diff --git a/contracts/interchain-token-service/src/contract/execute/interceptors.rs b/contracts/interchain-token-service/src/contract/execute/interceptors.rs
index beb69a0fb..33f29235e 100644
--- a/contracts/interchain-token-service/src/contract/execute/interceptors.rs
+++ b/contracts/interchain-token-service/src/contract/execute/interceptors.rs
@@ -205,13 +205,15 @@ fn destination_token_decimals(
         state::load_chain_config(storage, destination_chain).change_context(Error::State)?;
 
     if source_chain_config
+        .truncation
         .max_uint
-        .le(&destination_chain_config.max_uint)
+        .le(&destination_chain_config.truncation.max_uint)
     {
         source_chain_decimals
     } else {
-        source_chain_config
-            .max_target_decimals
+        destination_chain_config
+            .truncation
+            .max_decimals_when_truncating
             .min(source_chain_decimals)
     }
     .then(Result::Ok)
@@ -244,6 +246,7 @@ fn destination_amount(
 
     let destination_max_uint = state::load_chain_config(storage, destination_chain)
         .change_context(Error::State)?
+        .truncation
         .max_uint;
 
     // It's intentionally written in this way since the end result may still be fine even if
@@ -311,6 +314,7 @@ mod test {
 
     use super::Error;
     use crate::contract::execute::interceptors;
+    use crate::msg::TruncationConfig;
     use crate::state::{self, TokenDeploymentType};
     use crate::{msg, DeployInterchainToken, InterchainTransfer, TokenInstance};
 
@@ -347,8 +351,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -398,8 +404,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -449,8 +457,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -500,8 +510,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(100_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(100_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -551,8 +563,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(100_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(100_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -588,8 +602,10 @@ mod test {
             msg::ChainConfig {
                 chain: source_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -599,8 +615,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -648,8 +666,10 @@ mod test {
             msg::ChainConfig {
                 chain: source_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
@@ -659,8 +679,10 @@ mod test {
             msg::ChainConfig {
                 chain: destination_chain.clone(),
                 its_edge_contract: "itsedgecontract".to_string().try_into().unwrap(),
-                max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
-                max_target_decimals: 6,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::from(1_000_000_000_000_000u128).try_into().unwrap(),
+                    max_decimals_when_truncating: 6,
+                },
             },
         )
         .unwrap();
diff --git a/contracts/interchain-token-service/src/contract/execute/mod.rs b/contracts/interchain-token-service/src/contract/execute/mod.rs
index ed862e331..3bbb4b925 100644
--- a/contracts/interchain-token-service/src/contract/execute/mod.rs
+++ b/contracts/interchain-token-service/src/contract/execute/mod.rs
@@ -300,6 +300,7 @@ mod tests {
         disable_execution, enable_execution, execute_message, freeze_chain, register_chain,
         register_chains, unfreeze_chain, update_chain, Error,
     };
+    use crate::msg::TruncationConfig;
     use crate::state::{self, Config};
     use crate::{msg, DeployInterchainToken, HubMessage, InterchainTransfer};
 
@@ -536,8 +537,10 @@ mod tests {
             msg::ChainConfig {
                 chain: SOLANA.parse().unwrap(),
                 its_edge_contract: ITS_ADDRESS.to_string().try_into().unwrap(),
-                max_uint: Uint256::one().try_into().unwrap(),
-                max_target_decimals: 16u8
+                truncation: TruncationConfig {
+                    max_uint: Uint256::one().try_into().unwrap(),
+                    max_decimals_when_truncating: 16u8
+                }
             }
         ));
         assert_err_contains!(
@@ -546,8 +549,10 @@ mod tests {
                 msg::ChainConfig {
                     chain: SOLANA.parse().unwrap(),
                     its_edge_contract: ITS_ADDRESS.to_string().try_into().unwrap(),
-                    max_uint: Uint256::one().try_into().unwrap(),
-                    max_target_decimals: 16u8
+                    truncation: TruncationConfig {
+                        max_uint: Uint256::one().try_into().unwrap(),
+                        max_decimals_when_truncating: 16u8
+                    }
                 }
             ),
             Error,
@@ -562,14 +567,18 @@ mod tests {
             msg::ChainConfig {
                 chain: SOLANA.parse().unwrap(),
                 its_edge_contract: ITS_ADDRESS.to_string().try_into().unwrap(),
-                max_uint: Uint256::MAX.try_into().unwrap(),
-                max_target_decimals: 16u8,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::MAX.try_into().unwrap(),
+                    max_decimals_when_truncating: 16u8,
+                },
             },
             msg::ChainConfig {
                 chain: XRPL.parse().unwrap(),
                 its_edge_contract: ITS_ADDRESS.to_string().try_into().unwrap(),
-                max_uint: Uint256::MAX.try_into().unwrap(),
-                max_target_decimals: 16u8,
+                truncation: TruncationConfig {
+                    max_uint: Uint256::MAX.try_into().unwrap(),
+                    max_decimals_when_truncating: 16u8,
+                },
             },
         ];
         assert_ok!(register_chains(deps.as_mut(), chains[0..1].to_vec()));
@@ -623,8 +632,10 @@ mod tests {
                 msg::ChainConfig {
                     chain: chain.clone(),
                     its_edge_contract: ITS_ADDRESS.to_string().try_into().unwrap(),
-                    max_uint: Uint256::one().try_into().unwrap(),
-                    max_target_decimals: 16u8
+                    truncation: TruncationConfig {
+                        max_uint: Uint256::one().try_into().unwrap(),
+                        max_decimals_when_truncating: 16u8
+                    }
                 }
             ));
         }
diff --git a/contracts/interchain-token-service/src/msg.rs b/contracts/interchain-token-service/src/msg.rs
index a52e55029..e9364019a 100644
--- a/contracts/interchain-token-service/src/msg.rs
+++ b/contracts/interchain-token-service/src/msg.rs
@@ -57,8 +57,13 @@ pub enum ExecuteMsg {
 pub struct ChainConfig {
     pub chain: ChainNameRaw,
     pub its_edge_contract: Address,
+    pub truncation: TruncationConfig,
+}
+
+#[cw_serde]
+pub struct TruncationConfig {
     pub max_uint: nonempty::Uint256, // The maximum uint value that is supported by the chain's token standard
-    pub max_target_decimals: u8, // The maximum number of decimals that is preserved when deploying a token to another chain where smaller uint values are used
+    pub max_decimals_when_truncating: u8, // The maximum number of decimals that is preserved when deploying from a chain with a larger max_uint
 }
 
 #[cw_serde]
diff --git a/contracts/interchain-token-service/src/state.rs b/contracts/interchain-token-service/src/state.rs
index 692319850..f408ab4bf 100644
--- a/contracts/interchain-token-service/src/state.rs
+++ b/contracts/interchain-token-service/src/state.rs
@@ -34,17 +34,24 @@ pub struct Config {
 
 #[cw_serde]
 pub struct ChainConfig {
-    pub max_uint: nonempty::Uint256,
-    pub max_target_decimals: u8,
+    pub truncation: TruncationConfig,
     pub its_address: Address,
     frozen: bool,
 }
 
+#[cw_serde]
+pub struct TruncationConfig {
+    pub max_uint: nonempty::Uint256,
+    pub max_decimals_when_truncating: u8,
+}
+
 impl From<msg::ChainConfig> for ChainConfig {
     fn from(value: msg::ChainConfig) -> Self {
         Self {
-            max_uint: value.max_uint,
-            max_target_decimals: value.max_target_decimals,
+            truncation: TruncationConfig {
+                max_uint: value.truncation.max_uint,
+                max_decimals_when_truncating: value.truncation.max_decimals_when_truncating,
+            },
             its_address: value.its_edge_contract,
             frozen: false,
         }
@@ -326,8 +333,10 @@ mod tests {
             msg::ChainConfig {
                 chain: chain1.clone(),
                 its_edge_contract: address1.clone(),
-                max_uint: Uint256::MAX.try_into().unwrap(),
-                max_target_decimals: 16u8
+                truncation: msg::TruncationConfig {
+                    max_uint: Uint256::MAX.try_into().unwrap(),
+                    max_decimals_when_truncating: 16u8
+                }
             }
         ));
         assert_ok!(save_chain_config(
@@ -336,8 +345,10 @@ mod tests {
             msg::ChainConfig {
                 chain: chain2.clone(),
                 its_edge_contract: address2.clone(),
-                max_uint: Uint256::MAX.try_into().unwrap(),
-                max_target_decimals: 16u8
+                truncation: msg::TruncationConfig {
+                    max_uint: Uint256::MAX.try_into().unwrap(),
+                    max_decimals_when_truncating: 16u8
+                }
             }
         ));
         assert_eq!(
diff --git a/contracts/interchain-token-service/tests/execute.rs b/contracts/interchain-token-service/tests/execute.rs
index f1b9677d1..2ddec0568 100644
--- a/contracts/interchain-token-service/tests/execute.rs
+++ b/contracts/interchain-token-service/tests/execute.rs
@@ -8,7 +8,7 @@ use cosmwasm_std::testing::{mock_dependencies, mock_env, mock_info};
 use cosmwasm_std::{HexBinary, Uint256};
 use interchain_token_service::contract::{self, ExecuteError};
 use interchain_token_service::events::Event;
-use interchain_token_service::msg::{self, ExecuteMsg};
+use interchain_token_service::msg::{self, ExecuteMsg, TruncationConfig};
 use interchain_token_service::{
     DeployInterchainToken, HubMessage, InterchainTransfer, TokenId, TokenSupply,
 };
@@ -111,8 +111,10 @@ fn register_multiple_chains_succeeds() {
         .map(|i| msg::ChainConfig {
             chain: i.to_string().parse().unwrap(),
             its_edge_contract: i.to_string().parse().unwrap(),
-            max_target_decimals: 18u8,
-            max_uint: Uint256::MAX.try_into().unwrap(),
+            truncation: TruncationConfig {
+                max_decimals_when_truncating: 18u8,
+                max_uint: Uint256::MAX.try_into().unwrap(),
+            },
         })
         .collect();
     assert_ok!(register_chains(deps.as_mut(), chains.clone()));
@@ -134,8 +136,10 @@ fn register_multiple_chains_fails_if_one_invalid() {
         .map(|i| msg::ChainConfig {
             chain: i.to_string().parse().unwrap(),
             its_edge_contract: i.to_string().parse().unwrap(),
-            max_target_decimals: 18u8,
-            max_uint: Uint256::MAX.try_into().unwrap(),
+            truncation: TruncationConfig {
+                max_decimals_when_truncating: 18u8,
+                max_uint: Uint256::MAX.try_into().unwrap(),
+            },
         })
         .collect();
     assert_ok!(register_chains(deps.as_mut(), chains[0..1].to_vec()));
diff --git a/contracts/interchain-token-service/tests/utils/execute.rs b/contracts/interchain-token-service/tests/utils/execute.rs
index 0c7c4ac97..7885341c6 100644
--- a/contracts/interchain-token-service/tests/utils/execute.rs
+++ b/contracts/interchain-token-service/tests/utils/execute.rs
@@ -10,7 +10,7 @@ use cosmwasm_std::{
     from_json, to_json_binary, Addr, DepsMut, HexBinary, MemoryStorage, OwnedDeps, Response,
     Uint256, WasmQuery,
 };
-use interchain_token_service::msg::{self, ExecuteMsg};
+use interchain_token_service::msg::{self, ExecuteMsg, TruncationConfig};
 use interchain_token_service::{contract, HubMessage};
 use router_api::{Address, ChainName, ChainNameRaw, CrossChainId};
 
@@ -88,15 +88,17 @@ pub fn register_chain(
     chain: ChainNameRaw,
     its_edge_contract: Address,
     max_uint: nonempty::Uint256,
-    max_target_decimals: u8,
+    max_decimals_when_truncating: u8,
 ) -> Result<Response, ContractError> {
     register_chains(
         deps,
         vec![msg::ChainConfig {
             chain,
             its_edge_contract,
-            max_uint,
-            max_target_decimals,
+            truncation: TruncationConfig {
+                max_uint,
+                max_decimals_when_truncating,
+            },
         }],
     )
 }