diff --git a/x/bank/types/balance_test.go b/x/bank/types/balance_test.go
index 9736c847ba..f328314910 100644
--- a/x/bank/types/balance_test.go
+++ b/x/bank/types/balance_test.go
@@ -106,7 +106,7 @@ func TestBalance_GetAddress(t *testing.T) {
 
 func TestSanitizeBalances(t *testing.T) {
 	// 1. Generate balances
-	tokens := sdk.TokensFromConsensusPower(81)
+	tokens := sdk.TokensFromConsensusPower(81, sdk.DefaultPowerReduction)
 	coin := sdk.NewCoin("benchcoin", tokens)
 	coins := sdk.Coins{coin}
 	addrs, _ := makeRandomAddressesAndPublicKeys(20)
@@ -158,7 +158,7 @@ func BenchmarkSanitizeBalances1000(b *testing.B) {
 
 func benchmarkSanitizeBalances(b *testing.B, nAddresses int) {
 	b.ReportAllocs()
-	tokens := sdk.TokensFromConsensusPower(81)
+	tokens := sdk.TokensFromConsensusPower(81, sdk.DefaultPowerReduction)
 	coin := sdk.NewCoin("benchcoin", tokens)
 	coins := sdk.Coins{coin}
 	addrs, _ := makeRandomAddressesAndPublicKeys(nAddresses)
diff --git a/x/feegrant/simulation/operations_test.go b/x/feegrant/simulation/operations_test.go
index 5d6560b26c..d9c0fffaeb 100644
--- a/x/feegrant/simulation/operations_test.go
+++ b/x/feegrant/simulation/operations_test.go
@@ -39,7 +39,7 @@ func (suite *SimTestSuite) SetupTest() {
 func (suite *SimTestSuite) getTestingAccounts(r *rand.Rand, n int) []simtypes.Account {
 	accounts := simtypes.RandomAccounts(r, n)
 
-	initAmt := app.StakingKeeper.TokensFromConsensusPower(ctx, 200)
+	initAmt := sdk.TokensFromConsensusPower(200, sdk.DefaultPowerReduction)
 	initCoins := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, initAmt))
 
 	// add coins to the accounts
diff --git a/x/staking/legacy/v040/migrate.go b/x/staking/legacy/v040/migrate.go
index b0746fa363..1ade9288ec 100644
--- a/x/staking/legacy/v040/migrate.go
+++ b/x/staking/legacy/v040/migrate.go
@@ -129,6 +129,7 @@ func Migrate(stakingState v038staking.GenesisState) *v040staking.GenesisState {
 			MaxEntries:        uint32(stakingState.Params.MaxEntries),
 			HistoricalEntries: uint32(stakingState.Params.HistoricalEntries),
 			BondDenom:         stakingState.Params.BondDenom,
+			PowerReduction:    v040staking.DefaultParams().PowerReduction,
 		},
 		LastTotalPower:       stakingState.LastTotalPower,
 		LastValidatorPowers:  newLastValidatorPowers,
diff --git a/x/staking/legacy/v040/migrate_test.go b/x/staking/legacy/v040/migrate_test.go
index 2be5e80dbc..16bb4374b5 100644
--- a/x/staking/legacy/v040/migrate_test.go
+++ b/x/staking/legacy/v040/migrate_test.go
@@ -55,6 +55,7 @@ func TestMigrate(t *testing.T) {
     "historical_entries": 0,
     "max_entries": 0,
     "max_validators": 0,
+    "power_reduction": "1000000",
     "unbonding_time": "0s"
   },
   "redelegations": [],
diff --git a/x/staking/legacy/v043/store_test.go b/x/staking/legacy/v043/store_test.go
index 0abe8f3b1e..32b6bb181e 100644
--- a/x/staking/legacy/v043/store_test.go
+++ b/x/staking/legacy/v043/store_test.go
@@ -61,7 +61,7 @@ func TestStoreMigration(t *testing.T) {
 		{
 			"ValidatorsByPowerIndexKey",
 			v040staking.GetValidatorsByPowerIndexKey(val),
-			types.GetValidatorsByPowerIndexKey(val),
+			types.GetValidatorsByPowerIndexKey(val, sdk.DefaultPowerReduction),
 		},
 		{
 			"DelegationKey",