diff --git a/cmd/gaiad/cmd/testnet.go b/cmd/gaiad/cmd/testnet.go
index 5020265daf4..e540e5a0268 100644
--- a/cmd/gaiad/cmd/testnet.go
+++ b/cmd/gaiad/cmd/testnet.go
@@ -288,7 +288,10 @@ func initGenFiles(
 	var bankGenState banktypes.GenesisState
 	clientCtx.JSONMarshaler.MustUnmarshalJSON(appGenState[banktypes.ModuleName], &bankGenState)
 
-	bankGenState.Balances = genBalances
+	bankGenState.Balances = banktypes.SanitizeGenesisBalances(genBalances)
+	for _, bal := range bankGenState.Balances {
+		bankGenState.Supply = bankGenState.Supply.Add(bal.Coins...)
+	}
 	appGenState[banktypes.ModuleName] = clientCtx.JSONMarshaler.MustMarshalJSON(&bankGenState)
 
 	appGenStateJSON, err := json.MarshalIndent(appGenState, "", "  ")