diff --git a/app/app.go b/app/app.go
index e9427f8b55..1ad041c4f2 100644
--- a/app/app.go
+++ b/app/app.go
@@ -143,7 +143,7 @@ var (
 		capability.AppModuleBasic{},
 		stakingModule{},
 		mintModule{},
-		distr.AppModuleBasic{},
+		distributionModule{},
 		newGovModule(),
 		params.AppModuleBasic{},
 		crisisModule{},
diff --git a/app/default_overrides.go b/app/default_overrides.go
index c851581f32..46216e0f1e 100644
--- a/app/default_overrides.go
+++ b/app/default_overrides.go
@@ -15,7 +15,9 @@ import (
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
 	"github.com/cosmos/cosmos-sdk/x/crisis"
 	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
+	distribution "github.com/cosmos/cosmos-sdk/x/distribution"
 	distrclient "github.com/cosmos/cosmos-sdk/x/distribution/client"
+	distributiontypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
 	"github.com/cosmos/cosmos-sdk/x/gov"
 	govclient "github.com/cosmos/cosmos-sdk/x/gov/client"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
@@ -117,6 +119,20 @@ func (crisisModule) DefaultGenesis(cdc codec.JSONCodec) json.RawMessage {
 	})
 }
 
+type distributionModule struct {
+	distribution.AppModuleBasic
+}
+
+// DefaultGenesis returns custom x/distribution module genesis state.
+func (distributionModule) DefaultGenesis(cdc codec.JSONCodec) json.RawMessage {
+	params := distributiontypes.DefaultParams()
+	params.BaseProposerReward = sdk.ZeroDec()  // 0%
+	params.BonusProposerReward = sdk.ZeroDec() // 0%
+	return cdc.MustMarshalJSON(&distributiontypes.GenesisState{
+		Params: params,
+	})
+}
+
 type ibcModule struct {
 	ibc.AppModuleBasic
 }
diff --git a/app/default_overrides_test.go b/app/default_overrides_test.go
index f63fa8b655..8987df18d5 100644
--- a/app/default_overrides_test.go
+++ b/app/default_overrides_test.go
@@ -6,6 +6,7 @@ import (
 
 	"github.com/celestiaorg/celestia-app/app/encoding"
 	"github.com/cosmos/cosmos-sdk/types"
+	distributiontypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
 	"github.com/stretchr/testify/assert"
 )
@@ -32,3 +33,21 @@ func Test_newGovModule(t *testing.T) {
 	assert.Equal(t, oneWeek, *govGenesisState.DepositParams.MaxDepositPeriod)
 	assert.Equal(t, oneWeek, *govGenesisState.VotingParams.VotingPeriod)
 }
+
+// TestDefaultGenesis verifies that the distribution module's genesis state has
+// defaults overridden.
+func TestDefaultGenesis(t *testing.T) {
+	encCfg := encoding.MakeConfig(ModuleEncodingRegisters...)
+	dm := distributionModule{}
+	raw := dm.DefaultGenesis(encCfg.Codec)
+	distributionGenesisState := distributiontypes.GenesisState{}
+	encCfg.Codec.MustUnmarshalJSON(raw, &distributionGenesisState)
+
+	// Verify that BaseProposerReward and BonusProposerReward were overridden to 0%.
+	assert.Equal(t, types.ZeroDec(), distributionGenesisState.Params.BaseProposerReward)
+	assert.Equal(t, types.ZeroDec(), distributionGenesisState.Params.BonusProposerReward)
+
+	// Verify that other params weren't overridden.
+	assert.Equal(t, distributiontypes.DefaultParams().WithdrawAddrEnabled, distributionGenesisState.Params.WithdrawAddrEnabled)
+	assert.Equal(t, distributiontypes.DefaultParams().CommunityTax, distributionGenesisState.Params.CommunityTax)
+}