diff --git a/.changelog/3065.breaking.md b/.changelog/3065.breaking.md
new file mode 100644
index 00000000000..1ca9a292f2b
--- /dev/null
+++ b/.changelog/3065.breaking.md
@@ -0,0 +1,17 @@
+go/staking: Increase reward amount denominator
+
+This allows the genesis block writer to specify finer reward rates.
+
+Associated genesis controls analysis:
+
+```
+RewardAmountDenominator
+|- AddRewards
+|  |- RewardFactorEpochElectionAny
+|  '- RewardFactorEpochSigned
+'- AddRewardSingleAttenuated
+   '- RewardFactorBlockProposed
+```
+
+Note to the genesis block writer: scale rewards factors **up** by a
+factor of **1,000**.
diff --git a/go/consensus/tendermint/apps/staking/state/state_test.go b/go/consensus/tendermint/apps/staking/state/state_test.go
index 83dbdaac000..647f22b1313 100644
--- a/go/consensus/tendermint/apps/staking/state/state_test.go
+++ b/go/consensus/tendermint/apps/staking/state/state_test.go
@@ -209,7 +209,7 @@ func TestRewardAndSlash(t *testing.T) {
 	require.NoError(err, "SetDebondingDelegation")
 
 	// Epoch 10 is during the first step.
-	require.NoError(s.AddRewards(ctx, 10, mustInitQuantityP(t, 100), escrowAddrAsList), "add rewards epoch 10")
+	require.NoError(s.AddRewards(ctx, 10, mustInitQuantityP(t, 100_000), escrowAddrAsList), "add rewards epoch 10")
 
 	// 100% gain.
 	delegatorAccount, err = s.Account(ctx, delegatorAddr)
@@ -233,7 +233,7 @@ func TestRewardAndSlash(t *testing.T) {
 	require.Equal(mustInitQuantityP(t, 9900), commonPool, "reward first step - common pool")
 
 	// Epoch 30 is in the second step.
-	require.NoError(s.AddRewards(ctx, 30, mustInitQuantityP(t, 100), escrowAddrAsList), "add rewards epoch 30")
+	require.NoError(s.AddRewards(ctx, 30, mustInitQuantityP(t, 100_000), escrowAddrAsList), "add rewards epoch 30")
 
 	// 50% gain.
 	escrowAccount, err = s.Account(ctx, escrowAddr)
@@ -244,7 +244,7 @@ func TestRewardAndSlash(t *testing.T) {
 	require.Equal(mustInitQuantityP(t, 9800), commonPool, "reward first step - common pool")
 
 	// Epoch 99 is after the end of the schedule
-	require.NoError(s.AddRewards(ctx, 99, mustInitQuantityP(t, 100), escrowAddrAsList), "add rewards epoch 99")
+	require.NoError(s.AddRewards(ctx, 99, mustInitQuantityP(t, 100_000), escrowAddrAsList), "add rewards epoch 99")
 
 	// No change.
 	escrowAccount, err = s.Account(ctx, escrowAddr)
@@ -268,7 +268,7 @@ func TestRewardAndSlash(t *testing.T) {
 	require.Equal(mustInitQuantityP(t, 9840), commonPool, "slash - common pool")
 
 	// Epoch 10 is during the first step.
-	require.NoError(s.AddRewardSingleAttenuated(ctx, 10, mustInitQuantityP(t, 10), 5, 10, escrowAddr), "add attenuated rewards epoch 30")
+	require.NoError(s.AddRewardSingleAttenuated(ctx, 10, mustInitQuantityP(t, 10_000), 5, 10, escrowAddr), "add attenuated rewards epoch 30")
 
 	// 5% gain.
 	escrowAccount, err = s.Account(ctx, escrowAddr)
diff --git a/go/staking/api/rewards.go b/go/staking/api/rewards.go
index b43477131f7..d06716bde78 100644
--- a/go/staking/api/rewards.go
+++ b/go/staking/api/rewards.go
@@ -17,9 +17,9 @@ type RewardStep struct {
 }
 
 func init() {
-	// Denominated in 1000th of a percent.
+	// Denominated in one millionth of a percent.
 	RewardAmountDenominator = quantity.NewQuantity()
-	err := RewardAmountDenominator.FromBigInt(big.NewInt(100_000))
+	err := RewardAmountDenominator.FromBigInt(big.NewInt(100_000_000))
 	if err != nil {
 		panic(err)
 	}