diff --git a/app/upgrades/types.go b/app/upgrades/types.go
index 540319c15..d9c2fd6d2 100644
--- a/app/upgrades/types.go
+++ b/app/upgrades/types.go
@@ -52,6 +52,7 @@ const (
 	V010700UpgradeName = "v1.7.0"
 	V010702UpgradeName = "v1.7.2"
 	V010704UpgradeName = "v1.7.4"
+	V010705UpgradeName = "v1.7.5"
 )
 
 // Upgrade defines a struct containing necessary fields that a SoftwareUpgradeProposal
diff --git a/app/upgrades/upgrades.go b/app/upgrades/upgrades.go
index 79150d741..223acf389 100644
--- a/app/upgrades/upgrades.go
+++ b/app/upgrades/upgrades.go
@@ -27,6 +27,7 @@ func Upgrades() []Upgrade {
 		{UpgradeName: V010700UpgradeName, CreateUpgradeHandler: V010700UpgradeHandler},
 		{UpgradeName: V010702UpgradeName, CreateUpgradeHandler: V010702UpgradeHandler},
 		{UpgradeName: V010704UpgradeName, CreateUpgradeHandler: V010704UpgradeHandler},
+		{UpgradeName: V010705UpgradeName, CreateUpgradeHandler: V010705UpgradeHandler},
 	}
 }
 
diff --git a/app/upgrades/v1_7.go b/app/upgrades/v1_7.go
index faf897a64..9a26689e6 100644
--- a/app/upgrades/v1_7.go
+++ b/app/upgrades/v1_7.go
@@ -138,3 +138,24 @@ func V010704UpgradeHandler(
 		return mm.RunMigrations(ctx, configurator, fromVM)
 	}
 }
+
+func V010705UpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+	appKeepers *keepers.AppKeepers,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		if isMainnet(ctx) || isTest(ctx) {
+			// get zone
+			zone, found := appKeepers.InterchainstakingKeeper.GetZone(ctx, "cosmoshub-4")
+			if !found {
+				panic("zone not found")
+			}
+
+			appKeepers.InterchainstakingKeeper.OverrideRedemptionRateNoCap(ctx, &zone)
+			zone.LastRedemptionRate = sdk.NewDecWithPrec(138, 2) // correct as of 3/12
+			appKeepers.InterchainstakingKeeper.SetZone(ctx, &zone)
+		}
+		return mm.RunMigrations(ctx, configurator, fromVM)
+	}
+}
diff --git a/app/upgrades_test.go b/app/upgrades_test.go
index c63343583..222f62487 100644
--- a/app/upgrades_test.go
+++ b/app/upgrades_test.go
@@ -469,3 +469,49 @@ func (s *AppTestSuite) TestV010604UpgradeHandler() {
 		s.True(record.CompletionTime.IsZero())
 	}
 }
+
+func (s *AppTestSuite) TestV010705UpgradeHandler() {
+	s.InitV160TestZones()
+	app := s.GetQuicksilverApp(s.chainA)
+
+	ctx := s.chainA.GetContext()
+	completion, err := time.Parse("2006-01-02T15:04:05Z", "2024-12-20T17:00:47Z")
+	s.NoError(err)
+
+	record := icstypes.WithdrawalRecord{
+		ChainId:        "cosmoshub-4",
+		Delegator:      "quick1efpktthkfsuzqhsnqdyyjxv5fl9eemchrlmhyd",
+		Recipient:      "cosmos1efpktthkfsuzqhsnqdyyjxv5fl9eemchgmt9al",
+		Txhash:         "02c2d4bcb869b9ddf26540c2854c2ca09d70492a3831170da293f4101fda32b3",
+		Status:         icstypes.WithdrawStatusUnbond,
+		BurnAmount:     sdk.NewCoin("uqatom", math.NewInt(3534090000)),
+		Amount:         sdk.NewCoins(sdk.NewCoin("uatom", math.NewInt(4841699172))),
+		Acknowledged:   true,
+		CompletionTime: completion,
+	}
+
+	zone, found := app.InterchainstakingKeeper.GetZone(ctx, "cosmoshub-4")
+	s.True(found)
+
+	delegation := icstypes.Delegation{
+		DelegationAddress: zone.DelegationAddress.Address,
+		ValidatorAddress:  "cosmosvaloper1efpktthkfsuzqhsnqdyyjxv5fl9eemchd0ls3v",
+		Amount:            sdk.NewCoin("uatom", math.NewInt(37848188596)),
+	}
+
+	app.InterchainstakingKeeper.SetDelegation(ctx, "cosmoshub-4", delegation)
+
+	s.NoError(app.BankKeeper.MintCoins(ctx, icstypes.ModuleName, sdk.NewCoins(sdk.NewCoin("uqatom", math.NewInt(30811987786)))))
+	s.NoError(app.BankKeeper.SendCoinsFromModuleToModule(ctx, icstypes.ModuleName, icstypes.EscrowModuleAccount, sdk.NewCoins(sdk.NewCoin("uqatom", math.NewInt(3534090000)))))
+	s.NoError(app.InterchainstakingKeeper.SetWithdrawalRecord(ctx, record))
+
+	handler := upgrades.V010705UpgradeHandler(app.mm, app.configurator, &app.AppKeepers)
+
+	_, err = handler(ctx, types.Plan{}, app.mm.GetVersionMap())
+	s.NoError(err)
+
+	zone, found = app.InterchainstakingKeeper.GetZone(ctx, "cosmoshub-4")
+	s.True(found)
+	s.Equal(sdk.NewDecWithPrec(1387503864591246254, 18), zone.RedemptionRate)
+	s.Equal(sdk.NewDecWithPrec(138, 2), zone.LastRedemptionRate)
+}