diff --git a/app/app.go b/app/app.go
index bba7bdb..0c63d77 100644
--- a/app/app.go
+++ b/app/app.go
@@ -159,6 +159,9 @@ import (
 	rollappparamstypes "github.com/dymensionxyz/dymension-rdk/x/rollappparams/types"
 
 	dymintversion "github.com/dymensionxyz/dymint/version"
+
+	// Upgrade handlers
+	drs2_upgrade "github.com/dymensionxyz/rollapp-wasm/app/upgrades/drs-2"
 )
 
 const (
@@ -847,6 +850,7 @@ func NewRollapp(
 	app.SetBeginBlocker(app.BeginBlocker)
 	app.SetEndBlocker(app.EndBlocker)
 	app.setAnteHandler(encodingConfig.TxConfig, wasmConfig)
+	app.setupUpgradeHandlers()
 
 	if manager := app.SnapshotManager(); manager != nil {
 		err := manager.RegisterExtensions(
@@ -1206,3 +1210,15 @@ func getAcceptedStargateQueries() wasmkeeper.AcceptedStargateQueries {
 		"/rollapp.cwerrors.v1.Query/Errors": &cwerrorsTypes.QueryErrorsRequest{},
 	}
 }
+
+func (app *App) setupUpgradeHandlers() {
+
+	app.UpgradeKeeper.SetUpgradeHandler(
+		"upgrade-drs-2",
+		drs2_upgrade.CreateUpgradeHandler(
+			app.RollappParamsKeeper,
+			app.mm, app.configurator,
+		),
+	)
+
+}
diff --git a/upgrades/drs-2/upgrade.go b/upgrades/drs-2/upgrade.go
new file mode 100644
index 0000000..20c3a94
--- /dev/null
+++ b/upgrades/drs-2/upgrade.go
@@ -0,0 +1,27 @@
+package v2_2_0
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	rollappparamskeeper "github.com/dymensionxyz/dymension-rdk/x/rollappparams/keeper"
+	rollappparamstypes "github.com/dymensionxyz/dymension-rdk/x/rollappparams/types"
+)
+
+func CreateUpgradeHandler(
+	rpKeeper rollappparamskeeper.Keeper,
+	mm *module.Manager,
+	configurator module.Configurator,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		da := rpKeeper.DA(ctx)
+		version := uint32(2)
+		params := rollappparamstypes.DefaultParams()
+		params.Da = da
+		params.DrsVersion = version
+
+		rpKeeper.SetParams(ctx, params)
+
+		return mm.RunMigrations(ctx, configurator, fromVM)
+	}
+}