diff --git a/x/distribution/genesis.go b/x/distribution/genesis.go
index 2c44a0339..2872359c7 100644
--- a/x/distribution/genesis.go
+++ b/x/distribution/genesis.go
@@ -26,8 +26,11 @@ func InitGenesis(ctx sdk.Context, keeper Keeper, data types.GenesisState) {
 func WriteGenesis(ctx sdk.Context, keeper Keeper) types.GenesisState {
 	feePool := keeper.GetFeePool(ctx)
 	communityTax := keeper.GetCommunityTax(ctx)
+	baseProposerRewards := keeper.GetBaseProposerReward(ctx)
+	bonusProposerRewards := keeper.GetBonusProposerReward(ctx)
 	vdis := keeper.GetAllValidatorDistInfos(ctx)
 	ddis := keeper.GetAllDelegationDistInfos(ctx)
 	dwis := keeper.GetAllDelegatorWithdrawInfos(ctx)
-	return NewGenesisState(feePool, communityTax, vdis, ddis, dwis)
+	return NewGenesisState(feePool, communityTax, baseProposerRewards,
+		bonusProposerRewards, vdis, ddis, dwis)
 }
diff --git a/x/distribution/keeper/allocation.go b/x/distribution/keeper/allocation.go
index 545285ae7..bd083adeb 100644
--- a/x/distribution/keeper/allocation.go
+++ b/x/distribution/keeper/allocation.go
@@ -23,8 +23,9 @@ func (k Keeper) AllocateFees(ctx sdk.Context) {
 
 	// allocated rewards to proposer
 	percentVotes := k.GetPercentPrecommitVotes(ctx)
-
-	proposerMultiplier := sdk.NewDecWithPrec(1, 2).Add(sdk.NewDecWithPrec(4, 2).Mul(percentVotes))
+	baseProposerReward := k.GetBaseProposerReward(ctx)
+	bonusProposerReward := k.GetBonusProposerReward(ctx)
+	proposerMultiplier := baseProposerReward.Add(bonusProposerReward.Mul(percentVotes))
 	proposerReward := feesCollectedDec.MulDec(proposerMultiplier)
 
 	// apply commission
diff --git a/x/distribution/keeper/keeper.go b/x/distribution/keeper/keeper.go
index 67d0cea62..356e33312 100644
--- a/x/distribution/keeper/keeper.go
+++ b/x/distribution/keeper/keeper.go
@@ -108,18 +108,46 @@ func (k Keeper) SetPercentPrecommitVotes(ctx sdk.Context, percentPrecommitVotes
 func ParamTypeTable() params.TypeTable {
 	return params.NewTypeTable(
 		ParamStoreKeyCommunityTax, sdk.Dec{},
+		ParamStoreKeyBaseProposerReward, sdk.Dec{},
+		ParamStoreKeyBonusProposerReward, sdk.Dec{},
 	)
 }
 
 // Returns the current CommunityTax rate from the global param store
 // nolint: errcheck
 func (k Keeper) GetCommunityTax(ctx sdk.Context) sdk.Dec {
-	var communityTax sdk.Dec
-	k.paramSpace.Get(ctx, ParamStoreKeyCommunityTax, &communityTax)
-	return communityTax
+	var percent sdk.Dec
+	k.paramSpace.Get(ctx, ParamStoreKeyCommunityTax, &percent)
+	return percent
 }
 
 // nolint: errcheck
-func (k Keeper) SetCommunityTax(ctx sdk.Context, communityTax sdk.Dec) {
-	k.paramSpace.Set(ctx, ParamStoreKeyCommunityTax, &communityTax)
+func (k Keeper) SetCommunityTax(ctx sdk.Context, percent sdk.Dec) {
+	k.paramSpace.Set(ctx, ParamStoreKeyCommunityTax, &percent)
+}
+
+// Returns the current BaseProposerReward rate from the global param store
+// nolint: errcheck
+func (k Keeper) GetBaseProposerReward(ctx sdk.Context) sdk.Dec {
+	var percent sdk.Dec
+	k.paramSpace.Get(ctx, ParamStoreKeyBaseProposerReward, &percent)
+	return percent
+}
+
+// nolint: errcheck
+func (k Keeper) SetBaseProposerReward(ctx sdk.Context, percent sdk.Dec) {
+	k.paramSpace.Set(ctx, ParamStoreKeyBaseProposerReward, &percent)
+}
+
+// Returns the current BaseProposerReward rate from the global param store
+// nolint: errcheck
+func (k Keeper) GetBonusProposerReward(ctx sdk.Context) sdk.Dec {
+	var percent sdk.Dec
+	k.paramSpace.Get(ctx, ParamStoreKeyBonusProposerReward, &percent)
+	return percent
+}
+
+// nolint: errcheck
+func (k Keeper) SetBonusProposerReward(ctx sdk.Context, percent sdk.Dec) {
+	k.paramSpace.Set(ctx, ParamStoreKeyBonusProposerReward, &percent)
 }
diff --git a/x/distribution/keeper/key.go b/x/distribution/keeper/key.go
index e1fc44e77..0f9644f77 100644
--- a/x/distribution/keeper/key.go
+++ b/x/distribution/keeper/key.go
@@ -16,7 +16,9 @@ var (
 	PercentPrecommitVotesKey = []byte{0x01} // key for storing the power of the precommit validators
 
 	// params store
-	ParamStoreKeyCommunityTax = []byte("distr/community-tax")
+	ParamStoreKeyCommunityTax        = []byte("community-tax")
+	ParamStoreKeyBaseProposerReward  = []byte("base-proposer-reward")
+	ParamStoreKeyBonusProposerReward = []byte("bonus-proposer-reward")
 )
 
 const (
diff --git a/x/distribution/keeper/test_common.go b/x/distribution/keeper/test_common.go
index ec7fc0350..871812a11 100644
--- a/x/distribution/keeper/test_common.go
+++ b/x/distribution/keeper/test_common.go
@@ -138,6 +138,8 @@ func CreateTestInputAdvanced(t *testing.T, isCheckTx bool, initCoins int64,
 	// set genesis items required for distribution
 	keeper.SetFeePool(ctx, types.InitialFeePool())
 	keeper.SetCommunityTax(ctx, communityTax)
+	keeper.SetBaseProposerReward(ctx, sdk.NewDecWithPrec(1, 2))
+	keeper.SetBonusProposerReward(ctx, sdk.NewDecWithPrec(4, 2))
 
 	return ctx, accountMapper, keeper, sk, fck
 }
diff --git a/x/distribution/types/genesis.go b/x/distribution/types/genesis.go
index 9921818b2..528295e5c 100644
--- a/x/distribution/types/genesis.go
+++ b/x/distribution/types/genesis.go
@@ -13,17 +13,21 @@ type DelegatorWithdrawInfo struct {
 type GenesisState struct {
 	FeePool                FeePool                 `json:"fee_pool"`
 	CommunityTax           sdk.Dec                 `json:"community_tax"`
+	BaseProposerReward     sdk.Dec                 `json:"base_proposer_reward"`
+	BonusProposerReward    sdk.Dec                 `json:"bonus_proposer_reward"`
 	ValidatorDistInfos     []ValidatorDistInfo     `json:"validator_dist_infos"`
 	DelegationDistInfos    []DelegationDistInfo    `json:"delegator_dist_infos"`
 	DelegatorWithdrawInfos []DelegatorWithdrawInfo `json:"delegator_withdraw_infos"`
 }
 
-func NewGenesisState(feePool FeePool, communityTax sdk.Dec,
+func NewGenesisState(feePool FeePool, communityTax, baseProposerReward, bonusProposerReward sdk.Dec,
 	vdis []ValidatorDistInfo, ddis []DelegationDistInfo, dwis []DelegatorWithdrawInfo) GenesisState {
 
 	return GenesisState{
 		FeePool:                feePool,
 		CommunityTax:           communityTax,
+		BaseProposerReward:     baseProposerReward,
+		BonusProposerReward:    bonusProposerReward,
 		ValidatorDistInfos:     vdis,
 		DelegationDistInfos:    ddis,
 		DelegatorWithdrawInfos: dwis,
@@ -33,8 +37,10 @@ func NewGenesisState(feePool FeePool, communityTax sdk.Dec,
 // get raw genesis raw message for testing
 func DefaultGenesisState() GenesisState {
 	return GenesisState{
-		FeePool:      InitialFeePool(),
-		CommunityTax: sdk.NewDecWithPrec(2, 2), // 2%
+		FeePool:             InitialFeePool(),
+		CommunityTax:        sdk.NewDecWithPrec(2, 2), // 2%
+		BaseProposerReward:  sdk.NewDecWithPrec(1, 2), // 1%
+		BonusProposerReward: sdk.NewDecWithPrec(4, 2), // 4%
 	}
 }
 
@@ -53,6 +59,8 @@ func DefaultGenesisWithValidators(valAddrs []sdk.ValAddress) GenesisState {
 	return GenesisState{
 		FeePool:             InitialFeePool(),
 		CommunityTax:        sdk.NewDecWithPrec(2, 2), // 2%
+		BaseProposerReward:  sdk.NewDecWithPrec(1, 2), // 1%
+		BonusProposerReward: sdk.NewDecWithPrec(4, 2), // 4%
 		ValidatorDistInfos:  vdis,
 		DelegationDistInfos: ddis,
 	}