diff --git a/common/mixnet-contract/src/lib.rs b/common/mixnet-contract/src/lib.rs
index 785497197b..6779514b29 100644
--- a/common/mixnet-contract/src/lib.rs
+++ b/common/mixnet-contract/src/lib.rs
@@ -13,3 +13,5 @@ pub use gateway::{Gateway, GatewayBond, GatewayOwnershipResponse, PagedGatewayRe
 pub use mixnode::{Layer, MixNode, MixNodeBond, MixOwnershipResponse, PagedMixnodeResponse};
 pub use msg::{ExecuteMsg, InstantiateMsg, MigrateMsg, QueryMsg};
 pub use types::{IdentityKey, IdentityKeyRef, LayerDistribution, SphinxKey, StateParams};
+
+pub use types::default_delegation_reward;
diff --git a/common/mixnet-contract/src/types.rs b/common/mixnet-contract/src/types.rs
index 9d0404daf0..8a202fde61 100644
--- a/common/mixnet-contract/src/types.rs
+++ b/common/mixnet-contract/src/types.rs
@@ -26,6 +26,10 @@ impl LayerDistribution {
     }
 }
 
+pub fn default_delegation_reward() -> Decimal {
+    Decimal::percent(110)
+}
+
 #[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
 pub struct StateParams {
     pub epoch_length: u32, // length of an epoch, expressed in hours
@@ -34,7 +38,9 @@ pub struct StateParams {
     pub minimum_gateway_bond: Uint128, // minimum amount a gateway must bond to get into the system
     pub mixnode_bond_reward_rate: Decimal, // annual reward rate, expressed as a decimal like 1.25
     pub gateway_bond_reward_rate: Decimal, // annual reward rate, expressed as a decimal like 1.25
+    #[serde(default = "default_delegation_reward")]
     pub mixnode_delegation_reward_rate: Decimal, // annual reward rate, expressed as a decimal like 1.25
+    #[serde(default = "default_delegation_reward")]
     pub gateway_delegation_reward_rate: Decimal, // annual reward rate, expressed as a decimal like 1.25
     pub mixnode_active_set_size: u32,
 }
diff --git a/contracts/mixnet/src/contract.rs b/contracts/mixnet/src/contract.rs
index 5487ea451e..9dd24a7eb6 100644
--- a/contracts/mixnet/src/contract.rs
+++ b/contracts/mixnet/src/contract.rs
@@ -3,7 +3,7 @@
 
 use crate::helpers::calculate_epoch_reward_rate;
 use crate::state::State;
-use crate::storage::{config, layer_distribution};
+use crate::storage::{config, config_read, layer_distribution};
 use crate::{error::ContractError, queries, transactions};
 use config::defaults::NETWORK_MONITOR_ADDRESS;
 use cosmwasm_std::{
@@ -181,7 +181,9 @@ pub fn query(deps: Deps, _env: Env, msg: QueryMsg) -> Result<QueryResponse, Cont
 }
 
 #[entry_point]
-pub fn migrate(_deps: DepsMut, _env: Env, _msg: MigrateMsg) -> Result<Response, ContractError> {
+pub fn migrate(deps: DepsMut, _env: Env, _msg: MigrateMsg) -> Result<Response, ContractError> {
+    let state = config_read(deps.storage).load().unwrap();
+    config(deps.storage).save(&state)?;
     Ok(Default::default())
 }
 
diff --git a/contracts/mixnet/src/state.rs b/contracts/mixnet/src/state.rs
index c537366f07..d4f0034ff6 100644
--- a/contracts/mixnet/src/state.rs
+++ b/contracts/mixnet/src/state.rs
@@ -6,6 +6,8 @@ use mixnet_contract::StateParams;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 
+use mixnet_contract::default_delegation_reward;
+
 #[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
 pub struct State {
     pub owner: Addr, // only the owner account can update state
@@ -15,6 +17,8 @@ pub struct State {
     // helper values to avoid having to recalculate them on every single payment operation
     pub mixnode_epoch_bond_reward: Decimal, // reward per epoch expressed as a decimal like 0.05
     pub gateway_epoch_bond_reward: Decimal, // reward per epoch expressed as a decimal like 0.05
+    #[serde(default = "default_delegation_reward")]
     pub mixnode_epoch_delegation_reward: Decimal, // reward per epoch expressed as a decimal like 0.05
+    #[serde(default = "default_delegation_reward")]
     pub gateway_epoch_delegation_reward: Decimal, // reward per epoch expressed as a decimal like 0.05
 }