diff --git a/scripts/testnet/README.md b/scripts/testnet/README.md
index 730f15df..3039e1f5 100644
--- a/scripts/testnet/README.md
+++ b/scripts/testnet/README.md
@@ -7,5 +7,5 @@ Make sure to first create a configuration file named config.sh using the templat
 Run in the following order, one by one:
 
 1. `create_genesis.sh` - Validates validator files for each node and creates a genesis file.
-2. `add_wasm_state_to_genesis.sh` - Runs a chain, deploys Wasm contracts on it, and dumps the Wasm state, which is then added to a given genesis file.
+2. `build_genesis_state.sh` - Runs a chain, deploys Wasm contracts on it, and dumps the Wasm state, which is then added to a given genesis file. Must be used with at least one of the following flags: `--add-groups` and `add-wasm-contracts`.
 3. `upload_and_start.sh` - Uploads and runs setup_node.sh on the nodes to process necessary setups. Then uploads the validator files and genesis and restarts the nodes.
diff --git a/scripts/testnet/add_wasm_state_to_genesis.sh b/scripts/testnet/build_genesis_state.sh
similarity index 67%
rename from scripts/testnet/add_wasm_state_to_genesis.sh
rename to scripts/testnet/build_genesis_state.sh
index 09ffe48a..0d01e45b 100755
--- a/scripts/testnet/add_wasm_state_to_genesis.sh
+++ b/scripts/testnet/build_genesis_state.sh
@@ -90,6 +90,12 @@ do
 	shift
 done
 
+# at least one flag should be on
+if [ $ADD_WASM_CONTRACTS = false ] && [ $ADD_GROUPS = false ]; then
+    echo "add at least one flag: --add-wasm-contracts or --add-groups"
+    exit 1
+fi
+
 #
 #   PRELIMINARY CHECKS AND DOWNLOADS
 #
@@ -99,8 +105,7 @@ if [ ! -f "$ORIGINAL_GENESIS" ]; then
   exit 1
 fi
 
-TMP_HOME=~/.seda-chain/
-# TMP_HOME=./tmp
+TMP_HOME=./tmp
 rm -rf $TMP_HOME
 
 if [ $ADD_WASM_CONTRACTS = true ]; then
@@ -120,10 +125,16 @@ $LOCAL_BIN init node0 --home $TMP_HOME --chain-id $TEMP_CHAIN_ID --default-denom
 $LOCAL_BIN keys add deployer --home $TMP_HOME --keyring-backend test
 ADDR=$($LOCAL_BIN keys show deployer --home $TMP_HOME --keyring-backend test -a)
 $LOCAL_BIN add-genesis-account $ADDR 100000000000000000seda --home $TMP_HOME --keyring-backend test
+
+if [ $ADD_GROUPS = true ]; then
+  echo $ADMIN_SEED | $LOCAL_BIN keys add admin --home $TMP_HOME --keyring-backend test --recover
+  ADMIN_ADDR=$($LOCAL_BIN keys show admin --home $TMP_HOME --keyring-backend test -a)
+  $LOCAL_BIN add-genesis-account $ADMIN_ADDR 100000000000000000seda --home $TMP_HOME --keyring-backend test
+fi
+
 $LOCAL_BIN gentx deployer 10000000000000000seda --home $TMP_HOME --keyring-backend test --chain-id $TEMP_CHAIN_ID
 $LOCAL_BIN collect-gentxs --home $TMP_HOME
 
-
 $LOCAL_BIN start --home $TMP_HOME > chain_output.log 2>&1 & disown
 
 sleep 20
@@ -134,35 +145,25 @@ sleep 20
 #
 
 # Create group and group policy
-
 if [ $ADD_GROUPS = true ]; then
-  echo $ADMIN_SEED | $LOCAL_BIN keys add admin --home $TMP_HOME --keyring-backend test --recover
-  ADMIN_ADDR=$($LOCAL_BIN keys show admin --home $TMP_HOME --keyring-backend test -a)
-  
-  # $LOCAL_BIN tx group create-group $ADMIN_ADDR "ipfs://not_real_metadata" $MEMBERS_JSON_FILE --keyring-backend test --home $TMP_HOME --chain-id $TEMP_CHAIN_ID -y
-  # sleep 10
-  # $LOCAL_BIN tx group create-group-policy $ADMIN_ADDR 1 "{\"name\":\"quick turnaround\",\"description\":\"\"}" $POLICY_JSON_FILE --keyring-backend test --home $TMP_HOME --chain-id $TEMP_CHAIN_ID -y
-  # sleep 10
-
   $LOCAL_BIN tx group create-group-with-policy $ADMIN_ADDR "ipfs://not_real_metadata" "{\"name\":\"quick turnaround\",\"description\":\"\"}" $MEMBERS_JSON_FILE $POLICY_JSON_FILE --home $TMP_HOME --from $ADMIN_ADDR --keyring-backend test --chain-id $TEMP_CHAIN_ID -y
   sleep 10
 fi
 
 
-# # Store and instantiate three contracts
-# PROXY_ADDR=$(store_and_instantiate proxy_contract.wasm '{"token":"aseda"}')
-
-# ARG='{"token":"aseda", "proxy": "'$PROXY_ADDR'" }'
-# STAKING_ADDR=$(store_and_instantiate staking.wasm "$ARG")
-# DR_ADDR=$(store_and_instantiate data_requests.wasm "$ARG")
-
-
-# # Call SetStaking and SetDataRequests on Proxy contract to set circular dependency
-# $LOCAL_BIN tx wasm execute $PROXY_ADDR '{"set_staking":{"contract":"'$STAKING_ADDR'"}}' --from $ADDR --gas auto --gas-adjustment 1.2 --keyring-backend test  --home $TMP_HOME --chain-id $TEMP_CHAIN_ID -y
-# sleep 10
-# $LOCAL_BIN tx wasm execute $PROXY_ADDR '{"set_data_requests":{"contract":"'$DR_ADDR'"}}' --from $ADDR --gas auto --gas-adjustment 1.2 --keyring-backend test  --home $TMP_HOME --chain-id $TEMP_CHAIN_ID -y
-# sleep 10
-
+if [ $ADD_WASM_CONTRACTS = true ]; then
+  # Store and instantiate three contracts
+  PROXY_ADDR=$(store_and_instantiate proxy_contract.wasm '{"token":"aseda"}')
+  ARG='{"token":"aseda", "proxy": "'$PROXY_ADDR'" }'
+  STAKING_ADDR=$(store_and_instantiate staking.wasm "$ARG")
+  DR_ADDR=$(store_and_instantiate data_requests.wasm "$ARG")
+
+  # Call SetStaking and SetDataRequests on Proxy contract to set circular dependency
+  $LOCAL_BIN tx wasm execute $PROXY_ADDR '{"set_staking":{"contract":"'$STAKING_ADDR'"}}' --from $ADDR --gas auto --gas-adjustment 1.2 --keyring-backend test  --home $TMP_HOME --chain-id $TEMP_CHAIN_ID -y
+  sleep 10
+  $LOCAL_BIN tx wasm execute $PROXY_ADDR '{"set_data_requests":{"contract":"'$DR_ADDR'"}}' --from $ADDR --gas auto --gas-adjustment 1.2 --keyring-backend test  --home $TMP_HOME --chain-id $TEMP_CHAIN_ID -y
+  sleep 10
+fi
 
 #
 #   TERMINATE CHAIN PROCESS, EXPORT, AND MODIFY GIVEN GENESIS
@@ -175,28 +176,38 @@ python3 -m json.tool $TMP_HOME/exported > $TMP_HOME/genesis.json
 rm $TMP_HOME/exported
 
 
-# #
-# # Modify
-# # - wasm.codes
-# # - wasm.contracts
-# # - wasm.sequences
-# # - wasm-storage.proxy_contract_registry
-# #
-# EXPORTED_GENESIS=$TMP_HOME/genesis.json
-# TMP_GENESIS=$TMP_HOME/tmp_genesis.json
-# TMP_TMP_GENESIS=$TMP_HOME/tmp_tmp_genesis.json
+EXPORTED_GENESIS=$TMP_HOME/genesis.json
+TMP_GENESIS=$TMP_HOME/tmp_genesis.json
+TMP_TMP_GENESIS=$TMP_HOME/tmp_tmp_genesis.json
 
-# jq '.app_state["wasm"]["codes"]' $EXPORTED_GENESIS > $TMP_HOME/codes.tmp
-# jq '.app_state["wasm"]["contracts"]' $EXPORTED_GENESIS > $TMP_HOME/contracts.tmp
-# jq '.app_state["wasm"]["sequences"]' $EXPORTED_GENESIS > $TMP_HOME/sequences.tmp
+cp $ORIGINAL_GENESIS $TMP_GENESIS # make adjustments on TMP_GENESIS until replacing original genesis in the last step
 
-# jq '.app_state["wasm-storage"]["proxy_contract_registry"]="'$PROXY_ADDR'"' $ORIGINAL_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
-# jq --slurpfile codes $TMP_HOME/codes.tmp '.app_state["wasm"]["codes"] = $codes[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
-# jq --slurpfile contracts $TMP_HOME/contracts.tmp '.app_state["wasm"]["contracts"] = $contracts[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
-# jq --slurpfile sequences $TMP_HOME/sequences.tmp '.app_state["wasm"]["sequences"] = $sequences[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+# Modify group state and wasm code upload params
+if [ $ADD_GROUPS = true ]; then
+  jq '.app_state["group"]' $EXPORTED_GENESIS > $TMP_HOME/group.tmp
+  GROUP_POLICY_ADDR=$(jq '.app_state["group"]["group_policies"][0]["address"]' $EXPORTED_GENESIS)
 
-# mv $TMP_GENESIS $ORIGINAL_GENESIS
+  jq --slurpfile group $TMP_HOME/group.tmp '.app_state["group"] = $group[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+  jq '.app_state["wasm"]["params"]["code_upload_access"]["permission"]="AnyOfAddresses"' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+  jq '.app_state["wasm"]["params"]["instantiate_default_permission"]="AnyOfAddresses"' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+  jq '.app_state["wasm"]["params"]["code_upload_access"]["addresses"]=['$GROUP_POLICY_ADDR']' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+fi
 
-# # clean up
-# rm -rf $TMP_HOME
-# rm chain_output.log
+# Modify wasm codes, contracts, and sequences. 
+# Also modify wasm-storage's proxy contract registery.
+if [ $ADD_WASM_CONTRACTS = true ]; then
+  jq '.app_state["wasm"]["codes"]' $EXPORTED_GENESIS > $TMP_HOME/codes.tmp
+  jq '.app_state["wasm"]["contracts"]' $EXPORTED_GENESIS > $TMP_HOME/contracts.tmp
+  jq '.app_state["wasm"]["sequences"]' $EXPORTED_GENESIS > $TMP_HOME/sequences.tmp
+
+  jq '.app_state["wasm-storage"]["proxy_contract_registry"]="'$PROXY_ADDR'"' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+  jq --slurpfile codes $TMP_HOME/codes.tmp '.app_state["wasm"]["codes"] = $codes[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+  jq --slurpfile contracts $TMP_HOME/contracts.tmp '.app_state["wasm"]["contracts"] = $contracts[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+  jq --slurpfile sequences $TMP_HOME/sequences.tmp '.app_state["wasm"]["sequences"] = $sequences[0]' $TMP_GENESIS > $TMP_TMP_GENESIS && mv $TMP_TMP_GENESIS $TMP_GENESIS
+fi
+
+mv $TMP_GENESIS $ORIGINAL_GENESIS
+
+# clean up
+rm -rf $TMP_HOME
+rm chain_output.log