diff --git a/backend/src/config/index.ts b/backend/src/config/index.ts
index 26227b90d..a66ed9765 100644
--- a/backend/src/config/index.ts
+++ b/backend/src/config/index.ts
@@ -10,7 +10,7 @@ Decimal.set({
 })
 
 const constants = {
-  DB_VERSION: '0053-change_password_encryption',
+  DB_VERSION: '0054-recalculate_balance_and_decay',
   DECAY_START_TIME: new Date('2021-05-13 17:46:31-0000'), // GMT+0
   LOG4JS_CONFIG: 'log4js-config.json',
   // default log level on production should be info
diff --git a/database/Dockerfile b/database/Dockerfile
index 4069ffcd8..03c7d9a3b 100644
--- a/database/Dockerfile
+++ b/database/Dockerfile
@@ -100,6 +100,8 @@ COPY --from=build ${DOCKER_WORKDIR}/node_modules ./node_modules
 COPY --from=build ${DOCKER_WORKDIR}/package.json ./package.json
 # Copy Mnemonic files
 COPY --from=build ${DOCKER_WORKDIR}/src/config/*.txt ./src/config/
+# Copy log folder
+COPY --from=build ${DOCKER_WORKDIR}/log ./log
 # Copy run scripts run/
 # COPY --from=build ${DOCKER_WORKDIR}/run ./run
 
diff --git a/database/log/.gitignore b/database/log/.gitignore
new file mode 100644
index 000000000..c96a04f00
--- /dev/null
+++ b/database/log/.gitignore
@@ -0,0 +1,2 @@
+*
+!.gitignore
\ No newline at end of file
diff --git a/database/migrations/0054-recalculate_balance_and_decay.ts b/database/migrations/0054-recalculate_balance_and_decay.ts
new file mode 100644
index 000000000..516d0d1e3
--- /dev/null
+++ b/database/migrations/0054-recalculate_balance_and_decay.ts
@@ -0,0 +1,160 @@
+/* MIGRATION TO FIX WRONG BALANCE
+ *
+ * Due to a bug in the code
+ * the amount of a receive balance is substracted
+ * from the previous balance instead of added.
+ *
+ * Therefore all balance and decay fields must
+ * be recalculated
+ *
+ * WARNING: This Migration must be run in TZ=UTC
+ */
+
+/* eslint-disable @typescript-eslint/explicit-module-boundary-types */
+/* eslint-disable @typescript-eslint/no-explicit-any */
+
+import fs from 'fs'
+import Decimal from 'decimal.js-light'
+
+// Set precision value
+Decimal.set({
+  precision: 25,
+  rounding: Decimal.ROUND_HALF_UP,
+})
+
+const DECAY_START_TIME = new Date('2021-05-13 17:46:31') // GMT+0
+
+interface Decay {
+  balance: Decimal
+  decay: Decimal | null
+  start: Date | null
+  end: Date | null
+  duration: number | null
+}
+
+export enum TransactionTypeId {
+  CREATION = 1,
+  SEND = 2,
+  RECEIVE = 3,
+}
+
+function decayFormula(value: Decimal, seconds: number): Decimal {
+  return value.mul(new Decimal('0.99999997803504048973201202316767079413460520837376').pow(seconds))
+}
+
+function calculateDecay(
+  amount: Decimal,
+  from: Date,
+  to: Date,
+  startBlock: Date = DECAY_START_TIME,
+): Decay {
+  const fromMs = from.getTime()
+  const toMs = to.getTime()
+  const startBlockMs = startBlock.getTime()
+
+  if (toMs < fromMs) {
+    throw new Error('to < from, reverse decay calculation is invalid')
+  }
+
+  // Initialize with no decay
+  const decay: Decay = {
+    balance: amount,
+    decay: null,
+    start: null,
+    end: null,
+    duration: null,
+  }
+
+  // decay started after end date; no decay
+  if (startBlockMs > toMs) {
+    return decay
+  }
+  // decay started before start date; decay for full duration
+  if (startBlockMs < fromMs) {
+    decay.start = from
+    decay.duration = (toMs - fromMs) / 1000
+  }
+  // decay started between start and end date; decay from decay start till end date
+  else {
+    decay.start = startBlock
+    decay.duration = (toMs - startBlockMs) / 1000
+  }
+
+  decay.end = to
+  decay.balance = decayFormula(amount, decay.duration)
+  decay.decay = decay.balance.minus(amount)
+  return decay
+}
+
+export async function upgrade(queryFn: (query: string, values?: any[]) => Promise<Array<any>>) {
+  // Write log file
+  const logFile = 'log/0054-recalculate_balance_and_decay.log.csv'
+  await fs.writeFile(
+    logFile,
+    `email;first_name;last_name;affected_transactions;new_balance;new_decay;old_balance;old_decay;delta;\n`,
+    (err) => {
+      if (err) throw err
+    },
+  )
+
+  // Find all users & loop over them
+  const users = await queryFn('SELECT user_id FROM transactions GROUP BY user_id;')
+  for (let u = 0; u < users.length; u++) {
+    const userId = users[u].user_id
+    // find all transactions for a user
+    const transactions = await queryFn(
+      `SELECT *, CONVERT(balance, CHAR) as dec_balance, CONVERT(decay, CHAR) as dec_decay FROM transactions WHERE user_id = ${userId} ORDER BY balance_date ASC;`,
+    )
+
+    let previous = null
+    let affectedTransactions = 0
+    let balance = new Decimal(0)
+    for (let t = 0; t < transactions.length; t++) {
+      const transaction = transactions[t]
+      const decayStartDate = previous ? previous.balance_date : transaction.balance_date
+      const amount = new Decimal(transaction.amount)
+      const decay = calculateDecay(balance, decayStartDate, transaction.balance_date)
+      balance = decay.balance.add(amount)
+
+      const userContact = await queryFn(
+        `SELECT email, first_name, last_name FROM users LEFT JOIN user_contacts ON users.email_id = user_contacts.id WHERE users.id = ${userId}`,
+      )
+      const userEmail = userContact.length === 1 ? userContact[0].email : userId
+      const userFirstName = userContact.length === 1 ? userContact[0].first_name : ''
+      const userLastName = userContact.length === 1 ? userContact[0].last_name : ''
+
+      // Update if needed
+      if (!balance.eq(transaction.dec_balance)) {
+        await queryFn(`
+          UPDATE transactions SET
+            balance = ${balance},
+            decay = ${decay.decay ? decay.decay : 0}
+          WHERE id = ${transaction.id};
+        `)
+        affectedTransactions++
+
+        // Log on last entry
+        if (t === transactions.length - 1) {
+          fs.appendFile(
+            logFile,
+            `${userEmail};${userFirstName};${userLastName};${affectedTransactions};${balance};${
+              decay.decay ? decay.decay : 0
+            };${transaction.dec_balance};${transaction.dec_decay};${balance.sub(
+              transaction.dec_balance,
+            )};\n`,
+            (err) => {
+              if (err) throw err
+            },
+          )
+        }
+      }
+
+      // previous
+      previous = transaction
+    }
+  }
+}
+
+/* eslint-disable @typescript-eslint/no-empty-function */
+/* eslint-disable-next-line @typescript-eslint/no-unused-vars */
+export async function downgrade(queryFn: (query: string, values?: any[]) => Promise<Array<any>>) {}