diff --git a/CHANGELOG.md b/CHANGELOG.md
index f72b22bd595..4bfe7302ae4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,6 +36,9 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ## [Unreleased]
 
+## [5.0.8] - 2021-10-14
+
+* (gaia) This release includes a new AnteHandler that rejects redundant IBC transactions to save relayers fees.
 
 ## [5.0.7] - 2021-09-30
 
@@ -369,7 +372,8 @@ See the [Tendermint v0.34.7 SDK changelog](https://github.com/tendermint/tenderm
 
 <!-- Release links -->
 
-[Unreleased]: https://github.com/cosmos/gaia/compare/v5.0.7...HEAD
+[Unreleased]: https://github.com/cosmos/gaia/compare/v5.0.8...HEAD
+[v5.0.8]: https://github.com/cosmos/gaia/releases/tag/v5.0.8
 [v5.0.7]: https://github.com/cosmos/gaia/releases/tag/v5.0.7
 [v5.0.6]: https://github.com/cosmos/gaia/releases/tag/v5.0.6
 [v5.0.5]: https://github.com/cosmos/gaia/releases/tag/v5.0.5
diff --git a/app/ante_handler.go b/app/ante_handler.go
new file mode 100644
index 00000000000..0517dd6c32b
--- /dev/null
+++ b/app/ante_handler.go
@@ -0,0 +1,57 @@
+package gaia
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
+	"github.com/cosmos/cosmos-sdk/x/auth/ante"
+	"github.com/cosmos/cosmos-sdk/x/auth/signing"
+	"github.com/cosmos/cosmos-sdk/x/auth/types"
+	channelkeeper "github.com/cosmos/cosmos-sdk/x/ibc/core/04-channel/keeper"
+	ibcante "github.com/cosmos/cosmos-sdk/x/ibc/core/ante"
+)
+
+type HandlerOptions struct {
+	AccountKeeper    ante.AccountKeeper
+	BankKeeper       types.BankKeeper
+	SignModeHandler  signing.SignModeHandler
+	SigGasConsumer   ante.SignatureVerificationGasConsumer
+	IBCChannelkeeper channelkeeper.Keeper
+}
+
+func NewAnteHandler(options HandlerOptions) (sdk.AnteHandler, error) {
+	if options.AccountKeeper == nil {
+		return nil, sdkerrors.Wrap(sdkerrors.ErrLogic, "account keeper is required for AnteHandler")
+	}
+	if options.BankKeeper == nil {
+		return nil, sdkerrors.Wrap(sdkerrors.ErrLogic, "bank keeper is required for AnteHandler")
+	}
+	if options.SignModeHandler == nil {
+		return nil, sdkerrors.Wrap(sdkerrors.ErrLogic, "sign mode handler is required for ante builder")
+	}
+
+	var sigGasConsumer = options.SigGasConsumer
+	if sigGasConsumer == nil {
+		sigGasConsumer = ante.DefaultSigVerificationGasConsumer
+	}
+
+	anteDecorators := []sdk.AnteDecorator{
+		ante.NewSetUpContextDecorator(), // outermost AnteDecorator. SetUpContext must be called first
+		ante.NewRejectExtensionOptionsDecorator(),
+		ante.NewMempoolFeeDecorator(),
+		ante.NewValidateBasicDecorator(),
+		ante.TxTimeoutHeightDecorator{},
+		ante.NewValidateMemoDecorator(options.AccountKeeper),
+		ante.NewConsumeGasForTxSizeDecorator(options.AccountKeeper),
+		ante.NewRejectFeeGranterDecorator(),
+		// SetPubKeyDecorator must be called before all signature verification decorators
+		ante.NewSetPubKeyDecorator(options.AccountKeeper),
+		ante.NewValidateSigCountDecorator(options.AccountKeeper),
+		ante.NewDeductFeeDecorator(options.AccountKeeper, options.BankKeeper),
+		ante.NewSigGasConsumeDecorator(options.AccountKeeper, sigGasConsumer),
+		ante.NewSigVerificationDecorator(options.AccountKeeper, options.SignModeHandler),
+		ante.NewIncrementSequenceDecorator(options.AccountKeeper),
+		ibcante.NewAnteDecorator(options.IBCChannelkeeper),
+	}
+
+	return sdk.ChainAnteDecorators(anteDecorators...), nil
+}
diff --git a/app/app.go b/app/app.go
index 8c446b49470..faabf50fee5 100644
--- a/app/app.go
+++ b/app/app.go
@@ -1,6 +1,7 @@
 package gaia
 
 import (
+	"fmt"
 	"io"
 	stdlog "log"
 	"net/http"
@@ -410,12 +411,19 @@ func NewGaiaApp(
 	// initialize BaseApp
 	app.SetInitChainer(app.InitChainer)
 	app.SetBeginBlocker(app.BeginBlocker)
-	app.SetAnteHandler(
-		ante.NewAnteHandler(
-			app.AccountKeeper, app.BankKeeper, ante.DefaultSigVerificationGasConsumer,
-			encodingConfig.TxConfig.SignModeHandler(),
-		),
+	anteHandler, err := NewAnteHandler(
+		HandlerOptions{
+			AccountKeeper:    app.AccountKeeper,
+			BankKeeper:       app.BankKeeper,
+			SignModeHandler:  encodingConfig.TxConfig.SignModeHandler(),
+			SigGasConsumer:   ante.DefaultSigVerificationGasConsumer,
+			IBCChannelkeeper: app.IBCKeeper.ChannelKeeper,
+		},
 	)
+	if err != nil {
+		panic(fmt.Errorf("failed to create AnteHandler: %s", err))
+	}
+	app.SetAnteHandler(anteHandler)
 	app.SetEndBlocker(app.EndBlocker)
 	app.UpgradeKeeper.SetUpgradeHandler("Gravity-DEX",
 		func(ctx sdk.Context, plan upgradetypes.Plan) {
diff --git a/cmd/gaiad/cmd/testnet.go b/cmd/gaiad/cmd/testnet.go
index 5020265daf4..e540e5a0268 100644
--- a/cmd/gaiad/cmd/testnet.go
+++ b/cmd/gaiad/cmd/testnet.go
@@ -288,7 +288,10 @@ func initGenFiles(
 	var bankGenState banktypes.GenesisState
 	clientCtx.JSONMarshaler.MustUnmarshalJSON(appGenState[banktypes.ModuleName], &bankGenState)
 
-	bankGenState.Balances = genBalances
+	bankGenState.Balances = banktypes.SanitizeGenesisBalances(genBalances)
+	for _, bal := range bankGenState.Balances {
+		bankGenState.Supply = bankGenState.Supply.Add(bal.Coins...)
+	}
 	appGenState[banktypes.ModuleName] = clientCtx.JSONMarshaler.MustMarshalJSON(&bankGenState)
 
 	appGenStateJSON, err := json.MarshalIndent(appGenState, "", "  ")