diff --git a/demo/app/app.go b/demo/app/app.go
index 0d82bea3..21a2f176 100644
--- a/demo/app/app.go
+++ b/demo/app/app.go
@@ -428,7 +428,7 @@ func NewMeshApp(
 		keys[meshsecprovtypes.StoreKey],
 		authtypes.NewModuleAddress(govtypes.ModuleName).String(),
 		app.BankKeeper,
-		app.WasmKeeper,
+		&app.WasmKeeper,
 		app.StakingKeeper,
 	)
 
diff --git a/note.json b/note.json
deleted file mode 100644
index 24d852c5..00000000
--- a/note.json
+++ /dev/null
@@ -1,155 +0,0 @@
-{
-    "stake": {
-        "delegator": "cosmos1ph3tq3s5afcg6z4c4mpd9kdklt9a8j7gw8sygn",
-        "validator": "cosmosvaloper1gtnfjqp6pgkdu6szu5rzk4h5z5d54fadcfsv90",
-        "stake": {
-            "denom": "stake",
-            "amount": "20000000"
-        },
-        "tx_id": 2
-    }
-}
-
-[
-    Execute { 
-        contract_addr: "cosmos1qg5ega6dykkxc307y25pecuufrjkxkaggkkxh7nad0vhyhtuhw3s6ufdm4", 
-        msg: {
-            "internal_unstake":{
-                "delegator":"cosmos1whqnmupfwm3gfmvjegy0j69z42mfngmg2q8emj",
-                "validator":"cosmosvaloper1jgaec5l7glsy2l37n25kmqj7p9hrfzsh43df3u",
-                "amount":{"denom":"stake","amount":"22500000"}}
-        }, 
-        funds: [] 
-    }, 
-    Execute { 
-        contract_addr: "cosmos1qg5ega6dykkxc307y25pecuufrjkxkaggkkxh7nad0vhyhtuhw3s6ufdm4", 
-        msg: {
-            "internal_unstake":{
-                "delegator":"cosmos1whqnmupfwm3gfmvjegy0j69z42mfngmg2q8emj",
-                "validator":"cosmosvaloper1mt78w786v2qz24skefvv6x3xulq4495egj33yc",
-                "amount":{"denom":"stake","amount":"9000000"}}}, funds: [] }]
-
-panic: 
-failed to execute scheduled task for contract 
-"cosmos1xr3rq8yvd7qplsw5yx90ftsr2zdhg4e9z60h5duusgxpv72hud3s493rn8": 
-execution: {Loading CosmWasm module: execute}: panic [recovered]
-
-routes:  map[
-    /cosmos.auth.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.authz.v1beta1.MsgExec:0x10378c850 
-    /cosmos.authz.v1beta1.MsgGrant:0x10378c850 
-    /cosmos.authz.v1beta1.MsgRevoke:0x10378c850 
-    /cosmos.bank.v1beta1.MsgMultiSend:0x10378c850 
-    /cosmos.bank.v1beta1.MsgSend:0x10378c850 
-    /cosmos.bank.v1beta1.MsgSetSendEnabled:0x10378c850 
-    /cosmos.bank.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.consensus.v1.MsgUpdateParams:0x10378c850 
-    /cosmos.crisis.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.crisis.v1beta1.MsgVerifyInvariant:0x10378c850 
-    /cosmos.distribution.v1beta1.MsgCommunityPoolSpend:0x10378c850 
-    /cosmos.distribution.v1beta1.MsgFundCommunityPool:0x10378c850 
-    /cosmos.distribution.v1beta1.MsgSetWithdrawAddress:0x10378c850 
-    /cosmos.distribution.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward:0x10378c850 /
-    cosmos.distribution.v1beta1.MsgWithdrawValidatorCommission:0x10378c850 
-    /cosmos.evidence.v1beta1.MsgSubmitEvidence:0x10378c850 
-    /cosmos.feegrant.v1beta1.MsgGrantAllowance:0x10378c8
-50 /cosmos.feegrant.v1beta1.MsgRevokeAllowance:0x10378c850 
-    /cosmos.gov.v1.MsgDeposit:0x10378c850 
-    /cosmos.gov.v1.MsgExecLegacyContent:0x10378c850 
-    /cosmos.gov.v1.MsgSubmitProposal:0x10378c850 
-    /cosmos.gov.v1.MsgUpdateParams:0x10378c850 
-    /cosmos.gov.v1.MsgVote:0x10378c850 
-    /cosmos.gov.v1.MsgVoteWeighted:0x10378c850 
-    /cosmos.gov.v1beta1.MsgDeposit:0x10378c850 
-    /cosmos.gov.v1beta1.MsgSubmitProposal:0x10378c850 
-    /cosmos.gov.v1beta1.MsgVote:0x10378c850 
-    /cosmos.gov.v1beta1.MsgVoteWeighted:0x10378c850 
-    /cosmos.group.v1.MsgCreateGroup:0x10378c850 
-    /cosmos.group.v1.MsgCreateGroupPolicy:0x10378c850 
-    /cosmos.group.v1.MsgCreateGroupWithPolicy:0x10378c850 
-    /cosmos.group.v1.MsgExec:0x10378c850 
-    /cosmos.group.v1.MsgLeaveGroup:0x10378c850 
-    /cosmos.group.v1.MsgSubmitProposal:0x10378c850 
-    /cosmos.group.v1.MsgUpdateGroupAdmin:0x10378c850 
-    /cosmos.group.v1.MsgUpdateGroupMembers:0x10378c850 
-    /cosmos.group.v1.MsgUpdateGroupMetadata:0x10378c850 
-    /cosmos.group.v1.MsgUpdateGroupPolicyAdmin:0x10378c850 
-    /cosmos.group.v1.MsgUpdateGroupPolicyDecisionPolicy:0x10378c850 
-    /cosmos.group.v1.MsgUpdateGroupPolicyMetadata:0x10378c850 
-    /cosmos.group.v1.MsgVote:0x10378c850 
-    /cosmos.group.v1.MsgWithdrawProposal:0x10378c850 
-    /cosmos.mint.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.nft.v1beta1.MsgSend:0x10378c850 
-    /cosmos.slashing.v1beta1.MsgUnjail:0x10378c850 
-    /cosmos.slashing.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.staking.v1beta1.MsgBeginRedelegate:0x10378c850 
-    /cosmos.staking.v1beta1.MsgCancelUnbondingDelegation:0x10378c850 
-    /cosmos.staking.v1beta1.MsgCreateValidator:0x10378c850 
-    /cosmos.staking.v1beta1.MsgDelegate:0x10378c850 
-    /cosmos.staking.v1beta1.MsgEditValidator:0x10378c850 
-    /cosmos.staking.v1beta1.MsgUndelegate:0x10378c850 
-    /cosmos.staking.v1beta1.MsgUpdateParams:0x10378c850 
-    /cosmos.upgrade.v1beta1.MsgCancelUpgrade:0x10378c850 
-    /cosmos.upgrade.v1beta1.MsgSoftwareUpgrade:0x10378c850 
-    /cosmos.vesting.v1beta1.MsgCreatePeriodicVestingAccount:0x10378c850 
-    /cosmos.vesting.v1beta1.MsgCreatePermanentLockedAccount:0x10378c850 
-    /cosmos.vesting.v1beta1.MsgCreateVestingAccount:0x10378c850 
-    /cosmwasm.wasm.v1.MsgAddCodeUploadParamsAddresses:0x10378c850 
-    /cosmwasm.wasm.v1.MsgClearAdmin:0x10378c850 
-    /cosmwasm.wasm.v1.MsgExecuteContract:0x10378c850 
-    /cosmwasm.wasm.v1.MsgInstantiateContract:0x10378c850 
-    /cosmwasm.wasm.v1.MsgInstantiateContract2:0x10378c850 
-    /cosmwasm.wasm.v1.MsgMigrateContract:0x10378c850 
-    /cosmwasm.wasm.v1.MsgPinCodes:0x10378c850 
-    /cosmwasm.wasm.v1.MsgRemoveCodeUploadParamsAddresses:0x10378c850 
-    /cosmwasm.wasm.v1.MsgStoreAndInstantiateContract:0x10378c850 
-    /cosmwasm.wasm.v1.MsgStoreAndMigrateContract:0x10378c850 
-    /cosmwasm.wasm.v1.MsgStoreCode:0x10378c850 
-    /cosmwasm.wasm.v1.MsgSudoContract:0x10378c850 
-    /cosmwasm.wasm.v1.MsgUnpinCodes:0x10378c850 
-    /cosmwasm.wasm.v1.MsgUpdateAdmin:0x10378c850 
-    /cosmwasm.wasm.v1.MsgUpdateContractLabel:0x10378c850 
-    /cosmwasm.wasm.v1.MsgUpdateInstantiateConfig:0x10378c850 
-    /cosmwasm.wasm.v1.MsgUpdateParams:0x10378c850 
-    /ibc.applications.fee.v1.MsgPayPacketFee:0x10378c850 
-    /ibc.applications.fee.v1.MsgPayPacketFeeAsync:0x10378c850 
-    /ibc.applications.fee.v1.MsgRegisterCounterpartyPayee:0x10378c850 
-    /ibc.applications.fee.v1.MsgRegisterPayee:0x10378c850 
-    /ibc.applications.interchain_accounts.controller.v1.MsgRegisterInterchainAccount:0x10378c850 
-    /ibc.applications.interchain_accounts.controller.v1.MsgSendTx:0x10378c850 
-    /ibc.applications.transfer.v1.MsgTransfer:0x10378c850 
-    /ibc.core.channel.v1.MsgAcknowledgement:0x10378c850 
-    /ibc.core.channel.v1.MsgChannelCloseConfirm:0x10378c850 
-    /ibc.core.channel.v1.MsgChannelCloseInit:0x10378c850 
-    /ibc.core.channel.v1.MsgChannelOpenAck:0x10378c850 
-    /ibc.core.channel.v1.MsgChannelOpenConfirm:0x10378c850 
-    /ibc.core.channel.v1.MsgChannelOpenInit:0x10378c850 
-    /ibc.core.channel.v1.MsgChannelOpenTry:0x10378c850 
-    /ibc.core.channel.v1.MsgRecvPacket:0x10378c850 
-    /ibc.core.channel.v1.MsgTimeout:0x10378c850 
-    /ibc.core.channel.v1.MsgTimeoutOnClose:0x10378c850 
-    /ibc.core.client.v1.MsgCreateClient:0x10378c850 
-    /ibc.core.client.v1.MsgSubmitMisbehaviour:0x10378c850 
-    /ibc.core.client.v1.MsgUpdateClient:0x10378c850 
-    /ibc.core.client.v1.MsgUpgradeClient:0x10378c850 
-    /ibc.core.connection.v1.MsgConnectionOpenAck:0x10378c850 
-    /ibc.core.connection.v1.MsgConnectionOpenConfirm:0x10378c850 
-    /ibc.core.connection.v1.MsgConnectionOpenInit:0x10378c850 
-    /ibc.core.connection.v1.MsgConnectionOpenTry:0x10378c850 
-    /osmosis.meshsecurity.v1beta1.MsgSetVirtualStakingMaxCap:0x10378c850]
-
-
-    Cannot unbond 49999999 tokens from validator cosmosvaloper1fhm5lj9wcvxwdxmgtz36mnjuhwtk7ly93c3rqg, not enough staked
-
-    data:  {
-        "internal_unstake":{
-            "delegator":"cosmos1yw0saxm7nkwl0e8r3kqpar2a0vusdzcaku8mys",
-            "validator":"cosmosvaloper1szy96jnddalx7s686e4ylres02uv6a5dyxj82c",
-            "normalize_amount":{"denom":"stake","amount":"9000000"},
-            "inverted_amount":{"denom":"stake","amount":"19999999"}
-        }
-    }
-
-    failed to execute message; message index: 0: acknowledge packet callback failed: on ack: submessages: Error calling the VM: Error executing Wasm: Wasmer runtime error: RuntimeError: 
-    Aborted: panicked at contracts/consumer/virtual-staking/src/contract.rs:519:9:
\ No newline at end of file
diff --git a/tests/e2e/e2e.go b/tests/e2e/e2e.go
index 0aca4a83..83f9dda5 100644
--- a/tests/e2e/e2e.go
+++ b/tests/e2e/e2e.go
@@ -4,7 +4,6 @@ import (
 	"path/filepath"
 	"testing"
 
-	"github.com/CosmWasm/wasmd/x/wasm"
 	"github.com/CosmWasm/wasmd/x/wasm/ibctesting"
 	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
@@ -38,7 +37,7 @@ func buildPathToWasm(fileName string) string {
 // NewIBCCoordinator initializes Coordinator with N meshd TestChain instances
 func NewIBCCoordinator(t *testing.T, n int, opts ...[]wasmkeeper.Option) *ibctesting.Coordinator {
 	return ibctesting.NewCoordinatorX(t, n,
-		func(t *testing.T, valSet *types.ValidatorSet, genAccs []authtypes.GenesisAccount, chainID string, opts []wasm.Option, balances ...banktypes.Balance) ibctesting.ChainApp {
+		func(t *testing.T, valSet *types.ValidatorSet, genAccs []authtypes.GenesisAccount, chainID string, opts []wasmkeeper.Option, balances ...banktypes.Balance) ibctesting.ChainApp {
 			return app.SetupWithGenesisValSet(t, valSet, genAccs, chainID, opts, balances...)
 		},
 		opts...,
diff --git a/tests/e2e/slashing_test.go b/tests/e2e/slashing_test.go
index 31bcba4b..af3152f0 100644
--- a/tests/e2e/slashing_test.go
+++ b/tests/e2e/slashing_test.go
@@ -284,3 +284,66 @@ func TestSlashingScenario3(t *testing.T) {
 	// Check new free collateral
 	require.Equal(t, 0, providerCli.QueryVaultFreeBalance()) // 185 - max(32, 185) = 185 - 185 = 0
 }
+
+func TestSlasingImmediateUnbond(t *testing.T) {
+	x := setupExampleChains(t)
+	_, _, providerCli := setupMeshSecurity(t, x)
+
+	// Provider chain
+	// ==============
+	// Deposit - A user deposits the vault denom to provide some collateral to their account
+	execMsg := fmt.Sprintf(`{"bond":{"amount":{"denom":"%s", "amount":"200000000"}}}`, x.ProviderDenom)
+	providerCli.MustExecVault(execMsg)
+
+	// Stake Locally - A user triggers a local staking action to a chosen validator.
+	myLocalValidatorAddr := sdk.ValAddress(x.ProviderChain.Vals.Validators[0].Address).String()
+	execLocalStakingMsg := fmt.Sprintf(`{"stake_local":{"amount": {"denom":%q, "amount":"%d"}, "msg":%q}}`,
+		x.ProviderDenom, 100_000_000,
+		base64.StdEncoding.EncodeToString([]byte(fmt.Sprintf(`{"validator": "%s"}`, myLocalValidatorAddr))))
+	providerCli.MustExecVault(execLocalStakingMsg)
+
+	assert.Equal(t, 100_000_000, providerCli.QueryVaultFreeBalance())
+
+	// Check slashable amount
+	require.Equal(t, 20_000_000, providerCli.QuerySlashableAmount())
+	// Check free collateral
+	require.Equal(t, 100_000_000, providerCli.QueryVaultFreeBalance())
+
+	// Validator on the provider chain is jailed
+	myLocalValidatorConsAddr := sdk.ConsAddress(x.ProviderChain.Vals.Validators[0].PubKey.Address())
+	jailValidator(t, myLocalValidatorConsAddr, x.Coordinator, x.ProviderChain, x.ProviderApp)
+
+	x.ProviderChain.NextBlock()
+
+	// Check new collateral
+	require.Equal(t, 200_000_000, providerCli.QueryVaultBalance())
+	// Check new max lien
+	require.Equal(t, 100_000_000, providerCli.QueryMaxLien())
+	// Check new slashable amount
+	require.Equal(t, 20_000_000, providerCli.QuerySlashableAmount())
+	// Check new free collateral
+	require.Equal(t, 100_000_000, providerCli.QueryVaultFreeBalance())
+
+	// Get native staking proxy contract
+	nativeStakingProxy := providerCli.QueryNativeStakingProxyByOwner(x.ProviderChain.SenderAccount.GetAddress().String())
+
+	execMsg = fmt.Sprintf(`{"unstake": {"validator":%q,"amount": {"denom":%q, "amount":"%d"}}}`,
+		myLocalValidatorAddr, x.ProviderDenom, 10_000_000)
+	_, err := providerCli.Exec(nativeStakingProxy, execMsg)
+	require.NoError(t, err)
+
+	x.ProviderChain.NextBlock()
+
+	_, err = providerCli.Exec(nativeStakingProxy, `{"release_unbonded": {}}`)
+	require.NoError(t, err)
+
+	// Check new collateral
+	require.Equal(t, 200_000_000, providerCli.QueryVaultBalance())
+	// Check new max lien
+	// Max lien decrease as release_unbonded
+	require.Equal(t, 90_000_001, providerCli.QueryMaxLien())
+	// Check new slashable amount
+	require.Equal(t, 18000001, providerCli.QuerySlashableAmount())
+	// Check new free collateral
+	require.Equal(t, 109999999, providerCli.QueryVaultFreeBalance())
+}
diff --git a/tests/e2e/test_client.go b/tests/e2e/test_client.go
index cf3d7e26..ee124aa2 100644
--- a/tests/e2e/test_client.go
+++ b/tests/e2e/test_client.go
@@ -27,6 +27,7 @@ import (
 	"github.com/osmosis-labs/mesh-security-sdk/x/meshsecurity"
 	"github.com/osmosis-labs/mesh-security-sdk/x/meshsecurity/keeper"
 	"github.com/osmosis-labs/mesh-security-sdk/x/meshsecurity/types"
+	providertypes "github.com/osmosis-labs/mesh-security-sdk/x/meshsecurityprovider/types"
 )
 
 // Query is a query type used in tests only
@@ -129,6 +130,7 @@ func (tc *TestChain) SendMsgsWithSigner(privKey cryptotypes.PrivKey, signer *aut
 
 type ProviderContracts struct {
 	Vault           sdk.AccAddress
+	NativeStaking   sdk.AccAddress
 	ExternalStaking sdk.AccAddress
 }
 
@@ -153,6 +155,7 @@ func (p *TestProviderClient) BootstrapContracts(provApp *app.MeshApp, connId, po
 	params := provApp.MeshSecProvKeeper.GetParams(ctx)
 	params.VaultAddress = vaultContract.String()
 	provApp.MeshSecProvKeeper.SetParams(ctx, params)
+
 	// external staking
 	extStakingCodeID := p.chain.StoreCodeFile(buildPathToWasm("mesh_external_staking.wasm")).CodeID
 	initMsg = []byte(fmt.Sprintf(
@@ -165,6 +168,19 @@ func (p *TestProviderClient) BootstrapContracts(provApp *app.MeshApp, connId, po
 		ExternalStaking: externalStakingContract,
 	}
 	p.Contracts = r
+
+	// local staking
+	vaultConfig := p.QueryVault(Query{
+		"config": {},
+	})
+	require.Contains(p.t, vaultConfig, "local_staking")
+	nativeStaking, err := sdk.AccAddressFromBech32(vaultConfig["local_staking"].(string))
+	require.NoError(p.t, err)
+	r.NativeStaking = nativeStaking
+	p.Contracts = r
+
+	p.MustExecParamsChangeProposal(provApp, vaultContract.String(), nativeStaking.String())
+
 	return r
 }
 
@@ -240,6 +256,19 @@ func (p TestProviderClient) ExecWithSigner(privKey cryptotypes.PrivKey, signer *
 	return rsp, err
 }
 
+// MustExecGovProposal submit and vote yes on proposal
+func (p TestProviderClient) MustExecParamsChangeProposal(provApp *app.MeshApp, vault, nativeStaking string) {
+	msg := &providertypes.MsgUpdateParams{
+		Authority: provApp.MeshSecKeeper.GetAuthority(),
+		Params: providertypes.Params{
+			VaultAddress:         vault,
+			NativeStakingAddress: nativeStaking,
+		},
+	}
+	proposalID := submitGovProposal(p.t, p.chain, msg)
+	voteAndPassGovProposal(p.t, p.chain, proposalID)
+}
+
 func (p TestProviderClient) MustFailExecVault(payload string, funds ...sdk.Coin) error {
 	rsp, err := p.Exec(p.Contracts.Vault, payload, funds...)
 	require.Error(p.t, err, "Response: %v", rsp)
@@ -270,6 +299,18 @@ func (p TestProviderClient) QueryExtStakingAmount(user, validator string) int {
 	return ParseHighLow(p.t, qRsp["stake"]).Low
 }
 
+func (p TestProviderClient) QueryNativeStakingProxyByOwner(user string) sdk.AccAddress {
+	qRsp := p.QueryNativeStaking(Query{
+		"proxy_by_owner": {
+			"owner": user,
+		},
+	})
+	require.Contains(p.t, qRsp, "proxy")
+	a, err := sdk.AccAddressFromBech32(qRsp["proxy"].(string))
+	require.NoError(p.t, err)
+
+	return a
+}
 func (p TestProviderClient) QueryExtStaking(q Query) QueryResponse {
 	return Querier(p.t, p.chain)(p.Contracts.ExternalStaking.String(), q)
 }
@@ -278,6 +319,10 @@ func (p TestProviderClient) QueryVault(q Query) QueryResponse {
 	return Querier(p.t, p.chain)(p.Contracts.Vault.String(), q)
 }
 
+func (p TestProviderClient) QueryNativeStaking(q Query) QueryResponse {
+	return Querier(p.t, p.chain)(p.Contracts.NativeStaking.String(), q)
+}
+
 type HighLowType struct {
 	High, Low int
 }
diff --git a/tests/starship/setup/setup.go b/tests/starship/setup/setup.go
index f0046762..656c0dd1 100644
--- a/tests/starship/setup/setup.go
+++ b/tests/starship/setup/setup.go
@@ -127,7 +127,7 @@ func (p *ProviderClient) BootstrapContracts(connId, portID, rewardDenom string)
 
 	nativeInitMsg := []byte(fmt.Sprintf(`{"denom": %q, "proxy_code_id": %d, "slash_ratio_dsign": %q, "slash_ratio_offline": %q }`, localTokenDenom, proxyCodeID, localSlashRatioDoubleSign, localSlashRatioOffline))
 	initMsg := []byte(fmt.Sprintf(`{"denom": %q, "local_staking": {"code_id": %d, "msg": %q}}`, localTokenDenom, nativeStakingCodeID, base64.StdEncoding.EncodeToString(nativeInitMsg)))
-	contracts, err := InstantiateContract(p.Chain, vaultCodeID, "provider-valut-contract", initMsg)
+	contracts, err := InstantiateContract(p.Chain, vaultCodeID, "provider-vault-contract", initMsg)
 	if err != nil {
 		return nil, err
 	}
diff --git a/tests/testdata/mesh_converter.wasm.gz b/tests/testdata/mesh_converter.wasm.gz
index 61821da4..a41ea36a 100644
Binary files a/tests/testdata/mesh_converter.wasm.gz and b/tests/testdata/mesh_converter.wasm.gz differ
diff --git a/tests/testdata/mesh_external_staking.wasm.gz b/tests/testdata/mesh_external_staking.wasm.gz
index 4ba8bf8b..7ae90b5b 100644
Binary files a/tests/testdata/mesh_external_staking.wasm.gz and b/tests/testdata/mesh_external_staking.wasm.gz differ
diff --git a/tests/testdata/mesh_native_staking.wasm.gz b/tests/testdata/mesh_native_staking.wasm.gz
index 1670dbf4..aab4a86e 100644
Binary files a/tests/testdata/mesh_native_staking.wasm.gz and b/tests/testdata/mesh_native_staking.wasm.gz differ
diff --git a/tests/testdata/mesh_native_staking_proxy.wasm.gz b/tests/testdata/mesh_native_staking_proxy.wasm.gz
index 04f30997..a702a620 100644
Binary files a/tests/testdata/mesh_native_staking_proxy.wasm.gz and b/tests/testdata/mesh_native_staking_proxy.wasm.gz differ
diff --git a/tests/testdata/mesh_osmosis_price_provider.wasm.gz b/tests/testdata/mesh_osmosis_price_provider.wasm.gz
index 0cdd504d..ff1a327e 100644
Binary files a/tests/testdata/mesh_osmosis_price_provider.wasm.gz and b/tests/testdata/mesh_osmosis_price_provider.wasm.gz differ
diff --git a/tests/testdata/mesh_remote_price_feed.wasm.gz b/tests/testdata/mesh_remote_price_feed.wasm.gz
index b5be67c2..8d30589e 100644
Binary files a/tests/testdata/mesh_remote_price_feed.wasm.gz and b/tests/testdata/mesh_remote_price_feed.wasm.gz differ
diff --git a/tests/testdata/mesh_simple_price_feed.wasm.gz b/tests/testdata/mesh_simple_price_feed.wasm.gz
index 97a29e25..9a2aca20 100644
Binary files a/tests/testdata/mesh_simple_price_feed.wasm.gz and b/tests/testdata/mesh_simple_price_feed.wasm.gz differ
diff --git a/tests/testdata/mesh_vault.wasm.gz b/tests/testdata/mesh_vault.wasm.gz
index 8ff46c34..fb470f66 100644
Binary files a/tests/testdata/mesh_vault.wasm.gz and b/tests/testdata/mesh_vault.wasm.gz differ
diff --git a/tests/testdata/mesh_virtual_staking.wasm.gz b/tests/testdata/mesh_virtual_staking.wasm.gz
index d2ffc9f4..69e5bb42 100644
Binary files a/tests/testdata/mesh_virtual_staking.wasm.gz and b/tests/testdata/mesh_virtual_staking.wasm.gz differ
diff --git a/tests/testdata/version.txt b/tests/testdata/version.txt
index 7228d975..94427d4e 100644
--- a/tests/testdata/version.txt
+++ b/tests/testdata/version.txt
@@ -1 +1 @@
-ef0e3840b092ed66cd0968e2b9b253ae243ffe52
+d9e27c854aaf3bb604d32f5fa8e6c3e42b686edf
diff --git a/x/meshsecurityprovider/contract/in_message.go b/x/meshsecurityprovider/contract/in_message.go
index 37ac6a03..3cd5348a 100644
--- a/x/meshsecurityprovider/contract/in_message.go
+++ b/x/meshsecurityprovider/contract/in_message.go
@@ -7,8 +7,9 @@ type (
 		Provider *ProviderMsg `json:"provider,omitempty"`
 	}
 	ProviderMsg struct {
-		Bond   *BondMsg   `json:"bond,omitempty"`
-		Unbond *UnbondMsg `json:"unbond,omitempty"`
+		Bond    *BondMsg    `json:"bond,omitempty"`
+		Unbond  *UnbondMsg  `json:"unbond,omitempty"`
+		Unstake *UnstakeMsg `json:"unstake,omitempty"`
 	}
 	BondMsg struct {
 		Amount    wasmvmtypes.Coin `json:"amount"`
@@ -18,4 +19,9 @@ type (
 		Amount    wasmvmtypes.Coin `json:"amount"`
 		Delegator string           `json:"delegator"`
 	}
+	UnstakeMsg struct {
+		Amount    wasmvmtypes.Coin `json:"amount"`
+		Validator string           `json:"validator"`
+		Delegator string           `json:"delegator"`
+	}
 )
diff --git a/x/meshsecurityprovider/keeper/handle_plugin.go b/x/meshsecurityprovider/keeper/handle_plugin.go
index 55358da2..923d4fa2 100644
--- a/x/meshsecurityprovider/keeper/handle_plugin.go
+++ b/x/meshsecurityprovider/keeper/handle_plugin.go
@@ -45,7 +45,10 @@ func (h CustomMessenger) DispatchMsg(ctx sdk.Context, contractAddr sdk.AccAddres
 		return h.k.HandleBondMsg(ctx, contractAddr, customMsg.Provider.Bond)
 	case customMsg.Provider.Unbond != nil:
 		return h.k.HandleUnbondMsg(ctx, contractAddr, customMsg.Provider.Unbond)
+	case customMsg.Provider.Unstake != nil:
+		return h.k.HandleUnstakeMsg(ctx, contractAddr, customMsg.Provider.Unstake)
 	}
+
 	return nil, nil, wasmtypes.ErrUnknownMsg
 }
 
diff --git a/x/meshsecurityprovider/keeper/keeper.go b/x/meshsecurityprovider/keeper/keeper.go
index ed90d183..9eda5798 100644
--- a/x/meshsecurityprovider/keeper/keeper.go
+++ b/x/meshsecurityprovider/keeper/keeper.go
@@ -1,6 +1,9 @@
 package keeper
 
 import (
+	"encoding/json"
+	"fmt"
+
 	"github.com/cometbft/cometbft/libs/log"
 
 	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
@@ -8,6 +11,7 @@ import (
 	storetypes "github.com/cosmos/cosmos-sdk/store/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 
 	"github.com/osmosis-labs/mesh-security-sdk/x/meshsecurityprovider/contract"
 	"github.com/osmosis-labs/mesh-security-sdk/x/meshsecurityprovider/types"
@@ -147,3 +151,104 @@ func (k Keeper) HandleUnbondMsg(ctx sdk.Context, actor sdk.AccAddress, unbondMsg
 		sdk.NewAttribute(types.AttributeKeyDelegator, delAddr.String()),
 	)}, nil, nil
 }
+
+func (k Keeper) HandleUnstakeMsg(ctx sdk.Context, actor sdk.AccAddress, unstakeMsg *contract.UnstakeMsg) ([]sdk.Event, [][]byte, error) {
+	nativeContract := k.NativeStakingAddress(ctx)
+	nativeContractAddr, err := sdk.AccAddressFromBech32(nativeContract)
+	if err != nil {
+		return nil, nil, sdkerrors.ErrInvalidAddress.Wrapf("native staking contract not able to get")
+	}
+	var proxyRes types.ProxyByOwnerResponse
+
+	resBytes, err := k.wasmKeeper.QuerySmart(
+		ctx,
+		nativeContractAddr,
+		[]byte(fmt.Sprintf(`{"proxy_by_owner": {"owner": "%s"}}`, unstakeMsg.Delegator)),
+	)
+
+	if err != nil {
+		return nil, nil, sdkerrors.ErrUnauthorized.Wrapf("contract has no permission for mesh security operations")
+	}
+	if err = json.Unmarshal(resBytes, &proxyRes); err != nil {
+		return nil, nil, sdkerrors.ErrUnauthorized.Wrapf("contract has no permission for mesh security operations")
+	}
+	if proxyRes.Proxy == "" {
+		return nil, nil, sdkerrors.ErrUnauthorized.Wrapf("contract has no permission for mesh security operations")
+	}
+
+	proxyContract, err := sdk.AccAddressFromBech32(proxyRes.Proxy)
+	if err != nil {
+		return nil, nil, sdkerrors.ErrInvalidAddress.Wrapf("native staking proxy contract not able to get")
+	}
+
+	coin, err := wasmkeeper.ConvertWasmCoinToSdkCoin(unstakeMsg.Amount)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	valAddr, err := sdk.ValAddressFromBech32(unstakeMsg.Validator)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	err = k.unstake(ctx, proxyContract, valAddr, coin)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	return []sdk.Event{sdk.NewEvent(
+		types.EventTypeUnstake,
+		sdk.NewAttribute(sdk.AttributeKeyModule, types.ModuleName),
+		sdk.NewAttribute(sdk.AttributeKeyAmount, coin.String()),
+		sdk.NewAttribute(types.AttributeKeyValidator, valAddr.String()),
+	)}, nil, nil
+}
+
+func (k Keeper) unstake(ctx sdk.Context, proxyContract sdk.AccAddress, validator sdk.ValAddress, coin sdk.Coin) error {
+	if coin.Amount.IsNil() || coin.Amount.IsZero() || coin.Amount.IsNegative() {
+		return sdkerrors.ErrInvalidRequest.Wrap("amount")
+	}
+
+	// Ensure staking constraints
+	bondDenom := k.stakingKeeper.BondDenom(ctx)
+	if coin.Denom != bondDenom {
+		return sdkerrors.ErrInvalidRequest.Wrapf("invalid coin denomination: got %s, expected %s", coin.Denom, bondDenom)
+	}
+
+	validatorInfo, found := k.stakingKeeper.GetValidator(ctx, validator)
+	if !found {
+		return sdkerrors.ErrNotFound.Wrapf("can not found validator with address: %s", validator.String())
+	}
+
+	shares, err := k.stakingKeeper.ValidateUnbondAmount(ctx, proxyContract, validator, coin.Amount)
+	if err == stakingtypes.ErrNoDelegation {
+		return nil
+	} else if err != nil {
+		return err
+	}
+
+	if validatorInfo.IsBonded() {
+		_, err = k.stakingKeeper.Undelegate(ctx, proxyContract, validator, shares)
+		if err != nil {
+			return err
+		}
+
+		return nil
+	}
+
+	return k.InstantUndelegate(ctx, proxyContract, validator, shares)
+}
+
+func (k Keeper) InstantUndelegate(ctx sdk.Context, delAddr sdk.AccAddress, validator sdk.ValAddress, sharesAmount sdk.Dec) error {
+	returnAmount, err := k.stakingKeeper.Unbond(ctx, delAddr, validator, sharesAmount)
+	if err != nil {
+		return err
+	}
+
+	bondDenom := k.stakingKeeper.BondDenom(ctx)
+
+	amt := sdk.NewCoin(bondDenom, returnAmount)
+	res := sdk.NewCoins(amt)
+
+	return k.bankKeeper.UndelegateCoinsFromModuleToAccount(ctx, stakingtypes.NotBondedPoolName, delAddr, res)
+}
diff --git a/x/meshsecurityprovider/module.go b/x/meshsecurityprovider/module.go
index ae573e35..5b59b416 100644
--- a/x/meshsecurityprovider/module.go
+++ b/x/meshsecurityprovider/module.go
@@ -73,7 +73,7 @@ type AppModule struct {
 }
 
 func (am AppModule) RegisterServices(cfg module.Configurator) {
-	// types.RegisterMsgServer(cfg.MsgServer(), meshsecurityprovider.NewMsgServerImpl(&am.k))
+	types.RegisterMsgServer(cfg.MsgServer(), keeper.NewMsgServerImpl(am.k))
 	// queryproto.RegisterQueryServer(cfg.QueryServer(), grpc.Querier{Q: module.NewQuerier(am.k)})
 }
 
diff --git a/x/meshsecurityprovider/types/codec.go b/x/meshsecurityprovider/types/codec.go
index 76e10469..ff0221a6 100644
--- a/x/meshsecurityprovider/types/codec.go
+++ b/x/meshsecurityprovider/types/codec.go
@@ -3,9 +3,9 @@ package types
 import (
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/codec/types"
+	cryptocodec "github.com/cosmos/cosmos-sdk/crypto/codec"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/types/msgservice"
-	authzcodec "github.com/cosmos/cosmos-sdk/x/authz/codec"
 )
 
 // RegisterLegacyAminoCodec registers the necessary x/meshsecurityprovider interfaces and concrete types
@@ -30,10 +30,6 @@ var (
 
 func init() {
 	RegisterLegacyAminoCodec(amino)
-	// Register all Amino interfaces and concrete types on the authz Amino codec so that this can later be
-	// used to properly serialize MsgGrant and MsgExec instances
+	cryptocodec.RegisterCrypto(amino)
 	sdk.RegisterLegacyAminoCodec(amino)
-	RegisterLegacyAminoCodec(authzcodec.Amino)
-
-	amino.Seal()
 }
diff --git a/x/meshsecurityprovider/types/keys.go b/x/meshsecurityprovider/types/keys.go
index f45acf39..20edcaa5 100644
--- a/x/meshsecurityprovider/types/keys.go
+++ b/x/meshsecurityprovider/types/keys.go
@@ -1,7 +1,7 @@
 package types
 
 const (
-	ModuleName = "test_module"
+	ModuleName = "mesh-security-provider"
 
 	StoreKey = ModuleName
 
@@ -9,7 +9,7 @@ const (
 )
 
 var (
-	// Key defines the store key for test_module.
+	// Key defines the store key for mesh security provider module.
 	Key       = []byte{0x01}
 	ParamsKey = []byte{0x02}
 )