diff --git a/app/app.go b/app/app.go
index 56ece019..19a9cf23 100644
--- a/app/app.go
+++ b/app/app.go
@@ -131,7 +131,7 @@ import (
 
 	"github.com/tokenize-x/tx-chain/v6/app/openapi"
 	appupgrade "github.com/tokenize-x/tx-chain/v6/app/upgrade"
-	appupgradev6 "github.com/tokenize-x/tx-chain/v6/app/upgrade/v6"
+	appupgradev6paramspatch "github.com/tokenize-x/tx-chain/v6/app/upgrade/v6-params-patch"
 	"github.com/tokenize-x/tx-chain/v6/docs"
 	"github.com/tokenize-x/tx-chain/v6/pkg/config"
 	"github.com/tokenize-x/tx-chain/v6/pkg/config/constant"
@@ -1193,15 +1193,11 @@ func New(
 
 	/**** Upgrades ****/
 	upgrades := []appupgrade.Upgrade{
-		appupgradev6.New(
+		appupgradev6paramspatch.New(
 			app.ModuleManager,
 			app.configurator,
-			app.BankKeeper,
 			app.MintKeeper,
-			app.StakingKeeper,
 			app.PSEKeeper,
-			app.AccountKeeper.AddressCodec(),
-			app.StakingKeeper.ValidatorAddressCodec(),
 		),
 	}
 
diff --git a/app/upgrade/v6-params-patch/mint_params.go b/app/upgrade/v6-params-patch/mint_params.go
new file mode 100644
index 00000000..349bbe7b
--- /dev/null
+++ b/app/upgrade/v6-params-patch/mint_params.go
@@ -0,0 +1,37 @@
+package v6paramspatch
+
+import (
+	"context"
+
+	"cosmossdk.io/math"
+	mintkeeper "github.com/cosmos/cosmos-sdk/x/mint/keeper"
+)
+
+func migrateMintParams(ctx context.Context, keeper mintkeeper.Keeper) error {
+	params, err := keeper.Params.Get(ctx)
+	if err != nil {
+		return err
+	}
+	params.InflationRateChange = math.LegacyMustNewDecFromStr("0.005") // 0.500%
+	params.InflationMax = math.LegacyMustNewDecFromStr("0.02")         // 2.000%
+
+	// 60*60*24*365/0.95 = 33 195 789. Considering upgrade halts, we can use 33M.
+	params.BlocksPerYear = 33_000_000
+	err = keeper.Params.Set(ctx, params)
+	if err != nil {
+		return err
+	}
+
+	minter, err := keeper.Minter.Get(ctx)
+	if err != nil {
+		return err
+	}
+
+	minter.Inflation = math.LegacyMustNewDecFromStr("0.00075") // 0.075%
+	err = keeper.Minter.Set(ctx, minter)
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
diff --git a/app/upgrade/v6-params-patch/pse_init.go b/app/upgrade/v6-params-patch/pse_init.go
new file mode 100644
index 00000000..66b8f80d
--- /dev/null
+++ b/app/upgrade/v6-params-patch/pse_init.go
@@ -0,0 +1,83 @@
+package v6paramspatch
+
+import (
+	"context"
+
+	errorsmod "cosmossdk.io/errors"
+	"github.com/samber/lo"
+
+	pskeeper "github.com/tokenize-x/tx-chain/v6/x/pse/keeper"
+	psetypes "github.com/tokenize-x/tx-chain/v6/x/pse/types"
+)
+
+// DefaultTestnetParams returns the default PSE params for testnet.
+func DefaultTestnetParams() (psetypes.Params, error) {
+	mappings := []psetypes.ClearingAccountMapping{
+		{
+			ClearingAccount: psetypes.ClearingAccountFoundation,
+			RecipientAddresses: []string{
+				"testcore17rzcx6c37ypp8m6hrl6pyhhl3mfp2s5d6xhyyl23vsj3laclhpxqx89alr",
+				"testcore19kswr87wtx95gphrmkr785595untfmf9fd4dag4chthl5fxnkuhsc3v7gk",
+				"testcore16vth8ad0anjqpqqmwpfzc09c3w2tj4492vz6zzwr0xk9st6ca0tsm3nyv4",
+				"testcore1hmgca4jxfuxmg8lja9sdet307cldcpm4f6ttacurx8d4d03jz2aq5jgzwm",
+				"testcore1c67vg6kueqn5wd78vu0drfqtq7rurhulngyulc9qc0glk9l36vsq4v8h44",
+				"testcore1590eujlxwl7qsllu77xeu9v8ryuupkn6s0q5tlyp2e8ea6wa39tqpjy9sx",
+				"testcore1xc505dp7agzg7rnzzfzmllmqckw32et0rdnpwck3cplylgplj9hqwnnnvp",
+				"testcore13qrxcrsj69kztezt8pepmjeemen5tzxyx3wkg8mtllg2sexwgp2qs9rg2g",
+				"testcore1kxsc00mvmhx4mqklzhzze3nr56d0ejclpcda3nf8e6cqcap9mvzq2v6gzk",
+				"testcore120xxdn7hydfc8j2aak902zwlmuh9px465ft5jraj7l6qy5ksws4se0ucz7",
+			},
+		},
+		{
+			ClearingAccount: psetypes.ClearingAccountAlliance,
+			RecipientAddresses: []string{
+				"testcore1csd2z5ycyvfumnjdr7qsgw2r0y9uc7nsk4a4596ej275rg0lzwrqr5g4yy",
+				"testcore13egmenzagvcfnldcupxg5zfx5rgjrq44ugzewugku4l7e4jtmvns28sja8",
+			},
+		},
+		{
+			ClearingAccount: psetypes.ClearingAccountPartnership,
+			RecipientAddresses: []string{
+				"testcore1ludesr02ls9gjv4ufzg9kwypdn8uxvxmk65hqznxnf46hkfcsffqx4ktqv",
+			},
+		},
+		{
+			ClearingAccount: psetypes.ClearingAccountInvestors,
+			RecipientAddresses: []string{
+				"testcore16hu0xamesjwemrw4u3tpp23dkv3y2htgxvd2k942v3ekus2gsj5qsenwy3",
+			},
+		},
+		{
+			ClearingAccount: psetypes.ClearingAccountTeam,
+			RecipientAddresses: []string{
+				"testcore1lurev2l3g5pecey8lgywxw8wqvs4zupxqvmw4twmr9s8jlll6pgscmsu38",
+			},
+		},
+	}
+	otherFoundationAddresses := []string{
+		"testcore1efkcsd94u0vrx8rgq9cktjgq7fgwrjap3qu289",
+		"testcore18nfwg708vu74e6mrcu6yjdzcdq5608rmvavt05",
+		"testcore1qrqhjrc2jl36l4vuvhvjlt6kg6d0xqazzlxek7",
+		"testcore12guwnjehw06c9r40knd0js5dn6g924p7xxg48h",
+	}
+
+	var allExcludedAddresses []string
+	for _, mapping := range mappings {
+		allExcludedAddresses = append(allExcludedAddresses, mapping.RecipientAddresses...)
+	}
+	allExcludedAddresses = lo.Uniq(append(allExcludedAddresses, otherFoundationAddresses...))
+
+	return psetypes.Params{
+		ExcludedAddresses:       allExcludedAddresses,
+		ClearingAccountMappings: mappings,
+	}, nil
+}
+
+// TestnetV6Patch sets the PSE module params to testnet defaults.
+func TestnetV6Patch(ctx context.Context, pseKeeper pskeeper.Keeper) error {
+	params, err := DefaultTestnetParams()
+	if err != nil {
+		return errorsmod.Wrapf(psetypes.ErrInvalidInput, "failed to get default PSE params: %v", err)
+	}
+	return pseKeeper.SetParams(ctx, params)
+}
diff --git a/app/upgrade/v6-params-patch/upgrade.go b/app/upgrade/v6-params-patch/upgrade.go
new file mode 100644
index 00000000..3679dfc9
--- /dev/null
+++ b/app/upgrade/v6-params-patch/upgrade.go
@@ -0,0 +1,50 @@
+package v6paramspatch
+
+import (
+	"context"
+
+	store "cosmossdk.io/store/types"
+	upgradetypes "cosmossdk.io/x/upgrade/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	mintkeeper "github.com/cosmos/cosmos-sdk/x/mint/keeper"
+
+	"github.com/tokenize-x/tx-chain/v6/app/upgrade"
+	pskeeper "github.com/tokenize-x/tx-chain/v6/x/pse/keeper"
+)
+
+// Name defines the upgrade name.
+const Name = "v6-params-patch"
+
+// New makes an upgrade handler for v6 params patch upgrade.
+func New(
+	mm *module.Manager,
+	configurator module.Configurator,
+	mintKeeper mintkeeper.Keeper,
+	pseKeeper pskeeper.Keeper,
+) upgrade.Upgrade {
+	return upgrade.Upgrade{
+		Name: Name,
+		StoreUpgrades: store.StoreUpgrades{
+			Added:   []string{},
+			Deleted: []string{},
+		},
+		Upgrade: func(ctx context.Context, _ upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
+			vmap, err := mm.RunMigrations(ctx, configurator, vm)
+			if err != nil {
+				return nil, err
+			}
+
+			// Set mint module params to defaults
+			if err := migrateMintParams(ctx, mintKeeper); err != nil {
+				return nil, err
+			}
+
+			// Set PSE module params to testnet defaults
+			if err := TestnetV6Patch(ctx, pseKeeper); err != nil {
+				return nil, err
+			}
+
+			return vmap, nil
+		},
+	}
+}