diff --git a/proto/dymensionxyz/dymension/sequencer/sequencer.proto b/proto/dymensionxyz/dymension/sequencer/sequencer.proto
index bae19246e..1e1fdf9f1 100644
--- a/proto/dymensionxyz/dymension/sequencer/sequencer.proto
+++ b/proto/dymensionxyz/dymension/sequencer/sequencer.proto
@@ -38,3 +38,13 @@ message Sequencer {
   // unbond_time defines, if unbonding, the min time for the sequencer to complete unbonding.
   google.protobuf.Timestamp unbond_time = 10 [(gogoproto.nullable) = false, (gogoproto.stdtime) = true];
 }
+
+// BondReduction defines an object which holds the information about the sequencer and its queued unbonding amount
+message BondReduction {
+  // sequencerAddress is the bech32-encoded address of the sequencer account which is the account that the message was sent from.
+  string sequencer_address = 1;
+  // unbondAmount is the amount of tokens to be unbonded.
+  cosmos.base.v1beta1.Coin unbond_amount = 2 [(gogoproto.nullable) = false];
+  // unbond_time defines, if unbonding, the min time for the sequencer to complete unbonding.
+  google.protobuf.Timestamp unbond_time = 3 [(gogoproto.nullable) = false, (gogoproto.stdtime) = true];
+}
diff --git a/proto/dymensionxyz/dymension/sequencer/tx.proto b/proto/dymensionxyz/dymension/sequencer/tx.proto
index 23116f85d..fba0bead3 100644
--- a/proto/dymensionxyz/dymension/sequencer/tx.proto
+++ b/proto/dymensionxyz/dymension/sequencer/tx.proto
@@ -23,6 +23,9 @@ service Msg {
 
   // IncreaseBond defines a method for increasing a sequencer's bond amount
   rpc IncreaseBond (MsgIncreaseBond) returns (MsgIncreaseBondResponse);
+  
+  // DecreaseBond defines a method for decreasing the bond of a sequencer.
+  rpc DecreaseBond (MsgDecreaseBond) returns (MsgDecreaseBondResponse);
 }
 
 message MsgCreateSequencer {
@@ -77,4 +80,19 @@ message MsgIncreaseBond {
 }
 
 // MsgIncreaseBondResponse defines the Msg/IncreaseBond response type.
-message MsgIncreaseBondResponse {}
\ No newline at end of file
+message MsgIncreaseBondResponse {}
+
+// MsgDecreaseBond defines a SDK message for decreasing the bond of a sequencer.
+message MsgDecreaseBond {
+  option (cosmos.msg.v1.signer) = "creator";
+  // creator is the bech32-encoded address of the sequencer account which is the account that the message was sent from.
+  string creator = 1 [(cosmos_proto.scalar) = "cosmos.AddressString"];
+  
+  // decrease_amount is the amount of coins to decrease the bond by.
+  cosmos.base.v1beta1.Coin decrease_amount = 2 [(gogoproto.nullable) = false];
+}
+
+// MsgDecreaseBondResponse defines the Msg/DecreaseBond response type.
+message MsgDecreaseBondResponse {
+  google.protobuf.Timestamp completion_time = 1 [(gogoproto.nullable) = false, (gogoproto.stdtime) = true];
+}
diff --git a/x/sequencer/handler.go b/x/sequencer/handler.go
index 0b23a857f..2cf9fdc03 100644
--- a/x/sequencer/handler.go
+++ b/x/sequencer/handler.go
@@ -30,6 +30,9 @@ func NewHandler(k keeper.Keeper) sdk.Handler {
 		case *types.MsgIncreaseBond:
 			res, err := msgServer.IncreaseBond(sdk.WrapSDKContext(ctx), msg)
 			return sdk.WrapServiceResult(ctx, res, err)
+		case *types.MsgDecreaseBond:
+			res, err := msgServer.DecreaseBond(sdk.WrapSDKContext(ctx), msg)
+			return sdk.WrapServiceResult(ctx, res, err)
 		default:
 			errMsg := fmt.Sprintf("unrecognized %s message type: %T", types.ModuleName, msg)
 			return nil, errorsmod.Wrap(types.ErrUnknownRequest, errMsg)
diff --git a/x/sequencer/keeper/hooks_test.go b/x/sequencer/keeper/hooks_test.go
index d1c952ac1..2d73242b9 100644
--- a/x/sequencer/keeper/hooks_test.go
+++ b/x/sequencer/keeper/hooks_test.go
@@ -4,6 +4,7 @@ import (
 	"time"
 
 	"github.com/cosmos/cosmos-sdk/crypto/keys/ed25519"
+	sdk "github.com/cosmos/cosmos-sdk/types"
 
 	"github.com/dymensionxyz/dymension/v3/x/sequencer/types"
 )
@@ -21,7 +22,7 @@ func (suite *SequencerTestSuite) TestFraudSubmittedHook() {
 
 	// create 5 sequencers for rollapp1
 	seqAddrs := make([]string, numOfSequencers)
-	seqAddrs[0] = suite.CreateDefaultSequencer(suite.Ctx, rollappId, pk)
+	seqAddrs[0] = suite.CreateSequencerWithBond(suite.Ctx, rollappId, bond.AddAmount(sdk.NewInt(20)), pk)
 
 	for i := 1; i < numOfSequencers; i++ {
 		pki := ed25519.GenPrivKey().PubKey()
@@ -29,7 +30,14 @@ func (suite *SequencerTestSuite) TestFraudSubmittedHook() {
 	}
 	proposer := seqAddrs[0]
 
-	err := keeper.RollappHooks().FraudSubmitted(suite.Ctx, rollappId, 0, proposer)
+	// queue the third sequencer to reduce bond
+	unbondMsg := types.MsgDecreaseBond{Creator: seqAddrs[0], DecreaseAmount: sdk.NewInt64Coin(bond.Denom, 10)}
+	resp, err := suite.msgServer.DecreaseBond(suite.Ctx, &unbondMsg)
+	suite.Require().NoError(err)
+	bds := keeper.GetMatureDecreasingBondSequencers(suite.Ctx, resp.GetCompletionTime())
+	suite.Require().Len(bds, 1)
+
+	err = keeper.RollappHooks().FraudSubmitted(suite.Ctx, rollappId, 0, proposer)
 	suite.Require().NoError(err)
 
 	// check if proposer is slashed
@@ -45,4 +53,8 @@ func (suite *SequencerTestSuite) TestFraudSubmittedHook() {
 		suite.Require().False(sequencer.Proposer)
 		suite.Require().Equal(sequencer.Status, types.Unbonded)
 	}
+
+	// check if bond reduction queue is pruned
+	bds = keeper.GetMatureDecreasingBondSequencers(suite.Ctx, resp.GetCompletionTime())
+	suite.Require().Len(bds, 0)
 }
diff --git a/x/sequencer/keeper/msg_server_decrease_bond.go b/x/sequencer/keeper/msg_server_decrease_bond.go
new file mode 100644
index 000000000..5ecb807b0
--- /dev/null
+++ b/x/sequencer/keeper/msg_server_decrease_bond.go
@@ -0,0 +1,49 @@
+package keeper
+
+import (
+	"context"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/dymensionxyz/dymension/v3/x/sequencer/types"
+)
+
+// DecreaseBond implements types.MsgServer.
+func (k msgServer) DecreaseBond(goCtx context.Context, msg *types.MsgDecreaseBond) (*types.MsgDecreaseBondResponse, error) {
+	ctx := sdk.UnwrapSDKContext(goCtx)
+
+	sequencer, err := k.bondUpdateAllowed(ctx, msg.GetCreator())
+	if err != nil {
+		return nil, err
+	}
+
+	effectiveBond := sequencer.Tokens
+	if bds := k.getSequencerDecreasingBonds(ctx, msg.Creator); len(bds) > 0 {
+		for _, bd := range bds {
+			effectiveBond = effectiveBond.Sub(bd.UnbondAmount)
+		}
+	}
+
+	// Check if the sequencer has enough bond to decrease
+	if !effectiveBond.IsZero() && effectiveBond.IsAllLTE(sdk.NewCoins(msg.DecreaseAmount)) {
+		return nil, types.ErrInsufficientBond
+	}
+
+	// Check if the bond reduction will make the sequencer's bond less than the minimum bond value
+	minBondValue := k.GetParams(ctx).MinBond
+	if !minBondValue.IsNil() && !minBondValue.IsZero() {
+		decreasedBondValue := effectiveBond.Sub(msg.DecreaseAmount)
+		if decreasedBondValue.IsAllLT(sdk.NewCoins(minBondValue)) {
+			return nil, types.ErrInsufficientBond
+		}
+	}
+	completionTime := ctx.BlockHeader().Time.Add(k.UnbondingTime(ctx))
+	k.setDecreasingBondQueue(ctx, types.BondReduction{
+		SequencerAddress: msg.Creator,
+		UnbondAmount:     msg.DecreaseAmount,
+		UnbondTime:       completionTime,
+	})
+
+	return &types.MsgDecreaseBondResponse{
+		CompletionTime: completionTime,
+	}, nil
+}
diff --git a/x/sequencer/keeper/msg_server_decrease_bond_test.go b/x/sequencer/keeper/msg_server_decrease_bond_test.go
new file mode 100644
index 000000000..554cf7c7a
--- /dev/null
+++ b/x/sequencer/keeper/msg_server_decrease_bond_test.go
@@ -0,0 +1,128 @@
+package keeper_test
+
+import (
+	"github.com/cosmos/cosmos-sdk/crypto/keys/ed25519"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/dymensionxyz/dymension/v3/x/sequencer/types"
+)
+
+func (suite *SequencerTestSuite) TestDecreaseBond() {
+	suite.SetupTest()
+	bondDenom := types.DefaultParams().MinBond.Denom
+	rollappId, pk := suite.CreateDefaultRollapp()
+	// setup a default sequencer with has minBond + 20token
+	defaultSequencerAddress := suite.CreateSequencerWithBond(suite.Ctx, rollappId, bond.AddAmount(sdk.NewInt(20)), pk)
+	// setup an unbonded sequencer
+	unbondedPk := ed25519.GenPrivKey().PubKey()
+	unbondedSequencerAddress := suite.CreateDefaultSequencer(suite.Ctx, rollappId, unbondedPk)
+	unbondedSequencer, _ := suite.App.SequencerKeeper.GetSequencer(suite.Ctx, unbondedSequencerAddress)
+	unbondedSequencer.Status = types.Unbonded
+	suite.App.SequencerKeeper.UpdateSequencer(suite.Ctx, unbondedSequencer, unbondedSequencer.Status)
+	// setup a jailed sequencer
+	jailedPk := ed25519.GenPrivKey().PubKey()
+	jailedSequencerAddress := suite.CreateDefaultSequencer(suite.Ctx, rollappId, jailedPk)
+	jailedSequencer, _ := suite.App.SequencerKeeper.GetSequencer(suite.Ctx, jailedSequencerAddress)
+	jailedSequencer.Jailed = true
+	suite.App.SequencerKeeper.UpdateSequencer(suite.Ctx, jailedSequencer, jailedSequencer.Status)
+
+	testCase := []struct {
+		name        string
+		msg         types.MsgDecreaseBond
+		expectedErr error
+	}{
+		{
+			name: "invalid sequencer",
+			msg: types.MsgDecreaseBond{
+				Creator:        "invalid_address",
+				DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+			},
+			expectedErr: types.ErrUnknownSequencer,
+		},
+		{
+			name: "sequencer is not bonded",
+			msg: types.MsgDecreaseBond{
+				Creator:        unbondedSequencerAddress,
+				DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+			},
+			expectedErr: types.ErrInvalidSequencerStatus,
+		},
+		{
+			name: "sequencer is jailed",
+			msg: types.MsgDecreaseBond{
+				Creator:        jailedSequencerAddress,
+				DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+			},
+			expectedErr: types.ErrSequencerJailed,
+		},
+		{
+			name: "decreased bond value to less than minimum bond value",
+			msg: types.MsgDecreaseBond{
+				Creator:        defaultSequencerAddress,
+				DecreaseAmount: sdk.NewInt64Coin(bondDenom, 100),
+			},
+			expectedErr: types.ErrInsufficientBond,
+		},
+		{
+			name: "trying to decrease more bond than they have tokens bonded",
+			msg: types.MsgDecreaseBond{
+				Creator:        defaultSequencerAddress,
+				DecreaseAmount: bond.AddAmount(sdk.NewInt(30)),
+			},
+			expectedErr: types.ErrInsufficientBond,
+		},
+		{
+			name: "valid decrease bond",
+			msg: types.MsgDecreaseBond{
+				Creator:        defaultSequencerAddress,
+				DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+			},
+		},
+	}
+
+	for _, tc := range testCase {
+		suite.Run(tc.name, func() {
+			resp, err := suite.msgServer.DecreaseBond(suite.Ctx, &tc.msg)
+			if tc.expectedErr != nil {
+				suite.Require().ErrorIs(err, tc.expectedErr)
+			} else {
+				suite.Require().NoError(err)
+				suite.Require().NotNil(resp)
+				expectedCompletionTime := suite.Ctx.BlockHeader().Time.Add(suite.App.SequencerKeeper.UnbondingTime(suite.Ctx))
+				suite.Require().Equal(expectedCompletionTime, resp.CompletionTime)
+				// check if the unbonding is set correctly
+				unbondings := suite.App.SequencerKeeper.GetMatureDecreasingBondSequencers(suite.Ctx, expectedCompletionTime)
+				suite.Require().Len(unbondings, 1)
+				suite.Require().Equal(tc.msg.Creator, unbondings[0].SequencerAddress)
+				suite.Require().Equal(tc.msg.DecreaseAmount, unbondings[0].UnbondAmount)
+			}
+		})
+	}
+}
+
+func (suite *SequencerTestSuite) TestDecreaseBond_BondDecreaseInProgress() {
+	suite.SetupTest()
+	bondDenom := types.DefaultParams().MinBond.Denom
+	rollappId, pk := suite.CreateDefaultRollapp()
+	// setup a default sequencer with has minBond + 20token
+	defaultSequencerAddress := suite.CreateSequencerWithBond(suite.Ctx, rollappId, bond.AddAmount(sdk.NewInt(20)), pk)
+	// decrease the bond of the sequencer
+	_, err := suite.msgServer.DecreaseBond(suite.Ctx, &types.MsgDecreaseBond{
+		Creator:        defaultSequencerAddress,
+		DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+	})
+	suite.Require().NoError(err)
+	// try to decrease the bond again - should be fine as still not below minbond
+	suite.Ctx = suite.Ctx.WithBlockHeight(suite.Ctx.BlockHeight() + 1).WithBlockTime(suite.Ctx.BlockTime().Add(10))
+	_, err = suite.msgServer.DecreaseBond(suite.Ctx, &types.MsgDecreaseBond{
+		Creator:        defaultSequencerAddress,
+		DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+	})
+	suite.Require().NoError(err)
+	// try to decrease the bond again - should err as below minbond
+	suite.Ctx = suite.Ctx.WithBlockHeight(suite.Ctx.BlockHeight() + 1).WithBlockTime(suite.Ctx.BlockTime().Add(10))
+	_, err = suite.msgServer.DecreaseBond(suite.Ctx, &types.MsgDecreaseBond{
+		Creator:        defaultSequencerAddress,
+		DecreaseAmount: sdk.NewInt64Coin(bondDenom, 10),
+	})
+	suite.Require().ErrorIs(err, types.ErrInsufficientBond)
+}
diff --git a/x/sequencer/keeper/msg_server_increase_bond.go b/x/sequencer/keeper/msg_server_increase_bond.go
index d2af9fac5..149934d0b 100644
--- a/x/sequencer/keeper/msg_server_increase_bond.go
+++ b/x/sequencer/keeper/msg_server_increase_bond.go
@@ -11,7 +11,7 @@ import (
 func (k msgServer) IncreaseBond(goCtx context.Context, msg *types.MsgIncreaseBond) (*types.MsgIncreaseBondResponse, error) {
 	ctx := sdk.UnwrapSDKContext(goCtx)
 
-	sequencer, err := k.bondUpdateAllowed(ctx, msg)
+	sequencer, err := k.bondUpdateAllowed(ctx, msg.GetCreator())
 	if err != nil {
 		return nil, err
 	}
@@ -39,9 +39,9 @@ func (k msgServer) IncreaseBond(goCtx context.Context, msg *types.MsgIncreaseBon
 	return &types.MsgIncreaseBondResponse{}, err
 }
 
-func (k msgServer) bondUpdateAllowed(ctx sdk.Context, msg *types.MsgIncreaseBond) (types.Sequencer, error) {
+func (k msgServer) bondUpdateAllowed(ctx sdk.Context, senderAddress string) (types.Sequencer, error) {
 	// check if the sequencer already exists
-	sequencer, found := k.GetSequencer(ctx, msg.Creator)
+	sequencer, found := k.GetSequencer(ctx, senderAddress)
 	if !found {
 		return types.Sequencer{}, types.ErrUnknownSequencer
 	}
diff --git a/x/sequencer/keeper/sequencer.go b/x/sequencer/keeper/sequencer.go
index 74c81bb8b..8ba853482 100644
--- a/x/sequencer/keeper/sequencer.go
+++ b/x/sequencer/keeper/sequencer.go
@@ -172,3 +172,55 @@ func (k Keeper) removeUnbondingSequencer(ctx sdk.Context, sequencer types.Sequen
 	unbondingQueueKey := types.UnbondingSequencerKey(sequencer.Address, sequencer.UnbondTime)
 	store.Delete(unbondingQueueKey)
 }
+
+/* -------------------------------------------------------------------------- */
+/*                          Decreasing Bond Queue                             */
+/* -------------------------------------------------------------------------- */
+
+// GetMatureDecreasingBondSequencers returns all decreasing bond items for the given time
+func (k Keeper) GetMatureDecreasingBondSequencers(ctx sdk.Context, endTime time.Time) (unbondings []types.BondReduction) {
+	store := ctx.KVStore(k.storeKey)
+	iterator := store.Iterator(types.DecreasingBondQueueKey, sdk.PrefixEndBytes(types.DecreasingBondQueueByTimeKey(endTime)))
+	defer iterator.Close() // nolint: errcheck
+	for ; iterator.Valid(); iterator.Next() {
+		var b types.BondReduction
+		k.cdc.MustUnmarshal(iterator.Value(), &b)
+		unbondings = append(unbondings, b)
+	}
+	return
+}
+
+// setDecreasingBondQueue sets the bond reduction item in the decreasing bond queue
+func (k Keeper) setDecreasingBondQueue(ctx sdk.Context, bondReduction types.BondReduction) {
+	store := ctx.KVStore(k.storeKey)
+	b := k.cdc.MustMarshal(&bondReduction)
+
+	unbondingQueueKey := types.GetDecreasingBondQueueKey(bondReduction.SequencerAddress, bondReduction.GetUnbondTime())
+	store.Set(unbondingQueueKey, b)
+}
+
+// removeDecreasingBondQueue removes the bond reduction item from the decreasing bond queue
+func (k Keeper) removeDecreasingBondQueue(ctx sdk.Context, bondReduction types.BondReduction) {
+	store := ctx.KVStore(k.storeKey)
+	unbondingQueueKey := types.GetDecreasingBondQueueKey(bondReduction.SequencerAddress, bondReduction.GetUnbondTime())
+	store.Delete(unbondingQueueKey)
+}
+
+// getSequencerDecreasingBonds returns the bond reduction item given sequencer address
+func (k Keeper) getSequencerDecreasingBonds(ctx sdk.Context, sequencerAddr string) (bds []types.BondReduction) {
+	prefixKey := types.DecreasingBondQueueKey
+	store := prefix.NewStore(ctx.KVStore(k.storeKey), prefixKey)
+	iterator := sdk.KVStorePrefixIterator(store, []byte{})
+
+	defer iterator.Close() // nolint: errcheck
+
+	for ; iterator.Valid(); iterator.Next() {
+		var bd types.BondReduction
+		k.cdc.MustUnmarshal(iterator.Value(), &bd)
+		if bd.SequencerAddress == sequencerAddr {
+			bds = append(bds, bd)
+		}
+	}
+
+	return
+}
diff --git a/x/sequencer/keeper/slashing.go b/x/sequencer/keeper/slashing.go
index f245e1423..4c499e125 100644
--- a/x/sequencer/keeper/slashing.go
+++ b/x/sequencer/keeper/slashing.go
@@ -86,6 +86,14 @@ func (k Keeper) Jail(ctx sdk.Context, seq types.Sequencer) error {
 	// in case we are slashing an unbonding sequencer, we need to remove it from the unbonding queue
 	if oldStatus == types.Unbonding {
 		k.removeUnbondingSequencer(ctx, seq)
+	} else {
+		// in case the sequencer is currently reducing its bond, then we need to remove it from the decreasing bond queue
+		// all the tokens are burned, so we don't need to reduce the bond anymore
+		if bondReductions := k.getSequencerDecreasingBonds(ctx, seq.Address); len(bondReductions) > 0 {
+			for _, bondReduce := range bondReductions {
+				k.removeDecreasingBondQueue(ctx, bondReduce)
+			}
+		}
 	}
 
 	// set the status to unbonded
diff --git a/x/sequencer/keeper/slashing_test.go b/x/sequencer/keeper/slashing_test.go
index d90635aa9..29ee619ef 100644
--- a/x/sequencer/keeper/slashing_test.go
+++ b/x/sequencer/keeper/slashing_test.go
@@ -14,3 +14,27 @@ func (s *SequencerTestSuite) TestSlashBasic() {
 		s.Require().NoError(err)
 	})
 }
+
+func (suite *SequencerTestSuite) TestSlashingBondReducingSequencer() {
+	suite.SetupTest()
+	keeper := suite.App.SequencerKeeper
+
+	rollappId, pk := suite.CreateDefaultRollapp()
+	seqAddr := suite.CreateSequencerWithBond(suite.Ctx, rollappId, bond.AddAmount(sdk.NewInt(20)), pk)
+
+	suite.Ctx = suite.Ctx.WithBlockHeight(20)
+	suite.Ctx = suite.Ctx.WithBlockTime(time.Now())
+
+	reduceBondMsg := types.MsgDecreaseBond{Creator: seqAddr, DecreaseAmount: sdk.NewInt64Coin(bond.Denom, 10)}
+	resp, err := suite.msgServer.DecreaseBond(suite.Ctx, &reduceBondMsg)
+	suite.Require().NoError(err)
+	bondReductions := keeper.GetMatureDecreasingBondSequencers(suite.Ctx, resp.GetCompletionTime())
+	suite.Require().Len(bondReductions, 1)
+
+	err = keeper.Slashing(suite.Ctx, seqAddr)
+	suite.NoError(err)
+
+	bondReductions = keeper.GetMatureDecreasingBondSequencers(suite.Ctx, resp.GetCompletionTime())
+	suite.Require().Len(bondReductions, 0)
+	suite.assertSlashed(seqAddr)
+}
diff --git a/x/sequencer/keeper/unbond.go b/x/sequencer/keeper/unbond.go
index 64bb13868..6637d152a 100644
--- a/x/sequencer/keeper/unbond.go
+++ b/x/sequencer/keeper/unbond.go
@@ -26,6 +26,20 @@ func (k Keeper) UnbondAllMatureSequencers(ctx sdk.Context, currTime time.Time) {
 	}
 }
 
+func (k Keeper) HandleBondReduction(ctx sdk.Context, currTime time.Time) {
+	unbondings := k.GetMatureDecreasingBondSequencers(ctx, currTime)
+	for _, unbonding := range unbondings {
+		wrapFn := func(ctx sdk.Context) error {
+			return k.completeBondReduction(ctx, unbonding)
+		}
+		err := osmoutils.ApplyFuncIfNoError(ctx, wrapFn)
+		if err != nil {
+			k.Logger(ctx).Error("reducing sequencer bond", "error", err, "sequencer", unbonding.SequencerAddress)
+			continue
+		}
+	}
+}
+
 func (k Keeper) forceUnbondSequencer(ctx sdk.Context, seqAddr string) error {
 	seq, found := k.GetSequencer(ctx, seqAddr)
 	if !found {
@@ -65,6 +79,14 @@ func (k Keeper) forceUnbondSequencer(ctx sdk.Context, seqAddr string) error {
 
 	if oldStatus == types.Unbonding {
 		k.removeUnbondingSequencer(ctx, seq)
+	} else {
+		// in case the sequencer is currently reducing its bond, then we need to remove it from the decreasing bond queue
+		// all the tokens are returned, so we don't need to reduce the bond anymore
+		if bondReductions := k.getSequencerDecreasingBonds(ctx, seq.Address); len(bondReductions) > 0 {
+			for _, bondReduce := range bondReductions {
+				k.removeDecreasingBondQueue(ctx, bondReduce)
+			}
+		}
 	}
 
 	ctx.EventManager().EmitEvent(
@@ -124,3 +146,38 @@ func (k Keeper) unbondUnbondingSequencer(ctx sdk.Context, seqAddr string) error
 
 	return nil
 }
+
+func (k Keeper) completeBondReduction(ctx sdk.Context, reduction types.BondReduction) error {
+	seq, found := k.GetSequencer(ctx, reduction.SequencerAddress)
+	if !found {
+		return types.ErrUnknownSequencer
+	}
+
+	if seq.Tokens.IsAllLT(sdk.NewCoins(reduction.UnbondAmount)) {
+		return errorsmod.Wrapf(
+			types.ErrInsufficientBond,
+			"sequencer does not have enough bond to reduce insufficient bond: got %s, reducing by %s",
+			seq.Tokens.String(),
+			reduction.UnbondAmount.String(),
+		)
+	}
+	newBalance := seq.Tokens.Sub(reduction.UnbondAmount)
+	// in case between unbonding queue and now, the minbond value is increased,
+	// handle it by only returning upto minBond amount and not all
+	minBond := k.GetParams(ctx).MinBond
+	if newBalance.IsAllLT(sdk.NewCoins(minBond)) {
+		diff := minBond.SubAmount(newBalance.AmountOf(minBond.Denom))
+		reduction.UnbondAmount = reduction.UnbondAmount.Sub(diff)
+	}
+	seqAddr := sdk.MustAccAddressFromBech32(reduction.SequencerAddress)
+	err := k.bankKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, seqAddr, sdk.NewCoins(reduction.UnbondAmount))
+	if err != nil {
+		return err
+	}
+
+	seq.Tokens = seq.Tokens.Sub(reduction.UnbondAmount)
+	k.SetSequencer(ctx, seq)
+	k.removeDecreasingBondQueue(ctx, reduction)
+
+	return nil
+}
diff --git a/x/sequencer/keeper/unbond_test.go b/x/sequencer/keeper/unbond_test.go
index 3c8406ea2..7874203d4 100644
--- a/x/sequencer/keeper/unbond_test.go
+++ b/x/sequencer/keeper/unbond_test.go
@@ -125,3 +125,62 @@ func (suite *SequencerTestSuite) TestTokensRefundOnUnbond() {
 	suite.Equal(types.Unbonding, sequencer2.Status)
 	suite.False(sequencer2.Tokens.IsZero())
 }
+
+func (suite *SequencerTestSuite) TestHandleBondReduction() {
+	suite.SetupTest()
+	bondDenom := types.DefaultParams().MinBond.Denom
+	rollappId, pk := suite.CreateDefaultRollapp()
+	// Create a sequencer with bond amount of minBond + 100
+	defaultSequencerAddress := suite.CreateSequencerWithBond(suite.Ctx, rollappId, bond.AddAmount(sdk.NewInt(100)), pk)
+	resp, err := suite.msgServer.DecreaseBond(suite.Ctx, &types.MsgDecreaseBond{
+		Creator:        defaultSequencerAddress,
+		DecreaseAmount: sdk.NewInt64Coin(bondDenom, 50),
+	})
+	suite.Require().NoError(err)
+	expectedCompletionTime := suite.Ctx.BlockHeader().Time.Add(suite.App.SequencerKeeper.UnbondingTime(suite.Ctx))
+	suite.Require().Equal(expectedCompletionTime, resp.CompletionTime)
+	// Execute HandleBondReduction
+	suite.Ctx = suite.Ctx.WithBlockTime(expectedCompletionTime)
+	suite.App.SequencerKeeper.HandleBondReduction(suite.Ctx, suite.Ctx.BlockHeader().Time)
+	// Check if the bond has been reduced
+	sequencer, _ := suite.App.SequencerKeeper.GetSequencer(suite.Ctx, defaultSequencerAddress)
+	suite.Require().Equal(bond.AddAmount(sdk.NewInt(50)), sequencer.Tokens[0])
+	// ensure the bond decresing queue is empty
+	reds := suite.App.SequencerKeeper.GetMatureDecreasingBondSequencers(suite.Ctx, expectedCompletionTime)
+	suite.Require().Len(reds, 0)
+}
+
+func (suite *SequencerTestSuite) TestHandleBondReduction_MinBondIncrease() {
+	suite.SetupTest()
+	bondDenom := types.DefaultParams().MinBond.Denom
+	rollappId, pk := suite.CreateDefaultRollapp()
+	// Create a sequencer with bond amount of minBond + 100
+	defaultSequencerAddress := suite.CreateSequencerWithBond(suite.Ctx, rollappId, bond.AddAmount(sdk.NewInt(100)), pk)
+	resp, err := suite.msgServer.DecreaseBond(suite.Ctx, &types.MsgDecreaseBond{
+		Creator:        defaultSequencerAddress,
+		DecreaseAmount: sdk.NewInt64Coin(bondDenom, 50),
+	})
+	suite.Require().NoError(err)
+	expectedCompletionTime := suite.Ctx.BlockHeader().Time.Add(suite.App.SequencerKeeper.UnbondingTime(suite.Ctx))
+	suite.Require().Equal(expectedCompletionTime, resp.CompletionTime)
+	curBalance := suite.App.BankKeeper.GetBalance(suite.Ctx, sdk.MustAccAddressFromBech32(defaultSequencerAddress), bondDenom)
+	suite.Require().Equal(sdk.ZeroInt(), curBalance.Amount)
+
+	// Increase the minBond param
+	params := suite.App.SequencerKeeper.GetParams(suite.Ctx)
+	params.MinBond = bond.AddAmount(sdk.NewInt(60))
+	suite.App.SequencerKeeper.SetParams(suite.Ctx, params)
+
+	// Execute HandleBondReduction
+	suite.Ctx = suite.Ctx.WithBlockTime(expectedCompletionTime)
+	suite.App.SequencerKeeper.HandleBondReduction(suite.Ctx, suite.Ctx.BlockHeader().Time)
+	// Check if the bond has been reduced - but is the same as new min bond value
+	sequencer, _ := suite.App.SequencerKeeper.GetSequencer(suite.Ctx, defaultSequencerAddress)
+	suite.Require().Equal(bond.AddAmount(sdk.NewInt(60)), sequencer.Tokens[0])
+	// ensure the bond decresing queue is empty
+	reds := suite.App.SequencerKeeper.GetMatureDecreasingBondSequencers(suite.Ctx, expectedCompletionTime)
+	suite.Require().Len(reds, 0)
+	// Ensure the bond has been refunded
+	curBalance = suite.App.BankKeeper.GetBalance(suite.Ctx, sdk.MustAccAddressFromBech32(defaultSequencerAddress), bondDenom)
+	suite.Require().Equal(sdk.NewInt(40), curBalance.Amount)
+}
diff --git a/x/sequencer/module.go b/x/sequencer/module.go
index b5e350ed9..8e234913c 100644
--- a/x/sequencer/module.go
+++ b/x/sequencer/module.go
@@ -162,5 +162,6 @@ func (am AppModule) BeginBlock(_ sdk.Context, _ abci.RequestBeginBlock) {}
 // returns no validator updates.
 func (am AppModule) EndBlock(ctx sdk.Context, _ abci.RequestEndBlock) []abci.ValidatorUpdate {
 	am.keeper.UnbondAllMatureSequencers(ctx, ctx.BlockHeader().Time)
+	am.keeper.HandleBondReduction(ctx, ctx.BlockHeader().Time)
 	return []abci.ValidatorUpdate{}
 }
diff --git a/x/sequencer/types/codec.go b/x/sequencer/types/codec.go
index 795f46d34..dae39e575 100644
--- a/x/sequencer/types/codec.go
+++ b/x/sequencer/types/codec.go
@@ -11,11 +11,13 @@ func RegisterCodec(cdc *codec.LegacyAmino) {
 	cdc.RegisterConcrete(&MsgCreateSequencer{}, "sequencer/CreateSequencer", nil)
 	cdc.RegisterConcrete(&MsgUnbond{}, "sequencer/Unbond", nil)
 	cdc.RegisterConcrete(&MsgIncreaseBond{}, "sequencer/IncreaseBond", nil)
+	cdc.RegisterConcrete(&MsgDecreaseBond{}, "sequencer/DecreaseBond", nil)
 }
 
 func RegisterInterfaces(registry cdctypes.InterfaceRegistry) {
 	registry.RegisterImplementations((*sdk.Msg)(nil),
 		&MsgCreateSequencer{},
+		&MsgDecreaseBond{},
 		&MsgUnbond{},
 		&MsgIncreaseBond{},
 	)
diff --git a/x/sequencer/types/keys.go b/x/sequencer/types/keys.go
index 80310719d..2331c84f3 100644
--- a/x/sequencer/types/keys.go
+++ b/x/sequencer/types/keys.go
@@ -40,7 +40,8 @@ var (
 	UnbondedSequencersKeyPrefix  = []byte{0xa2}
 	UnbondingSequencersKeyPrefix = []byte{0xa3}
 
-	UnbondingQueueKey = []byte{0x41} // prefix for the timestamps in unbonding queue
+	UnbondingQueueKey      = []byte{0x41} // prefix for the timestamps in unbonding queue
+	DecreasingBondQueueKey = []byte{0x42} // prefix for the timestamps in decreasing bond queue
 )
 
 /* --------------------- specific sequencer address keys -------------------- */
@@ -102,3 +103,25 @@ func UnbondingSequencerKey(sequencerAddress string, endTime time.Time) []byte {
 	key = append(key, []byte(sequencerAddress)...)
 	return key
 }
+
+/* -------------------------- decreasing bond queue keys -------------------------- */
+func DecreasingBondQueueByTimeKey(endTime time.Time) []byte {
+	timeBz := sdk.FormatTimeBytes(endTime)
+	prefixL := len(DecreasingBondQueueKey)
+
+	bz := make([]byte, prefixL+len(timeBz))
+
+	// copy the prefix
+	copy(bz[:prefixL], DecreasingBondQueueKey)
+	// copy the encoded time bytes
+	copy(bz[prefixL:prefixL+len(timeBz)], timeBz)
+
+	return bz
+}
+
+func GetDecreasingBondQueueKey(sequencerAddress string, endTime time.Time) []byte {
+	key := DecreasingBondQueueByTimeKey(endTime)
+	key = append(key, KeySeparator...)
+	key = append(key, []byte(sequencerAddress)...)
+	return key
+}
diff --git a/x/sequencer/types/msg_create_sequencer.go b/x/sequencer/types/msg_create_sequencer.go
index 05f35c22f..f3499fe60 100644
--- a/x/sequencer/types/msg_create_sequencer.go
+++ b/x/sequencer/types/msg_create_sequencer.go
@@ -13,13 +13,13 @@ import (
 const (
 	TypeMsgCreateSequencer = "create_sequencer"
 	TypeMsgUnbond          = "unbond"
-	TypeMsgIncreaseBond    = "increase_bond"
 )
 
 var (
 	_ sdk.Msg                            = &MsgCreateSequencer{}
 	_ sdk.Msg                            = &MsgUnbond{}
 	_ sdk.Msg                            = &MsgIncreaseBond{}
+	_ sdk.Msg                            = &MsgDecreaseBond{}
 	_ codectypes.UnpackInterfacesMessage = (*MsgCreateSequencer)(nil)
 )
 
@@ -148,3 +148,32 @@ func (msg *MsgIncreaseBond) GetSigners() []sdk.AccAddress {
 	}
 	return []sdk.AccAddress{creator}
 }
+
+/* ---------------------------- MsgDecreaseBond ---------------------------- */
+func NewMsgDecreaseBond(creator string, decreaseBond sdk.Coin) *MsgDecreaseBond {
+	return &MsgDecreaseBond{
+		Creator:        creator,
+		DecreaseAmount: decreaseBond,
+	}
+}
+
+func (msg *MsgDecreaseBond) ValidateBasic() error {
+	_, err := sdk.AccAddressFromBech32(msg.Creator)
+	if err != nil {
+		return errorsmod.Wrapf(ErrInvalidAddress, "invalid creator address (%s)", err)
+	}
+
+	if !(msg.DecreaseAmount.IsValid() && msg.DecreaseAmount.IsPositive()) {
+		return errorsmod.Wrapf(ErrInvalidCoins, "invalid bond amount: %s", msg.DecreaseAmount.String())
+	}
+
+	return nil
+}
+
+func (msg *MsgDecreaseBond) GetSigners() []sdk.AccAddress {
+	creator, err := sdk.AccAddressFromBech32(msg.Creator)
+	if err != nil {
+		panic(err)
+	}
+	return []sdk.AccAddress{creator}
+}
diff --git a/x/sequencer/types/msg_create_sequencer_test.go b/x/sequencer/types/msg_create_sequencer_test.go
index 5aa3b83cf..28c62520b 100644
--- a/x/sequencer/types/msg_create_sequencer_test.go
+++ b/x/sequencer/types/msg_create_sequencer_test.go
@@ -224,3 +224,45 @@ func TestNewMsgIncreaseBond_ValidateBasic(t *testing.T) {
 		})
 	}
 }
+
+func TestNewMsgDecreaseBond_ValidateBasic(t *testing.T) {
+	tests := []struct {
+		name string
+		msg  MsgDecreaseBond
+		err  error
+	}{
+		{
+			name: "invalid address",
+			msg: MsgDecreaseBond{
+				Creator:        "invalid_address",
+				DecreaseAmount: sdk.NewInt64Coin("stake", 100),
+			},
+			err: ErrInvalidAddress,
+		},
+		{
+			name: "invalid bond amount",
+			msg: MsgDecreaseBond{
+				Creator:        sample.AccAddress(),
+				DecreaseAmount: sdk.NewInt64Coin("stake", 0),
+			},
+			err: ErrInvalidCoins,
+		},
+		{
+			name: "valid",
+			msg: MsgDecreaseBond{
+				Creator:        sample.AccAddress(),
+				DecreaseAmount: sdk.NewInt64Coin("stake", 100),
+			},
+		},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			err := tt.msg.ValidateBasic()
+			if tt.err != nil {
+				require.ErrorIs(t, err, tt.err)
+				return
+			}
+			require.NoError(t, err)
+		})
+	}
+}
diff --git a/x/sequencer/types/sequencer.pb.go b/x/sequencer/types/sequencer.pb.go
index 072cff537..66c176741 100644
--- a/x/sequencer/types/sequencer.pb.go
+++ b/x/sequencer/types/sequencer.pb.go
@@ -160,8 +160,73 @@ func (m *Sequencer) GetUnbondTime() time.Time {
 	return time.Time{}
 }
 
+// BondReduction defines an object which holds the information about the sequencer and its queued unbonding amount
+type BondReduction struct {
+	// sequencerAddress is the bech32-encoded address of the sequencer account which is the account that the message was sent from.
+	SequencerAddress string `protobuf:"bytes,1,opt,name=sequencer_address,json=sequencerAddress,proto3" json:"sequencer_address,omitempty"`
+	// unbondAmount is the amount of tokens to be unbonded.
+	UnbondAmount types1.Coin `protobuf:"bytes,2,opt,name=unbond_amount,json=unbondAmount,proto3" json:"unbond_amount"`
+	// unbond_time defines, if unbonding, the min time for the sequencer to complete unbonding.
+	UnbondTime time.Time `protobuf:"bytes,3,opt,name=unbond_time,json=unbondTime,proto3,stdtime" json:"unbond_time"`
+}
+
+func (m *BondReduction) Reset()         { *m = BondReduction{} }
+func (m *BondReduction) String() string { return proto.CompactTextString(m) }
+func (*BondReduction) ProtoMessage()    {}
+func (*BondReduction) Descriptor() ([]byte, []int) {
+	return fileDescriptor_997b8663a5fc0f58, []int{1}
+}
+func (m *BondReduction) XXX_Unmarshal(b []byte) error {
+	return m.Unmarshal(b)
+}
+func (m *BondReduction) XXX_Marshal(b []byte, deterministic bool) ([]byte, error) {
+	if deterministic {
+		return xxx_messageInfo_BondReduction.Marshal(b, m, deterministic)
+	} else {
+		b = b[:cap(b)]
+		n, err := m.MarshalToSizedBuffer(b)
+		if err != nil {
+			return nil, err
+		}
+		return b[:n], nil
+	}
+}
+func (m *BondReduction) XXX_Merge(src proto.Message) {
+	xxx_messageInfo_BondReduction.Merge(m, src)
+}
+func (m *BondReduction) XXX_Size() int {
+	return m.Size()
+}
+func (m *BondReduction) XXX_DiscardUnknown() {
+	xxx_messageInfo_BondReduction.DiscardUnknown(m)
+}
+
+var xxx_messageInfo_BondReduction proto.InternalMessageInfo
+
+func (m *BondReduction) GetSequencerAddress() string {
+	if m != nil {
+		return m.SequencerAddress
+	}
+	return ""
+}
+
+func (m *BondReduction) GetUnbondAmount() types1.Coin {
+	if m != nil {
+		return m.UnbondAmount
+	}
+	return types1.Coin{}
+}
+
+func (m *BondReduction) GetUnbondTime() time.Time {
+	if m != nil {
+		return m.UnbondTime
+	}
+	return time.Time{}
+}
+
 func init() {
 	proto.RegisterType((*Sequencer)(nil), "dymensionxyz.dymension.sequencer.Sequencer")
+	proto.RegisterType((*BondReduction)(nil), "dymensionxyz.dymension.sequencer.BondReduction")
 }
 
 func init() {
@@ -169,41 +234,45 @@ func init() {
 }
 
 var fileDescriptor_997b8663a5fc0f58 = []byte{
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-	0xf4, 0x57, 0x00, 0x00, 0x00, 0xff, 0xff, 0x30, 0xdb, 0x10, 0x02, 0x05, 0x04, 0x00, 0x00,
+	// 601 bytes of a gzipped FileDescriptorProto
+	0x1f, 0x8b, 0x08, 0x00, 0x00, 0x00, 0x00, 0x00, 0x02, 0xff, 0x9c, 0x53, 0xcd, 0x6e, 0xd4, 0x3c,
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+	0x65, 0xdf, 0x9f, 0x73, 0x7d, 0xef, 0xb9, 0xc7, 0x60, 0x23, 0x2a, 0x53, 0xc6, 0x65, 0x22, 0xf8,
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+	0xa1, 0x04, 0x74, 0xae, 0x22, 0x70, 0x6b, 0xe0, 0x36, 0x6f, 0xb8, 0x1a, 0x0a, 0x99, 0x0a, 0x39,
+	0xd1, 0xf9, 0xa4, 0x36, 0x6a, 0xf0, 0x70, 0x35, 0x16, 0x22, 0x9e, 0x32, 0xa2, 0xad, 0xa0, 0x78,
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+	0x75, 0x98, 0x00, 0x99, 0x39, 0x79, 0xca, 0x14, 0x8d, 0xa8, 0xa2, 0x06, 0xf0, 0x78, 0x26, 0x40,
+	0x64, 0x2c, 0xa7, 0x2a, 0xe1, 0xf1, 0x44, 0x2a, 0xaa, 0x0a, 0x33, 0xf4, 0xda, 0x97, 0x39, 0x30,
+	0xd8, 0x6b, 0x92, 0x20, 0x02, 0xf3, 0x34, 0x8a, 0x72, 0x26, 0x25, 0xb2, 0x1c, 0xcb, 0x1d, 0xf8,
+	0x8d, 0x09, 0x7d, 0xb0, 0x18, 0x95, 0x69, 0xc2, 0xd5, 0x6e, 0x11, 0xbc, 0x60, 0x25, 0xfa, 0xcf,
+	0xb1, 0xdc, 0x85, 0xcd, 0x15, 0x5c, 0x53, 0x80, 0x1b, 0x0a, 0xf0, 0x36, 0x2f, 0x3d, 0xf4, 0xed,
+	0xf3, 0xfa, 0x8a, 0xa1, 0x36, 0xcc, 0xcb, 0x4c, 0x09, 0x5c, 0xa3, 0xfc, 0x6b, 0x35, 0xe0, 0x7d,
+	0x30, 0xc8, 0xc5, 0x74, 0x4a, 0xb3, 0x6c, 0x27, 0x42, 0x5d, 0xfd, 0xde, 0xa5, 0x03, 0xbe, 0x01,
+	0xfd, 0x66, 0x48, 0x34, 0xa7, 0x5f, 0xdb, 0xc2, 0xb3, 0xd6, 0x8b, 0xdb, 0x51, 0x5e, 0x1a, 0xa8,
+	0x37, 0x77, 0xf2, 0x63, 0xd4, 0xf1, 0xdb, 0x52, 0xf0, 0x2e, 0xe8, 0xbd, 0xa7, 0xc9, 0x94, 0x45,
+	0xe8, 0x7f, 0xc7, 0x72, 0xfb, 0xbe, 0xb1, 0xe0, 0x10, 0xf4, 0xb3, 0x5c, 0x64, 0x42, 0xb2, 0x1c,
+	0xf5, 0x74, 0xa4, 0xb5, 0xe1, 0x0e, 0xe8, 0xd5, 0xa4, 0xa1, 0x79, 0xc7, 0x72, 0x6f, 0x6d, 0x8e,
+	0x67, 0x37, 0xf2, 0xaa, 0xa1, 0x7b, 0x4f, 0x03, 0x7d, 0x53, 0x00, 0x86, 0xa0, 0xa7, 0xc4, 0x01,
+	0xe3, 0x12, 0xf5, 0x9d, 0xae, 0xbb, 0xb0, 0xb9, 0x8a, 0x0d, 0x51, 0x95, 0x46, 0xb0, 0xd1, 0x08,
+	0x7e, 0x22, 0x12, 0xee, 0x6d, 0x54, 0x9d, 0x7f, 0x3a, 0x1b, 0xb9, 0x71, 0xa2, 0xf6, 0x8b, 0x00,
+	0x87, 0x22, 0x35, 0x82, 0x35, 0xc7, 0xba, 0x8c, 0x0e, 0x88, 0x2a, 0x33, 0x26, 0x35, 0x40, 0xfa,
+	0xa6, 0x34, 0x7c, 0x00, 0x96, 0x0b, 0x1e, 0x08, 0x1e, 0x55, 0xeb, 0xde, 0x67, 0x49, 0xbc, 0xaf,
+	0xd0, 0xc0, 0xb1, 0xdc, 0xae, 0x7f, 0xbb, 0xf5, 0x3f, 0xd7, 0x6e, 0xf8, 0x0c, 0x2c, 0xd4, 0xae,
+	0x49, 0x25, 0x5e, 0x04, 0x34, 0xd1, 0xc3, 0xdf, 0xd6, 0xfa, 0xba, 0x51, 0xb6, 0xd7, 0xaf, 0xba,
+	0x3a, 0x3e, 0x1b, 0x59, 0x3e, 0xa8, 0x81, 0x55, 0x68, 0xed, 0xab, 0x05, 0x96, 0x3c, 0xc1, 0x23,
+	0x9f, 0x45, 0x45, 0xa8, 0x12, 0xc1, 0xe1, 0x43, 0x70, 0xa7, 0x65, 0x63, 0x72, 0x5d, 0x54, 0xcb,
+	0x6d, 0x60, 0xdb, 0xa8, 0xeb, 0x29, 0x58, 0x32, 0x5d, 0xd0, 0x54, 0x14, 0x5c, 0x19, 0x79, 0xfd,
+	0x85, 0x9c, 0x7a, 0xad, 0x8b, 0x35, 0x6a, 0x5b, 0x83, 0x6e, 0xce, 0xd2, 0xfd, 0xb7, 0x59, 0xbc,
+	0xdd, 0x93, 0x73, 0xdb, 0x3a, 0x3d, 0xb7, 0xad, 0x9f, 0xe7, 0xb6, 0x75, 0x7c, 0x61, 0x77, 0x4e,
+	0x2f, 0xec, 0xce, 0xf7, 0x0b, 0xbb, 0xf3, 0xf6, 0xd1, 0x95, 0x4d, 0xfc, 0xe1, 0xc3, 0x1d, 0x6e,
+	0x91, 0xa3, 0x2b, 0xbf, 0x4e, 0x6f, 0x27, 0xe8, 0xe9, 0xb7, 0xb7, 0x7e, 0x05, 0x00, 0x00, 0xff,
+	0xff, 0x09, 0x02, 0x7a, 0xf3, 0xd1, 0x04, 0x00, 0x00,
 }
 
 func (m *Sequencer) Marshal() (dAtA []byte, err error) {
@@ -317,6 +386,54 @@ func (m *Sequencer) MarshalToSizedBuffer(dAtA []byte) (int, error) {
 	return len(dAtA) - i, nil
 }
 
+func (m *BondReduction) Marshal() (dAtA []byte, err error) {
+	size := m.Size()
+	dAtA = make([]byte, size)
+	n, err := m.MarshalToSizedBuffer(dAtA[:size])
+	if err != nil {
+		return nil, err
+	}
+	return dAtA[:n], nil
+}
+
+func (m *BondReduction) MarshalTo(dAtA []byte) (int, error) {
+	size := m.Size()
+	return m.MarshalToSizedBuffer(dAtA[:size])
+}
+
+func (m *BondReduction) MarshalToSizedBuffer(dAtA []byte) (int, error) {
+	i := len(dAtA)
+	_ = i
+	var l int
+	_ = l
+	n4, err4 := github_com_cosmos_gogoproto_types.StdTimeMarshalTo(m.UnbondTime, dAtA[i-github_com_cosmos_gogoproto_types.SizeOfStdTime(m.UnbondTime):])
+	if err4 != nil {
+		return 0, err4
+	}
+	i -= n4
+	i = encodeVarintSequencer(dAtA, i, uint64(n4))
+	i--
+	dAtA[i] = 0x1a
+	{
+		size, err := m.UnbondAmount.MarshalToSizedBuffer(dAtA[:i])
+		if err != nil {
+			return 0, err
+		}
+		i -= size
+		i = encodeVarintSequencer(dAtA, i, uint64(size))
+	}
+	i--
+	dAtA[i] = 0x12
+	if len(m.SequencerAddress) > 0 {
+		i -= len(m.SequencerAddress)
+		copy(dAtA[i:], m.SequencerAddress)
+		i = encodeVarintSequencer(dAtA, i, uint64(len(m.SequencerAddress)))
+		i--
+		dAtA[i] = 0xa
+	}
+	return len(dAtA) - i, nil
+}
+
 func encodeVarintSequencer(dAtA []byte, offset int, v uint64) int {
 	offset -= sovSequencer(v)
 	base := offset
@@ -371,6 +488,23 @@ func (m *Sequencer) Size() (n int) {
 	return n
 }
 
+func (m *BondReduction) Size() (n int) {
+	if m == nil {
+		return 0
+	}
+	var l int
+	_ = l
+	l = len(m.SequencerAddress)
+	if l > 0 {
+		n += 1 + l + sovSequencer(uint64(l))
+	}
+	l = m.UnbondAmount.Size()
+	n += 1 + l + sovSequencer(uint64(l))
+	l = github_com_cosmos_gogoproto_types.SizeOfStdTime(m.UnbondTime)
+	n += 1 + l + sovSequencer(uint64(l))
+	return n
+}
+
 func sovSequencer(x uint64) (n int) {
 	return (math_bits.Len64(x|1) + 6) / 7
 }
@@ -705,6 +839,154 @@ func (m *Sequencer) Unmarshal(dAtA []byte) error {
 	}
 	return nil
 }
+func (m *BondReduction) Unmarshal(dAtA []byte) error {
+	l := len(dAtA)
+	iNdEx := 0
+	for iNdEx < l {
+		preIndex := iNdEx
+		var wire uint64
+		for shift := uint(0); ; shift += 7 {
+			if shift >= 64 {
+				return ErrIntOverflowSequencer
+			}
+			if iNdEx >= l {
+				return io.ErrUnexpectedEOF
+			}
+			b := dAtA[iNdEx]
+			iNdEx++
+			wire |= uint64(b&0x7F) << shift
+			if b < 0x80 {
+				break
+			}
+		}
+		fieldNum := int32(wire >> 3)
+		wireType := int(wire & 0x7)
+		if wireType == 4 {
+			return fmt.Errorf("proto: BondReduction: wiretype end group for non-group")
+		}
+		if fieldNum <= 0 {
+			return fmt.Errorf("proto: BondReduction: illegal tag %d (wire type %d)", fieldNum, wire)
+		}
+		switch fieldNum {
+		case 1:
+			if wireType != 2 {
+				return fmt.Errorf("proto: wrong wireType = %d for field SequencerAddress", wireType)
+			}
+			var stringLen uint64
+			for shift := uint(0); ; shift += 7 {
+				if shift >= 64 {
+					return ErrIntOverflowSequencer
+				}
+				if iNdEx >= l {
+					return io.ErrUnexpectedEOF
+				}
+				b := dAtA[iNdEx]
+				iNdEx++
+				stringLen |= uint64(b&0x7F) << shift
+				if b < 0x80 {
+					break
+				}
+			}
+			intStringLen := int(stringLen)
+			if intStringLen < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			postIndex := iNdEx + intStringLen
+			if postIndex < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			if postIndex > l {
+				return io.ErrUnexpectedEOF
+			}
+			m.SequencerAddress = string(dAtA[iNdEx:postIndex])
+			iNdEx = postIndex
+		case 2:
+			if wireType != 2 {
+				return fmt.Errorf("proto: wrong wireType = %d for field UnbondAmount", wireType)
+			}
+			var msglen int
+			for shift := uint(0); ; shift += 7 {
+				if shift >= 64 {
+					return ErrIntOverflowSequencer
+				}
+				if iNdEx >= l {
+					return io.ErrUnexpectedEOF
+				}
+				b := dAtA[iNdEx]
+				iNdEx++
+				msglen |= int(b&0x7F) << shift
+				if b < 0x80 {
+					break
+				}
+			}
+			if msglen < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			postIndex := iNdEx + msglen
+			if postIndex < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			if postIndex > l {
+				return io.ErrUnexpectedEOF
+			}
+			if err := m.UnbondAmount.Unmarshal(dAtA[iNdEx:postIndex]); err != nil {
+				return err
+			}
+			iNdEx = postIndex
+		case 3:
+			if wireType != 2 {
+				return fmt.Errorf("proto: wrong wireType = %d for field UnbondTime", wireType)
+			}
+			var msglen int
+			for shift := uint(0); ; shift += 7 {
+				if shift >= 64 {
+					return ErrIntOverflowSequencer
+				}
+				if iNdEx >= l {
+					return io.ErrUnexpectedEOF
+				}
+				b := dAtA[iNdEx]
+				iNdEx++
+				msglen |= int(b&0x7F) << shift
+				if b < 0x80 {
+					break
+				}
+			}
+			if msglen < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			postIndex := iNdEx + msglen
+			if postIndex < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			if postIndex > l {
+				return io.ErrUnexpectedEOF
+			}
+			if err := github_com_cosmos_gogoproto_types.StdTimeUnmarshal(&m.UnbondTime, dAtA[iNdEx:postIndex]); err != nil {
+				return err
+			}
+			iNdEx = postIndex
+		default:
+			iNdEx = preIndex
+			skippy, err := skipSequencer(dAtA[iNdEx:])
+			if err != nil {
+				return err
+			}
+			if (skippy < 0) || (iNdEx+skippy) < 0 {
+				return ErrInvalidLengthSequencer
+			}
+			if (iNdEx + skippy) > l {
+				return io.ErrUnexpectedEOF
+			}
+			iNdEx += skippy
+		}
+	}
+
+	if iNdEx > l {
+		return io.ErrUnexpectedEOF
+	}
+	return nil
+}
 func skipSequencer(dAtA []byte) (n int, err error) {
 	l := len(dAtA)
 	iNdEx := 0
diff --git a/x/sequencer/types/tx.pb.go b/x/sequencer/types/tx.pb.go
index 943eeb5d5..b1b1806f8 100644
--- a/x/sequencer/types/tx.pb.go
+++ b/x/sequencer/types/tx.pb.go
@@ -435,6 +435,106 @@ func (m *MsgIncreaseBondResponse) XXX_DiscardUnknown() {
 
 var xxx_messageInfo_MsgIncreaseBondResponse proto.InternalMessageInfo
 
+// MsgDecreaseBond defines a SDK message for decreasing the bond of a sequencer.
+type MsgDecreaseBond struct {
+	// creator is the bech32-encoded address of the sequencer account which is the account that the message was sent from.
+	Creator string `protobuf:"bytes,1,opt,name=creator,proto3" json:"creator,omitempty"`
+	// decrease_amount is the amount of coins to decrease the bond by.
+	DecreaseAmount types1.Coin `protobuf:"bytes,2,opt,name=decrease_amount,json=decreaseAmount,proto3" json:"decrease_amount"`
+}
+
+func (m *MsgDecreaseBond) Reset()         { *m = MsgDecreaseBond{} }
+func (m *MsgDecreaseBond) String() string { return proto.CompactTextString(m) }
+func (*MsgDecreaseBond) ProtoMessage()    {}
+func (*MsgDecreaseBond) Descriptor() ([]byte, []int) {
+	return fileDescriptor_02cdd6b9ffa005b4, []int{8}
+}
+func (m *MsgDecreaseBond) XXX_Unmarshal(b []byte) error {
+	return m.Unmarshal(b)
+}
+func (m *MsgDecreaseBond) XXX_Marshal(b []byte, deterministic bool) ([]byte, error) {
+	if deterministic {
+		return xxx_messageInfo_MsgDecreaseBond.Marshal(b, m, deterministic)
+	} else {
+		b = b[:cap(b)]
+		n, err := m.MarshalToSizedBuffer(b)
+		if err != nil {
+			return nil, err
+		}
+		return b[:n], nil
+	}
+}
+func (m *MsgDecreaseBond) XXX_Merge(src proto.Message) {
+	xxx_messageInfo_MsgDecreaseBond.Merge(m, src)
+}
+func (m *MsgDecreaseBond) XXX_Size() int {
+	return m.Size()
+}
+func (m *MsgDecreaseBond) XXX_DiscardUnknown() {
+	xxx_messageInfo_MsgDecreaseBond.DiscardUnknown(m)
+}
+
+var xxx_messageInfo_MsgDecreaseBond proto.InternalMessageInfo
+
+func (m *MsgDecreaseBond) GetCreator() string {
+	if m != nil {
+		return m.Creator
+	}
+	return ""
+}
+
+func (m *MsgDecreaseBond) GetDecreaseAmount() types1.Coin {
+	if m != nil {
+		return m.DecreaseAmount
+	}
+	return types1.Coin{}
+}
+
+// MsgDecreaseBondResponse defines the Msg/DecreaseBond response type.
+type MsgDecreaseBondResponse struct {
+	CompletionTime time.Time `protobuf:"bytes,1,opt,name=completion_time,json=completionTime,proto3,stdtime" json:"completion_time"`
+}
+
+func (m *MsgDecreaseBondResponse) Reset()         { *m = MsgDecreaseBondResponse{} }
+func (m *MsgDecreaseBondResponse) String() string { return proto.CompactTextString(m) }
+func (*MsgDecreaseBondResponse) ProtoMessage()    {}
+func (*MsgDecreaseBondResponse) Descriptor() ([]byte, []int) {
+	return fileDescriptor_02cdd6b9ffa005b4, []int{9}
+}
+func (m *MsgDecreaseBondResponse) XXX_Unmarshal(b []byte) error {
+	return m.Unmarshal(b)
+}
+func (m *MsgDecreaseBondResponse) XXX_Marshal(b []byte, deterministic bool) ([]byte, error) {
+	if deterministic {
+		return xxx_messageInfo_MsgDecreaseBondResponse.Marshal(b, m, deterministic)
+	} else {
+		b = b[:cap(b)]
+		n, err := m.MarshalToSizedBuffer(b)
+		if err != nil {
+			return nil, err
+		}
+		return b[:n], nil
+	}
+}
+func (m *MsgDecreaseBondResponse) XXX_Merge(src proto.Message) {
+	xxx_messageInfo_MsgDecreaseBondResponse.Merge(m, src)
+}
+func (m *MsgDecreaseBondResponse) XXX_Size() int {
+	return m.Size()
+}
+func (m *MsgDecreaseBondResponse) XXX_DiscardUnknown() {
+	xxx_messageInfo_MsgDecreaseBondResponse.DiscardUnknown(m)
+}
+
+var xxx_messageInfo_MsgDecreaseBondResponse proto.InternalMessageInfo
+
+func (m *MsgDecreaseBondResponse) GetCompletionTime() time.Time {
+	if m != nil {
+		return m.CompletionTime
+	}
+	return time.Time{}
+}
+
 func init() {
 	proto.RegisterType((*MsgCreateSequencer)(nil), "dymensionxyz.dymension.sequencer.MsgCreateSequencer")
 	proto.RegisterType((*MsgCreateSequencerResponse)(nil), "dymensionxyz.dymension.sequencer.MsgCreateSequencerResponse")
@@ -444,6 +544,8 @@ func init() {
 	proto.RegisterType((*MsgUnbondResponse)(nil), "dymensionxyz.dymension.sequencer.MsgUnbondResponse")
 	proto.RegisterType((*MsgIncreaseBond)(nil), "dymensionxyz.dymension.sequencer.MsgIncreaseBond")
 	proto.RegisterType((*MsgIncreaseBondResponse)(nil), "dymensionxyz.dymension.sequencer.MsgIncreaseBondResponse")
+	proto.RegisterType((*MsgDecreaseBond)(nil), "dymensionxyz.dymension.sequencer.MsgDecreaseBond")
+	proto.RegisterType((*MsgDecreaseBondResponse)(nil), "dymensionxyz.dymension.sequencer.MsgDecreaseBondResponse")
 }
 
 func init() {
@@ -451,50 +553,53 @@ func init() {
 }
 
 var fileDescriptor_02cdd6b9ffa005b4 = []byte{
-	// 680 bytes of a gzipped FileDescriptorProto
-	0x1f, 0x8b, 0x08, 0x00, 0x00, 0x00, 0x00, 0x00, 0x02, 0xff, 0xac, 0x55, 0x4d, 0x6b, 0x13, 0x4d,
-	0x1c, 0xcf, 0xb6, 0x79, 0xfa, 0x34, 0xd3, 0x62, 0x75, 0x29, 0x74, 0xb3, 0xd8, 0x4d, 0x09, 0x88,
-	0x55, 0x71, 0x96, 0x24, 0x22, 0x58, 0x44, 0x69, 0x7a, 0x90, 0x22, 0x81, 0x9a, 0xda, 0x8b, 0x97,
-	0x30, 0xbb, 0x33, 0x5d, 0x57, 0xb2, 0x33, 0xeb, 0xce, 0xa4, 0x74, 0xc5, 0x93, 0xe0, 0xbd, 0xe0,
-	0x17, 0xe8, 0xc9, 0xb3, 0x07, 0x6f, 0xe2, 0xbd, 0x78, 0x2a, 0x9e, 0x3c, 0xa9, 0xb4, 0x07, 0xfd,
-	0x18, 0xb2, 0xbb, 0xb3, 0xdb, 0x64, 0x4b, 0x93, 0xb4, 0x7a, 0x4a, 0x66, 0xe6, 0xf7, 0xf2, 0x7f,
-	0x65, 0xc1, 0x0d, 0x1c, 0x7a, 0x84, 0x72, 0x97, 0xd1, 0xdd, 0xf0, 0x95, 0x99, 0x1d, 0x4c, 0x4e,
-	0x5e, 0xf6, 0x08, 0xb5, 0x49, 0x60, 0x8a, 0x5d, 0xe8, 0x07, 0x4c, 0x30, 0x75, 0xa9, 0x1f, 0x0a,
-	0xb3, 0x03, 0xcc, 0xa0, 0x7a, 0xd9, 0x61, 0xcc, 0xe9, 0x12, 0x33, 0xc6, 0x5b, 0xbd, 0x6d, 0x13,
-	0xd1, 0x30, 0x21, 0xeb, 0x65, 0x9b, 0x71, 0x8f, 0xf1, 0x4e, 0x7c, 0x32, 0x93, 0x83, 0x7c, 0x9a,
-	0x77, 0x98, 0xc3, 0x92, 0xfb, 0xe8, 0x9f, 0xbc, 0x35, 0x12, 0x8c, 0x69, 0x21, 0x4e, 0xcc, 0x9d,
-	0x9a, 0x45, 0x04, 0xaa, 0x99, 0x36, 0x73, 0xa9, 0x7c, 0xaf, 0xe4, 0xbd, 0x84, 0xeb, 0x11, 0x2e,
-	0x90, 0xe7, 0x4b, 0xc0, 0x82, 0x14, 0xf0, 0xb8, 0x63, 0xee, 0xd4, 0xa2, 0x1f, 0xf9, 0x60, 0x8e,
-	0x4c, 0xd9, 0x23, 0x02, 0x61, 0x24, 0x50, 0x42, 0xa8, 0x7e, 0x9a, 0x00, 0x6a, 0x8b, 0x3b, 0x6b,
-	0x01, 0x41, 0x82, 0x6c, 0xa6, 0x28, 0x55, 0x03, 0xff, 0xdb, 0xd1, 0x15, 0x0b, 0x34, 0x65, 0x49,
-	0x59, 0x2e, 0xb5, 0xd3, 0xa3, 0xda, 0x06, 0xb3, 0x38, 0xf4, 0x5c, 0x2a, 0x36, 0x7a, 0xd6, 0x63,
-	0x12, 0x6a, 0x13, 0x4b, 0xca, 0xf2, 0x4c, 0x7d, 0x1e, 0x26, 0x21, 0xc3, 0x34, 0x64, 0xb8, 0x4a,
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-	0x75, 0x31, 0x66, 0xe5, 0x4e, 0x07, 0x00, 0x00,
+	// 728 bytes of a gzipped FileDescriptorProto
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+	0xdf, 0x0f, 0x34, 0x69, 0xf7, 0x50, 0xcb, 0xed, 0x1f, 0x6a, 0xb9, 0x2f, 0x87, 0x5a, 0xee, 0xd1,
+	0x75, 0xdb, 0xe1, 0x5b, 0x1d, 0x53, 0xb7, 0xa8, 0x7b, 0xda, 0xb7, 0xf5, 0x76, 0xcd, 0xd8, 0xc9,
+	0xfe, 0x4a, 0x09, 0x3c, 0xcc, 0xcc, 0x89, 0x28, 0x20, 0xb5, 0x5f, 0x01, 0x00, 0x00, 0xff, 0xff,
+	0x07, 0xd3, 0x20, 0xe4, 0xd6, 0x08, 0x00, 0x00,
 }
 
 // Reference imports to suppress errors if they are not otherwise used.
@@ -517,6 +622,8 @@ type MsgClient interface {
 	Unbond(ctx context.Context, in *MsgUnbond, opts ...grpc.CallOption) (*MsgUnbondResponse, error)
 	// IncreaseBond defines a method for increasing a sequencer's bond amount
 	IncreaseBond(ctx context.Context, in *MsgIncreaseBond, opts ...grpc.CallOption) (*MsgIncreaseBondResponse, error)
+	// DecreaseBond defines a method for decreasing the bond of a sequencer.
+	DecreaseBond(ctx context.Context, in *MsgDecreaseBond, opts ...grpc.CallOption) (*MsgDecreaseBondResponse, error)
 }
 
 type msgClient struct {
@@ -563,6 +670,15 @@ func (c *msgClient) IncreaseBond(ctx context.Context, in *MsgIncreaseBond, opts
 	return out, nil
 }
 
+func (c *msgClient) DecreaseBond(ctx context.Context, in *MsgDecreaseBond, opts ...grpc.CallOption) (*MsgDecreaseBondResponse, error) {
+	out := new(MsgDecreaseBondResponse)
+	err := c.cc.Invoke(ctx, "/dymensionxyz.dymension.sequencer.Msg/DecreaseBond", in, out, opts...)
+	if err != nil {
+		return nil, err
+	}
+	return out, nil
+}
+
 // MsgServer is the server API for Msg service.
 type MsgServer interface {
 	// CreateSequencer defines a method for creating a new sequencer.
@@ -573,6 +689,8 @@ type MsgServer interface {
 	Unbond(context.Context, *MsgUnbond) (*MsgUnbondResponse, error)
 	// IncreaseBond defines a method for increasing a sequencer's bond amount
 	IncreaseBond(context.Context, *MsgIncreaseBond) (*MsgIncreaseBondResponse, error)
+	// DecreaseBond defines a method for decreasing the bond of a sequencer.
+	DecreaseBond(context.Context, *MsgDecreaseBond) (*MsgDecreaseBondResponse, error)
 }
 
 // UnimplementedMsgServer can be embedded to have forward compatible implementations.
@@ -591,6 +709,9 @@ func (*UnimplementedMsgServer) Unbond(ctx context.Context, req *MsgUnbond) (*Msg
 func (*UnimplementedMsgServer) IncreaseBond(ctx context.Context, req *MsgIncreaseBond) (*MsgIncreaseBondResponse, error) {
 	return nil, status.Errorf(codes.Unimplemented, "method IncreaseBond not implemented")
 }
+func (*UnimplementedMsgServer) DecreaseBond(ctx context.Context, req *MsgDecreaseBond) (*MsgDecreaseBondResponse, error) {
+	return nil, status.Errorf(codes.Unimplemented, "method DecreaseBond not implemented")
+}
 
 func RegisterMsgServer(s grpc1.Server, srv MsgServer) {
 	s.RegisterService(&_Msg_serviceDesc, srv)
@@ -668,6 +789,24 @@ func _Msg_IncreaseBond_Handler(srv interface{}, ctx context.Context, dec func(in
 	return interceptor(ctx, in, info, handler)
 }
 
+func _Msg_DecreaseBond_Handler(srv interface{}, ctx context.Context, dec func(interface{}) error, interceptor grpc.UnaryServerInterceptor) (interface{}, error) {
+	in := new(MsgDecreaseBond)
+	if err := dec(in); err != nil {
+		return nil, err
+	}
+	if interceptor == nil {
+		return srv.(MsgServer).DecreaseBond(ctx, in)
+	}
+	info := &grpc.UnaryServerInfo{
+		Server:     srv,
+		FullMethod: "/dymensionxyz.dymension.sequencer.Msg/DecreaseBond",
+	}
+	handler := func(ctx context.Context, req interface{}) (interface{}, error) {
+		return srv.(MsgServer).DecreaseBond(ctx, req.(*MsgDecreaseBond))
+	}
+	return interceptor(ctx, in, info, handler)
+}
+
 var _Msg_serviceDesc = grpc.ServiceDesc{
 	ServiceName: "dymensionxyz.dymension.sequencer.Msg",
 	HandlerType: (*MsgServer)(nil),
@@ -688,6 +827,10 @@ var _Msg_serviceDesc = grpc.ServiceDesc{
 			MethodName: "IncreaseBond",
 			Handler:    _Msg_IncreaseBond_Handler,
 		},
+		{
+			MethodName: "DecreaseBond",
+			Handler:    _Msg_DecreaseBond_Handler,
+		},
 	},
 	Streams:  []grpc.StreamDesc{},
 	Metadata: "dymensionxyz/dymension/sequencer/tx.proto",
@@ -979,6 +1122,77 @@ func (m *MsgIncreaseBondResponse) MarshalToSizedBuffer(dAtA []byte) (int, error)
 	return len(dAtA) - i, nil
 }
 
+func (m *MsgDecreaseBond) Marshal() (dAtA []byte, err error) {
+	size := m.Size()
+	dAtA = make([]byte, size)
+	n, err := m.MarshalToSizedBuffer(dAtA[:size])
+	if err != nil {
+		return nil, err
+	}
+	return dAtA[:n], nil
+}
+
+func (m *MsgDecreaseBond) MarshalTo(dAtA []byte) (int, error) {
+	size := m.Size()
+	return m.MarshalToSizedBuffer(dAtA[:size])
+}
+
+func (m *MsgDecreaseBond) MarshalToSizedBuffer(dAtA []byte) (int, error) {
+	i := len(dAtA)
+	_ = i
+	var l int
+	_ = l
+	{
+		size, err := m.DecreaseAmount.MarshalToSizedBuffer(dAtA[:i])
+		if err != nil {
+			return 0, err
+		}
+		i -= size
+		i = encodeVarintTx(dAtA, i, uint64(size))
+	}
+	i--
+	dAtA[i] = 0x12
+	if len(m.Creator) > 0 {
+		i -= len(m.Creator)
+		copy(dAtA[i:], m.Creator)
+		i = encodeVarintTx(dAtA, i, uint64(len(m.Creator)))
+		i--
+		dAtA[i] = 0xa
+	}
+	return len(dAtA) - i, nil
+}
+
+func (m *MsgDecreaseBondResponse) Marshal() (dAtA []byte, err error) {
+	size := m.Size()
+	dAtA = make([]byte, size)
+	n, err := m.MarshalToSizedBuffer(dAtA[:size])
+	if err != nil {
+		return nil, err
+	}
+	return dAtA[:n], nil
+}
+
+func (m *MsgDecreaseBondResponse) MarshalTo(dAtA []byte) (int, error) {
+	size := m.Size()
+	return m.MarshalToSizedBuffer(dAtA[:size])
+}
+
+func (m *MsgDecreaseBondResponse) MarshalToSizedBuffer(dAtA []byte) (int, error) {
+	i := len(dAtA)
+	_ = i
+	var l int
+	_ = l
+	n8, err8 := github_com_cosmos_gogoproto_types.StdTimeMarshalTo(m.CompletionTime, dAtA[i-github_com_cosmos_gogoproto_types.SizeOfStdTime(m.CompletionTime):])
+	if err8 != nil {
+		return 0, err8
+	}
+	i -= n8
+	i = encodeVarintTx(dAtA, i, uint64(n8))
+	i--
+	dAtA[i] = 0xa
+	return len(dAtA) - i, nil
+}
+
 func encodeVarintTx(dAtA []byte, offset int, v uint64) int {
 	offset -= sovTx(v)
 	base := offset
@@ -1100,6 +1314,32 @@ func (m *MsgIncreaseBondResponse) Size() (n int) {
 	return n
 }
 
+func (m *MsgDecreaseBond) Size() (n int) {
+	if m == nil {
+		return 0
+	}
+	var l int
+	_ = l
+	l = len(m.Creator)
+	if l > 0 {
+		n += 1 + l + sovTx(uint64(l))
+	}
+	l = m.DecreaseAmount.Size()
+	n += 1 + l + sovTx(uint64(l))
+	return n
+}
+
+func (m *MsgDecreaseBondResponse) Size() (n int) {
+	if m == nil {
+		return 0
+	}
+	var l int
+	_ = l
+	l = github_com_cosmos_gogoproto_types.SizeOfStdTime(m.CompletionTime)
+	n += 1 + l + sovTx(uint64(l))
+	return n
+}
+
 func sovTx(x uint64) (n int) {
 	return (math_bits.Len64(x|1) + 6) / 7
 }
@@ -1899,6 +2139,204 @@ func (m *MsgIncreaseBondResponse) Unmarshal(dAtA []byte) error {
 	}
 	return nil
 }
+func (m *MsgDecreaseBond) Unmarshal(dAtA []byte) error {
+	l := len(dAtA)
+	iNdEx := 0
+	for iNdEx < l {
+		preIndex := iNdEx
+		var wire uint64
+		for shift := uint(0); ; shift += 7 {
+			if shift >= 64 {
+				return ErrIntOverflowTx
+			}
+			if iNdEx >= l {
+				return io.ErrUnexpectedEOF
+			}
+			b := dAtA[iNdEx]
+			iNdEx++
+			wire |= uint64(b&0x7F) << shift
+			if b < 0x80 {
+				break
+			}
+		}
+		fieldNum := int32(wire >> 3)
+		wireType := int(wire & 0x7)
+		if wireType == 4 {
+			return fmt.Errorf("proto: MsgDecreaseBond: wiretype end group for non-group")
+		}
+		if fieldNum <= 0 {
+			return fmt.Errorf("proto: MsgDecreaseBond: illegal tag %d (wire type %d)", fieldNum, wire)
+		}
+		switch fieldNum {
+		case 1:
+			if wireType != 2 {
+				return fmt.Errorf("proto: wrong wireType = %d for field Creator", wireType)
+			}
+			var stringLen uint64
+			for shift := uint(0); ; shift += 7 {
+				if shift >= 64 {
+					return ErrIntOverflowTx
+				}
+				if iNdEx >= l {
+					return io.ErrUnexpectedEOF
+				}
+				b := dAtA[iNdEx]
+				iNdEx++
+				stringLen |= uint64(b&0x7F) << shift
+				if b < 0x80 {
+					break
+				}
+			}
+			intStringLen := int(stringLen)
+			if intStringLen < 0 {
+				return ErrInvalidLengthTx
+			}
+			postIndex := iNdEx + intStringLen
+			if postIndex < 0 {
+				return ErrInvalidLengthTx
+			}
+			if postIndex > l {
+				return io.ErrUnexpectedEOF
+			}
+			m.Creator = string(dAtA[iNdEx:postIndex])
+			iNdEx = postIndex
+		case 2:
+			if wireType != 2 {
+				return fmt.Errorf("proto: wrong wireType = %d for field DecreaseAmount", wireType)
+			}
+			var msglen int
+			for shift := uint(0); ; shift += 7 {
+				if shift >= 64 {
+					return ErrIntOverflowTx
+				}
+				if iNdEx >= l {
+					return io.ErrUnexpectedEOF
+				}
+				b := dAtA[iNdEx]
+				iNdEx++
+				msglen |= int(b&0x7F) << shift
+				if b < 0x80 {
+					break
+				}
+			}
+			if msglen < 0 {
+				return ErrInvalidLengthTx
+			}
+			postIndex := iNdEx + msglen
+			if postIndex < 0 {
+				return ErrInvalidLengthTx
+			}
+			if postIndex > l {
+				return io.ErrUnexpectedEOF
+			}
+			if err := m.DecreaseAmount.Unmarshal(dAtA[iNdEx:postIndex]); err != nil {
+				return err
+			}
+			iNdEx = postIndex
+		default:
+			iNdEx = preIndex
+			skippy, err := skipTx(dAtA[iNdEx:])
+			if err != nil {
+				return err
+			}
+			if (skippy < 0) || (iNdEx+skippy) < 0 {
+				return ErrInvalidLengthTx
+			}
+			if (iNdEx + skippy) > l {
+				return io.ErrUnexpectedEOF
+			}
+			iNdEx += skippy
+		}
+	}
+
+	if iNdEx > l {
+		return io.ErrUnexpectedEOF
+	}
+	return nil
+}
+func (m *MsgDecreaseBondResponse) Unmarshal(dAtA []byte) error {
+	l := len(dAtA)
+	iNdEx := 0
+	for iNdEx < l {
+		preIndex := iNdEx
+		var wire uint64
+		for shift := uint(0); ; shift += 7 {
+			if shift >= 64 {
+				return ErrIntOverflowTx
+			}
+			if iNdEx >= l {
+				return io.ErrUnexpectedEOF
+			}
+			b := dAtA[iNdEx]
+			iNdEx++
+			wire |= uint64(b&0x7F) << shift
+			if b < 0x80 {
+				break
+			}
+		}
+		fieldNum := int32(wire >> 3)
+		wireType := int(wire & 0x7)
+		if wireType == 4 {
+			return fmt.Errorf("proto: MsgDecreaseBondResponse: wiretype end group for non-group")
+		}
+		if fieldNum <= 0 {
+			return fmt.Errorf("proto: MsgDecreaseBondResponse: illegal tag %d (wire type %d)", fieldNum, wire)
+		}
+		switch fieldNum {
+		case 1:
+			if wireType != 2 {
+				return fmt.Errorf("proto: wrong wireType = %d for field CompletionTime", wireType)
+			}
+			var msglen int
+			for shift := uint(0); ; shift += 7 {
+				if shift >= 64 {
+					return ErrIntOverflowTx
+				}
+				if iNdEx >= l {
+					return io.ErrUnexpectedEOF
+				}
+				b := dAtA[iNdEx]
+				iNdEx++
+				msglen |= int(b&0x7F) << shift
+				if b < 0x80 {
+					break
+				}
+			}
+			if msglen < 0 {
+				return ErrInvalidLengthTx
+			}
+			postIndex := iNdEx + msglen
+			if postIndex < 0 {
+				return ErrInvalidLengthTx
+			}
+			if postIndex > l {
+				return io.ErrUnexpectedEOF
+			}
+			if err := github_com_cosmos_gogoproto_types.StdTimeUnmarshal(&m.CompletionTime, dAtA[iNdEx:postIndex]); err != nil {
+				return err
+			}
+			iNdEx = postIndex
+		default:
+			iNdEx = preIndex
+			skippy, err := skipTx(dAtA[iNdEx:])
+			if err != nil {
+				return err
+			}
+			if (skippy < 0) || (iNdEx+skippy) < 0 {
+				return ErrInvalidLengthTx
+			}
+			if (iNdEx + skippy) > l {
+				return io.ErrUnexpectedEOF
+			}
+			iNdEx += skippy
+		}
+	}
+
+	if iNdEx > l {
+		return io.ErrUnexpectedEOF
+	}
+	return nil
+}
 func skipTx(dAtA []byte) (n int, err error) {
 	l := len(dAtA)
 	iNdEx := 0