diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4c77d87f..2e88ce32 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -66,6 +66,7 @@ Contains all the PRs that improved the code without changing the behaviours.
 - [#368](https://github.com/archway-network/archway/pull/368) - github actions should fetch tags as well for deploy workflow
 - [#369](https://github.com/archway-network/archway/pull/369) - CODEOWNERS: small set to expand, not large set that filters
 - [#370](https://github.com/archway-network/archway/pull/370) - login to ghcr
+- [#382](https://github.com/archway-network/archway/pull/382) - adjust default power reduction
 
 ### Changed
 
diff --git a/app/app.go b/app/app.go
index 3a7781e6..2080f905 100644
--- a/app/app.go
+++ b/app/app.go
@@ -111,6 +111,7 @@ import (
 	wasmclient "github.com/CosmWasm/wasmd/x/wasm/client"
 
 	archwayappparams "github.com/archway-network/archway/app/params"
+	archway "github.com/archway-network/archway/types"
 
 	// unnamed import of statik for swagger UI support
 	_ "github.com/cosmos/cosmos-sdk/client/docs/statik"
@@ -228,6 +229,12 @@ var (
 	_ servertypes.Application = (*ArchwayApp)(nil)
 )
 
+func init() {
+	// sets the default power reduction in order to ensure that on high precision numbers, which is a default for archway
+	// the network does not get stalled due to an integer overflow in some edge cases.
+	sdk.DefaultPowerReduction = archway.DefaultPowerReduction
+}
+
 // ArchwayApp extended ABCI application
 type ArchwayApp struct {
 	*baseapp.BaseApp
diff --git a/app/app_upgrades.go b/app/app_upgrades.go
index 46236384..7f9a4fd2 100644
--- a/app/app_upgrades.go
+++ b/app/app_upgrades.go
@@ -8,13 +8,15 @@ import (
 	"github.com/archway-network/archway/app/upgrades"
 	upgrade_0_3 "github.com/archway-network/archway/app/upgrades/03"
 	upgrade_0_4 "github.com/archway-network/archway/app/upgrades/04"
+	upgrade_0_5_2 "github.com/archway-network/archway/app/upgrades/052"
 )
 
 // UPGRADES
 
 var Upgrades = []upgrades.Upgrade{
-	upgrade_0_3.Upgrade, // v0.3.0
-	upgrade_0_4.Upgrade, // v0.4.0
+	upgrade_0_3.Upgrade,   // v0.3.0
+	upgrade_0_4.Upgrade,   // v0.4.0
+	upgrade_0_5_2.Upgrade, // v0.5.2
 }
 
 func (app *ArchwayApp) setupUpgrades() {
diff --git a/app/upgrades/052/precision_test.go b/app/upgrades/052/precision_test.go
new file mode 100644
index 00000000..b85e9a80
--- /dev/null
+++ b/app/upgrades/052/precision_test.go
@@ -0,0 +1,47 @@
+//go:build precision_test
+
+// NOTE: this test is run as a separate build tag as it modifies a global
+// variable that is used in other tests. In a concurrent environment this
+// might cause unforeseen issues, so we isolate it.
+package upgrade052_test
+
+import (
+	"testing"
+
+	e2eTesting "github.com/archway-network/archway/e2e/testing"
+	archway "github.com/archway-network/archway/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	"github.com/stretchr/testify/require"
+)
+
+func TestPrecisionBreakages(t *testing.T) {
+	attoPrec := archway.DefaultPowerReduction
+	microPrecision := sdk.NewInt(1_000_000)
+	stake := func(shouldPass bool, errContains string) {
+		chainBad := e2eTesting.NewTestChain(t, 1,
+			e2eTesting.WithGenDefaultCoinBalance(attoPrec.MulRaw(1_000_000_000).String()),
+			e2eTesting.WithBondAmount(attoPrec.MulRaw(1).String()),
+			e2eTesting.WithDefaultFeeAmount(attoPrec.MulRaw(1).String()),
+			e2eTesting.WithValidatorsNum(2),
+		)
+		acc := chainBad.GetAccount(1)
+
+		_, _, _, err := chainBad.SendMsgs(acc, shouldPass, []sdk.Msg{
+			&stakingtypes.MsgDelegate{
+				DelegatorAddress: acc.Address.String(),
+				ValidatorAddress: sdk.ValAddress(chainBad.GetCurrentValSet().Validators[0].Address).String(),
+				Amount:           sdk.NewCoin("stake", attoPrec.MulRaw(100_000_000)),
+			},
+		})
+		if !shouldPass {
+			require.ErrorContains(t, err, errContains)
+		}
+	}
+	// setup bad power reduction
+	sdk.DefaultPowerReduction = microPrecision
+	stake(false, "Int64() out of bound")
+	// fix power reduction
+	sdk.DefaultPowerReduction = attoPrec
+	stake(true, "")
+}
diff --git a/app/upgrades/052/upgrades.go b/app/upgrades/052/upgrades.go
new file mode 100644
index 00000000..699bbca8
--- /dev/null
+++ b/app/upgrades/052/upgrades.go
@@ -0,0 +1,22 @@
+package upgrade052
+
+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"
+
+	"github.com/archway-network/archway/app/upgrades"
+)
+
+const Name = "v0.5.2"
+
+var Upgrade = upgrades.Upgrade{
+	UpgradeName: Name,
+	CreateUpgradeHandler: func(mm *module.Manager, cfg module.Configurator) upgradetypes.UpgradeHandler {
+		return func(ctx sdk.Context, plan upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+			return mm.RunMigrations(ctx, cfg, fromVM)
+		}
+	},
+	StoreUpgrades: storetypes.StoreUpgrades{},
+}
diff --git a/e2e/gastracking_test.go b/e2e/gastracking_test.go
index ca1fb5b5..0029cfd7 100644
--- a/e2e/gastracking_test.go
+++ b/e2e/gastracking_test.go
@@ -5,6 +5,8 @@ import (
 	"strconv"
 	"time"
 
+	archway "github.com/archway-network/archway/types"
+
 	wasmdTypes "github.com/CosmWasm/wasmd/x/wasm/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	abci "github.com/tendermint/tendermint/abci/types"
@@ -41,7 +43,7 @@ func (s *E2ETestSuite) TestGasTrackingAndRewardsDistribution() {
 			1000000,
 		),
 		// Set default Tx fee for non-manual transaction like Upload / Instantiate
-		e2eTesting.WithDefaultFeeAmount("10000"),
+		e2eTesting.WithDefaultFeeAmount("500000000000000"),
 	)
 	trackingKeeper, rewardsKeeper := chain.GetApp().TrackingKeeper, chain.GetApp().RewardsKeeper
 
@@ -50,7 +52,7 @@ func (s *E2ETestSuite) TestGasTrackingAndRewardsDistribution() {
 	accAddrs, accPrivKeys := e2eTesting.GenAccounts(1) // an empty account
 
 	// Inputs
-	txFees := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(10000)))
+	txFees := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(500_000_000_000_000)))
 	rewardsAcc := e2eTesting.Account{
 		Address: accAddrs[0],
 		PrivKey: accPrivKeys[0],
@@ -81,7 +83,7 @@ func (s *E2ETestSuite) TestGasTrackingAndRewardsDistribution() {
 	}
 
 	// Send some coins to the rewardsAcc to pay withdraw Tx fees
-	rewardsAccInitialBalance := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(1000000)))
+	rewardsAccInitialBalance := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(1).Mul(archway.DefaultPowerReduction)))
 	{
 		s.Require().NoError(
 			chain.GetApp().BankKeeper.SendCoins(
diff --git a/e2e/rewards_test.go b/e2e/rewards_test.go
index 231d4e0e..ac6dc925 100644
--- a/e2e/rewards_test.go
+++ b/e2e/rewards_test.go
@@ -236,8 +236,6 @@ func (s *E2ETestSuite) TestRewardsWithdrawProfitAndFees() {
 // TestRewardsParamMaxWithdrawRecordsLimit check the x/rewards's MaxWithdrawRecords param limit (rough estimation).
 // Limit is defined by the block gas limit (100M).
 func (s *E2ETestSuite) TestRewardsParamMaxWithdrawRecordsLimit() {
-	s.T().Skip("Skipped to save CI time, should be used manually to estimate a new limit")
-
 	rewardsTypes.MaxWithdrawRecordsParamLimit = uint64(29500) // an actual value is (thisValue - 1), refer to the query below
 
 	chain := e2eTesting.NewTestChain(s.T(), 1,
@@ -312,8 +310,6 @@ func (s *E2ETestSuite) TestRewardsParamMaxWithdrawRecordsLimit() {
 // TestRewardsRecordsQueryLimit defines the x/rewards's RewardsRecords query limit (rough estimation).
 // Limit is defined by the max CosmWasm VM.
 func (s *E2ETestSuite) TestRewardsRecordsQueryLimit() {
-	s.T().Skip("Skipped to save CI time, should be used manually to estimate a new limit")
-
 	rewardsTypes.MaxRecordsQueryLimit = uint64(7716) // an actual value is (thisValue - 1), refer to the query below
 
 	chain := e2eTesting.NewTestChain(s.T(), 1)
diff --git a/e2e/testing/chain_options.go b/e2e/testing/chain_options.go
index 25021772..4947656c 100644
--- a/e2e/testing/chain_options.go
+++ b/e2e/testing/chain_options.go
@@ -6,6 +6,8 @@ import (
 	mintTypes "github.com/cosmos/cosmos-sdk/x/mint/types"
 	abci "github.com/tendermint/tendermint/abci/types"
 
+	archway "github.com/archway-network/archway/types"
+
 	"github.com/archway-network/archway/app"
 	rewardsTypes "github.com/archway-network/archway/x/rewards/types"
 )
@@ -33,9 +35,15 @@ func defaultChainConfig() chainConfig {
 	return chainConfig{
 		ValidatorsNum:    1,
 		GenAccountsNum:   5,
-		GenBalanceAmount: "1000000000",
-		BondAmount:       "1000000",
-		DefaultFeeAmt:    "100",
+		GenBalanceAmount: archway.DefaultPowerReduction.MulRaw(100).String(),
+		BondAmount:       archway.DefaultPowerReduction.MulRaw(1).String(),
+		DefaultFeeAmt:    archway.DefaultPowerReduction.QuoRaw(10).String(), // 0.1
+	}
+}
+
+func WithValidatorsNum(num int) TestChainConfigOption {
+	return func(cfg *chainConfig) {
+		cfg.ValidatorsNum = num
 	}
 }
 
diff --git a/types/precision.go b/types/precision.go
new file mode 100644
index 00000000..22d47fc6
--- /dev/null
+++ b/types/precision.go
@@ -0,0 +1,13 @@
+package types
+
+import (
+	"math/big"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+const (
+	BaseDenomUnit = 18
+)
+
+var DefaultPowerReduction = sdk.NewIntFromBigInt(new(big.Int).Exp(big.NewInt(10), big.NewInt(BaseDenomUnit), nil)) // 10^18
diff --git a/x/rewards/keeper/min_cons_fee.go b/x/rewards/keeper/min_cons_fee.go
index 7ebd707a..de62d6e6 100644
--- a/x/rewards/keeper/min_cons_fee.go
+++ b/x/rewards/keeper/min_cons_fee.go
@@ -61,7 +61,7 @@ func (k Keeper) ComputationalPriceOfGas(ctx sdk.Context) sdk.DecCoin {
 		return minPoG
 	}
 	if minPoG.Denom != antiDoSPoG.Denom {
-		panic("conflict between anti dos denom and min price of gas denom")
+		panic("conflict between anti dos denom and min price of gas denom: %s != %s" + minPoG.Denom + antiDoSPoG.Denom)
 	}
 	return sdk.NewDecCoinFromDec(minPoG.Denom, sdk.MaxDec(minPoG.Amount, antiDoSPoG.Amount))
 }