sdk/codec/types"
+	"github.com/cosmos/cosmos-sdk/runtime"
+	"github.com/cosmos/cosmos-sdk/server"
+	"github.com/cosmos/cosmos-sdk/server/api"
+	"github.com/cosmos/cosmos-sdk/server/config"
+	servertypes "github.com/cosmos/cosmos-sdk/server/types"
+	"github.com/cosmos/cosmos-sdk/store/streaming"
+	storetypes "github.com/cosmos/cosmos-sdk/store/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	"github.com/cosmos/cosmos-sdk/x/auth"
+	"github.com/cosmos/cosmos-sdk/x/auth/ante"
+	authkeeper "github.com/cosmos/cosmos-sdk/x/auth/keeper"
+	"github.com/cosmos/cosmos-sdk/x/auth/posthandler"
+	authsims "github.com/cosmos/cosmos-sdk/x/auth/simulation"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	authzkeeper "github.com/cosmos/cosmos-sdk/x/authz/keeper"
+	bankkeeper "github.com/cosmos/cosmos-sdk/x/bank/keeper"
+	capabilitykeeper "github.com/cosmos/cosmos-sdk/x/capability/keeper"
+	consensusparamkeeper "github.com/cosmos/cosmos-sdk/x/consensus/keeper"
+	crisiskeeper "github.com/cosmos/cosmos-sdk/x/crisis/keeper"
+	distrkeeper "github.com/cosmos/cosmos-sdk/x/distribution/keeper"
+	evidencekeeper "github.com/cosmos/cosmos-sdk/x/evidence/keeper"
+	feegrantkeeper "github.com/cosmos/cosmos-sdk/x/feegrant/keeper"
+	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	govv1beta1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1beta1"
+	groupkeeper "github.com/cosmos/cosmos-sdk/x/group/keeper"
+	mintkeeper "github.com/cosmos/cosmos-sdk/x/mint/keeper"
+	nftkeeper "github.com/cosmos/cosmos-sdk/x/nft/keeper"
+	paramskeeper "github.com/cosmos/cosmos-sdk/x/params/keeper"
+	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	paramproposal "github.com/cosmos/cosmos-sdk/x/params/types/proposal"
+	slashingkeeper "github.com/cosmos/cosmos-sdk/x/slashing/keeper"
+	stakingkeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
+	upgradekeeper "github.com/cosmos/cosmos-sdk/x/upgrade/keeper"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	ica "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts"
+	icacontroller "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/controller"
+	icacontrollerkeeper "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/controller/keeper"
+	icacontrollertypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/controller/types"
+	icahost "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/host"
+	icahostkeeper "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/host/keeper"
+	icahosttypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/host/types"
+	ibcfee "github.com/cosmos/ibc-go/v7/modules/apps/29-fee"
+	ibcfeekeeper "github.com/cosmos/ibc-go/v7/modules/apps/29-fee/keeper"
+	ibcfeetypes "github.com/cosmos/ibc-go/v7/modules/apps/29-fee/types"
+	transfer "github.com/cosmos/ibc-go/v7/modules/apps/transfer"
+	ibctransferkeeper "github.com/cosmos/ibc-go/v7/modules/apps/transfer/keeper"
+	ibctransfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
+	ibc "github.com/cosmos/ibc-go/v7/modules/core"
+	ibcclient "github.com/cosmos/ibc-go/v7/modules/core/02-client"
+	ibcclienttypes "github.com/cosmos/ibc-go/v7/modules/core/02-client/types"
+	porttypes "github.com/cosmos/ibc-go/v7/modules/core/05-port/types"
+	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
+	ibckeeper "github.com/cosmos/ibc-go/v7/modules/core/keeper"
+	"github.com/spf13/cast"
+
+	"github.com/CosmWasm/wasmd/x/wasm"
+	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
+	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
+)
+
+const appName = "WasmApp"
+
+// We pull these out so we can set them with LDFLAGS in the Makefile
+var (
+	NodeDir      = ".wasmd"
+	Bech32Prefix = "wasm"
+
+	// If EnabledSpecificProposals is "", and this is "true", then enable all x/wasm proposals.
+	// If EnabledSpecificProposals is "", and this is not "true", then disable all x/wasm proposals.
+	ProposalsEnabled = "false"
+	// If set to non-empty string it must be comma-separated list of values that are all a subset
+	// of "EnableAllProposals" (takes precedence over ProposalsEnabled)
+	// https://github.com/CosmWasm/wasmd/blob/02a54d33ff2c064f3539ae12d75d027d9c665f05/x/wasm/internal/types/proposal.go#L28-L34
+	EnableSpecificProposals = ""
+)
+
+// GetEnabledProposals parses the ProposalsEnabled / EnableSpecificProposals values to
+// produce a list of enabled proposals to pass into wasmd app.
+func GetEnabledProposals() []wasm.ProposalType {
+	if EnableSpecificProposals == "" {
+		if ProposalsEnabled == "true" {
+			return wasm.EnableAllProposals
+		}
+		return wasm.DisableAllProposals
+	}
+	chunks := strings.Split(EnableSpecificProposals, ",")
+	proposals, err := wasm.ConvertToProposals(chunks)
+	if err != nil {
+		panic(err)
+	}
+	return proposals
+}
+
+// These constants are derived from the above variables.
+// These are the ones we will want to use in the code, based on
+// any overrides above
+var (
+	// DefaultNodeHome default home directories for wasmd
+	DefaultNodeHome = os.ExpandEnv("$HOME/") + NodeDir
+
+	// Bech32PrefixAccAddr defines the Bech32 prefix of an account's address
+	Bech32PrefixAccAddr = Bech32Prefix
+	// Bech32PrefixAccPub defines the Bech32 prefix of an account's public key
+	Bech32PrefixAccPub = Bech32Prefix + sdk.PrefixPublic
+	// Bech32PrefixValAddr defines the Bech32 prefix of a validator's operator address
+	Bech32PrefixValAddr = Bech32Prefix + sdk.PrefixValidator + sdk.PrefixOperator
+	// Bech32PrefixValPub defines the Bech32 prefix of a validator's operator public key
+	Bech32PrefixValPub = Bech32Prefix + sdk.PrefixValidator + sdk.PrefixOperator + sdk.PrefixPublic
+	// Bech32PrefixConsAddr defines the Bech32 prefix of a consensus node address
+	Bech32PrefixConsAddr = Bech32Prefix + sdk.PrefixValidator + sdk.PrefixConsensus
+	// Bech32PrefixConsPub defines the Bech32 prefix of a consensus node public key
+	Bech32PrefixConsPub = Bech32Prefix + sdk.PrefixValidator + sdk.PrefixConsensus + sdk.PrefixPublic
+)
+
+var (
+	_ runtime.AppI            = (*WasmApp)(nil)
+	_ servertypes.Application = (*WasmApp)(nil)
+)
+
+// WasmApp extended ABCI application
+type WasmApp struct {
+	*runtime.App
+	legacyAmino       *codec.LegacyAmino
+	appCodec          codec.Codec
+	txConfig          client.TxConfig
+	interfaceRegistry types.InterfaceRegistry
+
+	// keys to access the substores
+	keys                  map[string]*storetypes.KVStoreKey
+	AccountKeeper         authkeeper.AccountKeeper
+	BankKeeper            bankkeeper.Keeper
+	CapabilityKeeper      *capabilitykeeper.Keeper
+	StakingKeeper         *stakingkeeper.Keeper
+	SlashingKeeper        slashingkeeper.Keeper
+	MintKeeper            mintkeeper.Keeper
+	DistrKeeper           distrkeeper.Keeper
+	GovKeeper             *govkeeper.Keeper
+	CrisisKeeper          *crisiskeeper.Keeper
+	UpgradeKeeper         *upgradekeeper.Keeper
+	ParamsKeeper          paramskeeper.Keeper
+	AuthzKeeper           authzkeeper.Keeper
+	EvidenceKeeper        evidencekeeper.Keeper
+	FeeGrantKeeper        feegrantkeeper.Keeper
+	GroupKeeper           groupkeeper.Keeper
+	NFTKeeper             nftkeeper.Keeper
+	ConsensusParamsKeeper consensusparamkeeper.Keeper
+
+	IBCKeeper           *ibckeeper.Keeper // IBC Keeper must be a pointer in the app, so we can SetRouter on it correctly
+	IBCFeeKeeper        ibcfeekeeper.Keeper
+	ICAControllerKeeper icacontrollerkeeper.Keeper
+	ICAHostKeeper       icahostkeeper.Keeper
+	TransferKeeper      ibctransferkeeper.Keeper
+	WasmKeeper          wasm.Keeper
+
+	ScopedIBCKeeper           capabilitykeeper.ScopedKeeper
+	ScopedICAHostKeeper       capabilitykeeper.ScopedKeeper
+	ScopedICAControllerKeeper capabilitykeeper.ScopedKeeper
+	ScopedTransferKeeper      capabilitykeeper.ScopedKeeper
+	ScopedIBCFeeKeeper        capabilitykeeper.ScopedKeeper
+	ScopedWasmKeeper          capabilitykeeper.ScopedKeeper
+
+	// simulation manager
+	sm *module.SimulationManager
+}
+
+// NewWasmApp returns a reference to an initialized WasmApp.
+func NewWasmApp(
+	logger log.Logger,
+	db dbm.DB,
+	traceStore io.Writer,
+	loadLatest bool,
+	enabledProposals []wasm.ProposalType,
+	appOpts servertypes.AppOptions,
+	wasmOpts []wasm.Option,
+	baseAppOptions ...func(*baseapp.BaseApp),
+) *WasmApp {
+	var (
+		app        = &WasmApp{}
+		appBuilder *runtime.AppBuilder
+
+		// merge the AppConfig and other configuration in one config
+		appConfig = depinject.Configs(
+			AppConfig,
+			depinject.Supply(
+				// supply the application options
+				appOpts,
+
+				// ADVANCED CONFIGURATION
+
+				//
+				// AUTH
+				//
+				// For providing a custom function required in auth to generate custom account types
+				// add it below. By default the auth module uses simulation.RandomGenesisAccounts.
+				//
+				// authtypes.RandomGenesisAccountsFn(simulation.RandomGenesisAccounts),
+
+				// For providing a custom a base account type add it below.
+				// By default the auth module uses authtypes.ProtoBaseAccount().
+				//
+				// func() authtypes.AccountI { return authtypes.ProtoBaseAccount() },
+
+				//
+				// MINT
+				//
+
+				// For providing a custom inflation function for x/mint add here your
+				// custom function that implements the minttypes.InflationCalculationFn
+				// interface.
+			),
+		)
+	)
+
+	if err := depinject.Inject(appConfig,
+		&appBuilder,
+		&app.appCodec,
+		&app.legacyAmino,
+		&app.txConfig,
+		&app.interfaceRegistry,
+		&app.AccountKeeper,
+		&app.BankKeeper,
+		&app.CapabilityKeeper,
+		&app.StakingKeeper,
+		&app.SlashingKeeper,
+		&app.MintKeeper,
+		&app.DistrKeeper,
+		&app.GovKeeper,
+		&app.CrisisKeeper,
+		&app.UpgradeKeeper,
+		&app.ParamsKeeper,
+		&app.AuthzKeeper,
+		&app.EvidenceKeeper,
+		&app.FeeGrantKeeper,
+		&app.GroupKeeper,
+		&app.NFTKeeper,
+		&app.ConsensusParamsKeeper,
+	); err != nil {
+		panic(err)
+	}
+
+	// Below we could construct and set an application specific mempool and
+	// ABCI 1.0 PrepareProposal and ProcessProposal handlers. These defaults are
+	// already set in the SDK's BaseApp, this shows an example of how to override
+	// them.
+	//
+	// Example:
+	//
+	// app.App = appBuilder.Build(...)
+	// nonceMempool := mempool.NewSenderNonceMempool()
+	// abciPropHandler := NewDefaultProposalHandler(nonceMempool, app.App.BaseApp)
+	//
+	// app.App.BaseApp.SetMempool(nonceMempool)
+	// app.App.BaseApp.SetPrepareProposal(abciPropHandler.PrepareProposalHandler())
+	// app.App.BaseApp.SetProcessProposal(abciPropHandler.ProcessProposalHandler())
+	//
+	// Alternatively, you can construct BaseApp options, append those to
+	// baseAppOptions and pass them to the appBuilder.
+	//
+	// Example:
+	//
+	// prepareOpt = func(app *baseapp.BaseApp) {
+	// 	abciPropHandler := baseapp.NewDefaultProposalHandler(nonceMempool, app)
+	// 	app.SetPrepareProposal(abciPropHandler.PrepareProposalHandler())
+	// }
+	// baseAppOptions = append(baseAppOptions, prepareOpt)
+
+	app.App = appBuilder.Build(logger, db, traceStore, baseAppOptions...)
+
+	// load state streaming if enabled
+	if _, _, err := streaming.LoadStreamingServices(app.App.BaseApp, appOpts, app.appCodec, logger, app.kvStoreKeys()); err != nil {
+		logger.Error("failed to load state streaming", "err", err)
+		os.Exit(1)
+	}
+
+	/****  Module Options ****/
+
+	app.ModuleManager.RegisterInvariants(app.CrisisKeeper)
+
+	// RegisterUpgradeHandlers is used for registering any on-chain upgrades.
+	app.RegisterUpgradeHandlers()
+
+	// add test gRPC service for testing gRPC queries in isolation
+	// testdata_pulsar.RegisterQueryServer(app.GRPCQueryRouter(), testdata_pulsar.QueryImpl{})
+
+	// create the simulation manager and define the order of the modules for deterministic simulations
+	//
+	// NOTE: this is not required apps that don't use the simulator for fuzz testing
+	// transactions
+	overrideModules := map[string]module.AppModuleSimulation{
+		authtypes.ModuleName: auth.NewAppModule(app.appCodec, app.AccountKeeper, authsims.RandomGenesisAccounts, app.GetSubspace(authtypes.ModuleName)),
+	}
+	app.sm = module.NewSimulationManagerFromAppModules(app.ModuleManager.Modules, overrideModules)
+
+	app.sm.RegisterStoreDecoders()
+
+	keys := sdk.NewKVStoreKeys(
+		// non sdk store keys
+		ibcexported.StoreKey, ibctransfertypes.StoreKey, ibcfeetypes.StoreKey,
+		wasm.StoreKey, icahosttypes.StoreKey,
+		icacontrollertypes.StoreKey,
+	)
+	app.MountKVStores(keys)
+	app.keys = keys
+	// set params subspaces
+	for _, m := range []string{ibctransfertypes.ModuleName, ibcexported.ModuleName, icahosttypes.SubModuleName, icacontrollertypes.SubModuleName, wasm.ModuleName} {
+		app.ParamsKeeper.Subspace(m)
+	}
+
+	scopedIBCKeeper := app.CapabilityKeeper.ScopeToModule(ibcexported.ModuleName)
+	scopedICAHostKeeper := app.CapabilityKeeper.ScopeToModule(icahosttypes.SubModuleName)
+	scopedICAControllerKeeper := app.CapabilityKeeper.ScopeToModule(icacontrollertypes.SubModuleName)
+	scopedTransferKeeper := app.CapabilityKeeper.ScopeToModule(ibctransfertypes.ModuleName)
+	scopedWasmKeeper := app.CapabilityKeeper.ScopeToModule(wasm.ModuleName)
+	app.CapabilityKeeper.Seal()
+
+	app.IBCKeeper = ibckeeper.NewKeeper(
+		app.appCodec,
+		keys[ibcexported.StoreKey],
+		app.GetSubspace(ibcexported.ModuleName),
+		app.StakingKeeper,
+		app.UpgradeKeeper,
+		scopedIBCKeeper,
+	)
+
+	// Register the proposal types
+	// Deprecated: Avoid adding new handlers, instead use the new proposal flow
+	// by granting the governance module the right to execute the message.
+	// See: https://docs.cosmos.network/main/modules/gov#proposal-messages
+	lr := app.GovKeeper.LegacyRouter()
+	govRouter := govv1beta1.NewRouter()
+	for _, m := range []string{govtypes.RouterKey, paramproposal.RouterKey, upgradetypes.RouterKey} {
+		if lr.HasRoute(m) {
+			govRouter.AddRoute(m, lr.GetRoute(m))
+		}
+	}
+	govRouter.AddRoute(ibcclienttypes.RouterKey, ibcclient.NewClientProposalHandler(app.IBCKeeper.ClientKeeper))
+
+	// IBC Fee Module keeper
+	app.IBCFeeKeeper = ibcfeekeeper.NewKeeper(
+		app.appCodec, keys[ibcfeetypes.StoreKey],
+		app.IBCKeeper.ChannelKeeper, // may be replaced with IBC middleware
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper, app.AccountKeeper, app.BankKeeper,
+	)
+
+	// Create Transfer Keepers
+	app.TransferKeeper = ibctransferkeeper.NewKeeper(
+		app.appCodec,
+		keys[ibctransfertypes.StoreKey],
+		app.GetSubspace(ibctransfertypes.ModuleName),
+		app.IBCFeeKeeper, // ISC4 Wrapper: fee IBC middleware
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper,
+		app.AccountKeeper,
+		app.BankKeeper,
+		scopedTransferKeeper,
+	)
+
+	app.ICAHostKeeper = icahostkeeper.NewKeeper(
+		app.appCodec,
+		keys[icahosttypes.StoreKey],
+		app.GetSubspace(icahosttypes.SubModuleName),
+		app.IBCFeeKeeper, // use ics29 fee as ics4Wrapper in middleware stack
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper,
+		app.AccountKeeper,
+		scopedICAHostKeeper,
+		app.MsgServiceRouter(),
+	)
+	app.ICAControllerKeeper = icacontrollerkeeper.NewKeeper(
+		app.appCodec,
+		keys[icacontrollertypes.StoreKey],
+		app.GetSubspace(icacontrollertypes.SubModuleName),
+		app.IBCFeeKeeper, // use ics29 fee as ics4Wrapper in middleware stack
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper,
+		scopedICAControllerKeeper,
+		app.MsgServiceRouter(),
+	)
+
+	homePath := cast.ToString(appOpts.Get(flags.FlagHome))
+	wasmDir := filepath.Join(homePath, "wasm")
+	wasmConfig, err := wasm.ReadWasmConfig(appOpts)
+	if err != nil {
+		panic(fmt.Sprintf("error while reading wasm config: %s", err))
+	}
+
+	// The last arguments can contain custom message handlers, and custom query handlers,
+	// if we want to allow any custom callbacks
+	// See https://github.com/CosmWasm/cosmwasm/blob/main/docs/CAPABILITIES-BUILT-IN.md
+	availableCapabilities := "iterator,staking,stargate,cosmwasm_1_1,cosmwasm_1_2"
+	app.WasmKeeper = wasm.NewKeeper(
+		app.appCodec,
+		keys[wasm.StoreKey],
+		app.AccountKeeper,
+		app.BankKeeper,
+		app.StakingKeeper,
+		distrkeeper.NewQuerier(app.DistrKeeper),
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper,
+		scopedWasmKeeper,
+		app.TransferKeeper,
+		app.MsgServiceRouter(),
+		app.GRPCQueryRouter(),
+		wasmDir,
+		wasmConfig,
+		availableCapabilities,
+		authtypes.NewModuleAddress(govtypes.ModuleName).String(),
+		wasmOpts...,
+	)
+
+	// The gov proposal types can be individually enabled
+	if len(enabledProposals) != 0 {
+		govRouter.AddRoute(wasm.RouterKey, wasm.NewWasmProposalHandler(app.WasmKeeper, enabledProposals))
+	}
+	// Set legacy router for backwards compatibility with gov v1beta1
+	app.GovKeeper.SetLegacyRouter(govRouter)
+
+	// Create Transfer Stack
+	var transferStack porttypes.IBCModule
+	transferStack = transfer.NewIBCModule(app.TransferKeeper)
+	transferStack = ibcfee.NewIBCMiddleware(transferStack, app.IBCFeeKeeper)
+
+	// Create Interchain Accounts Stack
+	// SendPacket, since it is originating from the application to core IBC:
+	// icaAuthModuleKeeper.SendTx -> icaController.SendPacket -> fee.SendPacket -> channel.SendPacket
+	var icaControllerStack porttypes.IBCModule
+	// integration point for custom authentication modules
+	// see https://medium.com/the-interchain-foundation/ibc-go-v6-changes-to-interchain-accounts-and-how-it-impacts-your-chain-806c185300d7
+	var noAuthzModule porttypes.IBCModule
+	icaControllerStack = icacontroller.NewIBCMiddleware(noAuthzModule, app.ICAControllerKeeper)
+	icaControllerStack = ibcfee.NewIBCMiddleware(icaControllerStack, app.IBCFeeKeeper)
+
+	// RecvPacket, message that originates from core IBC and goes down to app, the flow is:
+	// channel.RecvPacket -> fee.OnRecvPacket -> icaHost.OnRecvPacket
+	var icaHostStack porttypes.IBCModule
+	icaHostStack = icahost.NewIBCModule(app.ICAHostKeeper)
+	icaHostStack = ibcfee.NewIBCMiddleware(icaHostStack, app.IBCFeeKeeper)
+
+	// Create fee enabled wasm ibc Stack
+	var wasmStack porttypes.IBCModule
+	wasmStack = wasm.NewIBCHandler(app.WasmKeeper, app.IBCKeeper.ChannelKeeper, app.IBCFeeKeeper)
+	wasmStack = ibcfee.NewIBCMiddleware(wasmStack, app.IBCFeeKeeper)
+
+	// Create static IBC router, add app routes, then set and seal it
+	ibcRouter := porttypes.NewRouter().
+		AddRoute(ibctransfertypes.ModuleName, transferStack).
+		AddRoute(wasm.ModuleName, wasmStack).
+		AddRoute(icacontrollertypes.SubModuleName, icaControllerStack).
+		AddRoute(icahosttypes.SubModuleName, icaHostStack)
+	app.IBCKeeper.SetRouter(ibcRouter)
+
+	// NOTE: Any module instantiated in the module manager that is later modified
+	// must be passed by reference here.
+	legacyModules := []module.AppModule{
+		ibc.NewAppModule(app.IBCKeeper),
+		transfer.NewAppModule(app.TransferKeeper),
+		ibcfee.NewAppModule(app.IBCFeeKeeper),
+		ica.NewAppModule(&app.ICAControllerKeeper, &app.ICAHostKeeper),
+		wasm.NewAppModule(app.appCodec, &app.WasmKeeper, app.StakingKeeper, app.AccountKeeper, app.BankKeeper, app.MsgServiceRouter(), app.GetSubspace(wasmtypes.ModuleName)),
+	}
+	app.RegisterModules(legacyModules...)
+	cfg := app.Configurator()
+	for _, m := range legacyModules {
+		if s, ok := m.(module.HasServices); ok {
+			s.RegisterServices(cfg)
+		}
+	}
+	// register additional types
+	ibctm.AppModuleBasic{}.RegisterInterfaces(app.interfaceRegistry)
+	solomachine.AppModuleBasic{}.RegisterInterfaces(app.interfaceRegistry)
+
+	// must be before Loading version
+	// requires the snapshot store to be created and registered as a BaseAppOption
+	// see cmd/wasmd/root.go: 206 - 214 approx
+	if manager := app.SnapshotManager(); manager != nil {
+		err := manager.RegisterExtensions(
+			wasmkeeper.NewWasmSnapshotter(app.CommitMultiStore(), &app.WasmKeeper),
+		)
+		if err != nil {
+			panic(fmt.Errorf("failed to register snapshot extension: %s", err))
+		}
+	}
+
+	app.ScopedIBCKeeper = scopedIBCKeeper
+	app.ScopedTransferKeeper = scopedTransferKeeper
+	app.ScopedWasmKeeper = scopedWasmKeeper
+	app.ScopedICAHostKeeper = scopedICAHostKeeper
+	app.ScopedICAControllerKeeper = scopedICAControllerKeeper
+
+	// A custom InitChainer can be set if extra pre-init-genesis logic is required.
+	// By default, when using app wiring enabled module, this is not required.
+	// For instance, the upgrade module will set automatically the module version map in its init genesis thanks to app wiring.
+	// However, when registering a module manually (i.e. that does not support app wiring), the module version map
+	// must be set manually as follow. The upgrade module will de-duplicate the module version map.
+	//
+	// app.SetInitChainer(func(ctx sdk.Context, req abci.RequestInitChain) abci.ResponseInitChain {
+	// 	app.UpgradeKeeper.SetModuleVersionMap(ctx, app.ModuleManager.GetVersionMap())
+	// 	return app.App.InitChainer(ctx, req)
+	// })
+
+	if err := app.Load(loadLatest); err != nil {
+		panic(err)
+	}
+
+	if loadLatest {
+		ctx := app.BaseApp.NewUncachedContext(true, tmproto.Header{})
+		// Initialize pinned codes in wasmvm as they are not persisted there
+		if err := app.WasmKeeper.InitializePinnedCodes(ctx); err != nil {
+			tmos.Exit(fmt.Sprintf("failed initialize pinned codes %s", err))
+		}
+	}
+
+	return app
+}
+
+func (app *WasmApp) setAnteHandler(txConfig client.TxConfig, wasmConfig wasmtypes.WasmConfig, txCounterStoreKey storetypes.StoreKey) {
+	anteHandler, err := NewAnteHandler(
+		HandlerOptions{
+			HandlerOptions: ante.HandlerOptions{
+				AccountKeeper:   app.AccountKeeper,
+				BankKeeper:      app.BankKeeper,
+				SignModeHandler: txConfig.SignModeHandler(),
+				FeegrantKeeper:  app.FeeGrantKeeper,
+				SigGasConsumer:  ante.DefaultSigVerificationGasConsumer,
+			},
+			IBCKeeper:         app.IBCKeeper,
+			WasmConfig:        &wasmConfig,
+			TXCounterStoreKey: txCounterStoreKey,
+		},
+	)
+	if err != nil {
+		panic(fmt.Errorf("failed to create AnteHandler: %s", err))
+	}
+	app.SetAnteHandler(anteHandler)
+}
+
+func (app *WasmApp) setPostHandler() {
+	postHandler, err := posthandler.NewPostHandler(
+		posthandler.HandlerOptions{},
+	)
+	if err != nil {
+		panic(err)
+	}
+
+	app.SetPostHandler(postHandler)
+}
+
+// Name returns the name of the App
+func (app *WasmApp) Name() string { return app.BaseApp.Name() }
+
+// LegacyAmino returns amino codec.
+//
+// NOTE: This is solely to be used for testing purposes as it may be desirable
+// for modules to register their own custom testing types.
+func (app *WasmApp) LegacyAmino() *codec.LegacyAmino {
+	return app.legacyAmino
+}
+
+// AppCodec returns app codec.
+//
+// NOTE: This is solely to be used for testing purposes as it may be desirable
+// for modules to register their own custom testing types.
+func (app *WasmApp) AppCodec() codec.Codec {
+	return app.appCodec
+}
+
+// InterfaceRegistry returns WasmApp's InterfaceRegistry
+func (app *WasmApp) InterfaceRegistry() types.InterfaceRegistry {
+	return app.interfaceRegistry
+}
+
+// TxConfig returns WasmApp's TxConfig
+func (app *WasmApp) TxConfig() client.TxConfig {
+	return app.txConfig
+}
+
+// GetKey returns the KVStoreKey for the provided store key.
+//
+// NOTE: This is solely to be used for testing purposes.
+func (app *WasmApp) GetKey(storeKey string) *storetypes.KVStoreKey {
+	if k, ok := app.keys[storeKey]; ok {
+		return k
+	}
+	sk := app.UnsafeFindStoreKey(storeKey)
+	kvStoreKey, ok := sk.(*storetypes.KVStoreKey)
+	if !ok {
+		return nil
+	}
+	return kvStoreKey
+}
+
+func (app *WasmApp) kvStoreKeys() map[string]*storetypes.KVStoreKey {
+	keys := make(map[string]*storetypes.KVStoreKey)
+	for _, k := range app.GetStoreKeys() {
+		if kv, ok := k.(*storetypes.KVStoreKey); ok {
+			keys[kv.Name()] = kv
+		}
+	}
+
+	return keys
+}
+
+// GetSubspace returns a param subspace for a given module name.
+//
+// NOTE: This is solely to be used for testing purposes.
+func (app *WasmApp) GetSubspace(moduleName string) paramstypes.Subspace {
+	subspace, _ := app.ParamsKeeper.GetSubspace(moduleName)
+	return subspace
+}
+
+// SimulationManager implements the SimulationApp interface
+func (app *WasmApp) SimulationManager() *module.SimulationManager {
+	return app.sm
+}
+
+// RegisterAPIRoutes registers all application module routes with the provided
+// API server.
+func (app *WasmApp) RegisterAPIRoutes(apiSvr *api.Server, apiConfig config.APIConfig) {
+	app.App.RegisterAPIRoutes(apiSvr, apiConfig)
+	// register swagger API in app.go so that other applications can override easily
+	if err := server.RegisterSwaggerAPI(apiSvr.ClientCtx, apiSvr.Router, apiConfig.Swagger); err != nil {
+		panic(err)
+	}
+}
+
+// GetMaccPerms returns a copy of the module account permissions
+//
+// NOTE: This is solely to be used for testing purposes.
+func GetMaccPerms() map[string][]string {
+	dup := make(map[string][]string)
+	for _, perms := range moduleAccPerms {
+		dup[perms.Account] = perms.Permissions
+	}
+
+	return dup
+}
+
+// BlockedAddresses returns all the app's blocked account addresses.
+func BlockedAddresses() map[string]bool {
+	result := make(map[string]bool)
+
+	if len(blockAccAddrs) > 0 {
+		for _, addr := range blockAccAddrs {
+			result[addr] = true
+		}
+	} else {
+		for addr := range GetMaccPerms() {
+			result[addr] = true
+		}
+	}
+
+	return result
+}
diff --git a/app/app_v2_config.go b/app/app_v2_config.go
new file mode 100644
index 0000000000..7da15c644b
--- /dev/null
+++ b/app/app_v2_config.go
@@ -0,0 +1,199 @@
+//go:build app_v2
+
+package app
+
+import (
+	"time"
+
+	runtimev1alpha1 "cosmossdk.io/api/cosmos/app/runtime/v1alpha1"
+	appv1alpha1 "cosmossdk.io/api/cosmos/app/v1alpha1"
+	authmodulev1 "cosmossdk.io/api/cosmos/auth/module/v1"
+	authzmodulev1 "cosmossdk.io/api/cosmos/authz/module/v1"
+	bankmodulev1 "cosmossdk.io/api/cosmos/bank/module/v1"
+	capabilitymodulev1 "cosmossdk.io/api/cosmos/capability/module/v1"
+	consensusmodulev1 "cosmossdk.io/api/cosmos/consensus/module/v1"
+	crisismodulev1 "cosmossdk.io/api/cosmos/crisis/module/v1"
+	distrmodulev1 "cosmossdk.io/api/cosmos/distribution/module/v1"
+	evidencemodulev1 "cosmossdk.io/api/cosmos/evidence/module/v1"
+	feegrantmodulev1 "cosmossdk.io/api/cosmos/feegrant/module/v1"
+	genutilmodulev1 "cosmossdk.io/api/cosmos/genutil/module/v1"
+	govmodulev1 "cosmossdk.io/api/cosmos/gov/module/v1"
+	groupmodulev1 "cosmossdk.io/api/cosmos/group/module/v1"
+	mintmodulev1 "cosmossdk.io/api/cosmos/mint/module/v1"
+	nftmodulev1 "cosmossdk.io/api/cosmos/nft/module/v1"
+	paramsmodulev1 "cosmossdk.io/api/cosmos/params/module/v1"
+	slashingmodulev1 "cosmossdk.io/api/cosmos/slashing/module/v1"
+	stakingmodulev1 "cosmossdk.io/api/cosmos/staking/module/v1"
+	txconfigv1 "cosmossdk.io/api/cosmos/tx/config/v1"
+	upgrademodulev1 "cosmossdk.io/api/cosmos/upgrade/module/v1"
+	vestingmodulev1 "cosmossdk.io/api/cosmos/vesting/module/v1"
+	"cosmossdk.io/core/appconfig"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
+	"github.com/cosmos/cosmos-sdk/x/authz"
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
+	consensustypes "github.com/cosmos/cosmos-sdk/x/consensus/types"
+	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
+	evidencetypes "github.com/cosmos/cosmos-sdk/x/evidence/types"
+	"github.com/cosmos/cosmos-sdk/x/feegrant"
+	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	"github.com/cosmos/cosmos-sdk/x/group"
+	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
+	"github.com/cosmos/cosmos-sdk/x/nft"
+	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	slashingtypes "github.com/cosmos/cosmos-sdk/x/slashing/types"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	icatypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/types"
+	ibcfeetypes "github.com/cosmos/ibc-go/v7/modules/apps/29-fee/types"
+	ibctransfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
+	"google.golang.org/protobuf/types/known/durationpb"
+
+	"github.com/CosmWasm/wasmd/x/wasm"
+)
+
+var (
+	// blocked account addresses
+	blockAccAddrs = []string{
+		authtypes.FeeCollectorName,
+		distrtypes.ModuleName,
+		minttypes.ModuleName,
+		stakingtypes.BondedPoolName,
+		stakingtypes.NotBondedPoolName,
+		nft.ModuleName,
+		ibctransfertypes.ModuleName,
+		ibcfeetypes.ModuleName,
+		icatypes.ModuleName,
+		wasm.ModuleName,
+
+		// We allow the following module accounts to receive funds:
+		// govtypes.ModuleName
+	}
+
+	// application configuration (used by depinject)
+	AppConfig = appconfig.Compose(&appv1alpha1.Config{
+		Modules: []*appv1alpha1.ModuleConfig{
+			{
+				Name: "runtime",
+				Config: appconfig.WrapAny(&runtimev1alpha1.Module{
+					AppName: appName,
+					// During begin block slashing happens after distr.BeginBlocker so that
+					// there is nothing left over in the validator fee pool, so as to keep the
+					// CanWithdrawInvariant invariant.
+					// NOTE: staking module is required if HistoricalEntries param > 0
+					// NOTE: capability module's beginblocker must come before any modules using capabilities (e.g. IBC)
+					BeginBlockers: beginBlocker,
+					EndBlockers:   endBlocker,
+					OverrideStoreKeys: []*runtimev1alpha1.StoreKeyConfig{
+						{
+							ModuleName: authtypes.ModuleName,
+							KvStoreKey: "acc",
+						},
+					},
+					InitGenesis: genesisModuleOrder,
+					// When ExportGenesis is not specified, the export genesis module order
+					// is equal to the init genesis order
+					// ExportGenesis: genesisModuleOrder,
+					// Uncomment if you want to set a custom migration order here.
+					// OrderMigrations: nil,
+				}),
+			},
+			{
+				Name: authtypes.ModuleName,
+				Config: appconfig.WrapAny(&authmodulev1.Module{
+					Bech32Prefix:             Bech32Prefix,
+					ModuleAccountPermissions: moduleAccPerms,
+					// By default modules authority is the governance module. This is configurable with the following:
+					// Authority: "group", // A custom module authority can be set using a module name
+					// Authority: "cosmos1cwwv22j5ca08ggdv9c2uky355k908694z577tv", // or a specific address
+				}),
+			},
+			{
+				Name:   vestingtypes.ModuleName,
+				Config: appconfig.WrapAny(&vestingmodulev1.Module{}),
+			},
+			{
+				Name: banktypes.ModuleName,
+				Config: appconfig.WrapAny(&bankmodulev1.Module{
+					BlockedModuleAccountsOverride: blockAccAddrs,
+				}),
+			},
+			{
+				Name:   stakingtypes.ModuleName,
+				Config: appconfig.WrapAny(&stakingmodulev1.Module{}),
+			},
+			{
+				Name:   slashingtypes.ModuleName,
+				Config: appconfig.WrapAny(&slashingmodulev1.Module{}),
+			},
+			{
+				Name:   paramstypes.ModuleName,
+				Config: appconfig.WrapAny(&paramsmodulev1.Module{}),
+			},
+			{
+				Name:   "tx",
+				Config: appconfig.WrapAny(&txconfigv1.Config{}),
+			},
+			{
+				Name:   genutiltypes.ModuleName,
+				Config: appconfig.WrapAny(&genutilmodulev1.Module{}),
+			},
+			{
+				Name:   authz.ModuleName,
+				Config: appconfig.WrapAny(&authzmodulev1.Module{}),
+			},
+			{
+				Name:   upgradetypes.ModuleName,
+				Config: appconfig.WrapAny(&upgrademodulev1.Module{}),
+			},
+			{
+				Name:   distrtypes.ModuleName,
+				Config: appconfig.WrapAny(&distrmodulev1.Module{}),
+			},
+			{
+				Name: capabilitytypes.ModuleName,
+				Config: appconfig.WrapAny(&capabilitymodulev1.Module{
+					SealKeeper: true,
+				}),
+			},
+			{
+				Name:   evidencetypes.ModuleName,
+				Config: appconfig.WrapAny(&evidencemodulev1.Module{}),
+			},
+			{
+				Name:   minttypes.ModuleName,
+				Config: appconfig.WrapAny(&mintmodulev1.Module{}),
+			},
+			{
+				Name: group.ModuleName,
+				Config: appconfig.WrapAny(&groupmodulev1.Module{
+					MaxExecutionPeriod: durationpb.New(time.Second * 1209600),
+					MaxMetadataLen:     255,
+				}),
+			},
+			{
+				Name:   nft.ModuleName,
+				Config: appconfig.WrapAny(&nftmodulev1.Module{}),
+			},
+			{
+				Name:   feegrant.ModuleName,
+				Config: appconfig.WrapAny(&feegrantmodulev1.Module{}),
+			},
+			{
+				Name:   govtypes.ModuleName,
+				Config: appconfig.WrapAny(&govmodulev1.Module{}),
+			},
+			{
+				Name:   crisistypes.ModuleName,
+				Config: appconfig.WrapAny(&crisismodulev1.Module{}),
+			},
+			{
+				Name:   consensustypes.ModuleName,
+				Config: appconfig.WrapAny(&consensusmodulev1.Module{}),
+			},
+		},
+	})
+)
diff --git a/app/encoding.go b/app/encoding.go
index 5416f77a97..ed9b4452d0 100644
--- a/app/encoding.go
+++ b/app/encoding.go
@@ -1,3 +1,5 @@
+//go:build !app_v2
+
 package app
 
 import (
diff --git a/app/genesis.go b/app/genesis.go
index 2900679c12..e4e849fc27 100644
--- a/app/genesis.go
+++ b/app/genesis.go
@@ -2,8 +2,6 @@ package app
 
 import (
 	"encoding/json"
-
-	"github.com/cosmos/cosmos-sdk/codec"
 )
 
 // GenesisState of the blockchain is represented here as a map of raw json
@@ -14,8 +12,3 @@ import (
 // the ModuleBasicManager which populates json from each BasicModule
 // object provided to it during init.
 type GenesisState map[string]json.RawMessage
-
-// NewDefaultGenesisState generates the default state for the application.
-func NewDefaultGenesisState(cdc codec.JSONCodec) GenesisState {
-	return ModuleBasics.DefaultGenesis(cdc)
-}
diff --git a/app/test_helpers.go b/app/test_helpers.go
index edd84436c5..59d9d70784 100644
--- a/app/test_helpers.go
+++ b/app/test_helpers.go
@@ -69,7 +69,7 @@ func setup(t testing.TB, chainID string, withGenesis bool, invCheckPeriod uint,
 	appOptions[server.FlagInvCheckPeriod] = invCheckPeriod
 	app := NewWasmApp(log.NewNopLogger(), db, nil, true, wasmtypes.EnableAllProposals, appOptions, opts, bam.SetChainID(chainID), bam.SetSnapshot(snapshotStore, snapshottypes.SnapshotOptions{KeepRecent: 2}))
 	if withGenesis {
-		return app, NewDefaultGenesisState(app.AppCodec())
+		return app, app.DefaultGenesis()
 	}
 	return app, GenesisState{}
 }
@@ -94,7 +94,7 @@ func NewWasmAppWithCustomOptions(t *testing.T, isCheckTx bool, options SetupOpti
 	}
 
 	app := NewWasmApp(options.Logger, options.DB, nil, true, wasmtypes.EnableAllProposals, options.AppOpts, options.WasmOpts)
-	genesisState := NewDefaultGenesisState(app.appCodec)
+	genesisState := app.DefaultGenesis()
 	genesisState, err = GenesisStateWithValSet(app.AppCodec(), genesisState, valSet, []authtypes.GenesisAccount{acc}, balance)
 	require.NoError(t, err)
 
@@ -209,7 +209,7 @@ func GenesisStateWithSingleValidator(t *testing.T, app *WasmApp) GenesisState {
 		},
 	}
 
-	genesisState := NewDefaultGenesisState(app.appCodec)
+	genesisState := app.DefaultGenesis()
 	genesisState, err = GenesisStateWithValSet(app.AppCodec(), genesisState, valSet, []authtypes.GenesisAccount{acc}, balances...)
 	require.NoError(t, err)
 
@@ -277,7 +277,7 @@ func NewTestNetworkFixture() network.TestFixture {
 
 	return network.TestFixture{
 		AppConstructor: appCtr,
-		GenesisState:   NewDefaultGenesisState(app.AppCodec()),
+		GenesisState:   app.DefaultGenesis(),
 		EncodingConfig: testutil.TestEncodingConfig{
 			InterfaceRegistry: app.InterfaceRegistry(),
 			Codec:             app.AppCodec(),
diff --git a/benchmarks/app_test.go b/benchmarks/app_test.go
index df0ee91327..eb81b6c418 100644
--- a/benchmarks/app_test.go
+++ b/benchmarks/app_test.go
@@ -38,7 +38,7 @@ func setup(db dbm.DB, withGenesis bool, invCheckPeriod uint, opts ...wasm.Option
 	wasmApp := app.NewWasmApp(log.NewTMLogger(log.NewSyncWriter(os.Stdout)), db, nil, true, wasm.EnableAllProposals, simtestutil.EmptyAppOptions{}, nil)
 
 	if withGenesis {
-		return wasmApp, app.NewDefaultGenesisState(wasmApp.AppCodec())
+		return wasmApp, wasmApp.DefaultGenesis()
 	}
 	return wasmApp, app.GenesisState{}
 }
diff --git a/cmd/wasmd/root.go b/cmd/wasmd/root.go
index 95558a7794..ddbe80f94d 100644
--- a/cmd/wasmd/root.go
+++ b/cmd/wasmd/root.go
@@ -5,6 +5,8 @@ import (
 	"io"
 	"os"
 
+	"github.com/cosmos/cosmos-sdk/testutil/sims"
+
 	rosettaCmd "cosmossdk.io/tools/rosetta/cmd"
 	dbm "github.com/cometbft/cometbft-db"
 	tmcfg "github.com/cometbft/cometbft/config"
@@ -40,7 +42,7 @@ import (
 // NewRootCmd creates a new root command for wasmd. It is called once in the
 // main function.
 func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
-	encodingConfig := app.MakeEncodingConfig()
+	encodingConfig := getEncodingConfig()
 
 	cfg := sdk.GetConfig()
 	cfg.SetBech32PrefixForAccount(app.Bech32PrefixAccAddr, app.Bech32PrefixAccPub)
@@ -93,6 +95,18 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 	return rootCmd, encodingConfig
 }
 
+// creates an app instance temporary to fetch the encoding config. Not great...
+func getEncodingConfig() params.EncodingConfig {
+	tempApp := app.NewWasmApp(log.NewNopLogger(), dbm.NewMemDB(), nil, true, nil, sims.NewAppOptionsWithFlagHome(app.DefaultNodeHome), nil)
+	encodingConfig := params.EncodingConfig{
+		InterfaceRegistry: tempApp.InterfaceRegistry(),
+		Marshaler:         tempApp.AppCodec(),
+		TxConfig:          tempApp.TxConfig(),
+		Amino:             tempApp.LegacyAmino(),
+	}
+	return encodingConfig
+}
+
 // initTendermintConfig helps to override default Tendermint Config values.
 // return tmcfg.DefaultConfig if no custom configuration is required for the application.
 func initTendermintConfig() *tmcfg.Config {
diff --git a/go.mod b/go.mod
index b10e8eb036..92ec93b95f 100644
--- a/go.mod
+++ b/go.mod
@@ -4,7 +4,7 @@ go 1.19
 
 require (
 	github.com/CosmWasm/wasmvm v1.2.1
-	github.com/cosmos/cosmos-proto v1.0.0-beta.3
+	github.com/cosmos/cosmos-proto v1.0.0-beta.2
 	github.com/cosmos/cosmos-sdk v0.47.0
 	github.com/cosmos/gogogateway v1.2.0 // indirect
 	github.com/cosmos/gogoproto v1.4.6
@@ -34,12 +34,14 @@ require (
 require (
 	cosmossdk.io/api v0.3.1
 	cosmossdk.io/core v0.5.1
+	cosmossdk.io/depinject v1.0.0-alpha.3
 	cosmossdk.io/errors v1.0.0-beta.7
 	cosmossdk.io/math v1.0.0-rc.0
 	cosmossdk.io/tools/rosetta v0.2.1
 	github.com/cometbft/cometbft v0.37.0
 	github.com/cometbft/cometbft-db v0.7.0
 	github.com/spf13/viper v1.15.0
+	google.golang.org/protobuf v1.29.1
 )
 
 require (
@@ -48,7 +50,6 @@ require (
 	cloud.google.com/go/compute/metadata v0.2.3 // indirect
 	cloud.google.com/go/iam v0.12.0 // indirect
 	cloud.google.com/go/storage v1.29.0 // indirect
-	cosmossdk.io/depinject v1.0.0-alpha.3 // indirect
 	filippo.io/edwards25519 v1.0.0 // indirect
 	github.com/99designs/go-keychain v0.0.0-20191008050251-8e49817e8af4 // indirect
 	github.com/99designs/keyring v1.2.1 // indirect
@@ -163,7 +164,6 @@ require (
 	golang.org/x/xerrors v0.0.0-20220907171357-04be3eba64a2 // indirect
 	google.golang.org/api v0.110.0 // indirect
 	google.golang.org/appengine v1.6.7 // indirect
-	google.golang.org/protobuf v1.29.1 // indirect
 	gopkg.in/ini.v1 v1.67.0 // indirect
 	gopkg.in/yaml.v3 v3.0.1 // indirect
 	nhooyr.io/websocket v1.8.6 // indirect
diff --git a/go.sum b/go.sum
index 50412424d1..8397307b0a 100644
--- a/go.sum
+++ b/go.sum
@@ -315,8 +315,8 @@ github.com/coreos/go-systemd v0.0.0-20180511133405-39ca1b05acc7/go.mod h1:F5haX7
 github.com/coreos/pkg v0.0.0-20160727233714-3ac0863d7acf/go.mod h1:E3G3o1h8I7cfcXa63jLwjI0eiQQMgzzUDFVpN/nH/eA=
 github.com/cosmos/btcutil v1.0.5 h1:t+ZFcX77LpKtDBhjucvnOH8C2l2ioGsBNEQ3jef8xFk=
 github.com/cosmos/btcutil v1.0.5/go.mod h1:IyB7iuqZMJlthe2tkIFL33xPyzbFYP0XVdS8P5lUPis=
-github.com/cosmos/cosmos-proto v1.0.0-beta.3 h1:VitvZ1lPORTVxkmF2fAp3IiA61xVwArQYKXTdEcpW6o=
-github.com/cosmos/cosmos-proto v1.0.0-beta.3/go.mod h1:t8IASdLaAq+bbHbjq4p960BvcTqtwuAxid3b/2rOD6I=
+github.com/cosmos/cosmos-proto v1.0.0-beta.2 h1:X3OKvWgK9Gsejo0F1qs5l8Qn6xJV/AzgIWR2wZ8Nua8=
+github.com/cosmos/cosmos-proto v1.0.0-beta.2/go.mod h1:+XRCLJ14pr5HFEHIUcn51IKXD1Fy3rkEQqt4WqmN4V0=
 github.com/cosmos/cosmos-sdk v0.47.0 h1:GKYtBpvjwuDEVix1vdnQpq7PuEOnItuEK0vdAL2cZ5g=
 github.com/cosmos/cosmos-sdk v0.47.0/go.mod h1:FTtZbqiHCZ2vun9WrPq6qLQafNKkAuIhLAxzLjr2TiI=
 github.com/cosmos/go-bip39 v0.0.0-20180819234021-555e2067c45d/go.mod h1:tSxLoYXyBmiFeKpvmq4dzayMdCjCnu8uqmCysIGBT2Y=
diff --git a/tests/e2e/ibc_fees_test.go b/tests/e2e/ibc_fees_test.go
index 30fcb5b9c6..9934468ef2 100644
--- a/tests/e2e/ibc_fees_test.go
+++ b/tests/e2e/ibc_fees_test.go
@@ -17,7 +17,6 @@ import (
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
-	"github.com/CosmWasm/wasmd/app"
 	wasmibctesting "github.com/CosmWasm/wasmd/x/wasm/ibctesting"
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
 )
@@ -28,10 +27,10 @@ func TestIBCFeesTransfer(t *testing.T) {
 	//   with an ics-20 channel established
 	// when an ics-29 fee is attached to an ibc package
 	// then the relayer's payee is receiving the fee(s) on success
-	marshaler := app.MakeEncodingConfig().Marshaler
 	coord := wasmibctesting.NewCoordinator(t, 2)
 	chainA := coord.GetChain(wasmibctesting.GetChainID(1))
 	chainB := coord.GetChain(wasmibctesting.GetChainID(2))
+	marshaler := chainA.App.AppCodec()
 
 	actorChainA := sdk.AccAddress(chainA.SenderPrivKey.PubKey().Address())
 	actorChainB := sdk.AccAddress(chainB.SenderPrivKey.PubKey().Address())
@@ -111,12 +110,12 @@ func TestIBCFeesWasm(t *testing.T) {
 	//   and an ibc channel established
 	// when an ics-29 fee is attached to an ibc package
 	// then the relayer's payee is receiving the fee(s) on success
-	marshaler := app.MakeEncodingConfig().Marshaler
 	coord := wasmibctesting.NewCoordinator(t, 2)
 	chainA := coord.GetChain(wasmibctesting.GetChainID(1))
 	chainB := coord.GetChain(ibctesting.GetChainID(2))
 	actorChainA := sdk.AccAddress(chainA.SenderPrivKey.PubKey().Address())
 	actorChainB := sdk.AccAddress(chainB.SenderPrivKey.PubKey().Address())
+	marshaler := chainA.App.AppCodec()
 
 	// setup chain A
 	codeID := chainA.StoreCodeFile("./testdata/cw20_base.wasm.gz").CodeID