diff --git a/app/helpers/test_helpers.go b/app/helpers/test_helpers.go
index 748927ff4e5..1925adcd0a2 100644
--- a/app/helpers/test_helpers.go
+++ b/app/helpers/test_helpers.go
@@ -164,20 +164,19 @@ func genesisStateWithValSet(t *testing.T,
 		pkAny, err := codectypes.NewAnyWithValue(pk)
 		require.NoError(t, err)
 		validator := stakingtypes.Validator{
-			OperatorAddress:   sdk.ValAddress(val.Address).String(),
-			ConsensusPubkey:   pkAny,
-			Jailed:            false,
-			Status:            stakingtypes.Bonded,
-			Tokens:            bondAmt,
-			DelegatorShares:   sdk.OneDec(),
-			Description:       stakingtypes.Description{},
-			UnbondingHeight:   int64(0),
-			UnbondingTime:     time.Unix(0, 0).UTC(),
-			Commission:        stakingtypes.NewCommission(sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec()),
-			MinSelfDelegation: sdk.ZeroInt(),
+			OperatorAddress: sdk.ValAddress(val.Address).String(),
+			ConsensusPubkey: pkAny,
+			Jailed:          false,
+			Status:          stakingtypes.Bonded,
+			Tokens:          bondAmt,
+			DelegatorShares: sdk.OneDec(),
+			Description:     stakingtypes.Description{},
+			UnbondingHeight: int64(0),
+			UnbondingTime:   time.Unix(0, 0).UTC(),
+			Commission:      stakingtypes.NewCommission(sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec()),
 		}
 		validators = append(validators, validator)
-		delegations = append(delegations, stakingtypes.NewDelegation(genAccs[0].GetAddress(), val.Address.Bytes(), sdk.OneDec()))
+		delegations = append(delegations, stakingtypes.NewDelegation(genAccs[0].GetAddress(), val.Address.Bytes(), sdk.OneDec(), true))
 
 	}
 	// set validators and delegations
diff --git a/cmd/gaiad/cmd/testnet.go b/cmd/gaiad/cmd/testnet.go
index 997ebfed7fc..940e3317399 100644
--- a/cmd/gaiad/cmd/testnet.go
+++ b/cmd/gaiad/cmd/testnet.go
@@ -243,7 +243,6 @@ func InitTestnet(
 			sdk.NewCoin(sdk.DefaultBondDenom, valTokens),
 			stakingtypes.NewDescription(nodeDirName, "", "", "", ""),
 			stakingtypes.NewCommissionRates(sdk.OneDec(), sdk.OneDec(), sdk.OneDec()),
-			sdk.OneInt(),
 		)
 		if err != nil {
 			return err
diff --git a/go.mod b/go.mod
index 59d90dc1277..be2ad47bd81 100644
--- a/go.mod
+++ b/go.mod
@@ -174,7 +174,10 @@ require (
 replace (
 	// Use cosmos keyring
 	github.com/99designs/keyring => github.com/cosmos/keyring v1.2.0
+
+	// NOTE: @MSalopek test ics-lsm implementations
 	github.com/cosmos/cosmos-sdk => github.com/iqlusioninc/cosmos-sdk v0.34.4-0.20230628024121-1b4d7e811a43
+	github.com/cosmos/interchain-security/v2 => github.com/cosmos/interchain-security/v2 v2.0.1-0.20230707094121-790feda27368
 
 	// TODO: remove it: https://github.com/cosmos/cosmos-sdk/issues/13134
 	github.com/dgrijalva/jwt-go => github.com/golang-jwt/jwt/v4 v4.4.2
diff --git a/go.sum b/go.sum
index d5efea42484..07a59d90b99 100644
--- a/go.sum
+++ b/go.sum
@@ -248,8 +248,8 @@ github.com/cosmos/iavl v0.19.5 h1:rGA3hOrgNxgRM5wYcSCxgQBap7fW82WZgY78V9po/iY=
 github.com/cosmos/iavl v0.19.5/go.mod h1:X9PKD3J0iFxdmgNLa7b2LYWdsGd90ToV5cAONApkEPw=
 github.com/cosmos/ibc-go/v4 v4.4.2 h1:PG4Yy0/bw6Hvmha3RZbc53KYzaCwuB07Ot4GLyzcBvo=
 github.com/cosmos/ibc-go/v4 v4.4.2/go.mod h1:j/kD2JCIaV5ozvJvaEkWhLxM2zva7/KTM++EtKFYcB8=
-github.com/cosmos/interchain-security/v2 v2.0.0 h1:FQeU+9hYrK+XF4bRfiFgn+h7JJoM71KQKpeKYNxpjA4=
-github.com/cosmos/interchain-security/v2 v2.0.0/go.mod h1:3AHbp93smkSJFX6PW9OfYDJtU1i/Ty0yv/FVbF2dO20=
+github.com/cosmos/interchain-security/v2 v2.0.1-0.20230707094121-790feda27368 h1:Elxq9qx9HMQFDSRB9C/ATPuPA6JXbMTq1qlfMsStlik=
+github.com/cosmos/interchain-security/v2 v2.0.1-0.20230707094121-790feda27368/go.mod h1:sfU+zaMOUKUs2z2XD50xXnPLrR0UZgQp81UAvtnrPWM=
 github.com/cosmos/keyring v1.2.0 h1:8C1lBP9xhImmIabyXW4c3vFjjLiBdGCmfLUfeZlV1Yo=
 github.com/cosmos/keyring v1.2.0/go.mod h1:fc+wB5KTk9wQ9sDx0kFXB3A0MaeGHM9AwRStKOQ5vOA=
 github.com/cosmos/ledger-cosmos-go v0.12.2 h1:/XYaBlE2BJxtvpkHiBm97gFGSGmYGKunKyF3nNqAXZA=
diff --git a/tests/e2e/validator.go b/tests/e2e/validator.go
index e6ac398b503..5242d79c073 100644
--- a/tests/e2e/validator.go
+++ b/tests/e2e/validator.go
@@ -227,9 +227,6 @@ func (v *validator) buildCreateValidatorMsg(amount sdk.Coin) (sdk.Msg, error) {
 		MaxChangeRate: sdk.MustNewDecFromStr("0.01"),
 	}
 
-	// get the initial validator min self delegation
-	minSelfDelegation := sdk.OneInt()
-
 	valPubKey, err := cryptocodec.FromTmPubKeyInterface(v.consensusKey.PubKey)
 	if err != nil {
 		return nil, err
@@ -241,7 +238,6 @@ func (v *validator) buildCreateValidatorMsg(amount sdk.Coin) (sdk.Msg, error) {
 		amount,
 		description,
 		commissionRates,
-		minSelfDelegation,
 	)
 }