diff --git a/pallets/dkg-metadata/src/lib.rs b/pallets/dkg-metadata/src/lib.rs
index 42eaeecbc..d911dd7eb 100644
--- a/pallets/dkg-metadata/src/lib.rs
+++ b/pallets/dkg-metadata/src/lib.rs
@@ -141,6 +141,12 @@ use sp_std::{
 use types::RoundMetadata;
 use weights::WeightInfo;
 
+// Reputation assigned to genesis authorities
+pub const INITIAL_REPUTATION: u32 = 1_000_000_000;
+
+// Reputation increase awarded to authorities on submission of next public key
+pub const REPUTATION_INCREMENT: u32 = INITIAL_REPUTATION / 1000;
+
 #[cfg(test)]
 mod mock;
 pub mod types;
@@ -920,7 +926,7 @@ pub mod pallet {
 						let reputation = AuthorityReputations::<T>::get(authority.clone());
 						AuthorityReputations::<T>::insert(
 							authority,
-							decay.mul_floor(reputation).saturating_add(1_000_000_000u32.into()),
+							decay.mul_floor(reputation).saturating_add(INITIAL_REPUTATION.into()),
 						);
 					}
 
@@ -973,6 +979,16 @@ pub mod pallet {
 						let bounded_key: BoundedVec<_, _> =
 							key.clone().try_into().map_err(|_| Error::<T>::OutOfBounds)?;
 						NextDKGPublicKey::<T>::put((Self::next_authority_set_id(), bounded_key));
+
+						// bump reputation for all accounts
+						for authority in accounts {
+							let reputation = AuthorityReputations::<T>::get(authority.clone());
+							AuthorityReputations::<T>::insert(
+								authority,
+								reputation.saturating_add(REPUTATION_INCREMENT.into()),
+							);
+						}
+
 						Self::deposit_event(Event::NextPublicKeySubmitted {
 							compressed_pub_key: key.clone(),
 						});
diff --git a/pallets/dkg-metadata/src/tests.rs b/pallets/dkg-metadata/src/tests.rs
index 80d778335..339601326 100644
--- a/pallets/dkg-metadata/src/tests.rs
+++ b/pallets/dkg-metadata/src/tests.rs
@@ -15,9 +15,10 @@
 use std::vec;
 
 use crate::{
-	mock::*, AggregatedMisbehaviourReports, AuthorityReputations, Config, Error, Event,
-	JailedKeygenAuthorities, NextAuthorities, NextBestAuthorities, NextKeygenThreshold,
-	NextSignatureThreshold,
+	mock::*, AggregatedMisbehaviourReports, AggregatedPublicKeys, Authorities,
+	AuthorityReputations, BestAuthorities, Config, Error, Event, JailedKeygenAuthorities,
+	NextAuthorities, NextBestAuthorities, NextKeygenThreshold, NextSignatureThreshold,
+	INITIAL_REPUTATION, REPUTATION_INCREMENT,
 };
 use codec::Encode;
 use dkg_runtime_primitives::{keccak_256, utils::ecdsa, MisbehaviourType, KEY_TYPE};
@@ -57,6 +58,13 @@ fn mock_pub_key() -> ecdsa::Public {
 	ecdsa_generate(KEY_TYPE, None)
 }
 
+fn mock_signature(pub_key: ecdsa::Public, dkg_key: ecdsa::Public) -> (Vec<u8>, Vec<u8>) {
+	let msg = dkg_key.encode();
+	let hash = keccak_256(&msg);
+	let signature: ecdsa::Signature = ecdsa_sign_prehashed(KEY_TYPE, &pub_key, &hash).unwrap();
+	(msg, signature.encode())
+}
+
 fn assert_last_event<T: Config>(generic_event: <T as Config>::RuntimeEvent) {
 	frame_system::Pallet::<T>::assert_last_event(generic_event.into());
 }
@@ -805,3 +813,65 @@ fn keygen_misbehaviour_reports_does_not_drop_threshold_below_2() {
 		);
 	});
 }
+
+#[test]
+fn reputation_is_set_correctly() {
+	new_test_ext(vec![1, 2, 3, 4, 5]).execute_with(|| {
+		// setup the new threshold so our signature is accepted
+		let keygen_threshold = 5;
+		let signature_threshold = 3;
+		let dkg_key = ecdsa_generate(KEY_TYPE, None);
+		NextKeygenThreshold::<Test>::put(keygen_threshold);
+		NextSignatureThreshold::<Test>::put(signature_threshold);
+		let mut aggregated_public_keys = AggregatedPublicKeys::default();
+		// prep the next authorities
+		let mut next_authorities: BoundedVec<_, _> = Default::default();
+		let mut next_authorities_raw: Vec<_> = Default::default();
+		for _ in 1..=5 {
+			let authority_id = mock_pub_key();
+			let dkg_id = DKGId::from(authority_id);
+			next_authorities_raw.push(authority_id);
+			next_authorities.try_push(dkg_id).unwrap();
+			aggregated_public_keys
+				.keys_and_signatures
+				.push(mock_signature(authority_id, dkg_key));
+		}
+
+		// load them onchain
+		Authorities::<Test>::put(&next_authorities);
+		NextAuthorities::<Test>::put(&next_authorities);
+		let next_best_authorities =
+			DKGMetadata::get_best_authorities(keygen_threshold as usize, &next_authorities);
+		let mut bounded_next_best_authorities: BoundedVec<_, _> = Default::default();
+		for auth in next_best_authorities {
+			bounded_next_best_authorities.try_push(auth).unwrap();
+		}
+		NextBestAuthorities::<Test>::put(&bounded_next_best_authorities);
+		BestAuthorities::<Test>::put(&bounded_next_best_authorities);
+
+		assert_ok!(DKGMetadata::submit_public_key(
+			RuntimeOrigin::none(),
+			aggregated_public_keys.clone()
+		));
+
+		let reputations = AuthorityReputations::<Test>::iter();
+
+		// all authorities should have initial reputation
+		for rep in reputations {
+			assert!(rep.1 == INITIAL_REPUTATION.into());
+		}
+
+		// ---- submit next public key ----
+
+		assert_ok!(DKGMetadata::submit_next_public_key(
+			RuntimeOrigin::none(),
+			aggregated_public_keys
+		));
+		let reputations = AuthorityReputations::<Test>::iter();
+
+		// all authorities should have initial reputation + increment
+		for rep in reputations {
+			assert!(rep.1 == (INITIAL_REPUTATION + REPUTATION_INCREMENT).into());
+		}
+	})
+}