diff --git a/setup/Makefile b/setup/Makefile
index 4aab49a2..170fca16 100644
--- a/setup/Makefile
+++ b/setup/Makefile
@@ -8,7 +8,7 @@ build-neutron:
 		cd $(APP_DIR)/neutron && $(MAKE) build-docker-image
 
 build-hermes:
-		@docker build -f dockerbuilds/Dockerfile.hermes -t hermes:1.6.0-1c1cf029 .
+		@docker build -f dockerbuilds/Dockerfile.hermes -t hermes:1.10.1 .
 
 build-relayer:
 		cd $(APP_DIR)/neutron-query-relayer/ && make build-docker
diff --git a/setup/docker-compose.yml b/setup/docker-compose.yml
index 1fdcd7df..5e68d789 100644
--- a/setup/docker-compose.yml
+++ b/setup/docker-compose.yml
@@ -36,7 +36,7 @@ services:
       - neutron-testing
 
   hermes:
-    image: hermes:1.6.0-1c1cf029
+    image: hermes:1.10.1
     depends_on:
       - "neutron-node"
       - "gaia-node"
diff --git a/setup/dockerbuilds/Dockerfile.gaia b/setup/dockerbuilds/Dockerfile.gaia
index c578179e..070c486d 100644
--- a/setup/dockerbuilds/Dockerfile.gaia
+++ b/setup/dockerbuilds/Dockerfile.gaia
@@ -1,19 +1,37 @@
 # syntax=docker/dockerfile:1
 
-FROM golang:1.21-alpine AS builder
+FROM golang:1.22-alpine AS builder
 WORKDIR /src/app/
 COPY --from=app go.mod go.sum* ./
+
 RUN go mod download
 COPY --from=app . .
-ENV PACKAGES curl make git libc-dev bash gcc linux-headers eudev-dev python3
+
+ENV PACKAGES="jq curl make git libc-dev bash file gcc linux-headers eudev-dev python3"
 RUN apk add --no-cache $PACKAGES
-RUN CGO_ENABLED=0 make install
+
+# See https://github.com/CosmWasm/wasmvm/releases
+ARG WASMVM_VERSION=v2.0.0
+ADD https://github.com/CosmWasm/wasmvm/releases/download/${WASMVM_VERSION}/libwasmvm_muslc.aarch64.a /lib/libwasmvm_muslc.aarch64.a
+ADD https://github.com/CosmWasm/wasmvm/releases/download/${WASMVM_VERSION}/libwasmvm_muslc.x86_64.a /lib/libwasmvm_muslc.x86_64.a
+RUN sha256sum /lib/libwasmvm_muslc.aarch64.a | grep 3b478b3e51d31e53ce9324a8895d2cd7278af5179b9a02ea55d8627958e42afa
+RUN sha256sum /lib/libwasmvm_muslc.x86_64.a | grep ca08bb7b73b49b483611d9755bb8455620bb8c0faf3014400908ed49bf3b19a5
+RUN cp "/lib/libwasmvm_muslc.$(uname -m).a" /lib/libwasmvm_muslc.a
+
+RUN go mod download
+
+RUN LEDGER_ENABLED=true LINK_STATICALLY=true BUILD_TAGS=muslc make build
+RUN echo "Ensuring binary is statically linked ..."  \
+    && file /src/app/build/gaiad | grep "statically linked"
 
 FROM alpine:latest
 WORKDIR /opt/node/
 COPY --from=setup . setup/
 ARG BINARY
-COPY --from=builder /go/bin/${BINARY:-gaiad} /usr/local/bin/
+COPY --from=builder /src/app/build/${BINARY:-gaiad} /usr/local/bin/
+
+ENV PACKAGES="jq"
+RUN apk add --no-cache $PACKAGES
 
 EXPOSE 26656 26657 1317 9090
 USER 0
diff --git a/setup/dockerbuilds/Dockerfile.hermes b/setup/dockerbuilds/Dockerfile.hermes
index 150683c1..a6b313a5 100644
--- a/setup/dockerbuilds/Dockerfile.hermes
+++ b/setup/dockerbuilds/Dockerfile.hermes
@@ -3,7 +3,7 @@ COPY ./hermes/ /app/network/hermes/
 WORKDIR /app
 RUN apt-get update && apt-get install -y wget && \
     PLATFORM=`uname -a | awk '{print $(NF-1)}'` && \
-    VERSION=v1.6.0 && \
+    VERSION=v1.10.1 && \
     TARNAME="hermes-${VERSION}-${PLATFORM}-unknown-linux-gnu.tar.gz" && \
     wget "https://github.com/informalsystems/hermes/releases/download/${VERSION}/${TARNAME}" && \
     tar -xf "$TARNAME" && \