diff --git a/app/app.go b/app/app.go
index 25a21d6f..7bda634d 100644
--- a/app/app.go
+++ b/app/app.go
@@ -56,13 +56,13 @@ import (
 
 	"github.com/persistenceOne/persistenceCore/v11/app/keepers"
 	"github.com/persistenceOne/persistenceCore/v11/app/upgrades"
-	v11_11_0 "github.com/persistenceOne/persistenceCore/v11/app/upgrades/v11.11.0"
+	v11_12_0_rc0 "github.com/persistenceOne/persistenceCore/v11/app/upgrades/testnet/v11.12.0-rc0"
 	"github.com/persistenceOne/persistenceCore/v11/client/docs"
 )
 
 var (
 	DefaultNodeHome string
-	Upgrades        = []upgrades.Upgrade{v11_11_0.Upgrade}
+	Upgrades        = []upgrades.Upgrade{v11_12_0_rc0.Upgrade}
 	ModuleBasics    = module.NewBasicManager(keepers.AppModuleBasics...)
 )
 
diff --git a/app/keepers/keepers.go b/app/keepers/keepers.go
index 9cb9922f..fba3c96f 100644
--- a/app/keepers/keepers.go
+++ b/app/keepers/keepers.go
@@ -473,7 +473,9 @@ func NewAppKeeper(
 	)
 	appKeepers.EpochsKeeper.SetHooks(
 		epochstypes.NewMultiEpochHooks(
-			appKeepers.LiquidStakeIBCKeeper.NewEpochHooks(), appKeepers.RateSyncKeeper.EpochHooks(),
+			appKeepers.LiquidStakeIBCKeeper.NewEpochHooks(),
+			appKeepers.LiquidStakeKeeper.EpochHooks(),
+			appKeepers.RateSyncKeeper.EpochHooks(),
 		),
 	)
 
diff --git a/app/upgrades/testnet/v11.12.0-rc0/constants.go b/app/upgrades/testnet/v11.12.0-rc0/constants.go
new file mode 100644
index 00000000..fe538e8d
--- /dev/null
+++ b/app/upgrades/testnet/v11.12.0-rc0/constants.go
@@ -0,0 +1,18 @@
+package v11_12_0_rc0
+
+import (
+	store "github.com/cosmos/cosmos-sdk/store/types"
+
+	"github.com/persistenceOne/persistenceCore/v11/app/upgrades"
+)
+
+const (
+	// UpgradeName defines the on-chain upgrade name.
+	UpgradeName = "v11.12.0-rc0"
+)
+
+var Upgrade = upgrades.Upgrade{
+	UpgradeName:          UpgradeName,
+	CreateUpgradeHandler: CreateUpgradeHandler,
+	StoreUpgrades:        store.StoreUpgrades{},
+}
diff --git a/app/upgrades/testnet/v11.12.0-rc0/upgrades.go b/app/upgrades/testnet/v11.12.0-rc0/upgrades.go
new file mode 100644
index 00000000..8ea9a10c
--- /dev/null
+++ b/app/upgrades/testnet/v11.12.0-rc0/upgrades.go
@@ -0,0 +1,53 @@
+package v11_12_0_rc0
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	liquidstaketypes "github.com/persistenceOne/pstake-native/v2/x/liquidstake/types"
+
+	"github.com/persistenceOne/persistenceCore/v11/app/keepers"
+	"github.com/persistenceOne/persistenceCore/v11/app/upgrades"
+)
+
+func CreateUpgradeHandler(args upgrades.UpgradeHandlerArgs) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, plan upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
+		ctx.Logger().Info("running module migrations...")
+
+		DelegateLiquidStakeRewards(ctx, args.Keepers)
+
+		return args.ModuleManager.RunMigrations(ctx, args.Configurator, vm)
+	}
+}
+
+func DelegateLiquidStakeRewards(ctx sdk.Context, k *keepers.AppKeepers) {
+	proxyAccBalance := k.LiquidStakeKeeper.GetProxyAccBalance(ctx, liquidstaketypes.LiquidStakeProxyAcc)
+	amountToDelegate := proxyAccBalance.Amount
+
+	whitelistedValidators := k.LiquidStakeKeeper.GetParams(ctx).WhitelistedValidators
+	whitelistedValsMap := liquidstaketypes.GetWhitelistedValsMap(whitelistedValidators)
+	activeLiquidVals := k.LiquidStakeKeeper.GetActiveLiquidValidators(ctx, whitelistedValsMap)
+
+	// currently auto compounding fee rate is zero, therefore fee logic is added here.
+
+	err := k.LiquidStakeKeeper.LiquidDelegate(ctx, liquidstaketypes.LiquidStakeProxyAcc, activeLiquidVals, amountToDelegate, whitelistedValsMap)
+
+	// if liquid delegate fails then try to delegate to any one active validator
+	if err != nil {
+		ctx.Logger().Info("failed to liquid delegate, trying to delegate to any one validator...", "error", err.Error())
+
+		for _, lv := range activeLiquidVals {
+			val, _ := k.StakingKeeper.GetValidator(ctx, lv.GetOperator())
+			err2 := k.LiquidStakeKeeper.DelegateWithCap(ctx, liquidstaketypes.LiquidStakeProxyAcc, val, amountToDelegate)
+			if err2 != nil {
+				ctx.Logger().Info("failed to delegate", "validator", val.GetOperator(), "error", err2.Error())
+				// continue with next val
+			} else {
+				// successfully delegated, exit
+				return
+			}
+		}
+
+		ctx.Logger().Error("failed to delegate to any of active val set")
+	}
+}
diff --git a/go.mod b/go.mod
index 09d83653..93a659b4 100644
--- a/go.mod
+++ b/go.mod
@@ -16,7 +16,7 @@ require (
 	github.com/cosmos/ibc-go/v7 v7.4.0
 	github.com/gorilla/mux v1.8.1
 	github.com/persistenceOne/persistence-sdk/v2 v2.2.0
-	github.com/persistenceOne/pstake-native/v2 v2.13.0
+	github.com/persistenceOne/pstake-native/v2 v2.14.0-rc0
 	github.com/prometheus/client_golang v1.16.0
 	github.com/skip-mev/pob v1.0.5
 	github.com/spf13/cast v1.6.0
diff --git a/go.sum b/go.sum
index 4ef8b8cc..7937a243 100644
--- a/go.sum
+++ b/go.sum
@@ -1034,8 +1034,8 @@ github.com/persistenceOne/cosmos-sdk v0.47.10-lsm-rc0 h1:lbSQZUdaaKIpoSAznVESl0v
 github.com/persistenceOne/cosmos-sdk v0.47.10-lsm-rc0/go.mod h1:Q/eHvXB0Awenk3NCh77NvjpeKGPigawFHIXlz2ayfos=
 github.com/persistenceOne/persistence-sdk/v2 v2.2.0 h1:ZsBsy/HElkwjPXoASI7CptMFY9C3C/d27G+8bxFDzQw=
 github.com/persistenceOne/persistence-sdk/v2 v2.2.0/go.mod h1:8VgozZWTPLMdlzsyiuGI0+vLo2fvGYSj/YKM9kiJwrI=
-github.com/persistenceOne/pstake-native/v2 v2.13.0 h1:XUYvVwkjjWGQeL+cpcgLUdRtO47+e3YffayGrUNGcvM=
-github.com/persistenceOne/pstake-native/v2 v2.13.0/go.mod h1:FcLbnTasZfKKKQJ6nzgzdkDqb3dUlIyraqcsj7DMTfE=
+github.com/persistenceOne/pstake-native/v2 v2.14.0-rc0 h1:4vHEFSM6aZ14GzhtT+nsO6jLiB2as/dy5aQT8w8zUfQ=
+github.com/persistenceOne/pstake-native/v2 v2.14.0-rc0/go.mod h1:FcLbnTasZfKKKQJ6nzgzdkDqb3dUlIyraqcsj7DMTfE=
 github.com/peterh/liner v1.0.1-0.20180619022028-8c1271fcf47f/go.mod h1:xIteQHvHuaLYG9IFj6mSxM0fCKrs34IrEQUhOYuGPHc=
 github.com/peterh/liner v1.1.1-0.20190123174540-a2c9a5303de7/go.mod h1:CRroGNssyjTd/qIG2FyxByd2S8JEAZXBl4qUrZf8GS0=
 github.com/petermattis/goid v0.0.0-20180202154549-b0b1615b78e5/go.mod h1:jvVRKCrJTQWu0XVbaOlby/2lO20uSCHEMzzplHXte1o=
diff --git a/interchaintest/chain_upgrade_test.go b/interchaintest/chain_upgrade_test.go
index 0cc5b419..c493d894 100644
--- a/interchaintest/chain_upgrade_test.go
+++ b/interchaintest/chain_upgrade_test.go
@@ -29,8 +29,8 @@ const (
 func TestPersistenceUpgradeBasic(t *testing.T) {
 	var (
 		chainName            = "persistence"
-		initialVersion       = "v11.10.0"
-		upgradeName          = "v11.11.0"
+		initialVersion       = "v11.11.0"
+		upgradeName          = "v11.12.0-rc0"
 		upgradeRepo          = PersistenceCoreImage.Repository
 		upgradeBranchVersion = PersistenceCoreImage.Version
 	)