diff --git a/Cargo.lock b/Cargo.lock
index 3051b32eda..232c102310 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1554,7 +1554,7 @@ dependencies = [
 
 [[package]]
 name = "joystream-node"
-version = "2.1.5"
+version = "2.1.6"
 dependencies = [
  "ctrlc",
  "derive_more 0.14.1",
@@ -1599,7 +1599,7 @@ dependencies = [
 
 [[package]]
 name = "joystream-node-runtime"
-version = "6.11.0"
+version = "6.12.0"
 dependencies = [
  "parity-scale-codec",
  "safe-mix",
@@ -4796,6 +4796,7 @@ dependencies = [
  "substrate-common-module",
  "substrate-membership-module",
  "substrate-primitives",
+ "substrate-token-mint-module",
 ]
 
 [[package]]
diff --git a/node/Cargo.toml b/node/Cargo.toml
index 134bad64a6..bb6930245e 100644
--- a/node/Cargo.toml
+++ b/node/Cargo.toml
@@ -3,7 +3,7 @@ authors = ['Joystream']
 build = 'build.rs'
 edition = '2018'
 name = 'joystream-node'
-version = '2.1.5'
+version = '2.1.6'
 default-run = "joystream-node"
 
 [[bin]]
diff --git a/runtime-modules/governance/Cargo.toml b/runtime-modules/governance/Cargo.toml
index 61cce493b9..d3314bd0db 100644
--- a/runtime-modules/governance/Cargo.toml
+++ b/runtime-modules/governance/Cargo.toml
@@ -17,6 +17,7 @@ std = [
 	'rstd/std',
 	'common/std',
 	'membership/std',
+	'minting/std',
 ]
 
 [dependencies.sr-primitives]
@@ -86,4 +87,9 @@ rev = 'c37bb08535c49a12320af7facfd555ce05cce2e8'
 default_features = false
 git = 'https://github.com/paritytech/substrate.git'
 package = 'srml-balances'
-rev = 'c37bb08535c49a12320af7facfd555ce05cce2e8'
\ No newline at end of file
+rev = 'c37bb08535c49a12320af7facfd555ce05cce2e8'
+
+[dependencies.minting]
+default_features = false
+package = 'substrate-token-mint-module'
+path = '../token-minting'
\ No newline at end of file
diff --git a/runtime-modules/governance/src/council.rs b/runtime-modules/governance/src/council.rs
index 792977f073..21b84c60ed 100644
--- a/runtime-modules/governance/src/council.rs
+++ b/runtime-modules/governance/src/council.rs
@@ -21,7 +21,7 @@ impl<X: CouncilTermEnded> CouncilTermEnded for (X,) {
     }
 }
 
-pub trait Trait: system::Trait + GovernanceCurrency {
+pub trait Trait: system::Trait + minting::Trait + GovernanceCurrency {
     type Event: From<Event<Self>> + Into<<Self as system::Trait>::Event>;
 
     type CouncilTermEnded: CouncilTermEnded;
@@ -29,8 +29,14 @@ pub trait Trait: system::Trait + GovernanceCurrency {
 
 decl_storage! {
     trait Store for Module<T: Trait> as Council {
-        ActiveCouncil get(active_council) config(): Seats<T::AccountId, BalanceOf<T>>;
-        TermEndsAt get(term_ends_at) config() : T::BlockNumber = T::BlockNumber::from(1);
+        pub ActiveCouncil get(active_council) config(): Seats<T::AccountId, BalanceOf<T>>;
+
+        pub TermEndsAt get(term_ends_at) config() : T::BlockNumber = T::BlockNumber::from(1);
+
+        /// The mint that funds council member rewards and spending proposals budget. It is an Option
+        /// because it was introduced in a runtime upgrade. It will be automatically created when
+        /// a successful call to set_council_mint_capacity() is made.
+        pub CouncilMint get(council_mint) : Option<<T as minting::Trait>::MintId>;
     }
 }
 
@@ -60,6 +66,15 @@ impl<T: Trait> Module<T> {
     pub fn is_councilor(sender: &T::AccountId) -> bool {
         Self::active_council().iter().any(|c| c.member == *sender)
     }
+
+    /// Initializes a new mint, discarding previous mint if it existed.
+    pub fn create_new_council_mint(
+        capacity: minting::BalanceOf<T>,
+    ) -> Result<T::MintId, &'static str> {
+        let mint_id = <minting::Module<T>>::add_mint(capacity, None)?;
+        CouncilMint::<T>::put(mint_id);
+        Ok(mint_id)
+    }
 }
 
 decl_module! {
@@ -118,6 +133,29 @@ decl_module! {
             ensure!(ends_at > <system::Module<T>>::block_number(), "must set future block number");
             <TermEndsAt<T>>::put(ends_at);
         }
+
+        /// Sets the capacity of the the council mint, if it doesn't exist, attempts to
+        /// create a new one.
+        fn set_council_mint_capacity(origin, capacity: minting::BalanceOf<T>) {
+            ensure_root(origin)?;
+
+            if let Some(mint_id) = Self::council_mint() {
+                minting::Module::<T>::set_mint_capacity(mint_id, capacity)?;
+            } else {
+                Self::create_new_council_mint(capacity)?;
+            }
+        }
+
+        /// Attempts to mint and transfer amount to destination account
+        fn spend_from_council_mint(origin, amount: minting::BalanceOf<T>, destination: T::AccountId) {
+            ensure_root(origin)?;
+
+            if let Some(mint_id) = Self::council_mint() {
+                minting::Module::<T>::transfer_tokens(mint_id, amount, &destination)?;
+            } else {
+                return Err("CouncilHashNoMint")
+            }
+        }
     }
 }
 
diff --git a/runtime-modules/governance/src/election.rs b/runtime-modules/governance/src/election.rs
index bcb4bf4185..9df5a4c9b1 100644
--- a/runtime-modules/governance/src/election.rs
+++ b/runtime-modules/governance/src/election.rs
@@ -174,7 +174,7 @@ impl<T: Trait> Module<T> {
     }
 
     fn can_participate(sender: &T::AccountId) -> bool {
-        !T::Currency::free_balance(sender).is_zero()
+        !<T as GovernanceCurrency>::Currency::free_balance(sender).is_zero()
             && <membership::members::Module<T>>::is_member_account(sender)
     }
 
@@ -374,7 +374,10 @@ impl<T: Trait> Module<T> {
         for stakeholder in Self::existing_stake_holders().iter() {
             let stake = Self::transferable_stakes(stakeholder);
             if !stake.seat.is_zero() || !stake.backing.is_zero() {
-                T::Currency::unreserve(stakeholder, stake.seat + stake.backing);
+                <T as GovernanceCurrency>::Currency::unreserve(
+                    stakeholder,
+                    stake.seat + stake.backing,
+                );
             }
         }
     }
@@ -399,7 +402,7 @@ impl<T: Trait> Module<T> {
 
         // return new stake to account's free balance
         if !stake.new.is_zero() {
-            T::Currency::unreserve(applicant, stake.new);
+            <T as GovernanceCurrency>::Currency::unreserve(applicant, stake.new);
         }
 
         // return unused transferable stake
@@ -453,7 +456,7 @@ impl<T: Trait> Module<T> {
                 // return new stake to account's free balance
                 let SealedVote { voter, stake, .. } = sealed_vote;
                 if !stake.new.is_zero() {
-                    T::Currency::unreserve(voter, stake.new);
+                    <T as GovernanceCurrency>::Currency::unreserve(voter, stake.new);
                 }
 
                 // return unused transferable stake
@@ -644,12 +647,12 @@ impl<T: Trait> Module<T> {
         let new_stake = Self::new_stake_reusing_transferable(&mut transferable_stake.seat, stake);
 
         ensure!(
-            T::Currency::can_reserve(&applicant, new_stake.new),
+            <T as GovernanceCurrency>::Currency::can_reserve(&applicant, new_stake.new),
             "not enough free balance to reserve"
         );
 
         ensure!(
-            T::Currency::reserve(&applicant, new_stake.new).is_ok(),
+            <T as GovernanceCurrency>::Currency::reserve(&applicant, new_stake.new).is_ok(),
             "failed to reserve applicant stake!"
         );
 
@@ -680,12 +683,12 @@ impl<T: Trait> Module<T> {
             Self::new_stake_reusing_transferable(&mut transferable_stake.backing, stake);
 
         ensure!(
-            T::Currency::can_reserve(&voter, vote_stake.new),
+            <T as GovernanceCurrency>::Currency::can_reserve(&voter, vote_stake.new),
             "not enough free balance to reserve"
         );
 
         ensure!(
-            T::Currency::reserve(&voter, vote_stake.new).is_ok(),
+            <T as GovernanceCurrency>::Currency::reserve(&voter, vote_stake.new).is_ok(),
             "failed to reserve voting stake!"
         );
 
diff --git a/runtime-modules/governance/src/mock.rs b/runtime-modules/governance/src/mock.rs
index 5e6dc33dbe..8d13c511fe 100644
--- a/runtime-modules/governance/src/mock.rs
+++ b/runtime-modules/governance/src/mock.rs
@@ -70,7 +70,10 @@ impl membership::members::Trait for Test {
     type ActorId = u32;
     type InitialMembersBalance = InitialMembersBalance;
 }
-
+impl minting::Trait for Test {
+    type Currency = Balances;
+    type MintId = u64;
+}
 parameter_types! {
     pub const ExistentialDeposit: u32 = 0;
     pub const TransferFee: u32 = 0;
diff --git a/runtime-modules/governance/src/proposals.rs b/runtime-modules/governance/src/proposals.rs
index e681e51d6c..64a177a6fd 100644
--- a/runtime-modules/governance/src/proposals.rs
+++ b/runtime-modules/governance/src/proposals.rs
@@ -244,7 +244,7 @@ decl_module! {
             ensure!(wasm_code.len() as u32 <= Self::wasm_code_max_len(), MSG_TOO_LONG_WASM_CODE);
 
             // Lock proposer's stake:
-            T::Currency::reserve(&proposer, stake)
+            <T as GovernanceCurrency>::Currency::reserve(&proposer, stake)
                 .map_err(|_| MSG_STAKE_IS_GREATER_THAN_BALANCE)?;
 
             let proposal_id = Self::proposal_count() + 1;
@@ -312,11 +312,11 @@ decl_module! {
 
             // Spend some minimum fee on proposer's balance for canceling a proposal
             let fee = Self::cancellation_fee();
-            let _ = T::Currency::slash_reserved(&proposer, fee);
+            let _ = <T as GovernanceCurrency>::Currency::slash_reserved(&proposer, fee);
 
             // Return unspent part of remaining staked deposit (after taking some fee)
             let left_stake = proposal.stake - fee;
-            let _ = T::Currency::unreserve(&proposer, left_stake);
+            let _ = <T as GovernanceCurrency>::Currency::unreserve(&proposer, left_stake);
 
             Self::_update_proposal_status(proposal_id, Cancelled)?;
             Self::deposit_event(RawEvent::ProposalCanceled(proposer, proposal_id));
@@ -336,7 +336,7 @@ decl_module! {
             let proposal = Self::proposals(proposal_id);
             ensure!(proposal.status == Active, MSG_PROPOSAL_FINALIZED);
 
-            let _ = T::Currency::unreserve(&proposal.proposer, proposal.stake);
+            let _ = <T as GovernanceCurrency>::Currency::unreserve(&proposal.proposer, proposal.stake);
 
             Self::_update_proposal_status(proposal_id, Cancelled)?;
 
@@ -357,7 +357,7 @@ impl<T: Trait> Module<T> {
     }
 
     fn can_participate(sender: &T::AccountId) -> bool {
-        !T::Currency::free_balance(sender).is_zero()
+        !<T as GovernanceCurrency>::Currency::free_balance(sender).is_zero()
             && <membership::members::Module<T>>::is_member_account(sender)
     }
 
@@ -513,7 +513,8 @@ impl<T: Trait> Module<T> {
         let proposal = Self::proposals(proposal_id);
 
         // Slash proposer's stake:
-        let _ = T::Currency::slash_reserved(&proposal.proposer, proposal.stake);
+        let _ =
+            <T as GovernanceCurrency>::Currency::slash_reserved(&proposal.proposer, proposal.stake);
 
         Ok(())
     }
@@ -525,11 +526,11 @@ impl<T: Trait> Module<T> {
 
         // Spend some minimum fee on proposer's balance to prevent spamming attacks:
         let fee = Self::rejection_fee();
-        let _ = T::Currency::slash_reserved(&proposer, fee);
+        let _ = <T as GovernanceCurrency>::Currency::slash_reserved(&proposer, fee);
 
         // Return unspent part of remaining staked deposit (after taking some fee):
         let left_stake = proposal.stake - fee;
-        let _ = T::Currency::unreserve(&proposer, left_stake);
+        let _ = <T as GovernanceCurrency>::Currency::unreserve(&proposer, left_stake);
 
         Ok(())
     }
@@ -540,7 +541,7 @@ impl<T: Trait> Module<T> {
         let wasm_code = Self::wasm_code_by_hash(proposal.wasm_hash);
 
         // Return staked deposit to proposer:
-        let _ = T::Currency::unreserve(&proposal.proposer, proposal.stake);
+        let _ = <T as GovernanceCurrency>::Currency::unreserve(&proposal.proposer, proposal.stake);
 
         // Update wasm code of node's runtime:
         <system::Module<T>>::set_code(system::RawOrigin::Root.into(), wasm_code)?;
@@ -649,6 +650,11 @@ mod tests {
         type InitialMembersBalance = InitialMembersBalance;
     }
 
+    impl minting::Trait for Test {
+        type Currency = balances::Module<Self>;
+        type MintId = u64;
+    }
+
     impl Trait for Test {
         type Event = ();
     }
diff --git a/runtime-modules/token-minting/src/lib.rs b/runtime-modules/token-minting/src/lib.rs
index df9c6fef91..20388f2fda 100755
--- a/runtime-modules/token-minting/src/lib.rs
+++ b/runtime-modules/token-minting/src/lib.rs
@@ -82,6 +82,15 @@ impl From<GeneralError> for &'static str {
     }
 }
 
+impl From<TransferError> for &'static str {
+    fn from(err: TransferError) -> &'static str {
+        match err {
+            TransferError::MintNotFound => "MintNotFound",
+            TransferError::NotEnoughCapacity => "NotEnoughCapacity",
+        }
+    }
+}
+
 #[derive(Encode, Decode, Copy, Clone, Debug, Eq, PartialEq)]
 pub enum Adjustment<Balance: Zero, BlockNumber> {
     // First adjustment will be after AdjustOnInterval.block_interval
diff --git a/runtime/Cargo.toml b/runtime/Cargo.toml
index eeba50dd15..c0eee0a3cf 100644
--- a/runtime/Cargo.toml
+++ b/runtime/Cargo.toml
@@ -5,7 +5,7 @@ edition = '2018'
 name = 'joystream-node-runtime'
 # Follow convention: https://github.com/Joystream/substrate-runtime-joystream/issues/1
 # {Authoring}.{Spec}.{Impl} of the RuntimeVersion
-version = '6.11.0'
+version = '6.12.0'
 
 [features]
 default = ['std']
diff --git a/runtime/src/lib.rs b/runtime/src/lib.rs
index bf1581d52f..13a2701388 100644
--- a/runtime/src/lib.rs
+++ b/runtime/src/lib.rs
@@ -115,7 +115,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
     spec_name: create_runtime_str!("joystream-node"),
     impl_name: create_runtime_str!("joystream-node"),
     authoring_version: 6,
-    spec_version: 11,
+    spec_version: 12,
     impl_version: 0,
     apis: RUNTIME_API_VERSIONS,
 };
diff --git a/runtime/src/migration.rs b/runtime/src/migration.rs
index fc4bd421a9..e0b144429a 100644
--- a/runtime/src/migration.rs
+++ b/runtime/src/migration.rs
@@ -1,28 +1,24 @@
 use crate::VERSION;
-use sr_primitives::print;
+use sr_primitives::{print, traits::Zero};
 use srml_support::{decl_event, decl_module, decl_storage};
 use sudo;
 use system;
 
-// When preparing a new major runtime release version bump this value to match it and update
-// the initialization code in runtime_initialization(). Because of the way substrate runs runtime code
-// the runtime doesn't need to maintain any logic for old migrations. All knowledge about state of the chain and runtime
-// prior to the new runtime taking over is implicit in the migration code implementation. If assumptions are incorrect
-// behaviour is undefined.
-const MIGRATION_FOR_SPEC_VERSION: u32 = 0;
-
 impl<T: Trait> Module<T> {
-    fn runtime_initialization() {
-        if VERSION.spec_version != MIGRATION_FOR_SPEC_VERSION {
-            return;
-        }
-
-        print("running runtime initializers");
+    fn runtime_upgraded() {
+        print("running runtime initializers...");
 
         // ...
-        // add initialization of other modules introduced in this runtime
+        // add initialization of modules introduced in new runtime release. This
+        // would be any new storage values that need an initial value which would not
+        // have been initialized with config() or build() mechanism.
         // ...
 
+        // Create the Council mint. If it fails, we can't do anything about it here.
+        let _ = governance::council::Module::<T>::create_new_council_mint(
+            minting::BalanceOf::<T>::zero(),
+        );
+
         Self::deposit_event(RawEvent::Migrated(
             <system::Module<T>>::block_number(),
             VERSION.spec_version,
@@ -36,6 +32,7 @@ pub trait Trait:
     + storage::data_object_storage_registry::Trait
     + forum::Trait
     + sudo::Trait
+    + governance::council::Trait
 {
     type Event: From<Event<Self>> + Into<<Self as system::Trait>::Event>;
 }
@@ -64,7 +61,7 @@ decl_module! {
                 SpecVersion::put(VERSION.spec_version);
 
                 // run migrations and store initializers
-                Self::runtime_initialization();
+                Self::runtime_upgraded();
             }
         }
     }