diff --git a/contracts/tgrade-valset/Cargo.toml b/contracts/tgrade-valset/Cargo.toml
index 917e798b..e2215022 100644
--- a/contracts/tgrade-valset/Cargo.toml
+++ b/contracts/tgrade-valset/Cargo.toml
@@ -42,7 +42,7 @@ protobuf = { version = "2", features = ["with-bytes"] }
 
 [dev-dependencies]
 cosmwasm-schema = { version = "1.0.0-beta" }
-cw-multi-test = { version = "0.10.0" }
+cw-multi-test = "0.10.0"
 tg4-engagement = { path = "../tg4-engagement", version = "0.5.0-alpha" }
 tg4-stake = { path = "../tg4-stake", version = "0.5.0-alpha" }
 # we enable multitest feature only for tests
@@ -50,3 +50,4 @@ tg-bindings-test = { path = "../../packages/bindings-test", version = "0.5.0-alp
 derivative = "2"
 anyhow = "1"
 assert_matches = "1.5"
+
diff --git a/contracts/tgrade-valset/src/contract.rs b/contracts/tgrade-valset/src/contract.rs
index 53332266..492eec4e 100644
--- a/contracts/tgrade-valset/src/contract.rs
+++ b/contracts/tgrade-valset/src/contract.rs
@@ -21,7 +21,7 @@ use tg_utils::Duration;
 
 use crate::error::ContractError;
 use crate::msg::{
-    ConfigResponse, EpochResponse, ExecuteMsg, InstantiateMsg, JailingPeriod,
+    ConfigResponse, EpochResponse, ExecuteMsg, InstantiateMsg, InstantiateResponse, JailingPeriod,
     ListActiveValidatorsResponse, ListValidatorResponse, OperatorResponse, QueryMsg,
     RewardsDistribution, RewardsInstantiateMsg, ValidatorMetadata, ValidatorResponse,
 };
@@ -603,14 +603,18 @@ fn calculate_diff(
 }
 
 #[cfg_attr(not(feature = "library"), entry_point)]
-pub fn reply(deps: DepsMut, _env: Env, msg: Reply) -> Result<Response, ContractError> {
+pub fn reply(deps: DepsMut, env: Env, msg: Reply) -> Result<Response, ContractError> {
     match msg.id {
-        REWARDS_INIT_REPLY_ID => rewards_instantiate_reply(deps, msg),
+        REWARDS_INIT_REPLY_ID => rewards_instantiate_reply(deps, env, msg),
         _ => Err(ContractError::UnrecognisedReply(msg.id)),
     }
 }
 
-pub fn rewards_instantiate_reply(deps: DepsMut, msg: Reply) -> Result<Response, ContractError> {
+pub fn rewards_instantiate_reply(
+    deps: DepsMut,
+    env: Env,
+    msg: Reply,
+) -> Result<Response, ContractError> {
     let id = msg.id;
     let res: MsgInstantiateContractResponse = Message::parse_from_bytes(
         msg.result
@@ -634,9 +638,18 @@ pub fn rewards_instantiate_reply(deps: DepsMut, msg: Reply) -> Result<Response,
         Ok(config)
     })?;
 
-    let resp = Response::new()
-        .add_attribute("action", "tgrade-valset_instantiation")
-        .add_attribute("rewards_contract", res.get_contract_address());
+    let response = InstantiateResponse {
+        rewards_contract: Addr::unchecked(res.get_contract_address()),
+    };
+
+    let mut resp = MsgInstantiateContractResponse::new();
+    resp.set_contract_address(env.contract.address.to_string());
+    resp.set_data(to_binary(&response)?.to_vec());
+
+    let resp = Response::new().set_data(
+        resp.write_to_bytes()
+            .map_err(|err| ContractError::Proto(err.to_string()))?,
+    );
 
     Ok(resp)
 }
diff --git a/contracts/tgrade-valset/src/error.rs b/contracts/tgrade-valset/src/error.rs
index 25dcef62..656c8460 100644
--- a/contracts/tgrade-valset/src/error.rs
+++ b/contracts/tgrade-valset/src/error.rs
@@ -12,6 +12,9 @@ pub enum ContractError {
     #[error("{0}")]
     AdminError(#[from] AdminError),
 
+    #[error("{0}")]
+    Proto(String),
+
     #[error("Operator is already registered, cannot change Tendermint pubkey")]
     OperatorRegistered {},
 
diff --git a/contracts/tgrade-valset/src/msg.rs b/contracts/tgrade-valset/src/msg.rs
index 48a15abd..81155c3b 100644
--- a/contracts/tgrade-valset/src/msg.rs
+++ b/contracts/tgrade-valset/src/msg.rs
@@ -320,6 +320,12 @@ pub enum RewardsDistribution {
     DistributeFunds {},
 }
 
+#[derive(Serialize, Deserialize, Clone, PartialEq, JsonSchema, Debug)]
+#[serde(rename_all = "snake_case")]
+pub struct InstantiateResponse {
+    pub rewards_contract: Addr,
+}
+
 #[cfg(test)]
 mod test {
     use super::*;