diff --git a/aptos-move/framework/aptos-framework/sources/governed_gas_pool.move b/aptos-move/framework/aptos-framework/sources/governed_gas_pool.move
index 830b00499ec..3891b1e0010 100644
--- a/aptos-move/framework/aptos-framework/sources/governed_gas_pool.move
+++ b/aptos-move/framework/aptos-framework/sources/governed_gas_pool.move
@@ -10,6 +10,7 @@ module aptos_framework::governed_gas_pool {
     use aptos_framework::object::{Self};
     use aptos_framework::aptos_coin::AptosCoin;
     use aptos_framework::coin::{Self, Coin};
+    use aptos_framework::event::{Self, EventHandle};
     use std::features;
     use aptos_framework::signer;
     use aptos_framework::aptos_account::Self;
@@ -20,8 +21,15 @@ module aptos_framework::governed_gas_pool {
     #[test_only]
     use aptos_framework::aptos_coin::Self;
 
+    friend aptos_framework::stake;
+
     const MODULE_SALT: vector<u8> = b"aptos_framework::governed_gas_pool";
 
+    /// Event emitted when token are withdraw from the pool
+    struct WithdrawStakingRewardEvent has drop, store {
+        amount: u64,
+    }
+
     /// The Governed Gas Pool
     /// Internally, this is a simply wrapper around a resource account. 
     struct GovernedGasPool has key {
@@ -29,6 +37,12 @@ module aptos_framework::governed_gas_pool {
         signer_capability: SignerCapability,
     }
 
+    /// Contains added variable needed for the GovernedGasPool staking reward update.
+    struct GovernedGasPoolExtension has key {
+        deposited_treasury_counter: u64,
+        withdraw_staking_reward_events: EventHandle<WithdrawStakingRewardEvent>,
+    }
+
     /// Address of APT Primary Fungible Store
     inline fun primary_fungible_store_address(account: address): address {
         object::create_user_derived_object_address(account, @aptos_fungible_asset)
@@ -71,8 +85,33 @@ module aptos_framework::governed_gas_pool {
         move_to(aptos_framework, GovernedGasPool{
             signer_capability: governed_gas_pool_signer_cap,
         });
+
+        move_to(aptos_framework, GovernedGasPoolExtension{
+            deposited_treasury_counter: 0,
+            withdraw_staking_reward_events: account::new_event_handle<WithdrawStakingRewardEvent>(aptos_framework),
+        });
+    }
+
+    /// Initializes the governed gas pool extension alone. 
+    /// @param aptos_framework The signer of the aptos_framework module.
+    public entry fun initialize_governed_gas_pool_extension(
+        aptos_framework: &signer,
+    ) {
+        system_addresses::assert_aptos_framework(aptos_framework);
+
+        // return if the governed gas extension has already been initialized
+        if (exists<GovernedGasPoolExtension>(signer::address_of(aptos_framework))) {
+            return
+        };
+
+        move_to(aptos_framework, GovernedGasPoolExtension{
+            deposited_treasury_counter: 0,
+            withdraw_staking_reward_events: account::new_event_handle<WithdrawStakingRewardEvent>(aptos_framework),
+        });
     }
 
+
+
     /// Initialize the governed gas pool as a module
     /// @param aptos_framework The signer of the aptos_framework module.
     fun init_module(aptos_framework: &signer) {
@@ -95,6 +134,12 @@ module aptos_framework::governed_gas_pool {
         signer::address_of(&governed_gas_signer())
     }
 
+    #[view]
+    /// Return the amount of treasury deposited.
+    public fun get_treasury_deposited(): u64 acquires GovernedGasPoolExtension {
+        borrow_global<GovernedGasPoolExtension>(@aptos_framework).deposited_treasury_counter
+    }
+
     /// Funds the destination account with a given amount of coin.
     /// @param account The account to be funded.
     /// @param amount The amount of coin to be funded.
@@ -155,13 +200,24 @@ module aptos_framework::governed_gas_pool {
     /// @param gas_payer The address of the account that paid the gas fees.
     /// @param gas_fee The amount of gas fees to be deposited.
     public(friend) fun deposit_gas_fee_v2(gas_payer: address, gas_fee: u64) acquires GovernedGasPool {
-       if (features::operations_default_to_fa_apt_store_enabled()) {
+        if (features::operations_default_to_fa_apt_store_enabled()) {
             deposit_from_fungible_store(gas_payer, gas_fee);
         } else {
             deposit_from<AptosCoin>(gas_payer, gas_fee);
         };
     }
 
+    /// Deposits from the treasury account. Treasury deposit are recorded.
+    /// @param treasury_account The address of the account that paid the treasury.
+    /// @param amount The amount of treasury to be deposited.
+    public entry fun deposit_treasury(treasury_account: &signer, amount: u64) acquires GovernedGasPool, GovernedGasPoolExtension {
+        let treasury_account_address = signer::address_of(treasury_account);
+        deposit_from<AptosCoin>(treasury_account_address, amount);
+
+        let ggp = borrow_global_mut<GovernedGasPoolExtension>(@aptos_framework);
+        ggp.deposited_treasury_counter = ggp.deposited_treasury_counter + amount;
+    }
+
     #[view]
     /// Gets the balance of a specified coin type in the governed gas pool.
     /// @return The balance of the coin in the pool.
@@ -170,6 +226,38 @@ module aptos_framework::governed_gas_pool {
         coin::balance<CoinType>(pool_address)
     }
 
+    /// Withdraws coins from the governed gas pool.
+    ///
+    /// This function allows friend modules to withdraw a specified amount of a given
+    /// `CoinType` from the governed gas pool. It uses the internal signer of the
+    /// governed gas pool to authorize the withdrawal.
+    ///
+    /// @param amount The amount of coins to withdraw from the pool.
+    /// @return A `Coin<CoinType>` resource containing the withdrawn amount.
+    public(friend) fun withdraw_staking_reward<CoinType>(
+        amount: u64
+    ): Coin<CoinType> acquires GovernedGasPool, GovernedGasPoolExtension {
+        let balance = get_balance<CoinType>();
+        assert!(balance >= amount, 0); // insufficient balance
+        let ggpv2 = borrow_global_mut<GovernedGasPoolExtension>(@aptos_framework);
+
+        event::emit_event(
+            &mut ggpv2.withdraw_staking_reward_events,
+            WithdrawStakingRewardEvent {
+                amount,
+            },
+        );
+        
+        // Withdraw reward coin.
+        coin::withdraw<CoinType>(&governed_gas_signer(), amount)
+    }
+
+    /// Register Aptos coin with Governed gas signer.
+    public(friend) fun register_coin<CoinType>() acquires GovernedGasPool {
+        let s = governed_gas_signer();
+        coin::register<CoinType>(&s);
+    }
+
     #[test_only]
     /// The AptosCoin mint capability
     struct AptosCoinMintCapability has key {
@@ -222,6 +310,9 @@ module aptos_framework::governed_gas_pool {
         aptos_framework: &signer,
     ) {
 
+        // Create framework account to be able to send event.
+        aptos_framework::account::create_account_for_test(@aptos_framework);
+
         // initialize the AptosCoin module
         let (burn_cap, mint_cap) = aptos_coin::initialize_for_test(aptos_framework);
         
@@ -361,4 +452,39 @@ module aptos_framework::governed_gas_pool {
         // initialize the governed gas pool again, no abort
         initialize(aptos_framework, vector::empty<u8>());
     }
+
+
+    #[test(aptos_framework = @aptos_framework, treasury = @0xdddd)]
+    /// Add some treasury to the governed gas pool.
+    ///
+    /// @param aptos_framework is the signer of the aptos_framework module.
+    fun test_deposite_treasury_and_counter(aptos_framework: &signer, treasury: &signer) acquires GovernedGasPool, GovernedGasPoolExtension, AptosCoinMintCapability {
+       
+        // initialize the modules
+        initialize_for_test(aptos_framework);
+    
+        // create the depositor account and fund it
+        aptos_account::create_account(signer::address_of(treasury));
+        mint_for_test(signer::address_of(treasury), 1000);
+
+        // get the balances for the depositor and the governed gas pool
+        let treasury_balance = coin::balance<AptosCoin>(signer::address_of(treasury));
+        let governed_gas_pool_balance = coin::balance<AptosCoin>(governed_gas_pool_address());
+
+        // deposit some coin into the governed gas pool
+        deposit_treasury(treasury, 100);
+
+        // check the balances after the deposit
+        assert!(coin::balance<AptosCoin>(signer::address_of(treasury)) == treasury_balance - 100, 1);
+        assert!(coin::balance<AptosCoin>(governed_gas_pool_address()) == governed_gas_pool_balance + 100, 2);
+        assert!(get_treasury_deposited() == 100, 3);
+
+        let withdraw = withdraw_staking_reward<AptosCoin>(10);
+        assert!(coin::balance<AptosCoin>(governed_gas_pool_address()) == governed_gas_pool_balance + 100 - 10, 4);
+        assert!(get_treasury_deposited() == 100, 5);
+        assert!(coin::value(&withdraw) == 10, 6);
+
+        coin::deposit(@0xdddd, withdraw);
+    }
+
 }
diff --git a/aptos-move/framework/aptos-framework/sources/stake.move b/aptos-move/framework/aptos-framework/sources/stake.move
index 9639ffa8ff0..5e6cefdab7c 100644
--- a/aptos-move/framework/aptos-framework/sources/stake.move
+++ b/aptos-move/framework/aptos-framework/sources/stake.move
@@ -34,6 +34,7 @@ module aptos_framework::stake {
     use aptos_framework::system_addresses;
     use aptos_framework::staking_config::{Self, StakingConfig, StakingRewardsConfig};
     use aptos_framework::chain_status;
+    use aptos_framework::governed_gas_pool;
 
     friend aptos_framework::block;
     friend aptos_framework::genesis;
@@ -1231,8 +1232,7 @@ module aptos_framework::stake {
     /// pending inactive validators so they no longer can vote.
     /// 4. The validator's voting power in the validator set is updated to be the corresponding staking pool's voting
     /// power.
-    public(friend) fun on_new_epoch(
-    ) acquires StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    public(friend) fun on_new_epoch() acquires StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         let validator_set = borrow_global_mut<ValidatorSet>(@aptos_framework);
         let config = staking_config::get();
         let validator_perf = borrow_global_mut<ValidatorPerformance>(@aptos_framework);
@@ -1353,7 +1353,6 @@ module aptos_framework::stake {
         validator_consensus_infos_from_validator_set(validator_set)
     }
 
-
     public fun next_validator_consensus_infos(): vector<ValidatorConsensusInfo> acquires ValidatorSet, ValidatorPerformance, StakePool, ValidatorFees, ValidatorConfig {
         // Init.
         let cur_validator_set = borrow_global<ValidatorSet>(@aptos_framework);
@@ -1644,7 +1643,7 @@ module aptos_framework::stake {
         }
     }
 
-    /// Mint rewards corresponding to current epoch's `stake` and `num_successful_votes`.
+    /// Get rewards from the Governed Gas Pool corresponding to current epoch's `stake` and `num_successful_votes`.
     fun distribute_rewards(
         stake: &mut Coin<AptosCoin>,
         num_successful_proposals: u64,
@@ -1665,8 +1664,12 @@ module aptos_framework::stake {
             0
         };
         if (rewards_amount > 0) {
-            let mint_cap = &borrow_global<AptosCoinCapabilities>(@aptos_framework).mint_cap;
-            let rewards = coin::mint(rewards_amount, mint_cap);
+            let rewards = if (features::stake_reward_using_treasury_enabled()) {
+                governed_gas_pool::withdraw_staking_reward<AptosCoin>(rewards_amount)
+            } else {
+                let mint_cap = &borrow_global<AptosCoinCapabilities>(@aptos_framework).mint_cap;
+                coin::mint(rewards_amount, mint_cap)
+            };
             coin::merge(stake, rewards);
         };
         rewards_amount
@@ -1778,6 +1781,7 @@ module aptos_framework::stake {
     use aptos_framework::reconfiguration_state;
     use aptos_framework::validator_consensus_info;
     use aptos_framework::validator_consensus_info::ValidatorConsensusInfo;
+
     #[test_only]
     use aptos_std::fixed_point64;
 
@@ -1788,7 +1792,23 @@ module aptos_framework::stake {
     const LOCKUP_CYCLE_SECONDS: u64 = 3600;
 
     #[test_only]
-    public fun initialize_for_test(aptos_framework: &signer) {
+    public fun seed_governed_gas_pool(
+        aptos_framework: &signer, amount: u64
+    ) acquires AptosCoinCapabilities {
+        let mint_cap = &borrow_global<AptosCoinCapabilities>(@aptos_framework).mint_cap;
+        let coins = coin::mint<AptosCoin>(amount, mint_cap);
+        // Initialize the governed gas pool
+        let seed: vector<u8> = b"test";
+        governed_gas_pool::initialize(aptos_framework, seed);
+        let pool_addr = governed_gas_pool::governed_gas_pool_address();
+        if (!coin::is_account_registered<AptosCoin>(pool_addr)) {
+            governed_gas_pool::register_coin<AptosCoin>();
+        };
+        coin::deposit<AptosCoin>(pool_addr, coins);
+    }
+
+    #[test_only]
+    public fun initialize_for_test(aptos_framework: &signer) acquires AptosCoinCapabilities {
         reconfiguration_state::initialize(aptos_framework);
         initialize_for_test_custom(aptos_framework, 100, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 100, 1000000);
     }
@@ -1800,7 +1820,7 @@ module aptos_framework::stake {
         operator: &signer,
         pool_address: address,
         should_end_epoch: bool,
-    ) acquires AptosCoinCapabilities, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         let pk_bytes = bls12381::public_key_to_bytes(pk);
         let pop_bytes = bls12381::proof_of_possession_to_bytes(pop);
         rotate_consensus_key(operator, pool_address, pk_bytes, pop_bytes);
@@ -1812,7 +1832,7 @@ module aptos_framework::stake {
 
     #[test_only]
     public fun fast_forward_to_unlock(pool_address: address)
-    acquires AptosCoinCapabilities, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    acquires StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         let expiration_time = get_lockup_secs(pool_address);
         timestamp::update_global_time_for_test_secs(expiration_time);
         end_epoch();
@@ -1829,7 +1849,13 @@ module aptos_framework::stake {
         rewards_rate_numerator: u64,
         rewards_rate_denominator: u64,
         voting_power_increase_limit: u64,
-    ) {
+    ) acquires AptosCoinCapabilities {
+        // Create framework account to be able to declare governance reward withdraw event
+        aptos_framework::account::create_account_for_test(@aptos_framework);
+
+        // Test using treasure.
+        features::change_feature_flags_for_testing(aptos_framework, vector[features::get_stake_reward_using_treasury_feature()], vector[]);
+
         timestamp::set_time_has_started_for_testing(aptos_framework);
         reconfiguration_state::initialize(aptos_framework);
         if (!exists<ValidatorSet>(@aptos_framework)) {
@@ -1851,6 +1877,9 @@ module aptos_framework::stake {
             store_aptos_coin_mint_cap(aptos_framework, mint_cap);
             coin::destroy_burn_cap<AptosCoin>(burn_cap);
         };
+
+        // Seed a big balance once so reward withdrawals never underflow the pool.
+        seed_governed_gas_pool(aptos_framework, 1_000_000_000_000_000);
     }
 
     // This function assumes the stake module already the capability to mint aptos coins.
@@ -1881,7 +1910,7 @@ module aptos_framework::stake {
         amount: u64,
         should_join_validator_set: bool,
         should_end_epoch: bool,
-    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AptosCoinCapabilities, AllowedValidators, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         let validator_address = signer::address_of(validator);
         if (!account::exists_at(signer::address_of(validator))) {
             account::create_account_for_test(validator_address);
@@ -2064,7 +2093,7 @@ module aptos_framework::stake {
     public entry fun test_end_to_end(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, true, true);
@@ -2121,7 +2150,7 @@ module aptos_framework::stake {
     public entry fun test_inactive_validator_with_existing_lockup_join_validator_set(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, false, false);
@@ -2147,7 +2176,7 @@ module aptos_framework::stake {
     public entry fun test_cannot_reduce_lockup(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, false, false);
@@ -2156,7 +2185,7 @@ module aptos_framework::stake {
         increase_lockup(validator);
         // Reduce recurring lockup to 0.
         staking_config::update_recurring_lockup_duration_secs(aptos_framework, 1);
-        // INcrease lockup should now fail because the new lockup < old lockup.
+        // Increase lockup should now fail because the new lockup < old lockup.
         increase_lockup(validator);
     }
 
@@ -2166,7 +2195,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator_1: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // Only 50% voting power increase is allowed in each epoch.
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 50);
         let (_sk_1, pk_1, pop_1) = generate_identity();
@@ -2188,7 +2217,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator_1: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 10000);
         // Need 1 validator to be in the active validator set so joining limit works.
         let (_sk_1, pk_1, pop_1) = generate_identity();
@@ -2210,7 +2239,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator_1: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // 100% voting power increase is allowed in each epoch.
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 100);
         // Need 1 validator to be in the active validator set so joining limit works.
@@ -2230,7 +2259,7 @@ module aptos_framework::stake {
     public entry fun test_pending_active_validator_leaves_validator_set(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         // Validator joins but epoch hasn't ended, so the validator is still pending_active.
         let (_sk, pk, pop) = generate_identity();
@@ -2254,7 +2283,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_cannot_add_more_stake_than_limit_in_multiple_epochs(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // Only 50% voting power increase is allowed in each epoch.
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 50);
         // Add initial stake and join the validator set.
@@ -2276,7 +2305,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_cannot_add_more_stake_than_limit(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // Only 50% voting power increase is allowed in each epoch.
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 50);
         let (_sk, pk, pop) = generate_identity();
@@ -2290,7 +2319,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_unlock_partial_stake(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // Reward rate = 10%.
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 100);
         let (_sk, pk, pop) = generate_identity();
@@ -2316,7 +2345,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_can_withdraw_all_stake_and_rewards_at_once(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, true, true);
@@ -2345,7 +2374,7 @@ module aptos_framework::stake {
         timestamp::fast_forward_seconds(LOCKUP_CYCLE_SECONDS);
         end_epoch();
         assert_validator_state(validator_address, 0, 103, 0, 0, 0);
-        // Validator ahs been kicked out of the validator set as their stake is 0 now.
+        // Validator has been kicked out of the validator set as their stake is 0 now.
         assert!(get_validator_state(validator_address) == VALIDATOR_STATUS_INACTIVE, 4);
     }
 
@@ -2353,7 +2382,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_unlocking_more_than_available_stake_should_cap(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, false, false);
@@ -2367,7 +2396,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_withdraw_should_cap_by_inactive_stake(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         // Initial balance = 900 (idle) + 100 (staked) = 1000.
         let (_sk, pk, pop) = generate_identity();
@@ -2392,7 +2421,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_can_reactivate_pending_inactive_stake(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, true, true);
@@ -2411,7 +2440,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_reactivate_more_than_available_pending_inactive_stake_should_cap(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, true, true);
@@ -2428,7 +2457,7 @@ module aptos_framework::stake {
     public entry fun test_active_validator_having_insufficient_remaining_stake_after_withdrawal_gets_kicked(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, true, true);
@@ -2456,7 +2485,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk_1, pk_1, pop_1) = generate_identity();
         let (_sk_2, pk_2, pop_2) = generate_identity();
@@ -2500,7 +2529,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk_1, pk_1, pop_1) = generate_identity();
         let (_sk_2, pk_2, pop_2) = generate_identity();
@@ -2531,7 +2560,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator_1: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // Only 50% voting power increase is allowed in each epoch.
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 10, 50);
         let (_sk_1, pk_1, pop_1) = generate_identity();
@@ -2552,7 +2581,7 @@ module aptos_framework::stake {
         validator_1: &signer,
         validator_2: &signer,
         validator_3: &signer
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         let validator_1_address = signer::address_of(validator_1);
         let validator_2_address = signer::address_of(validator_2);
         let validator_3_address = signer::address_of(validator_3);
@@ -2646,7 +2675,7 @@ module aptos_framework::stake {
     public entry fun test_delegated_staking_with_owner_cap(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test_custom(aptos_framework, 100, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 100, 100);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 0, false, false);
@@ -2724,7 +2753,7 @@ module aptos_framework::stake {
     public entry fun test_validator_cannot_leave_post_genesis(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test_custom(aptos_framework, 100, 10000, LOCKUP_CYCLE_SECONDS, false, 1, 100, 100);
         let (_sk, pk, pop) = generate_identity();
         initialize_test_validator(&pk, &pop, validator, 100, false, false);
@@ -2825,8 +2854,8 @@ module aptos_framework::stake {
         validator_2: &signer,
         validator_3: &signer,
         validator_4: &signer,
-        validator_5: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+        validator_5: &signer
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         let v1_addr = signer::address_of(validator_1);
         let v2_addr = signer::address_of(validator_2);
         let v3_addr = signer::address_of(validator_3);
@@ -2889,7 +2918,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator_1: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
 
         let validator_1_address = signer::address_of(validator_1);
@@ -2936,8 +2965,8 @@ module aptos_framework::stake {
     public entry fun test_validator_rewards_rate_decrease_over_time(
         aptos_framework: &signer,
         validator_1: &signer,
-        validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+        validator_2: &signer
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
 
         let genesis_time_in_secs = timestamp::now_seconds();
@@ -2967,6 +2996,10 @@ module aptos_framework::stake {
             fixed_point64::create_from_rational(50, 100),
         );
         features::change_feature_flags_for_testing(aptos_framework, vector[features::get_periodical_reward_rate_decrease_feature()], vector[]);
+        // Make sure that periodical reward rate decrease is enabled.
+        assert!(features::periodical_reward_rate_decrease_enabled(), 0);
+        // Make sure that stake reward using treasury is enabled.
+        assert!(features::stake_reward_using_treasury_enabled(), 0);
 
         // For some reason, this epoch is very long. It has been 1 year since genesis when the epoch ends.
         timestamp::fast_forward_seconds(one_year_in_secs - EPOCH_DURATION * 3);
@@ -2993,7 +3026,7 @@ module aptos_framework::stake {
     public entry fun test_update_performance_statistics_should_not_fail_due_to_out_of_bounds(
         aptos_framework: &signer,
         validator: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
 
         let validator_address = signer::address_of(validator);
@@ -3044,7 +3077,6 @@ module aptos_framework::stake {
         validator: &signer,
     ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorSet {
         initialize_for_test_custom(aptos_framework, 50, 10000, LOCKUP_CYCLE_SECONDS, true, 1, 100, 100);
-
         // Call initialize_stake_owner, which only initializes the stake pool but not validator config.
         let validator_address = signer::address_of(validator);
         account::create_account_for_test(validator_address);
@@ -3116,7 +3148,7 @@ module aptos_framework::stake {
         aptos_framework: &signer,
         validator_1: &signer,
         validator_2: &signer,
-    ) acquires AllowedValidators, OwnerCapability, StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         initialize_for_test(aptos_framework);
         let (_sk_1, pk_1, pop_1) = generate_identity();
         let (_sk_2, pk_2, pop_2) = generate_identity();
@@ -3132,8 +3164,7 @@ module aptos_framework::stake {
     }
 
     #[test_only]
-    public fun end_epoch(
-    ) acquires StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
+    public fun end_epoch() acquires StakePool, AptosCoinCapabilities, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
         // Set the number of blocks to 1, to give out rewards to non-failing validators.
         set_validator_perf_at_least_one_block();
         timestamp::fast_forward_seconds(EPOCH_DURATION);
@@ -3237,14 +3268,18 @@ module aptos_framework::stake {
         validator_2: &signer,
         validator_3: &signer,
     ) acquires AllowedValidators, AptosCoinCapabilities, OwnerCapability, StakePool, ValidatorConfig, ValidatorPerformance, ValidatorSet, ValidatorFees {
-        // Make sure that fees collection and distribution is enabled.
         features::change_feature_flags_for_testing(aptos_framework, vector[COLLECT_AND_DISTRIBUTE_GAS_FEES], vector[]);
-        assert!(features::collect_and_distribute_gas_fees(), 0);
 
         // Initialize staking and validator fees table.
         initialize_for_test(aptos_framework);
         initialize_validator_fees(aptos_framework);
 
+        // Make sure that fees collection and distribution is enabled.
+        assert!(features::collect_and_distribute_gas_fees(), 0);
+        // Make sure that stake reward using treasury is enabled.
+        assert!(features::stake_reward_using_treasury_enabled(), 0);
+
+
         let validator_1_address = signer::address_of(validator_1);
         let validator_2_address = signer::address_of(validator_2);
         let validator_3_address = signer::address_of(validator_3);
@@ -3263,7 +3298,7 @@ module aptos_framework::stake {
         add_transaction_fee(validator_2_address, mint_coins(500));
         add_transaction_fee(validator_1_address, mint_coins(200));
 
-        // Fess have to be assigned to the right validators, but not
+        // Fees have to be assigned to the right validators, but not
         // distributed yet.
         assert!(get_validator_fee(validator_1_address) == 300, 0);
         assert!(get_validator_fee(validator_2_address) == 500, 0);
@@ -3274,7 +3309,7 @@ module aptos_framework::stake {
 
         end_epoch();
 
-        // Epoch ended. Validators must have recieved their rewards and, most importantly,
+        // Epoch ended. Validators must have received their rewards and, most importantly,
         // their fees.
         assert_no_fees_for_validator(validator_1_address);
         assert_no_fees_for_validator(validator_2_address);
diff --git a/aptos-move/framework/aptos-framework/sources/staking_proxy.move b/aptos-move/framework/aptos-framework/sources/staking_proxy.move
index 26d1aa33372..d6da569a3cd 100644
--- a/aptos-move/framework/aptos-framework/sources/staking_proxy.move
+++ b/aptos-move/framework/aptos-framework/sources/staking_proxy.move
@@ -90,6 +90,9 @@ module aptos_framework::staking_proxy {
         let operator_1_address = signer::address_of(operator_1);
         let operator_2_address = signer::address_of(operator_2);
         let new_operator_address = signer::address_of(new_operator);
+
+        aptos_framework::account::create_account_for_test(@aptos_framework);
+
         vesting::setup(
             aptos_framework, &vector[owner_address, operator_1_address, operator_2_address, new_operator_address]);
         staking_contract::setup_staking_contract(aptos_framework, owner, operator_1, INITIAL_BALANCE, 0);
@@ -135,6 +138,9 @@ module aptos_framework::staking_proxy {
         let operator_1_address = signer::address_of(operator_1);
         let operator_2_address = signer::address_of(operator_2);
         let new_operator_address = signer::address_of(new_operator);
+
+        aptos_framework::account::create_account_for_test(@aptos_framework);
+       
         vesting::setup(
             aptos_framework, &vector[owner_address, operator_1_address, operator_2_address, new_operator_address]);
         staking_contract::setup_staking_contract(aptos_framework, owner, operator_2, INITIAL_BALANCE, 0);
diff --git a/aptos-move/framework/move-stdlib/sources/configs/features.move b/aptos-move/framework/move-stdlib/sources/configs/features.move
index c270ebd1cf7..94456d10516 100644
--- a/aptos-move/framework/move-stdlib/sources/configs/features.move
+++ b/aptos-move/framework/move-stdlib/sources/configs/features.move
@@ -624,6 +624,17 @@ module std::features {
         is_enabled(DECOMMISSION_CORE_RESOURCES)
     }
 
+    /// Whether the staking rewards are mint (diseable) or withdraw from the gouverned gas pool treasury (enable). 
+    ///
+    /// Lifetime: permanent
+    const STAKE_REWARD_USING_TREASURY: u64 = 223;
+
+    public fun get_stake_reward_using_treasury_feature(): u64 { STAKE_REWARD_USING_TREASURY }
+
+    public fun stake_reward_using_treasury_enabled(): bool acquires Features {
+        is_enabled(STAKE_REWARD_USING_TREASURY)
+    }
+
     // ============================================================================================
     // Feature Flag Implementation
 
diff --git a/movement-migration/framework-upgrades/scripts/feature-flag-reconfig.move b/movement-migration/framework-upgrades/scripts/feature-flag-reconfig.move
index 4892551ebf9..6bfc2ec7818 100644
--- a/movement-migration/framework-upgrades/scripts/feature-flag-reconfig.move
+++ b/movement-migration/framework-upgrades/scripts/feature-flag-reconfig.move
@@ -16,6 +16,7 @@ script {
             67, // ConcurrentFungibleBalance
             40, // VMBinaryFormat7
             74, // EnumTypes
+            223, // STAKE_REWARD_USING_TREASURY
         ];
 
         let disabled_blob: vector<u64> = vector[
@@ -26,7 +27,6 @@ script {
             54, // KeylessAccountsWithPasskeys
             71, // AtomicBridge
             72, // NativeBridge
-            73, // GovernedGasPool
         ];
 
         features::change_feature_flags(&core_signer, enabled_blob, disabled_blob);