diff --git a/docs/demo.md b/docs/demo.md
index a8878fb..6c74d67 100644
--- a/docs/demo.md
+++ b/docs/demo.md
@@ -9,13 +9,13 @@
     ```bash
     cargo install tmkms --features=softsign --version=0.14.0
     ```
-- Install `gzip` using `sudo apt install gzip`
-- testnet-state.gz ([exported testnet state](./run-first-validator.md#export-testnet-state)) 
+- Install `zstd` using `sudo apt install zstd`
+- testnet-state.zst ([exported testnet state](./run-first-validator.md#export-testnet-state)) 
 - LPS distribution Google spreadsheet URL or CSV file path
 
 ## Steps
 
-- In current working directory demo, keep exported `testnet-state.gz` file from prerequisites
+- In current working directory demo, keep exported `testnet-state.zst` file from prerequisites
 
 - Fetch stack:
 
@@ -40,10 +40,10 @@
 - Extract the testnet-state JSON file
 
   ```
-  gzip -dc $CWD/testnet-state.gz > $CWD/testnet-state.json
+  zstd -dc $CWD/testnet-state.zst > $CWD/testnet-state.json
 
-  # Remove zip folder
-  rm -rf testnet-state.gz
+  # Remove zst folder
+  rm -rf testnet-state.zst
   ```
 
 - Set envs:
diff --git a/docs/run-first-validator.md b/docs/run-first-validator.md
index eac5cc7..71c2ee0 100644
--- a/docs/run-first-validator.md
+++ b/docs/run-first-validator.md
@@ -5,7 +5,7 @@
 - [ansible](playbooks/README.md#ansible-installation)
 - [laconic-so](https://github.com/cerc-io/stack-orchestrator/?tab=readme-ov-file#install)
 - LPS distribution Google spreadsheet URL or CSV file path
-- Install `gzip` using `sudo apt install gzip`
+- Install `zstd` using `sudo apt install zstd`
 
 ## Export testnet state
 
@@ -35,7 +35,7 @@
   ~/cerc/laconicd-stack/scripts/export-testnet-state.sh <absolute-path-to-testnet-deployment>
   ```
 
-  - The compressed gzip will be generated at `<absolute-path-to-testnet-deployment>/export/testnet-state.gz`
+  - The compressed zst file will be generated at `<absolute-path-to-testnet-deployment>/export/testnet-state.zst`
 
 ## Generate mainnet genesis file
 
@@ -45,15 +45,15 @@
   laconic-so fetch-stack git.vdb.to/cerc-io/laconicd-stack --git-ssh --pull
   ```
 
-- Copy over compressed `testnet-state.gz` file to target machine
+- Copy over compressed `testnet-state.zst` file to target machine
 
 - Extract the testnet-state JSON file
 
   ```
-  gzip -dc <path-to-compressed-file>/testnet-state.gz > testnet-state.json
+  zstd -dc <path-to-compressed-file>/testnet-state.zst > testnet-state.json
 
-  # Remove zip folder
-  rm -rf <path-to-compressed-file>/testnet-state.gz
+  # Remove zst folder
+  rm -rf <path-to-compressed-file>/testnet-state.zst
   ```
 
 - Generate LPS lockup distribution JSON file
diff --git a/scripts/export-testnet-state.sh b/scripts/export-testnet-state.sh
index 757f4d4..c1f6a94 100755
--- a/scripts/export-testnet-state.sh
+++ b/scripts/export-testnet-state.sh
@@ -19,10 +19,10 @@ OUTPUT_DIR=${TESTNET_DEPLOYMENT_DIR}/export
 mkdir -p $OUTPUT_DIR
 
 # Export state from testnet chain
-testnet_state_file="$OUTPUT_DIR/testnet-state.gz"
+testnet_state_file="$OUTPUT_DIR/testnet-state.zst"
 docker run -it \
   -v ${TESTNET_DEPLOYMENT_DIR}/data/laconicd-data:/root/testnet-deployment/.laconicd \
   cerc/laconicd:local bash -c "laconicd export --home /root/testnet-deployment/.laconicd" \
-  | jq | gzip > "$testnet_state_file"
+  | jq | zstd > "$testnet_state_file"
 
 echo "Exported state from testnet to $testnet_state_file"