diff --git a/simd/cmd/root.go b/simd/cmd/root.go
index bb736b61d622..a6cbda031419 100644
--- a/simd/cmd/root.go
+++ b/simd/cmd/root.go
@@ -6,6 +6,7 @@ import (
 	"os"
 	"path/filepath"
 
+	serverconfig "github.com/cosmos/cosmos-sdk/server/config"
 	"github.com/spf13/cast"
 	"github.com/spf13/cobra"
 	tmcli "github.com/tendermint/tendermint/libs/cli"
@@ -14,7 +15,7 @@ import (
 
 	"github.com/cosmos/cosmos-sdk/baseapp"
 	"github.com/cosmos/cosmos-sdk/client"
-	config "github.com/cosmos/cosmos-sdk/client/config"
+	"github.com/cosmos/cosmos-sdk/client/config"
 	"github.com/cosmos/cosmos-sdk/client/debug"
 	"github.com/cosmos/cosmos-sdk/client/flags"
 	"github.com/cosmos/cosmos-sdk/client/keys"
@@ -66,7 +67,9 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 				return err
 			}
 
-			return server.InterceptConfigsPreRunHandler(cmd)
+			customAppTemplate, customAppConfig := initAppConfig()
+
+			return server.InterceptConfigsPreRunHandler(cmd, customAppTemplate, customAppConfig)
 		},
 	}
 
@@ -75,6 +78,45 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 	return rootCmd, encodingConfig
 }
 
+// initAppConfig helps to override default appConfig template and configs.
+// return "", nil if no custom configuration is required for the application.
+func initAppConfig() (string, interface{}) {
+	// The following code snippet is just for reference.
+
+	// WASMConfig defines configuration for the wasm module.
+	type WASMConfig struct {
+		// This is the maximum sdk gas (wasm and storage) that we allow for any x/wasm "smart" queries
+		QueryGasLimit uint64 `mapstructure:"query_gas_limit"`
+
+		// Address defines the gRPC-web server to listen on
+		LruSize uint64 `mapstructure:"lru_size"`
+	}
+
+	type CustomAppConfig struct {
+		serverconfig.Config
+
+		WASM WASMConfig `mapstructure:"wasm"`
+	}
+
+	customAppConfig := CustomAppConfig{
+		Config: *serverconfig.DefaultConfig(),
+		WASM: WASMConfig{
+			LruSize:       1,
+			QueryGasLimit: 300000,
+		},
+	}
+
+	customAppTemplate := serverconfig.DefaultConfigTemplate + `
+[wasm]
+# This is the maximum sdk gas (wasm and storage) that we allow for any x/wasm "smart" queries
+query_gas_limit = 300000
+# This is the number of wasm vm instances we keep cached in memory for speed-up
+# Warning: this is currently unstable and may lead to crashes, best to keep for 0 unless testing locally
+lru_size = 0`
+
+	return customAppTemplate, customAppConfig
+}
+
 func initRootCmd(rootCmd *cobra.Command, encodingConfig params.EncodingConfig) {
 	cfg := sdk.GetConfig()
 	cfg.Seal()