diff --git a/crates/revm/src/evm.rs b/crates/revm/src/evm.rs
index 4e56985fa..718639920 100644
--- a/crates/revm/src/evm.rs
+++ b/crates/revm/src/evm.rs
@@ -1,12 +1,15 @@
 //! Contains the `[RwasmEvm]` type and its implementation of the execution EVM traits.
 
 use crate::{
-    api::RwasmFrame, executor::run_rwasm_loop, precompiles::RwasmPrecompiles,
-    types::SystemInterruptionOutcome, upgrade::upgrade_runtime_hook,
+    api::RwasmFrame,
+    executor::run_rwasm_loop,
+    precompiles::RwasmPrecompiles,
+    types::SystemInterruptionOutcome,
+    upgrade::{upgrade_runtime_hook_v1, upgrade_runtime_hook_v2},
 };
 use fluentbase_sdk::{
     resolve_precompiled_runtime_from_input, try_resolve_precompile_account_from_input, Address,
-    Bytes, UPDATE_GENESIS_AUTH, UPDATE_GENESIS_PREFIX,
+    Bytes, UPDATE_GENESIS_AUTH, UPDATE_GENESIS_PREFIX_V1, UPDATE_GENESIS_PREFIX_V2,
 };
 use revm::{
     bytecode::{ownable_account::OwnableAccountBytecode, Bytecode},
@@ -224,10 +227,13 @@ where
                         let _span = tracing::info_span!("revm.frame_init.call_hook").entered();
                         // a special hook for runtime upgrade
                         // that is used only for testnet to upgrade genesis without forks
-                        if inputs.caller == UPDATE_GENESIS_AUTH
-                            && inputs.input.bytes(ctx).starts_with(&UPDATE_GENESIS_PREFIX)
-                        {
-                            return upgrade_runtime_hook(ctx, inputs);
+                        if inputs.caller == UPDATE_GENESIS_AUTH {
+                            let input = inputs.input.bytes(ctx);
+                            if input.starts_with(&UPDATE_GENESIS_PREFIX_V1) {
+                                return upgrade_runtime_hook_v1(ctx, inputs);
+                            } else if input.starts_with(&UPDATE_GENESIS_PREFIX_V2) {
+                                return upgrade_runtime_hook_v2(ctx, inputs);
+                            }
                         }
                         // TODO(dmitry123): "do we want to disable it for mainnet?"
                         if let Some(precompiled_address) = try_resolve_precompile_account_from_input(
diff --git a/crates/revm/src/upgrade.rs b/crates/revm/src/upgrade.rs
index ba2395e52..2ff192c1f 100644
--- a/crates/revm/src/upgrade.rs
+++ b/crates/revm/src/upgrade.rs
@@ -1,12 +1,57 @@
-use fluentbase_sdk::UPDATE_GENESIS_PREFIX;
-use fluentbase_sdk::{Bytes, UPDATE_GENESIS_AUTH};
-use revm::bytecode::Bytecode;
-use revm::context::{ContextError, ContextTr, JournalTr};
-use revm::handler::{FrameResult, FrameTr, ItemOrResult};
-use revm::interpreter::{CallInputs, CallOutcome, Gas, InstructionResult, InterpreterResult};
-use revm::Database;
+use fluentbase_sdk::{
+    compile_wasm_to_rwasm, Bytes, RwasmCompilationResult, UPDATE_GENESIS_AUTH,
+    UPDATE_GENESIS_PREFIX_V1, UPDATE_GENESIS_PREFIX_V2,
+};
+use revm::{
+    bytecode::Bytecode,
+    context::{ContextError, ContextTr, JournalTr},
+    handler::{FrameResult, FrameTr, ItemOrResult},
+    interpreter::{CallInputs, CallOutcome, Gas, InstructionResult, InterpreterResult},
+    Database,
+};
 
-pub(crate) fn upgrade_runtime_hook<
+macro_rules! upgrade_panic {
+    ($inputs:expr, $message:literal) => {{}
+    return Ok(ItemOrResult::Result(FrameResult::Call(CallOutcome {
+        result: InterpreterResult {
+            result: InstructionResult::Revert,
+            output: Bytes::from($message),
+            gas: Gas::new(0),
+        },
+        memory_offset: $inputs.return_memory_offset.clone(),
+    })));};
+}
+
+pub(crate) fn upgrade_runtime_hook_v1<
+    'a,
+    CTX: ContextTr,
+    FRAME: FrameTr<FrameResult = FrameResult>,
+>(
+    ctx: &mut CTX,
+    inputs: &mut Box<CallInputs>,
+) -> Result<
+    ItemOrResult<&'a mut FRAME, <FRAME as FrameTr>::FrameResult>,
+    ContextError<<<CTX as ContextTr>::Db as Database>::Error>,
+> {
+    debug_assert_eq!(inputs.caller, UPDATE_GENESIS_AUTH);
+    let bytecode = inputs.input.bytes(ctx);
+    debug_assert!(bytecode.starts_with(&UPDATE_GENESIS_PREFIX_V1));
+    let Ok(bytecode) = Bytecode::new_raw_checked(bytecode.slice(UPDATE_GENESIS_PREFIX_V1.len()..))
+    else {
+        upgrade_panic!(inputs, "malformed bytecode");
+    };
+    ctx.journal_mut().set_code(inputs.target_address, bytecode);
+    Ok(ItemOrResult::Result(FrameResult::Call(CallOutcome {
+        result: InterpreterResult {
+            result: InstructionResult::Return,
+            output: Default::default(),
+            gas: Gas::new(0),
+        },
+        memory_offset: inputs.return_memory_offset.clone(),
+    })))
+}
+
+pub(crate) fn upgrade_runtime_hook_v2<
     'a,
     CTX: ContextTr,
     FRAME: FrameTr<FrameResult = FrameResult>,
@@ -19,18 +64,13 @@ pub(crate) fn upgrade_runtime_hook<
 > {
     debug_assert_eq!(inputs.caller, UPDATE_GENESIS_AUTH);
     let bytecode = inputs.input.bytes(ctx);
-    debug_assert!(bytecode.starts_with(&UPDATE_GENESIS_PREFIX));
-    let Ok(bytecode) = Bytecode::new_raw_checked(bytecode.slice(UPDATE_GENESIS_PREFIX.len()..))
+    debug_assert!(bytecode.starts_with(&UPDATE_GENESIS_PREFIX_V2));
+    let wasm_bytecode = bytecode.slice(UPDATE_GENESIS_PREFIX_V2.len()..);
+    let Ok(RwasmCompilationResult { rwasm_module, .. }) = compile_wasm_to_rwasm(&wasm_bytecode)
     else {
-        return Ok(ItemOrResult::Result(FrameResult::Call(CallOutcome {
-            result: InterpreterResult {
-                result: InstructionResult::Revert,
-                output: Bytes::from("malformed bytecode"),
-                gas: Gas::new(0),
-            },
-            memory_offset: inputs.return_memory_offset.clone(),
-        })));
+        upgrade_panic!(inputs, "malformed wasm bytecode");
     };
+    let bytecode = Bytecode::new_rwasm(rwasm_module.serialize().into());
     ctx.journal_mut().set_code(inputs.target_address, bytecode);
     Ok(ItemOrResult::Result(FrameResult::Call(CallOutcome {
         result: InterpreterResult {
diff --git a/crates/types/src/genesis.rs b/crates/types/src/genesis.rs
index d35382b9b..ae1478832 100644
--- a/crates/types/src/genesis.rs
+++ b/crates/types/src/genesis.rs
@@ -137,7 +137,8 @@ pub const UPDATE_GENESIS_AUTH: Address = address!("0xa7bf6a9168fe8a111307b7c94b8
 
 /// The prefix that must appear at the beginning of the transaction `calldata`
 /// to signal that the transaction is intended to perform an account update.
-pub const UPDATE_GENESIS_PREFIX: [u8; 4] = hex!("0x69bc6f64");
+pub const UPDATE_GENESIS_PREFIX_V1: [u8; 4] = hex!("0x69bc6f64");
+pub const UPDATE_GENESIS_PREFIX_V2: [u8; 4] = hex!("0x69bc6f65");
 
 #[derive(Clone)]
 pub struct GenesisContract {
diff --git a/e2e/src/update_account.rs b/e2e/src/update_account.rs
index 22cf14ea1..df31803d1 100644
--- a/e2e/src/update_account.rs
+++ b/e2e/src/update_account.rs
@@ -2,16 +2,20 @@ use crate::EvmTestingContextWithGenesis;
 use fluentbase_genesis::GENESIS_CONTRACTS_BY_ADDRESS;
 use fluentbase_sdk::{
     address, bytes, compile_wasm_to_rwasm, Address, PRECOMPILE_EVM_RUNTIME, UPDATE_GENESIS_AUTH,
-    UPDATE_GENESIS_PREFIX,
+    UPDATE_GENESIS_PREFIX_V1,
 };
 use fluentbase_testing::EvmTestingContext;
+use fluentbase_types::UPDATE_GENESIS_PREFIX_V2;
 use hex_literal::hex;
 
 #[test]
-fn test_update_account_code_by_auth() {
+fn test_update_account_code_by_auth_v1() {
     let mut ctx = EvmTestingContext::default().with_full_genesis();
 
-    // deploy evm greeting contract
+    // ----------------------------------------------------
+    // 1. Deploy some random EVM bytecode
+    // ----------------------------------------------------
+
     const DEPLOYER_ADDRESS: Address = address!("0x7777777777777777777777777777777777777777");
     let (contract_address, _) = ctx.deploy_evm_tx_with_gas(DEPLOYER_ADDRESS, hex!("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").into());
 
@@ -30,6 +34,10 @@ fn test_update_account_code_by_auth() {
     let code = ctx.get_code(PRECOMPILE_EVM_RUNTIME).unwrap();
     assert_eq!(&code.original_bytes(), account.rwasm_bytecode.as_ref());
 
+    // ----------------------------------------------------
+    // 2. Deploy rWasm bytecode using V1
+    // ----------------------------------------------------
+
     let rwasm_module = compile_wasm_to_rwasm(
         &wat::parse_str(
             r#"
@@ -46,7 +54,7 @@ fn test_update_account_code_by_auth() {
     .unwrap();
     let new_bytecode = rwasm_module.rwasm_module.serialize();
 
-    let mut upgrade_input = UPDATE_GENESIS_PREFIX.to_vec();
+    let mut upgrade_input = UPDATE_GENESIS_PREFIX_V1.to_vec();
     upgrade_input.extend_from_slice(new_bytecode.as_ref());
 
     let result = ctx.call_evm_tx(
@@ -70,3 +78,77 @@ fn test_update_account_code_by_auth() {
     );
     assert!(result.is_halt());
 }
+
+#[test]
+fn test_update_account_code_by_auth_v2() {
+    let mut ctx = EvmTestingContext::default().with_full_genesis();
+
+    // ----------------------------------------------------
+    // 1. Deploy some random EVM bytecode
+    // ----------------------------------------------------
+
+    const DEPLOYER_ADDRESS: Address = address!("0x7777777777777777777777777777777777777777");
+    let (contract_address, _) = ctx.deploy_evm_tx_with_gas(DEPLOYER_ADDRESS, hex!("60806040526105ae806100115f395ff3fe608060405234801561000f575f80fd5b506004361061003f575f3560e01c80633b2e97481461004357806345773e4e1461007357806348b8bcc314610091575b5f80fd5b61005d600480360381019061005891906102e5565b6100af565b60405161006a919061039a565b60405180910390f35b61007b6100dd565b604051610088919061039a565b60405180910390f35b61009961011a565b6040516100a6919061039a565b60405180910390f35b60605f8273ffffffffffffffffffffffffffffffffffffffff163190506100d58161012f565b915050919050565b60606040518060400160405280600b81526020017f48656c6c6f20576f726c64000000000000000000000000000000000000000000815250905090565b60605f4790506101298161012f565b91505090565b60605f8203610175576040518060400160405280600181526020017f30000000000000000000000000000000000000000000000000000000000000008152509050610282565b5f8290505f5b5f82146101a457808061018d906103f0565b915050600a8261019d9190610464565b915061017b565b5f8167ffffffffffffffff8111156101bf576101be610494565b5b6040519080825280601f01601f1916602001820160405280156101f15781602001600182028036833780820191505090505b5090505b5f851461027b578180610207906104c1565b925050600a8561021791906104e8565b60306102239190610518565b60f81b8183815181106102395761023861054b565b5b60200101907effffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff191690815f1a905350600a856102749190610464565b94506101f5565b8093505050505b919050565b5f80fd5b5f73ffffffffffffffffffffffffffffffffffffffff82169050919050565b5f6102b48261028b565b9050919050565b6102c4816102aa565b81146102ce575f80fd5b50565b5f813590506102df816102bb565b92915050565b5f602082840312156102fa576102f9610287565b5b5f610307848285016102d1565b91505092915050565b5f81519050919050565b5f82825260208201905092915050565b5f5b8381101561034757808201518184015260208101905061032c565b5f8484015250505050565b5f601f19601f8301169050919050565b5f61036c82610310565b610376818561031a565b935061038681856020860161032a565b61038f81610352565b840191505092915050565b5f6020820190508181035f8301526103b28184610362565b905092915050565b7f4e487b71000000000000000000000000000000000000000000000000000000005f52601160045260245ffd5b5f819050919050565b5f6103fa826103e7565b91507fffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff820361042c5761042b6103ba565b5b600182019050919050565b7f4e487b71000000000000000000000000000000000000000000000000000000005f52601260045260245ffd5b5f61046e826103e7565b9150610479836103e7565b92508261048957610488610437565b5b828204905092915050565b7f4e487b71000000000000000000000000000000000000000000000000000000005f52604160045260245ffd5b5f6104cb826103e7565b91505f82036104dd576104dc6103ba565b5b600182039050919050565b5f6104f2826103e7565b91506104fd836103e7565b92508261050d5761050c610437565b5b828206905092915050565b5f610522826103e7565b915061052d836103e7565b9250828201905080821115610545576105446103ba565b5b92915050565b7f4e487b71000000000000000000000000000000000000000000000000000000005f52603260045260245ffdfea2646970667358221220feebf5ace29c3c3146cb63bf7ca9009c2005f349075639d267cfbd817adde3e564736f6c63430008180033").into());
+
+    let result = ctx.call_evm_tx(
+        DEPLOYER_ADDRESS,
+        contract_address,
+        bytes!("45773e4e"),
+        None,
+        None,
+    );
+    assert!(result.is_success());
+
+    let account = GENESIS_CONTRACTS_BY_ADDRESS
+        .get(&PRECOMPILE_EVM_RUNTIME)
+        .unwrap();
+    let code = ctx.get_code(PRECOMPILE_EVM_RUNTIME).unwrap();
+    assert_eq!(&code.original_bytes(), account.rwasm_bytecode.as_ref());
+
+    // ----------------------------------------------------
+    // 2. Deploy Wasm bytecode using V2
+    // ----------------------------------------------------
+
+    let wasm_module = wat::parse_str(
+        r#"
+(module
+  (memory (export "memory") 1)
+  (func (export "main")
+    unreachable
+  )
+)
+    "#,
+    )
+    .unwrap();
+
+    let mut upgrade_input = UPDATE_GENESIS_PREFIX_V2.to_vec();
+    upgrade_input.extend_from_slice(&wasm_module);
+
+    let result = ctx.call_evm_tx(
+        UPDATE_GENESIS_AUTH,
+        PRECOMPILE_EVM_RUNTIME,
+        upgrade_input.into(),
+        None,
+        None,
+    );
+    assert!(result.is_success());
+
+    let new_code = ctx.get_code(PRECOMPILE_EVM_RUNTIME).unwrap();
+    let rwasm_bytecode_should_be = compile_wasm_to_rwasm(&wasm_module)
+        .unwrap()
+        .rwasm_module
+        .serialize();
+    assert_eq!(
+        new_code.original_bytes().as_ref(),
+        &rwasm_bytecode_should_be
+    );
+
+    let result = ctx.call_evm_tx(
+        DEPLOYER_ADDRESS,
+        contract_address,
+        bytes!("45773e4e"),
+        None,
+        None,
+    );
+    assert!(result.is_halt());
+}