diff --git a/app/app.go b/app/app.go
index e635664..6dfd23c 100644
--- a/app/app.go
+++ b/app/app.go
@@ -103,6 +103,7 @@ import (
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
 
 	rollappparams "github.com/dymensionxyz/rollapp-wasm/app/params"
+	v1upgrade "github.com/dymensionxyz/rollapp-wasm/app/upgrades/v1"
 
 	// unnamed import of statik for swagger UI support
 	_ "github.com/cosmos/cosmos-sdk/client/docs/statik"
@@ -187,7 +188,7 @@ var (
 		govtypes.ModuleName:            {authtypes.Burner},
 		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
 		wasmtypes.ModuleName:           {authtypes.Burner},
-		hubgentypes.ModuleName: {authtypes.Burner},
+		hubgentypes.ModuleName:         {authtypes.Burner},
 	}
 )
 
@@ -623,6 +624,7 @@ 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(
@@ -920,3 +922,30 @@ func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino
 	paramsKeeper.Subspace(wasmtypes.ModuleName)
 	return paramsKeeper
 }
+
+func (app *App) setupUpgradeHandlers() {
+	app.UpgradeKeeper.SetUpgradeHandler(
+		v1upgrade.UpgradeName,
+		v1upgrade.CreateUpgradeHandler(
+			app.mm, app.configurator,
+		),
+	)
+
+	// When a planned update height is reached, the old binary will panic
+	// writing on disk the height and name of the update that triggered it
+	// This will read that value, and execute the preparations for the upgrade.
+	upgradeInfo, err := app.UpgradeKeeper.ReadUpgradeInfoFromDisk()
+	if err != nil {
+		panic(fmt.Errorf("failed to read upgrade info from disk: %w", err))
+	}
+
+	// Pre upgrade handler
+	switch upgradeInfo.Name {
+	// do nothing
+	}
+
+	if upgradeInfo.Name == "v1" && !app.UpgradeKeeper.IsSkipHeight(upgradeInfo.Height) {
+		// configure store loader with the store upgrades
+		app.SetStoreLoader(upgradetypes.UpgradeStoreLoader(upgradeInfo.Height, v1upgrade.GetStoreUpgrades()))
+	}
+}
diff --git a/app/upgrades/v1/constants.go b/app/upgrades/v1/constants.go
new file mode 100644
index 0000000..f19d963
--- /dev/null
+++ b/app/upgrades/v1/constants.go
@@ -0,0 +1,5 @@
+package v1
+
+const (
+	UpgradeName = "v1"
+)
diff --git a/app/upgrades/v1/upgrade.go b/app/upgrades/v1/upgrade.go
new file mode 100644
index 0000000..5e7c92d
--- /dev/null
+++ b/app/upgrades/v1/upgrade.go
@@ -0,0 +1,34 @@
+package v1
+
+import (
+	storetypes "github.com/cosmos/cosmos-sdk/store/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+
+	hubgentypes "github.com/dymensionxyz/dymension-rdk/x/hub-genesis/types"
+)
+
+func GetStoreUpgrades() *storetypes.StoreUpgrades {
+	storeUpgrades := storetypes.StoreUpgrades{
+		// Set migrations for all new modules
+		Added: []string{
+			hubgentypes.ModuleName,
+		},
+	}
+	return &storeUpgrades
+}
+
+// CreateUpgradeHandler creates an SDK upgrade handler for v3
+func CreateUpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		logger := ctx.Logger().With("upgrade", UpgradeName)
+
+		// Start running the module migrations
+		logger.Debug("running module migrations ...")
+		return mm.RunMigrations(ctx, configurator, fromVM)
+	}
+}