diff --git a/config/contracts/envs/local.ts b/config/contracts/envs/local.ts
index a67a8b2..3bb3ca7 100644
--- a/config/contracts/envs/local.ts
+++ b/config/contracts/envs/local.ts
@@ -112,5 +112,17 @@ export function createLocalConfig() {
     // Migration
     MIGRATION_ADDRESS: "0x865306084235Bf804c8Bba8a8d56890940ca8F0b", // 10th account from mnemonic of solo network
     MIGRATION_AMOUNT: BigInt("3750000000000000000000000"), // 3.75 million B3TR tokens from pilot show
+
+    // X 2 Earn Rewards Pool
+    X_2_EARN_INITIAL_IMPACT_KEYS: [
+      "carbon",
+      "water",
+      "energy",
+      "waste_mass",
+      "education_time",
+      "timber",
+      "plastic",
+      "trees_planted",
+    ],
   })
 }
diff --git a/config/contracts/type.ts b/config/contracts/type.ts
index 05a514f..b4173cc 100644
--- a/config/contracts/type.ts
+++ b/config/contracts/type.ts
@@ -44,4 +44,7 @@ export type ContractsConfig = {
   // Migration
   MIGRATION_ADDRESS: string
   MIGRATION_AMOUNT: bigint
+
+  // X 2 Earn Rewards Pool
+  X_2_EARN_INITIAL_IMPACT_KEYS: string[]
 }
diff --git a/contracts/X2EarnRewardsPool.sol b/contracts/X2EarnRewardsPool.sol
index 2a593c3..7ab00b7 100644
--- a/contracts/X2EarnRewardsPool.sol
+++ b/contracts/X2EarnRewardsPool.sol
@@ -31,6 +31,7 @@ import { IX2EarnApps } from "./interfaces/IX2EarnApps.sol";
 import { IX2EarnRewardsPool } from "./interfaces/IX2EarnRewardsPool.sol";
 import { IERC1155Receiver } from "@openzeppelin/contracts/token/ERC1155/IERC1155Receiver.sol";
 import { IERC721Receiver } from "@openzeppelin/contracts/token/ERC721/IERC721Receiver.sol";
+import "@openzeppelin/contracts/utils/Strings.sol";
 
 /**
  * @title X2EarnRewardsPool
@@ -50,6 +51,7 @@ contract X2EarnRewardsPool is
 {
   bytes32 public constant UPGRADER_ROLE = keccak256("UPGRADER_ROLE");
   bytes32 public constant CONTRACTS_ADDRESS_MANAGER_ROLE = keccak256("CONTRACTS_ADDRESS_MANAGER_ROLE");
+  bytes32 public constant IMPACT_KEY_MANAGER_ROLE = keccak256("IMPACT_KEY_MANAGER_ROLE");
 
   /// @custom:oz-upgrades-unsafe-allow constructor
   constructor() {
@@ -61,6 +63,8 @@ contract X2EarnRewardsPool is
     IB3TR b3tr;
     IX2EarnApps x2EarnApps;
     mapping(bytes32 appId => uint256) availableFunds; // Funds that the app can use to reward users
+    mapping(string => uint256) impactKeyIndex; // Mapping from impact key to its index (1-based to distinguish from non-existent)
+    string[] allowedImpactKeys; // Array storing impact keys
   }
 
   // keccak256(abi.encode(uint256(keccak256("b3tr.storage.X2EarnRewardsPool")) - 1)) & ~bytes32(uint256(0xff))
@@ -99,6 +103,31 @@ contract X2EarnRewardsPool is
     $.x2EarnApps = _x2EarnApps;
   }
 
+  function initializeV2(address _impactKeyManager, string[] memory _initialImpactKeys) external reinitializer(2) {
+    require(_impactKeyManager != address(0), "X2EarnRewardsPool: impactKeyManager is the zero address");
+    require(_initialImpactKeys.length > 0, "X2EarnRewardsPool: initialImpactKeys is empty");
+
+    _grantRole(IMPACT_KEY_MANAGER_ROLE, _impactKeyManager);
+
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+
+    for (uint256 i; i < _initialImpactKeys.length; i++) {
+      _addImpactKey(_initialImpactKeys[i], $);
+    }
+  }
+
+  // ---------- Modifiers ---------- //
+  /**
+   * @notice Modifier to check if the user has the required role or is the DEFAULT_ADMIN_ROLE
+   * @param role - the role to check
+   */
+  modifier onlyRoleOrAdmin(bytes32 role) {
+    if (!hasRole(role, msg.sender) && !hasRole(DEFAULT_ADMIN_ROLE, msg.sender)) {
+      revert("X2EarnRewardsPool: sender is not an admin nor has the required role");
+    }
+    _;
+  }
+
   // ---------- Authorizers ---------- //
 
   function _authorizeUpgrade(address newImplementation) internal virtual override onlyRole(UPGRADER_ROLE) {}
@@ -155,32 +184,210 @@ contract X2EarnRewardsPool is
   }
 
   /**
-   * @dev See {IX2EarnRewardsPool-distributeReward}
+   * @dev Distribute rewards to a user with a self provided proof.
+   * @notice This function is deprecated and kept for backwards compatibility, will be removed in future versions.
    */
-  function distributeReward(
+  function distributeRewardDeprecated(bytes32 appId, uint256 amount, address receiver, string memory proof) external {
+    // emit event with provided json proof
+    emit RewardDistributed(amount, appId, receiver, proof, msg.sender);
+
+    _distributeReward(appId, amount, receiver);
+  }
+
+  /**
+   * @dev {IX2EarnRewardsPool-distributeReward}
+   * @notice the proof argument is unused but kept for backwards compatibility
+   */
+  function distributeReward(bytes32 appId, uint256 amount, address receiver, string memory /*proof*/) external {
+    // emit event with empty proof
+    emit RewardDistributed(amount, appId, receiver, "", msg.sender);
+
+    _distributeReward(appId, amount, receiver);
+  }
+
+  /**
+   * @dev See {IX2EarnRewardsPool-distributeRewardWithProof}
+   */
+  function distributeRewardWithProof(
     bytes32 appId,
     uint256 amount,
     address receiver,
-    string memory proof
-  ) external nonReentrant {
+    string[] memory proofTypes,
+    string[] memory proofValues,
+    string[] memory impactCodes,
+    uint256[] memory impactValues,
+    string memory description
+  ) external {
+    _emitProof(appId, amount, receiver, proofTypes, proofValues, impactCodes, impactValues, description);
+    _distributeReward(appId, amount, receiver);
+  }
+
+  /**
+   * @dev See {IX2EarnRewardsPool-distributeReward}
+   * @notice The impact is an array of integers and codes that represent the impact of the action.
+   * Each index of the array represents a different impact.
+   * The codes are predefined and the values are the impact values.
+   * Example: ["carbon", "water", "energy"], [100, 200, 300]
+   */
+  function _distributeReward(bytes32 appId, uint256 amount, address receiver) internal nonReentrant {
     X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
 
+    // check authorization
     require($.x2EarnApps.appExists(appId), "X2EarnRewardsPool: app does not exist");
-
     require($.x2EarnApps.isRewardDistributor(appId, msg.sender), "X2EarnRewardsPool: not a reward distributor");
 
-    // check if the app has enough available funds to reward users
+    // check if the app has enough available funds to distribute
     require($.availableFunds[appId] >= amount, "X2EarnRewardsPool: app has insufficient funds");
-
-    // check if the contract has enough funds
     require($.b3tr.balanceOf(address(this)) >= amount, "X2EarnRewardsPool: insufficient funds on contract");
 
-    // transfer the rewards to the receiver
+    // Transfer the rewards to the receiver
     $.availableFunds[appId] -= amount;
     require($.b3tr.transfer(receiver, amount), "X2EarnRewardsPool: Allocation transfer to app failed");
+  }
+
+  /**
+   * @dev Emits the RewardDistributed event with the provided proofs and impacts.
+   */
+  function _emitProof(
+    bytes32 appId,
+    uint256 amount,
+    address receiver,
+    string[] memory proofTypes,
+    string[] memory proofValues,
+    string[] memory impactCodes,
+    uint256[] memory impactValues,
+    string memory description
+  ) internal {
+    // Build the JSON proof string from the proof and impact data
+    string memory jsonProof = buildProof(proofTypes, proofValues, impactCodes, impactValues, description);
 
     // emit event
-    emit RewardDistributed(amount, appId, receiver, proof, msg.sender);
+    emit RewardDistributed(amount, appId, receiver, jsonProof, msg.sender);
+  }
+
+  /**
+   * @dev see {IX2EarnRewardsPool-buildProof}
+   */
+  function buildProof(
+    string[] memory proofTypes,
+    string[] memory proofValues,
+    string[] memory impactCodes,
+    uint256[] memory impactValues,
+    string memory description
+  ) public view virtual returns (string memory) {
+    bool hasProof = proofTypes.length > 0 && proofValues.length > 0;
+    bool hasImpact = impactCodes.length > 0 && impactValues.length > 0;
+    bool hasDescription = bytes(description).length > 0;
+
+    // If neither proof nor impact is provided, return an empty string
+    if (!hasProof && !hasImpact) {
+      return "";
+    }
+
+    // Initialize an empty JSON bytes array with version
+    bytes memory json = abi.encodePacked('{"version": 2');
+
+    // Add description if available
+    if (hasDescription) {
+      json = abi.encodePacked(json, ',"description": "', description, '"');
+    }
+
+    // Add proof if available
+    if (hasProof) {
+      bytes memory jsonProof = _buildProofJson(proofTypes, proofValues);
+
+      json = abi.encodePacked(json, ',"proof": ', jsonProof);
+    }
+
+    // Add impact if available
+    if (hasImpact) {
+      bytes memory jsonImpact = _buildImpactJson(impactCodes, impactValues);
+
+      json = abi.encodePacked(json, ',"impact": ', jsonImpact);
+    }
+
+    // Close the JSON object
+    json = abi.encodePacked(json, "}");
+
+    return string(json);
+  }
+
+  /**
+   * @dev Builds the proof JSON string from the proof data.
+   * @param proofTypes the proof types
+   * @param proofValues the proof values
+   */
+  function _buildProofJson(
+    string[] memory proofTypes,
+    string[] memory proofValues
+  ) internal pure returns (bytes memory) {
+    require(proofTypes.length == proofValues.length, "X2EarnRewardsPool: Mismatched input lengths for Proof");
+
+    bytes memory json = abi.encodePacked("{");
+
+    for (uint256 i; i < proofTypes.length; i++) {
+      if (_isValidProofType(proofTypes[i])) {
+        json = abi.encodePacked(json, '"', proofTypes[i], '":', '"', proofValues[i], '"');
+        if (i < proofTypes.length - 1) {
+          json = abi.encodePacked(json, ",");
+        }
+      } else {
+        revert("X2EarnRewardsPool: Invalid proof type");
+      }
+    }
+
+    json = abi.encodePacked(json, "}");
+
+    return json;
+  }
+
+  /**
+   * @dev Builds the impact JSON string from the impact data.
+   *
+   * @param impactCodes the impact codes
+   * @param impactValues the impact values
+   */
+  function _buildImpactJson(
+    string[] memory impactCodes,
+    uint256[] memory impactValues
+  ) internal view returns (bytes memory) {
+    require(impactCodes.length == impactValues.length, "X2EarnRewardsPool: Mismatched input lengths for Impact");
+
+    bytes memory json = abi.encodePacked("{");
+
+    for (uint256 i; i < impactValues.length; i++) {
+      if (_isAllowedImpactKey(impactCodes[i])) {
+        json = abi.encodePacked(json, '"', impactCodes[i], '":', Strings.toString(impactValues[i]));
+        if (i < impactValues.length - 1) {
+          json = abi.encodePacked(json, ",");
+        }
+      } else {
+        revert("X2EarnRewardsPool: Invalid impact key");
+      }
+    }
+
+    json = abi.encodePacked(json, "}");
+
+    return json;
+  }
+
+  /**
+   * @dev Checks if the key is allowed.
+   */
+  function _isAllowedImpactKey(string memory key) internal view returns (bool) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    return $.impactKeyIndex[key] > 0;
+  }
+
+  /**
+   * @dev Checks if the proof type is valid.
+   */
+  function _isValidProofType(string memory proofType) internal pure returns (bool) {
+    return
+      keccak256(abi.encodePacked(proofType)) == keccak256(abi.encodePacked("image")) ||
+      keccak256(abi.encodePacked(proofType)) == keccak256(abi.encodePacked("link")) ||
+      keccak256(abi.encodePacked(proofType)) == keccak256(abi.encodePacked("text")) ||
+      keccak256(abi.encodePacked(proofType)) == keccak256(abi.encodePacked("video"));
   }
 
   /**
@@ -195,6 +402,45 @@ contract X2EarnRewardsPool is
     $.x2EarnApps = _x2EarnApps;
   }
 
+  /**
+   * @dev Adds a new allowed impact key.
+   * @param newKey the new key to add
+   */
+  function addImpactKey(string memory newKey) external onlyRoleOrAdmin(IMPACT_KEY_MANAGER_ROLE) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    _addImpactKey(newKey, $);
+  }
+
+  /**
+   * @dev Internal function to add a new allowed impact key.
+   * @param key the new key to add
+   * @param $ the storage pointer
+   */
+  function _addImpactKey(string memory key, X2EarnRewardsPoolStorage storage $) internal {
+    require($.impactKeyIndex[key] == 0, "X2EarnRewardsPool: Key already exists");
+    $.allowedImpactKeys.push(key);
+    $.impactKeyIndex[key] = $.allowedImpactKeys.length; // Store 1-based index
+  }
+
+  /**
+   * @dev Removes an allowed impact key.
+   * @param keyToRemove the key to remove
+   */
+  function removeImpactKey(string memory keyToRemove) external onlyRoleOrAdmin(IMPACT_KEY_MANAGER_ROLE) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    uint256 index = $.impactKeyIndex[keyToRemove];
+    require(index > 0, "X2EarnRewardsPool: Key not found");
+
+    // Move the last element into the place to delete
+    string memory lastKey = $.allowedImpactKeys[$.allowedImpactKeys.length - 1];
+    $.allowedImpactKeys[index - 1] = lastKey;
+    $.impactKeyIndex[lastKey] = index; // Update the index of the last key
+
+    // Remove the last element
+    $.allowedImpactKeys.pop();
+    delete $.impactKeyIndex[keyToRemove];
+  }
+
   // ---------- Getters ---------- //
 
   /**
@@ -209,7 +455,7 @@ contract X2EarnRewardsPool is
    * @dev See {IX2EarnRewardsPool-version}
    */
   function version() external pure virtual returns (string memory) {
-    return "1";
+    return "2";
   }
 
   /**
@@ -228,6 +474,14 @@ contract X2EarnRewardsPool is
     return $.x2EarnApps;
   }
 
+  /**
+   * @dev Retrieves the allowed impact keys.
+   */
+  function getAllowedImpactKeys() external view returns (string[] memory) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    return $.allowedImpactKeys;
+  }
+
   // ---------- Fallbacks ---------- //
 
   /**
diff --git a/contracts/depreceated/V1/VoterRewardsV1.sol b/contracts/deprecated/V1/VoterRewardsV1.sol
similarity index 100%
rename from contracts/depreceated/V1/VoterRewardsV1.sol
rename to contracts/deprecated/V1/VoterRewardsV1.sol
diff --git a/contracts/deprecated/V1/X2EarnRewardsPoolV1.sol b/contracts/deprecated/V1/X2EarnRewardsPoolV1.sol
new file mode 100644
index 0000000..75f84af
--- /dev/null
+++ b/contracts/deprecated/V1/X2EarnRewardsPoolV1.sol
@@ -0,0 +1,275 @@
+// SPDX-License-Identifier: MIT
+
+//                                      #######
+//                                 ################
+//                               ####################
+//                             ###########   #########
+//                            #########      #########
+//          #######          #########       #########
+//          #########       #########      ##########
+//           ##########     ########     ####################
+//            ##########   #########  #########################
+//              ################### ############################
+//               #################  ##########          ########
+//                 ##############      ###              ########
+//                  ############                       #########
+//                    ##########                     ##########
+//                     ########                    ###########
+//                       ###                    ############
+//                                          ##############
+//                                    #################
+//                                   ##############
+//                                   #########
+
+pragma solidity 0.8.20;
+
+import { UUPSUpgradeable } from "@openzeppelin/contracts-upgradeable/proxy/utils/UUPSUpgradeable.sol";
+import { AccessControlUpgradeable } from "@openzeppelin/contracts-upgradeable/access/AccessControlUpgradeable.sol";
+import { ReentrancyGuardUpgradeable } from "@openzeppelin/contracts-upgradeable/utils/ReentrancyGuardUpgradeable.sol";
+import { IB3TR } from "../../interfaces/IB3TR.sol";
+import { IX2EarnApps } from "../../interfaces/IX2EarnApps.sol";
+import { IX2EarnRewardsPoolV1 } from "./interfaces/IX2EarnRewardsPoolV1.sol";
+import { IERC1155Receiver } from "@openzeppelin/contracts/token/ERC1155/IERC1155Receiver.sol";
+import { IERC721Receiver } from "@openzeppelin/contracts/token/ERC721/IERC721Receiver.sol";
+
+/**
+ * @title X2EarnRewardsPool
+ * @dev This contract is used by x2Earn apps to reward users that performed sustainable actions.
+ * The XAllocationPool contract or other contracts/users can deposit funds into this contract by specifying the app
+ * that can access the funds.
+ * Admins of x2EarnApps can withdraw funds from the rewards pool, whihch are sent to the team wallet.
+ * Reward distributors of a x2Earn app can distribute rewards to users that performed sustainable actions or withdraw funds
+ * to the team wallet.
+ * The contract is upgradable through the UUPS proxy pattern and UPGRADER_ROLE can authorize the upgrade.
+ */
+contract X2EarnRewardsPoolV1 is
+  IX2EarnRewardsPoolV1,
+  UUPSUpgradeable,
+  AccessControlUpgradeable,
+  ReentrancyGuardUpgradeable
+{
+  bytes32 public constant UPGRADER_ROLE = keccak256("UPGRADER_ROLE");
+  bytes32 public constant CONTRACTS_ADDRESS_MANAGER_ROLE = keccak256("CONTRACTS_ADDRESS_MANAGER_ROLE");
+
+  /// @custom:oz-upgrades-unsafe-allow constructor
+  constructor() {
+    _disableInitializers();
+  }
+
+  /// @custom:storage-location erc7201:b3tr.storage.X2EarnRewardsPool
+  struct X2EarnRewardsPoolStorage {
+    IB3TR b3tr;
+    IX2EarnApps x2EarnApps;
+    mapping(bytes32 appId => uint256) availableFunds; // Funds that the app can use to reward users
+  }
+
+  // keccak256(abi.encode(uint256(keccak256("b3tr.storage.X2EarnRewardsPool")) - 1)) & ~bytes32(uint256(0xff))
+  bytes32 private constant X2EarnRewardsPoolStorageLocation =
+    0x7c0dcc5654efea34bf150fefe2d7f927494d4026026590e81037cb4c7a9cdc00;
+
+  function _getX2EarnRewardsPoolStorage() private pure returns (X2EarnRewardsPoolStorage storage $) {
+    assembly {
+      $.slot := X2EarnRewardsPoolStorageLocation
+    }
+  }
+
+  function initialize(
+    address _admin,
+    address _contractsManagerAdmin,
+    address _upgrader,
+    IB3TR _b3tr,
+    IX2EarnApps _x2EarnApps
+  ) external initializer {
+    require(_admin != address(0), "X2EarnRewardsPool: admin is the zero address");
+    require(_contractsManagerAdmin != address(0), "X2EarnRewardsPool: contracts manager admin is the zero address");
+    require(_upgrader != address(0), "X2EarnRewardsPool: upgrader is the zero address");
+    require(address(_b3tr) != address(0), "X2EarnRewardsPool: b3tr is the zero address");
+    require(address(_x2EarnApps) != address(0), "X2EarnRewardsPool: x2EarnApps is the zero address");
+
+    __UUPSUpgradeable_init();
+    __AccessControl_init();
+    __ReentrancyGuard_init();
+
+    _grantRole(DEFAULT_ADMIN_ROLE, _admin);
+    _grantRole(UPGRADER_ROLE, _upgrader);
+    _grantRole(CONTRACTS_ADDRESS_MANAGER_ROLE, _contractsManagerAdmin);
+
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    $.b3tr = _b3tr;
+    $.x2EarnApps = _x2EarnApps;
+  }
+
+  // ---------- Authorizers ---------- //
+
+  function _authorizeUpgrade(address newImplementation) internal virtual override onlyRole(UPGRADER_ROLE) {}
+
+  // ---------- Setters ---------- //
+
+  /**
+   * @dev See {IX2EarnRewardsPool-deposit}
+   */
+  function deposit(uint256 amount, bytes32 appId) external returns (bool) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+
+    // check that app exists
+    require($.x2EarnApps.appExists(appId), "X2EarnRewardsPool: app does not exist");
+
+    // increase available amount for the app
+    $.availableFunds[appId] += amount;
+
+    // transfer tokens to this contract
+    require($.b3tr.transferFrom(msg.sender, address(this), amount), "X2EarnRewardsPool: deposit transfer failed");
+
+    emit NewDeposit(amount, appId, msg.sender);
+
+    return true;
+  }
+
+  /**
+   * @dev See {IX2EarnRewardsPool-withdraw}
+   */
+  function withdraw(uint256 amount, bytes32 appId, string memory reason) external nonReentrant {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+
+    require($.x2EarnApps.appExists(appId), "X2EarnRewardsPool: app does not exist");
+
+    require(
+      $.x2EarnApps.isAppAdmin(appId, msg.sender) || $.x2EarnApps.isRewardDistributor(appId, msg.sender),
+      "X2EarnRewardsPool: not an app admin nor a reward distributor"
+    );
+
+    // check if the app has enough available funds to withdraw
+    require($.availableFunds[appId] >= amount, "X2EarnRewardsPool: app has insufficient funds");
+
+    // check if the contract has enough funds
+    require($.b3tr.balanceOf(address(this)) >= amount, "X2EarnRewardsPool: insufficient funds on contract");
+
+    // Get the team wallet address
+    address teamWalletAddress = $.x2EarnApps.teamWalletAddress(appId);
+
+    // transfer the rewards to the team wallet
+    $.availableFunds[appId] -= amount;
+    require($.b3tr.transfer(teamWalletAddress, amount), "X2EarnRewardsPool: Allocation transfer to app failed");
+
+    emit TeamWithdrawal(amount, appId, teamWalletAddress, msg.sender, reason);
+  }
+
+  /**
+   * @dev See {IX2EarnRewardsPool-distributeReward}
+   */
+  function distributeReward(
+    bytes32 appId,
+    uint256 amount,
+    address receiver,
+    string memory proof
+  ) external nonReentrant {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+
+    require($.x2EarnApps.appExists(appId), "X2EarnRewardsPool: app does not exist");
+
+    require($.x2EarnApps.isRewardDistributor(appId, msg.sender), "X2EarnRewardsPool: not a reward distributor");
+
+    // check if the app has enough available funds to reward users
+    require($.availableFunds[appId] >= amount, "X2EarnRewardsPool: app has insufficient funds");
+
+    // check if the contract has enough funds
+    require($.b3tr.balanceOf(address(this)) >= amount, "X2EarnRewardsPool: insufficient funds on contract");
+
+    // transfer the rewards to the receiver
+    $.availableFunds[appId] -= amount;
+    require($.b3tr.transfer(receiver, amount), "X2EarnRewardsPool: Allocation transfer to app failed");
+
+    // emit event
+    emit RewardDistributed(amount, appId, receiver, proof, msg.sender);
+  }
+
+  /**
+   * @dev Sets the X2EarnApps contract address.
+   *
+   * @param _x2EarnApps the new X2EarnApps contract
+   */
+  function setX2EarnApps(IX2EarnApps _x2EarnApps) external onlyRole(CONTRACTS_ADDRESS_MANAGER_ROLE) {
+    require(address(_x2EarnApps) != address(0), "X2EarnRewardsPool: x2EarnApps is the zero address");
+
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    $.x2EarnApps = _x2EarnApps;
+  }
+
+  // ---------- Getters ---------- //
+
+  /**
+   * @dev See {IX2EarnRewardsPool-availableFunds}
+   */
+  function availableFunds(bytes32 appId) external view returns (uint256) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    return $.availableFunds[appId];
+  }
+
+  /**
+   * @dev See {IX2EarnRewardsPool-version}
+   */
+  function version() external pure virtual returns (string memory) {
+    return "1";
+  }
+
+  /**
+   * @dev Retrieves the B3TR token contract.
+   */
+  function b3tr() external view returns (IB3TR) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    return $.b3tr;
+  }
+
+  /**
+   * @dev Retrieves the X2EarnApps contract.
+   */
+  function x2EarnApps() external view returns (IX2EarnApps) {
+    X2EarnRewardsPoolStorage storage $ = _getX2EarnRewardsPoolStorage();
+    return $.x2EarnApps;
+  }
+
+  // ---------- Fallbacks ---------- //
+
+  /**
+   * @dev Transfers of VET to this contract are not allowed.
+   */
+  receive() external payable virtual {
+    revert("X2EarnRewardsPool: contract does not accept VET");
+  }
+
+  /**
+   * @dev Contract does not accept calls/data.
+   */
+  fallback() external payable {
+    revert("X2EarnRewardsPool: contract does not accept calls/data");
+  }
+
+  /**
+   * @dev Transfers of ERC721 tokens to this contract are not allowed.
+   *
+   * @notice supported only when safeTransferFrom is used
+   */
+  function onERC721Received(address, address, uint256, bytes memory) public virtual returns (bytes4) {
+    revert("X2EarnRewardsPool: contract does not accept ERC721 tokens");
+  }
+
+  /**
+   * @dev Transfers of ERC1155 tokens to this contract are not allowed.
+   */
+  function onERC1155Received(address, address, uint256, uint256, bytes memory) public virtual returns (bytes4) {
+    revert("X2EarnRewardsPool: contract does not accept ERC1155 tokens");
+  }
+
+  /**
+   * @dev Transfers of ERC1155 tokens to this contract are not allowed.
+   */
+  function onERC1155BatchReceived(
+    address,
+    address,
+    uint256[] memory,
+    uint256[] memory,
+    bytes memory
+  ) public virtual returns (bytes4) {
+    revert("X2EarnRewardsPool: contract does not accept batch transfers of ERC1155 tokens");
+  }
+}
diff --git a/contracts/depreceated/V1/interfaces/IVoterRewardsV1.sol b/contracts/deprecated/V1/interfaces/IVoterRewardsV1.sol
similarity index 100%
rename from contracts/depreceated/V1/interfaces/IVoterRewardsV1.sol
rename to contracts/deprecated/V1/interfaces/IVoterRewardsV1.sol
diff --git a/contracts/deprecated/V1/interfaces/IX2EarnRewardsPoolV1.sol b/contracts/deprecated/V1/interfaces/IX2EarnRewardsPoolV1.sol
new file mode 100644
index 0000000..fbe9607
--- /dev/null
+++ b/contracts/deprecated/V1/interfaces/IX2EarnRewardsPoolV1.sol
@@ -0,0 +1,95 @@
+// SPDX-License-Identifier: MIT
+
+pragma solidity 0.8.20;
+
+/**
+ * @title IX2EarnRewardsPoolV1
+ * @dev Interface designed to be used by a contract that allows x2Earn apps to reward users that performed sustainable actions.
+ * Funds can be deposited into this contract by specifying the app id that can access the funds.
+ * Admins of x2EarnApps can withdraw funds from the rewards pool, whihc are sent to the team wallet.
+ */
+interface IX2EarnRewardsPoolV1 {
+  /**
+   * @dev Event emitted when a new deposit is made into the rewards pool.
+   *
+   * @param amount The amount of $B3TR deposited.
+   * @param appId The ID of the app for which the deposit was made.
+   * @param depositor The address of the user that deposited the funds.
+   */
+  event NewDeposit(uint256 amount, bytes32 indexed appId, address indexed depositor);
+
+  /**
+   * @dev Event emitted when a team withdraws funds from the rewards pool.
+   *
+   * @param amount The amount of $B3TR withdrawn.
+   * @param appId The ID of the app for which the withdrawal was made.
+   * @param teamWallet The address of the team wallet that received the funds.
+   * @param withdrawer The address of the user that withdrew the funds.
+   * @param reason The reason for the withdrawal.
+   */
+  event TeamWithdrawal(
+    uint256 amount,
+    bytes32 indexed appId,
+    address indexed teamWallet,
+    address withdrawer,
+    string reason
+  );
+
+  /**
+   * @dev Event emitted when a reward is emitted by an app.
+   *
+   * @param amount The amount of $B3TR rewarded.
+   * @param appId The ID of the app that emitted the reward.
+   * @param receiver The address of the user that received the reward.
+   * @param proof The proof of the sustainable action that was performed.
+   * @param distributor The address of the user that distributed the reward.
+   */
+  event RewardDistributed(
+    uint256 amount,
+    bytes32 indexed appId,
+    address indexed receiver,
+    string proof,
+    address indexed distributor
+  );
+
+  /**
+   * @dev Retrieves the current version of the contract.
+   *
+   * @return The version of the contract.
+   */
+  function version() external pure returns (string memory);
+
+  /**
+   * @dev Function used by x2earn apps to deposit funds into the rewards pool.
+   *
+   * @param amount The amount of $B3TR to deposit.
+   * @param appId The ID of the app.
+   */
+  function deposit(uint256 amount, bytes32 appId) external returns (bool);
+
+  /**
+   * @dev Function used by x2earn apps to withdraw funds from the rewards pool.
+   *
+   * @param amount The amount of $B3TR to withdraw.
+   * @param appId The ID of the app.
+   * @param reason The reason for the withdrawal.
+   */
+  function withdraw(uint256 amount, bytes32 appId, string memory reason) external;
+
+  /**
+   * @dev Gets the amount of funds available for an app to reward users.
+   *
+   * @param appId The ID of the app.
+   */
+  function availableFunds(bytes32 appId) external view returns (uint256);
+
+  /**
+   * @dev Function used by x2earn apps to reward users that performed sustainable actions.
+   *
+   * @param appId the app id that is emitting the reward
+   * @param amount the amount of B3TR token the user is rewarded with
+   * @param receiver the address of the user that performed the sustainable action and is rewarded
+   * @param proof a JSON file uploaded on IPFS by the app that adds information on the type of action that was performed
+   */
+  function distributeReward(bytes32 appId, uint256 amount, address receiver, string memory proof) external;
+}
diff --git a/contracts/interfaces/IX2EarnRewardsPool.sol b/contracts/interfaces/IX2EarnRewardsPool.sol
index 29dec0e..b2e5fbb 100644
--- a/contracts/interfaces/IX2EarnRewardsPool.sol
+++ b/contracts/interfaces/IX2EarnRewardsPool.sol
@@ -89,7 +89,59 @@ interface IX2EarnRewardsPool {
    * @param appId the app id that is emitting the reward
    * @param amount the amount of B3TR token the user is rewarded with
    * @param receiver the address of the user that performed the sustainable action and is rewarded
-   * @param proof a JSON file uploaded on IPFS by the app that adds information on the type of action that was performed
+   * @param proof deprecated argument, pass an empty string instead
    */
   function distributeReward(bytes32 appId, uint256 amount, address receiver, string memory proof) external;
+
+  /**
+   * @dev Function used by x2earn apps to reward users that performed sustainable actions.
+   * @notice This function is depracted in favor of distributeRewardWithProof.
+   *
+   * @param appId the app id that is emitting the reward
+   * @param amount the amount of B3TR token the user is rewarded with
+   * @param receiver the address of the user that performed the sustainable action and is rewarded
+   * @param proof the JSON string that contains the proof and impact of the sustainable action
+   */
+  function distributeRewardDeprecated(bytes32 appId, uint256 amount, address receiver, string memory proof) external;
+
+  /**
+   * @dev Function used by x2earn apps to reward users that performed sustainable actions.
+   *
+   * @param appId the app id that is emitting the reward
+   * @param amount the amount of B3TR token the user is rewarded with
+   * @param receiver the address of the user that performed the sustainable action and is rewarded
+   * @param proofTypes the types of the proof of the sustainable action
+   * @param proofValues the values of the proof of the sustainable action
+   * @param impactCodes the codes of the impacts of the sustainable action
+   * @param impactValues the values of the impacts of the sustainable action
+   * @param description the description of the sustainable action
+   */
+  function distributeRewardWithProof(
+    bytes32 appId,
+    uint256 amount,
+    address receiver,
+    string[] memory proofTypes, // link, photo, video, text, etc.
+    string[] memory proofValues, // "https://...", "Qm...", etc.,
+    string[] memory impactCodes, // carbon, water, etc.
+    uint256[] memory impactValues, // 100, 200, etc.,
+    string memory description
+  ) external;
+
+  /**
+   * @dev Builds the JSON proof string that will be stored
+   * on chain regarding the proofs, impacts and description of the sustainable action.
+   *
+   * @param proofTypes the types of the proof of the sustainable action
+   * @param proofValues the values of the proof of the sustainable action
+   * @param impactCodes the codes of the impacts of the sustainable action
+   * @param impactValues the values of the impacts of the sustainable action
+   * @param description the description of the sustainable action
+   */
+  function buildProof(
+    string[] memory proofTypes, // link, photo, video, text, etc.
+    string[] memory proofValues, // "https://...", "Qm...", etc.,
+    string[] memory impactCodes, // carbon, water, etc.
+    uint256[] memory impactValues, // 100, 200, etc.,
+    string memory description
+  ) external returns (string memory);
 }
diff --git a/scripts/deploy/deploy.ts b/scripts/deploy/deploy.ts
index 06fd891..c4e58b8 100644
--- a/scripts/deploy/deploy.ts
+++ b/scripts/deploy/deploy.ts
@@ -152,15 +152,24 @@ export async function deployAll(config: ContractsConfig) {
   ])) as X2EarnApps
   console.log(`X2EarnApps deployed at ${await x2EarnApps.getAddress()}`)
 
-  const x2EarnRewardsPool = (await deployProxy(
-    "X2EarnRewardsPool",
+  const x2EarnRewardsPool = (await deployAndUpgrade(
+    ["X2EarnRewardsPoolV1", "X2EarnRewardsPool"],
     [
-      config.CONTRACTS_ADMIN_ADDRESS, // admin
-      config.CONTRACTS_ADMIN_ADDRESS, // contracts address manager
-      config.CONTRACTS_ADMIN_ADDRESS, // upgrader
-      await b3tr.getAddress(),
-      await x2EarnApps.getAddress(),
-    ])) as X2EarnRewardsPool
+      [
+        config.CONTRACTS_ADMIN_ADDRESS, // admin
+        config.CONTRACTS_ADMIN_ADDRESS, // contracts address manager
+        config.CONTRACTS_ADMIN_ADDRESS, // upgrader
+        await b3tr.getAddress(),
+        await x2EarnApps.getAddress(),
+      ],
+      [
+        config.CONTRACTS_ADMIN_ADDRESS, // impact admin address
+      ],
+    ],
+    {
+      versions: [undefined, 2],
+    },
+  )) as X2EarnRewardsPool
 
   console.log(`X2EarnRewardsPool deployed at ${await x2EarnRewardsPool.getAddress()}`)
 
@@ -195,7 +204,7 @@ export async function deployAll(config: ContractsConfig) {
   ])) as GalaxyMember
   console.log(`GalaxyMember deployed at ${await galaxyMember.getAddress()}`)
 
-  const emissions = (await deployProxy("Emissions",  [
+  const emissions = (await deployProxy("Emissions", [
     {
       minter: TEMP_ADMIN,
       admin: TEMP_ADMIN,
diff --git a/scripts/helpers/type.ts b/scripts/helpers/type.ts
index a6df0f5..f18bcc9 100644
--- a/scripts/helpers/type.ts
+++ b/scripts/helpers/type.ts
@@ -1,4 +1,5 @@
 export type DeployUpgradeOptions = {
-    libraries?: { [libraryName: string]: string }[]
-    versions?: (number | undefined)[]
-  }
\ No newline at end of file
+  libraries?: { [libraryName: string]: string }[]
+  versions?: (number | undefined)[]
+  logOutput?: boolean
+}
diff --git a/scripts/helpers/upgrades.ts b/scripts/helpers/upgrades.ts
index a725c30..e191874 100644
--- a/scripts/helpers/upgrades.ts
+++ b/scripts/helpers/upgrades.ts
@@ -1,12 +1,14 @@
 import { BaseContract, Interface } from "ethers"
 import { ethers } from "hardhat"
 import { getImplementationAddress } from "@openzeppelin/upgrades-core"
+import { compareAddresses } from "./utils"
 import { DeployUpgradeOptions } from "./type"
 
 export const deployProxy = async (
   contractName: string,
   args: any[],
   libraries: { [libraryName: string]: string } = {},
+  logOutput: boolean = false,
   version?: number,
 ): Promise<BaseContract> => {
   // Deploy the implementation contract
@@ -15,6 +17,7 @@ export const deployProxy = async (
   })
   const implementation = await Contract.deploy()
   await implementation.waitForDeployment()
+  logOutput && console.log(`${contractName} impl.: ${await implementation.getAddress()}`)
 
   // Deploy the proxy contract, link it to the implementation and call the initializer
   const proxyFactory = await ethers.getContractFactory("B3TRProxy")
@@ -23,9 +26,10 @@ export const deployProxy = async (
     getInitializerData(Contract.interface, args, version),
   )
   await proxy.waitForDeployment()
+  logOutput && console.log(`${contractName} proxy: ${await proxy.getAddress()}`)
 
   const newImplementationAddress = await getImplementationAddress(ethers.provider, await proxy.getAddress())
-  if (newImplementationAddress !== (await implementation.getAddress())) {
+  if (!compareAddresses(newImplementationAddress, await implementation.getAddress())) {
     throw new Error(
       `The implementation address is not the one expected: ${newImplementationAddress} !== ${await implementation.getAddress()}`,
     )
@@ -35,6 +39,60 @@ export const deployProxy = async (
   return Contract.attach(await proxy.getAddress())
 }
 
+export const deployProxyOnly = async (
+  contractName: string,
+  libraries: { [libraryName: string]: string } = {},
+  logOutput: boolean = false,
+): Promise<string> => {
+  // Deploy the implementation contract
+  const Contract = await ethers.getContractFactory(contractName, {
+    libraries: libraries,
+  })
+  const implementation = await Contract.deploy()
+  await implementation.waitForDeployment()
+  logOutput && console.log(`${contractName} impl.: ${await implementation.getAddress()}`)
+
+  // Deploy the proxy contract without initialization
+  const proxyFactory = await ethers.getContractFactory("B3TRProxy")
+  const proxy = await proxyFactory.deploy(await implementation.getAddress(), "0x")
+  await proxy.waitForDeployment()
+  logOutput && console.log(`${contractName} proxy: ${await proxy.getAddress()}`)
+
+  const newImplementationAddress = await getImplementationAddress(ethers.provider, await proxy.getAddress())
+  if (!compareAddresses(newImplementationAddress, await implementation.getAddress())) {
+    throw new Error(
+      `The implementation address is not the one expected: ${newImplementationAddress} !== ${await implementation.getAddress()}`,
+    )
+  }
+
+  // Return the proxy address
+  return await proxy.getAddress()
+}
+
+export const initializeProxy = async (
+  proxyAddress: string,
+  contractName: string,
+  args: any[],
+  version?: number,
+): Promise<BaseContract> => {
+  // Get the ContractFactory
+  const Contract = await ethers.getContractFactory(contractName)
+
+  // Prepare the initializer data using getInitializerData
+  const initializerData = getInitializerData(Contract.interface, args, version)
+
+  // Interact with the proxy contract to call the initializer using the prepared initializer data
+  const signer = (await ethers.getSigners())[0]
+  const tx = await signer.sendTransaction({
+    to: proxyAddress,
+    data: initializerData,
+  })
+  await tx.wait()
+
+  // Return an instance of the contract using the proxy address
+  return Contract.attach(proxyAddress)
+}
+
 export const upgradeProxy = async (
   previousVersionContractName: string,
   newVersionContractName: string,
@@ -89,6 +147,7 @@ export const deployAndUpgrade = async (
     contractName,
     contractArgs,
     options.libraries?.[0],
+    options.logOutput,
     options.versions?.[0],
   )
 
@@ -118,4 +177,4 @@ export function getInitializerData(contractInterface: Interface, args: any[], ve
     throw new Error(`Contract initializer not found`)
   }
   return contractInterface.encodeFunctionData(fragment, args)
-}
\ No newline at end of file
+}
diff --git a/scripts/helpers/utils.ts b/scripts/helpers/utils.ts
new file mode 100644
index 0000000..0dd3e00
--- /dev/null
+++ b/scripts/helpers/utils.ts
@@ -0,0 +1,136 @@
+import { address } from "thor-devkit"
+
+/**
+ * Checks if two addresses are equal. Returns true if both values are strings AND:
+ *  - The two values are equal OR
+ *  - The checksumed addresses are equal
+ *
+ * @param address1
+ * @param address2
+ */
+export const compareAddresses = (address1?: string, address2?: string): boolean => {
+  if (!address1 || !address2) return false
+
+  if (address2 === address1) {
+    return true
+  }
+
+  try {
+    return normalize(address1) === normalize(address2)
+  } catch (e) {
+    return false
+  }
+}
+
+export const compareListOfAddresses = (add1: string[], add2: string[]) => {
+  if (add1.length !== add2.length) return false
+  const sortedAdd1 = [...add1].map(e => e.toLowerCase()).sort((a, b) => a.localeCompare(b))
+  const sortedAdd2 = [...add2].map(e => e.toLowerCase()).sort((a, b) => a.localeCompare(b))
+
+  for (let i = 0; i < sortedAdd1.length; i++) {
+    if (!compareAddresses(sortedAdd1[i], sortedAdd2[i])) return false
+  }
+
+  return true
+}
+
+export const regexPattern = () => {
+  return /^0x[a-fA-F0-9]{40}$/
+}
+
+export const isValid = (addr: string | undefined | null): boolean => {
+  try {
+    if (typeof addr !== "string") return false
+    address.toChecksumed(addPrefix(addr))
+    return true
+  } catch (e) {
+    return false
+  }
+}
+
+export const leftPadWithZeros = (str: string, length: number): string => {
+  // Remove '0x' prefix if it exists
+  const cleanStr = str.startsWith("0x") ? str.slice(2) : str
+  if (cleanStr.length > length) {
+    throw new Error("Input string is longer than the specified length")
+  }
+  // Pad the string to the specified length
+  const paddedStr = cleanStr.padStart(length, "0")
+  return `0x${paddedStr}`
+}
+
+import crypto from "crypto"
+const PREFIX = "0x"
+const PREFIX_REGEX = /^0[xX]/
+const HEX_REGEX = /^(0[xX])?[a-fA-F0-9]+$/
+
+/**
+ * Returns the provied hex string with the hex prefix removed.
+ * If the prefix doesn't exist the hex is returned unmodified
+ * @param hex - the input hex string
+ * @returns the input hex string with the hex prefix removed
+ * @throws an error if the input is not a valid hex string
+ */
+export const removePrefix = (hex: string): string => {
+  validate(hex)
+  return hex.replace(PREFIX_REGEX, "")
+}
+
+/**
+ * Returns the provided hex string with the hex prefix added.
+ * If the prefix already exists the string is returned unmodified.
+ * If the string contains an UPPER case `X` in the prefix it will be replaced with a lower case `x`
+ * @param hex - the input hex string
+ * @returns the input hex string with the hex prefix added
+ * @throws an error if the input is not a valid hex string
+ */
+export const addPrefix = (hex: string): string => {
+  validate(hex)
+  return PREFIX_REGEX.test(hex) ? hex.replace(PREFIX_REGEX, PREFIX) : `${PREFIX}${hex}`
+}
+
+/**
+ * Validate the hex string. Throws an Error if not valid
+ * @param hex - the input hex string
+ * @throws an error if the input is not a valid hex string
+ */
+export const validate = (hex: string) => {
+  if (!isHexValid(hex)) throw Error("Provided hex value is not valid")
+}
+
+/**
+ * Check if input string is valid
+ * @param hex - the input hex string
+ * @returns boolean representing whether the input hex is valid
+ */
+export const isHexValid = (hex?: string | null): boolean => {
+  return !!hex && HEX_REGEX.test(hex)
+}
+
+export const isInvalid = (hex?: string | null): boolean => {
+  return !isHexValid(hex)
+}
+
+export const normalize = (hex: string): string => {
+  return addPrefix(hex.toLowerCase().trim())
+}
+
+export const compare = (hex1: string, hex2: string): boolean => {
+  try {
+    return removePrefix(hex1).toLowerCase() === removePrefix(hex2).toLowerCase()
+  } catch (e) {
+    return false
+  }
+}
+
+/**
+ * Generate a random hex string of the defined length
+ * @param size - the length of the random hex output
+ * @returns a random hex string of length `size`
+ */
+export const generateRandom = (size: number): string => {
+  if (size < 1) throw Error("Size must be > 0")
+  const randBuffer = crypto.randomBytes(Math.ceil(size / 2))
+  if (!randBuffer) throw Error("Failed to generate random hex")
+  return `${PREFIX}${randBuffer.toString("hex").substring(0, size)}`
+}
diff --git a/test/X2EarnRewardsPool.test.ts b/test/X2EarnRewardsPool.test.ts
index e812d58..3c9b7ba 100644
--- a/test/X2EarnRewardsPool.test.ts
+++ b/test/X2EarnRewardsPool.test.ts
@@ -3,7 +3,9 @@ import { expect } from "chai"
 import { ZERO_ADDRESS, catchRevert, filterEventsByName, getOrDeployContractInstances } from "./helpers"
 import { describe, it } from "mocha"
 import { getImplementationAddress } from "@openzeppelin/upgrades-core"
-import { deployProxy } from "../scripts/helpers"
+import { deployProxy, upgradeProxy } from "../scripts/helpers"
+import { X2EarnRewardsPool, X2EarnRewardsPoolV1 } from "../typechain-types"
+import { createLocalConfig } from "../config/contracts/envs/local"
 
 describe("X2EarnRewardsPool", function () {
   // deployment
@@ -46,7 +48,7 @@ describe("X2EarnRewardsPool", function () {
 
     it("Version should be set correctly", async function () {
       const { x2EarnRewardsPool } = await getOrDeployContractInstances({ forceDeploy: false })
-      expect(await x2EarnRewardsPool.version()).to.equal("1")
+      expect(await x2EarnRewardsPool.version()).to.equal("2")
     })
 
     it("X2EarnApps should be set correctly", async function () {
@@ -125,6 +127,105 @@ describe("X2EarnRewardsPool", function () {
 
       expect(await x2EarnApps.version()).to.equal("1")
     })
+
+    it("Storage should be preserved after upgrade", async () => {
+      const config = createLocalConfig()
+      const { owner, b3tr, x2EarnApps, minterAccount } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        config,
+      })
+
+      const x2EarnRewardsPoolV1 = (await deployProxy("X2EarnRewardsPoolV1", [
+        owner.address,
+        owner.address,
+        owner.address,
+        await b3tr.getAddress(),
+        await x2EarnApps.getAddress(),
+      ])) as X2EarnRewardsPoolV1
+
+      expect(await x2EarnRewardsPoolV1.version()).to.equal("1")
+
+      // update x2EarnApps address
+      await x2EarnRewardsPoolV1.connect(owner).setX2EarnApps(await x2EarnApps.getAddress())
+      const x2EarnAppsAddress = await x2EarnRewardsPoolV1.x2EarnApps()
+
+      // deposit some funds
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      // create app
+      await x2EarnApps.addApp(owner.address, owner.address, "My app", "metadataURI")
+      await x2EarnApps.addApp(owner.address, owner.address, "My app #2", "metadataURI")
+
+      await b3tr.connect(owner).approve(await x2EarnRewardsPoolV1.getAddress(), amount)
+      await x2EarnRewardsPoolV1.connect(owner).deposit(amount, await x2EarnApps.hashAppName("My app"))
+
+      expect(await b3tr.balanceOf(await x2EarnRewardsPoolV1.getAddress())).to.equal(amount)
+
+      // upgrade to new version
+      const x2EarnRewardsPoolV2 = (await upgradeProxy(
+        "X2EarnRewardsPoolV1",
+        "X2EarnRewardsPool",
+        await x2EarnRewardsPoolV1.getAddress(),
+        [owner.address, config.X_2_EARN_INITIAL_IMPACT_KEYS],
+        {
+          version: 2,
+        },
+      )) as X2EarnRewardsPool
+
+      expect(await x2EarnRewardsPoolV2.version()).to.equal("2")
+      expect(await x2EarnRewardsPoolV2.x2EarnApps()).to.equal(x2EarnAppsAddress)
+      expect(await x2EarnRewardsPoolV2.availableFunds(await x2EarnApps.hashAppName("My app"))).to.equal(amount)
+    })
+
+    it("Should not be able to upgrade if initial impact keys is empty", async () => {
+      const config = createLocalConfig()
+      const { owner, b3tr, x2EarnApps, minterAccount } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        config,
+      })
+
+      const x2EarnRewardsPoolV1 = (await deployProxy("X2EarnRewardsPoolV1", [
+        owner.address,
+        owner.address,
+        owner.address,
+        await b3tr.getAddress(),
+        await x2EarnApps.getAddress(),
+      ])) as X2EarnRewardsPoolV1
+
+      expect(await x2EarnRewardsPoolV1.version()).to.equal("1")
+
+      // update x2EarnApps address
+      await x2EarnRewardsPoolV1.connect(owner).setX2EarnApps(await x2EarnApps.getAddress())
+
+      // deposit some funds
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      // create app
+      await x2EarnApps.addApp(owner.address, owner.address, "My app", "metadataURI")
+      await x2EarnApps.addApp(owner.address, owner.address, "My app #2", "metadataURI")
+
+      await b3tr.connect(owner).approve(await x2EarnRewardsPoolV1.getAddress(), amount)
+      await x2EarnRewardsPoolV1.connect(owner).deposit(amount, await x2EarnApps.hashAppName("My app"))
+
+      expect(await b3tr.balanceOf(await x2EarnRewardsPoolV1.getAddress())).to.equal(amount)
+
+      // upgrade to new version
+      await expect(
+        upgradeProxy(
+          "X2EarnRewardsPoolV1",
+          "X2EarnRewardsPool",
+          await x2EarnRewardsPoolV1.getAddress(),
+          [owner.address, []],
+          {
+            version: 2,
+          },
+        ),
+      ).to.be.reverted
+    })
   })
 
   // settings
@@ -299,7 +400,7 @@ describe("X2EarnRewardsPool", function () {
       const receipt = await tx.wait()
       if (!receipt) throw new Error("No receipt")
 
-      const event = filterEventsByName(receipt.logs, "NewDeposit")
+      let event = filterEventsByName(receipt.logs, "NewDeposit")
       expect(event).not.to.eql([])
 
       expect(event[0].args[0]).to.equal(amount)
@@ -365,7 +466,7 @@ describe("X2EarnRewardsPool", function () {
       const receipt = await tx.wait()
       if (!receipt) throw new Error("No receipt")
 
-      const event = filterEventsByName(receipt.logs, "TeamWithdrawal")
+      let event = filterEventsByName(receipt.logs, "TeamWithdrawal")
       expect(event).not.to.eql([])
       expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
       expect(event[0].args[1]).to.equal(await x2EarnApps.hashAppName("My app"))
@@ -415,7 +516,7 @@ describe("X2EarnRewardsPool", function () {
       const receipt = await tx.wait()
       if (!receipt) throw new Error("No receipt")
 
-      const event = filterEventsByName(receipt.logs, "TeamWithdrawal")
+      let event = filterEventsByName(receipt.logs, "TeamWithdrawal")
       expect(event).not.to.eql([])
       expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
       expect(event[0].args[1]).to.equal(await x2EarnApps.hashAppName("My app"))
@@ -570,13 +671,13 @@ describe("X2EarnRewardsPool", function () {
       // event emitted
       if (!receipt) throw new Error("No receipt")
 
-      const event = filterEventsByName(receipt.logs, "RewardDistributed")
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
 
       expect(event).not.to.eql([])
       expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
       expect(event[0].args[1]).to.equal(appId)
       expect(event[0].args[2]).to.equal(user.address)
-      expect(event[0].args[3]).to.equal("ipfs://metadata")
+      expect(event[0].args[3]).to.equal("") // Because it's using a deprecated function
       expect(event[0].args[4]).to.equal(owner.address)
     })
 
@@ -728,4 +829,803 @@ describe("X2EarnRewardsPool", function () {
       ).to.be.reverted
     })
   })
+
+  describe("Proofs and Impact", async function () {
+    it("Json proof is created by the contract", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(
+          appId,
+          ethers.parseEther("1"),
+          user.address,
+          ["image"],
+          ["https://image.png"],
+          ["carbon", "water"],
+          [100, 200],
+          "The description of the action",
+        )
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+
+      const emittedProof = JSON.parse(event[0].args[3])
+
+      expect(emittedProof).to.have.property("version")
+      expect(emittedProof.version).to.equal(2)
+      expect(emittedProof).to.have.deep.property("proof", { image: "https://image.png" })
+      expect(emittedProof).to.have.property("description")
+      expect(emittedProof.description).to.equal("The description of the action")
+      expect(emittedProof).to.have.deep.property("impact", { carbon: 100, water: 200 })
+
+      expect(event[0].args[4]).to.equal(owner.address)
+    })
+
+    it("App can provide multiple proofs", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(
+          appId,
+          ethers.parseEther("1"),
+          user.address,
+          ["image", "link"],
+          ["https://image.png", "https://twitter.com/tweet/1"],
+          ["carbon", "water"],
+          [100, 200],
+          "The description of the action",
+        )
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+
+      const emittedProof = JSON.parse(event[0].args[3])
+      expect(emittedProof).to.have.property("version")
+      expect(emittedProof.version).to.equal(2)
+      expect(emittedProof).to.have.deep.property("proof", {
+        image: "https://image.png",
+        link: "https://twitter.com/tweet/1",
+      })
+      expect(emittedProof).to.have.property("description")
+      expect(emittedProof.description).to.equal("The description of the action")
+      expect(emittedProof).to.have.deep.property("impact", { carbon: 100, water: 200 })
+
+      expect(event[0].args[4]).to.equal(owner.address)
+    })
+
+    it("App can provide only proofs without impact", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(
+          appId,
+          ethers.parseEther("1"),
+          user.address,
+          ["image", "link"],
+          ["https://image.png", "https://twitter.com/tweet/1"],
+          [],
+          [],
+          "The description of the action",
+        )
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+
+      const emittedProof = JSON.parse(event[0].args[3])
+
+      expect(emittedProof).to.have.property("version")
+      expect(emittedProof.version).to.equal(2)
+      expect(emittedProof).to.have.deep.property("proof", {
+        image: "https://image.png",
+        link: "https://twitter.com/tweet/1",
+      })
+      expect(emittedProof).to.have.property("description")
+      expect(emittedProof.description).to.equal("The description of the action")
+
+      expect(emittedProof).to.not.have.property("impact")
+    })
+
+    it("App can provide only impact without proofs", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(
+          appId,
+          ethers.parseEther("1"),
+          user.address,
+          [],
+          [],
+          ["carbon", "water"],
+          [100, 200],
+          "The description of the action",
+        )
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+
+      const emittedProof = JSON.parse(event[0].args[3])
+
+      expect(emittedProof).to.have.property("version")
+      expect(emittedProof.version).to.equal(2)
+      expect(emittedProof).to.have.property("description")
+      expect(emittedProof.description).to.equal("The description of the action")
+      expect(emittedProof).to.have.deep.property("impact", { carbon: 100, water: 200 })
+
+      expect(emittedProof).to.not.have.property("proof")
+    })
+
+    it("If only description is passed, without proofs and impact, nothing is emitted", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(
+          appId,
+          ethers.parseEther("1"),
+          user.address,
+          [],
+          [],
+          [],
+          [],
+          "The description of the action",
+        )
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+      expect(event[0].args[3]).to.equal("")
+    })
+
+    it("Description is not mandatory if proof or impact is passed", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(
+          appId,
+          ethers.parseEther("1"),
+          user.address,
+          ["image", "link"],
+          ["https://image.png", "https://twitter.com/tweet/1"],
+          ["carbon", "water"],
+          [100, 200],
+          "",
+        )
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+
+      const emittedProof = JSON.parse(event[0].args[3])
+      expect(emittedProof).to.have.property("version")
+      expect(emittedProof.version).to.equal(2)
+      expect(emittedProof).to.have.deep.property("proof", {
+        image: "https://image.png",
+        link: "https://twitter.com/tweet/1",
+      })
+      expect(emittedProof).to.not.have.property("description")
+      expect(emittedProof).to.have.deep.property("impact", { carbon: 100, water: 200 })
+    })
+
+    it("If no proof, nor impact, nor description is passed, nothing is emitted", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardWithProof(appId, ethers.parseEther("1"), user.address, [], [], [], [], "")
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+      expect(event[0].args[3]).to.equal("")
+    })
+
+    it("If a non valid proof type is passed, it reverts", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, owner } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      await catchRevert(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            await x2EarnApps.hashAppName("My app"),
+            ethers.parseEther("1"),
+            owner.address,
+            ["invalid"],
+            ["https://image.png"],
+            ["carbon", "water"],
+            [100, 200],
+            "The description of the action",
+          ),
+      )
+    })
+
+    it("Only valid proofs are image, text, link, video", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      await catchRevert(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            appId,
+            ethers.parseEther("1"),
+            user.address,
+            ["invalid"],
+            ["https://image.png"],
+            ["carbon", "water"],
+            [100, 200],
+            "The description of the action",
+          ),
+      )
+
+      await expect(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            appId,
+            ethers.parseEther("1"),
+            user.address,
+            ["video"],
+            ["https://image.png"],
+            ["carbon", "water"],
+            [100, 200],
+            "The description of the action",
+          ),
+      ).not.to.be.reverted
+
+      await expect(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            appId,
+            ethers.parseEther("1"),
+            user.address,
+            ["image"],
+            ["https://image.png"],
+            ["carbon", "water"],
+            [100, 200],
+            "The description of the action",
+          ),
+      ).not.to.be.reverted
+
+      await expect(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            appId,
+            ethers.parseEther("1"),
+            user.address,
+            ["link"],
+            ["https://image.png"],
+            ["carbon", "water"],
+            [100, 200],
+            "The description of the action",
+          ),
+      ).not.to.be.reverted
+    })
+
+    it("If a non valid impact type is passed, it reverts", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, owner } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      await catchRevert(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            await x2EarnApps.hashAppName("My app"),
+            ethers.parseEther("1"),
+            owner.address,
+            ["image"],
+            ["https://image.png"],
+            ["invalid"],
+            [100, 200],
+            "The description of the action",
+          ),
+      )
+    })
+
+    it("If impact values length differs from codes length, it reverts", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, owner } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      await catchRevert(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            await x2EarnApps.hashAppName("My app"),
+            ethers.parseEther("1"),
+            owner.address,
+            ["image"],
+            ["https://image.png"],
+            ["carbon"],
+            [100, 200],
+            "The description of the action",
+          ),
+      )
+    })
+
+    it("If proof values length differs from types length, it reverts", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, owner } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      await catchRevert(
+        x2EarnRewardsPool
+          .connect(owner)
+          .distributeRewardWithProof(
+            await x2EarnApps.hashAppName("My app"),
+            ethers.parseEther("1"),
+            owner.address,
+            ["image", "link"],
+            ["https://image.png"],
+            ["carbon", "water"],
+            [100, 200],
+            "The description of the action",
+          ),
+      )
+    })
+
+    it("Anyone can index available impact codes", async function () {
+      const { x2EarnRewardsPool } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      const impactCodes = await x2EarnRewardsPool.getAllowedImpactKeys()
+
+      expect(impactCodes).to.eql([
+        "carbon",
+        "water",
+        "energy",
+        "waste_mass",
+        "education_time",
+        "timber",
+        "plastic",
+        "trees_planted",
+      ])
+    })
+
+    it("IMPACT_KEY_MANAGER_ROLE and DEFAULT_ADMIN can remove an impact code", async function () {
+      const { x2EarnRewardsPool, owner, otherAccount } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      expect(await x2EarnRewardsPool.hasRole(await x2EarnRewardsPool.DEFAULT_ADMIN_ROLE(), owner.address)).to.equal(
+        true,
+      )
+
+      await x2EarnRewardsPool.connect(owner).removeImpactKey("carbon")
+
+      const impactCodes = await x2EarnRewardsPool.getAllowedImpactKeys()
+
+      expect(impactCodes).to.eql([
+        "trees_planted",
+        "water",
+        "energy",
+        "waste_mass",
+        "education_time",
+        "timber",
+        "plastic",
+      ])
+
+      await x2EarnRewardsPool
+        .connect(owner)
+        .grantRole(await x2EarnRewardsPool.IMPACT_KEY_MANAGER_ROLE(), otherAccount.address)
+
+      await x2EarnRewardsPool.connect(otherAccount).removeImpactKey("water")
+
+      const impactCodes2 = await x2EarnRewardsPool.getAllowedImpactKeys()
+
+      expect(impactCodes2).to.eql(["trees_planted", "plastic", "energy", "waste_mass", "education_time", "timber"])
+    })
+
+    it("IMPACT_KEY_MANAGER_ROLE and DEFAULT_ADMIN can add an impact code", async function () {
+      const { x2EarnRewardsPool, owner, otherAccount } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      expect(await x2EarnRewardsPool.hasRole(await x2EarnRewardsPool.DEFAULT_ADMIN_ROLE(), owner.address)).to.equal(
+        true,
+      )
+
+      await x2EarnRewardsPool.connect(owner).addImpactKey("new_impact")
+
+      const impactCodes = await x2EarnRewardsPool.getAllowedImpactKeys()
+
+      expect(impactCodes).to.eql([
+        "carbon",
+        "water",
+        "energy",
+        "waste_mass",
+        "education_time",
+        "timber",
+        "plastic",
+        "trees_planted",
+        "new_impact",
+      ])
+
+      await x2EarnRewardsPool
+        .connect(owner)
+        .grantRole(await x2EarnRewardsPool.IMPACT_KEY_MANAGER_ROLE(), otherAccount.address)
+
+      await x2EarnRewardsPool.connect(otherAccount).addImpactKey("new_impact_2")
+
+      const impactCodes2 = await x2EarnRewardsPool.getAllowedImpactKeys()
+
+      expect(impactCodes2).to.eql([
+        "carbon",
+        "water",
+        "energy",
+        "waste_mass",
+        "education_time",
+        "timber",
+        "plastic",
+        "trees_planted",
+        "new_impact",
+        "new_impact_2",
+      ])
+    })
+
+    it("Non admin users cannot add and remove impact codes", async function () {
+      const { x2EarnRewardsPool, otherAccounts } = await getOrDeployContractInstances({
+        forceDeploy: true,
+        bootstrapAndStartEmissions: true,
+      })
+
+      expect(
+        await x2EarnRewardsPool.hasRole(await x2EarnRewardsPool.DEFAULT_ADMIN_ROLE(), otherAccounts[10].address),
+      ).to.equal(false)
+      expect(
+        await x2EarnRewardsPool.hasRole(await x2EarnRewardsPool.IMPACT_KEY_MANAGER_ROLE(), otherAccounts[10].address),
+      ).to.equal(false)
+
+      await catchRevert(x2EarnRewardsPool.connect(otherAccounts[10]).addImpactKey("new_impact"))
+      await catchRevert(x2EarnRewardsPool.connect(otherAccounts[10]).removeImpactKey("carbon"))
+    })
+
+    it("Deprecated: can distribute rewards with a self-provided proof and impact", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const user = otherAccounts[11]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const proof = { mycustomproof: "https://image.png" }
+
+      const tx = await x2EarnRewardsPool
+        .connect(owner)
+        .distributeRewardDeprecated(appId, ethers.parseEther("1"), user.address, JSON.stringify(proof))
+
+      const receipt = await tx.wait()
+
+      expect(await b3tr.balanceOf(user.address)).to.equal(ethers.parseEther("1"))
+      expect(await b3tr.balanceOf(await x2EarnRewardsPool.getAddress())).to.equal(ethers.parseEther("99"))
+
+      // event emitted
+      if (!receipt) throw new Error("No receipt")
+
+      let event = filterEventsByName(receipt.logs, "RewardDistributed")
+
+      expect(event).not.to.eql([])
+      expect(event[0].args[0]).to.equal(ethers.parseEther("1"))
+      expect(event[0].args[1]).to.equal(appId)
+      expect(event[0].args[2]).to.equal(user.address)
+
+      const emittedProof = JSON.parse(event[0].args[3])
+
+      expect(emittedProof).to.have.property("mycustomproof")
+      expect(emittedProof.mycustomproof).to.equal("https://image.png")
+    })
+
+    it("I should be able to preview the proof and impact of a reward distribution", async function () {
+      const { x2EarnRewardsPool, x2EarnApps, b3tr, owner, otherAccounts, minterAccount } =
+        await getOrDeployContractInstances({
+          forceDeploy: true,
+          bootstrapAndStartEmissions: true,
+        })
+
+      const teamWallet = otherAccounts[10]
+      const amount = ethers.parseEther("100")
+
+      await b3tr.connect(minterAccount).mint(owner.address, amount)
+
+      await x2EarnApps.addApp(teamWallet.address, owner.address, "My app", "metadataURI")
+      const appId = await x2EarnApps.hashAppName("My app")
+
+      await x2EarnApps.connect(owner).addRewardDistributor(appId, owner.address)
+      expect(await x2EarnApps.isRewardDistributor(appId, owner.address)).to.equal(true)
+
+      // fill the pool
+      await b3tr.connect(owner).approve(await x2EarnRewardsPool.getAddress(), amount)
+      await x2EarnRewardsPool.connect(owner).deposit(amount, appId)
+
+      const onchainGeneratedProof = JSON.parse(
+        await x2EarnRewardsPool.buildProof(
+          ["image"],
+          ["https://image.png"],
+          ["carbon", "water"],
+          [100, 200],
+          "The description of the action",
+        ),
+      )
+
+      expect(onchainGeneratedProof).to.have.property("version")
+      expect(onchainGeneratedProof.version).to.equal(2)
+      expect(onchainGeneratedProof).to.have.deep.property("proof", {
+        image: "https://image.png",
+      })
+      expect(onchainGeneratedProof).to.have.property("description")
+      expect(onchainGeneratedProof).to.have.deep.property("impact", { carbon: 100, water: 200 })
+    })
+  })
 })
diff --git a/test/helpers/config.ts b/test/helpers/config.ts
index cf4c546..91b4c0c 100644
--- a/test/helpers/config.ts
+++ b/test/helpers/config.ts
@@ -89,5 +89,17 @@ export function createTestConfig() {
     // Migration
     MIGRATION_ADDRESS: "0x865306084235Bf804c8Bba8a8d56890940ca8F0b", // 10th account from mnemonic of solo network
     MIGRATION_AMOUNT: BigInt("3750000000000000000000000"), // 3.75 million B3TR tokens from pilot show
+
+    // X 2 Earn Rewards Pool
+    X_2_EARN_INITIAL_IMPACT_KEYS: [
+      "carbon",
+      "water",
+      "energy",
+      "waste_mass",
+      "education_time",
+      "timber",
+      "plastic",
+      "trees_planted",
+    ],
   })
 }
diff --git a/test/helpers/deploy.ts b/test/helpers/deploy.ts
index f1806f9..3bfa267 100644
--- a/test/helpers/deploy.ts
+++ b/test/helpers/deploy.ts
@@ -26,6 +26,7 @@ import {
   MyERC721,
   MyERC1155,
   VoterRewardsV1,
+  X2EarnRewardsPoolV1,
 } from "../../typechain-types"
 import { createLocalConfig } from "../../config/contracts/envs/local"
 import { deployProxy, upgradeProxy } from "../../scripts/helpers"
@@ -216,14 +217,23 @@ export const getOrDeployContractInstances = async ({
     owner.address,
   ])) as X2EarnApps
 
-  // Deploy X2EarnRewardsPool
-  const x2EarnRewardsPool = (await deployProxy("X2EarnRewardsPool", [
+  const x2EarnRewardsPoolV1 = (await deployProxy("X2EarnRewardsPoolV1", [
     owner.address,
     owner.address,
     owner.address,
     await b3tr.getAddress(),
     await x2EarnApps.getAddress(),
-  ])) as X2EarnRewardsPool
+  ])) as X2EarnRewardsPoolV1
+
+  const x2EarnRewardsPool = (await upgradeProxy(
+    "X2EarnRewardsPoolV1",
+    "X2EarnRewardsPool",
+    await x2EarnRewardsPoolV1.getAddress(),
+    [owner.address, config.X_2_EARN_INITIAL_IMPACT_KEYS],
+    {
+      version: 2,
+    },
+  )) as X2EarnRewardsPool
 
   // Deploy XAllocationPool
   const xAllocationPool = (await deployProxy("XAllocationPool", [
@@ -454,4 +464,4 @@ export const getOrDeployContractInstances = async ({
     myErc1155: myErc1155,
   }
   return cachedDeployInstance
-}
\ No newline at end of file
+}