diff --git a/app/upgrade.go b/app/upgrade.go
index dc087b564..d9bc26935 100644
--- a/app/upgrade.go
+++ b/app/upgrade.go
@@ -200,7 +200,7 @@ func getCosmosSDKv44UpgradeHandler(app *WasmApp) upgradeData {
 
 			// Custom modules
 			"burner":        1, // the burner module has no state but it implements AppModule so its better to put it here
-			"configuration": 1,
+			"configuration": 1, // the configuration module will be updated to version 2 (adding the escrow conf)
 			"starname":      1,
 			"wasm":          1,
 
diff --git a/x/configuration/genesis.go b/x/configuration/genesis.go
index 79c8210bb..a7fa0ed0e 100644
--- a/x/configuration/genesis.go
+++ b/x/configuration/genesis.go
@@ -2,7 +2,6 @@ package configuration
 
 import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
-
 	"github.com/iov-one/starnamed/x/configuration/types"
 )
 
diff --git a/x/configuration/migrations/v2/migrate.go b/x/configuration/migrations/v2/migrate.go
new file mode 100644
index 000000000..774f9fe93
--- /dev/null
+++ b/x/configuration/migrations/v2/migrate.go
@@ -0,0 +1,42 @@
+package v2
+
+import (
+	"fmt"
+	"github.com/cosmos/cosmos-sdk/codec"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/iov-one/starnamed/x/configuration/types"
+)
+
+// MigrateStore performs in-place store migrations from version 1 to version 2
+// This adds the escrow parameters to the configuration
+func MigrateStore(ctx sdk.Context, storeKey sdk.StoreKey, cdc codec.BinaryCodec) error {
+	store := ctx.KVStore(storeKey)
+
+	confBytes := store.Get([]byte(types.ConfigKey))
+	if confBytes == nil {
+		return fmt.Errorf("no configuration available")
+	}
+
+	feesBytes := store.Get([]byte(types.FeeKey))
+	if feesBytes == nil {
+		return fmt.Errorf("no fees available")
+	}
+
+	defaultState := types.DefaultGenesisState()
+
+	// Get the default state for the configuration
+	config := defaultState.Config
+	// Overwrite with the values present in the chain for old fields
+	cdc.MustUnmarshal(confBytes, &config)
+
+	// Get the default state for the fees
+	fees := defaultState.Fees
+	// Overwrite with the values present in the chain for old fields
+	cdc.MustUnmarshal(feesBytes, &fees)
+
+	// Write back the configuration and the fees
+	store.Set([]byte(types.ConfigKey), cdc.MustMarshal(&config))
+	store.Set([]byte(types.FeeKey), cdc.MustMarshal(&fees))
+
+	return nil
+}
\ No newline at end of file
diff --git a/x/configuration/migrator.go b/x/configuration/migrator.go
new file mode 100644
index 000000000..ff47121d1
--- /dev/null
+++ b/x/configuration/migrator.go
@@ -0,0 +1,21 @@
+package configuration
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	v2 "github.com/iov-one/starnamed/x/configuration/migrations/v2"
+)
+
+// Migrator is a struct for handling in-place store migrations.
+type Migrator struct {
+	keeper Keeper
+}
+
+// NewMigrator returns a new Migrator.
+func NewMigrator(keeper Keeper) Migrator {
+	return Migrator{keeper: keeper}
+}
+
+// Migrate1to2 migrates from version 1 to 2.
+func (m Migrator) Migrate1to2(ctx sdk.Context) error {
+	return v2.MigrateStore(ctx, m.keeper.storeKey, m.keeper.cdc)
+}
\ No newline at end of file
diff --git a/x/configuration/module.go b/x/configuration/module.go
index 135dd9643..d8334700f 100644
--- a/x/configuration/module.go
+++ b/x/configuration/module.go
@@ -3,6 +3,7 @@ package configuration
 import (
 	"context"
 	"encoding/json"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/codec"
@@ -43,7 +44,7 @@ func (AppModuleBasic) Name() string { return types.ModuleName }
 
 // DefaultGenesis returns default genesis state as raw bytes for the configuration module.
 func (AppModuleBasic) DefaultGenesis(cdc codec.JSONCodec) json.RawMessage {
-	defaultGenesisState := DefaultGenesisState()
+	defaultGenesisState := types.DefaultGenesisState()
 	return cdc.MustMarshalJSON(&defaultGenesisState)
 }
 
@@ -54,7 +55,7 @@ func (b AppModuleBasic) ValidateGenesis(marshaler codec.JSONCodec, config client
 	if err != nil {
 		return err
 	}
-	return ValidateGenesis(data)
+	return types.ValidateGenesis(data)
 }
 
 // RegisterRESTRoutes registers the REST routes for the configuration module.
@@ -97,6 +98,11 @@ func (AppModule) Name() string { return types.ModuleName }
 // RegisterServices allows a module to register services
 func (a AppModule) RegisterServices(configurator module.Configurator) {
 	types.RegisterQueryServer(configurator.QueryServer(), NewQuerier(&a.keeper))
+
+	m := NewMigrator(a.keeper)
+	if err := configurator.RegisterMigration(types.ModuleName, 1, m.Migrate1to2); err != nil {
+		panic(sdkerrors.Wrapf(err, "Error while registering the configuration module migration from version 1 to 2"))
+	}
 }
 
 // LegacyQuerierHandler provides an sdk.Querier object that uses the legacy amino codec.
@@ -138,4 +144,4 @@ func (a AppModule) ExportGenesis(ctx sdk.Context, cdc codec.JSONCodec) json.RawM
 }
 
 // ConsensusVersion implements AppModule/ConsensusVersion.
-func (AppModule) ConsensusVersion() uint64 { return 1 }
+func (AppModule) ConsensusVersion() uint64 { return 2 }
diff --git a/x/configuration/types/genesis.go b/x/configuration/types/genesis.go
new file mode 100644
index 000000000..059136eab
--- /dev/null
+++ b/x/configuration/types/genesis.go
@@ -0,0 +1,63 @@
+package types
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+// NewGenesisState is GenesisState constructor
+func NewGenesisState(conf Config, fees *Fees) GenesisState {
+	return GenesisState{
+		Config: conf,
+		Fees:   *fees,
+	}
+}
+
+// ValidateGenesis makes sure that the genesis state is valid
+func ValidateGenesis(data GenesisState) error {
+	conf := data.Config
+	if err := conf.Validate(); err != nil {
+		return err
+	}
+	if err := data.Fees.Validate(); err != nil {
+		return err
+	}
+	return nil
+}
+
+// DefaultGenesisState returns the default genesis state
+// TODO this needs to be updated, although it will be imported from iovns chain
+func DefaultGenesisState() GenesisState {
+	// set default configs
+	config := Config{
+		Configurer:             "star1d3lhm5vtta78cm7c7ytzqh7z5pcgktmautntqv", // msig1
+		ValidDomainName:        "^[-_a-z0-9]{4,16}$",
+		ValidAccountName:       "^[-_\\.a-z0-9]{1,64}$",
+		ValidURI:               "^[-a-z0-9A-Z:]+$",
+		ValidResource:          "^[a-z0-9A-Z]+$",
+		DomainRenewalPeriod:    31557600 * 1e9,
+		DomainRenewalCountMax:  2,
+		DomainGracePeriod:      2592000 * 1e9,
+		AccountRenewalPeriod:   31557600 * 1e9,
+		AccountRenewalCountMax: 3,
+		AccountGracePeriod:     2592000 * 1e9,
+		ResourcesMax:           3,
+		CertificateSizeMax:     10000,
+		CertificateCountMax:    3,
+		MetadataSizeMax:        86400,
+		EscrowCommission:       sdk.NewDecFromInt(sdk.NewInt(1)).QuoInt(sdk.NewInt(100)), // 1%
+		EscrowBroker:           "star1nrnx8mft8mks3l2akduxdjlf8rwqs8r9l36a78", 					 // to IOV msig account
+		EscrowMaxPeriod:        7890000 * 1e9,                                 					 // 3 months
+	}
+	// set fees
+	// add domain module fees
+	feeCoinDenom := "tiov" // set coin denom used for fees
+	// generate new fees
+	fees := NewFees()
+	// set default fees
+	fees.SetDefaults(feeCoinDenom)
+	// return genesis
+	return GenesisState{
+		Config: config,
+		Fees:   *fees,
+	}
+}
diff --git a/x/escrow/test/suite.go b/x/escrow/test/suite.go
index bca305cd0..a8c5ffcf7 100644
--- a/x/escrow/test/suite.go
+++ b/x/escrow/test/suite.go
@@ -2,6 +2,7 @@ package test
 
 import (
 	"encoding/hex"
+	configurationtypes "github.com/iov-one/starnamed/x/configuration/types"
 	"strings"
 	"testing"
 	"time"
@@ -213,7 +214,7 @@ func NewTestKeeper(coinHolders []sdk.AccAddress, isModuleEnabled bool) (keeper.K
 	defaultFees.SetDefaults(Denom)
 	configKeeper.SetFees(ctx, defaultFees)
 
-	defaultConfig := configuration.DefaultGenesisState().Config
+	defaultConfig := configurationtypes.DefaultGenesisState().Config
 	configKeeper.SetConfig(ctx, defaultConfig)
 
 	// register blocked addresses