diff --git a/app/app.go b/app/app.go
index d3f0544c..10b232fa 100644
--- a/app/app.go
+++ b/app/app.go
@@ -1,12 +1,13 @@
 package app
 
 import (
+	"fmt"
 	"io"
+	"slices"
 
 	"github.com/celestiaorg/celestia-app/v2/app/module"
 	"github.com/celestiaorg/celestia-app/v2/app/posthandler"
 	"github.com/celestiaorg/celestia-app/v2/x/minfee"
-	"github.com/celestiaorg/celestia-app/v2/x/mint"
 	mintkeeper "github.com/celestiaorg/celestia-app/v2/x/mint/keeper"
 	minttypes "github.com/celestiaorg/celestia-app/v2/x/mint/types"
 	"github.com/cosmos/cosmos-sdk/baseapp"
@@ -22,19 +23,12 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	sdkmodule "github.com/cosmos/cosmos-sdk/types/module"
 	"github.com/cosmos/cosmos-sdk/version"
-	"github.com/cosmos/cosmos-sdk/x/auth"
 	authkeeper "github.com/cosmos/cosmos-sdk/x/auth/keeper"
 	authtx "github.com/cosmos/cosmos-sdk/x/auth/tx"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
-	"github.com/cosmos/cosmos-sdk/x/auth/vesting"
-	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
-	"github.com/cosmos/cosmos-sdk/x/authz"
 	authzkeeper "github.com/cosmos/cosmos-sdk/x/authz/keeper"
-	authzmodule "github.com/cosmos/cosmos-sdk/x/authz/module"
-	"github.com/cosmos/cosmos-sdk/x/bank"
 	bankkeeper "github.com/cosmos/cosmos-sdk/x/bank/keeper"
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
-	"github.com/cosmos/cosmos-sdk/x/capability"
 	capabilitykeeper "github.com/cosmos/cosmos-sdk/x/capability/keeper"
 	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
 	"github.com/cosmos/cosmos-sdk/x/crisis"
@@ -43,27 +37,19 @@ import (
 	distr "github.com/cosmos/cosmos-sdk/x/distribution"
 	distrkeeper "github.com/cosmos/cosmos-sdk/x/distribution/keeper"
 	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
-	"github.com/cosmos/cosmos-sdk/x/evidence"
 	evidencekeeper "github.com/cosmos/cosmos-sdk/x/evidence/keeper"
 	evidencetypes "github.com/cosmos/cosmos-sdk/x/evidence/types"
 	"github.com/cosmos/cosmos-sdk/x/feegrant"
 	feegrantkeeper "github.com/cosmos/cosmos-sdk/x/feegrant/keeper"
-	feegrantmodule "github.com/cosmos/cosmos-sdk/x/feegrant/module"
-	"github.com/cosmos/cosmos-sdk/x/genutil"
-	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
-	"github.com/cosmos/cosmos-sdk/x/gov"
 	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
 	govv1beta2 "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
 	oldgovtypes "github.com/cosmos/cosmos-sdk/x/gov/types/v1beta1"
-	"github.com/cosmos/cosmos-sdk/x/params"
 	paramskeeper "github.com/cosmos/cosmos-sdk/x/params/keeper"
 	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
 	paramproposal "github.com/cosmos/cosmos-sdk/x/params/types/proposal"
-	"github.com/cosmos/cosmos-sdk/x/slashing"
 	slashingkeeper "github.com/cosmos/cosmos-sdk/x/slashing/keeper"
 	slashingtypes "github.com/cosmos/cosmos-sdk/x/slashing/types"
-	"github.com/cosmos/cosmos-sdk/x/staking"
 	stakingkeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
 	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 	upgradekeeper "github.com/cosmos/cosmos-sdk/x/upgrade/keeper"
@@ -71,7 +57,6 @@ import (
 	"github.com/cosmos/ibc-go/v6/modules/apps/transfer"
 	ibctransferkeeper "github.com/cosmos/ibc-go/v6/modules/apps/transfer/keeper"
 	ibctransfertypes "github.com/cosmos/ibc-go/v6/modules/apps/transfer/types"
-	ibc "github.com/cosmos/ibc-go/v6/modules/core"
 	ibcclienttypes "github.com/cosmos/ibc-go/v6/modules/core/02-client/types"
 	ibcporttypes "github.com/cosmos/ibc-go/v6/modules/core/05-port/types"
 	ibchost "github.com/cosmos/ibc-go/v6/modules/core/24-host"
@@ -88,13 +73,11 @@ import (
 	appv1 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v1"
 	appv2 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v2"
 	"github.com/celestiaorg/celestia-app/v2/pkg/proof"
-	"github.com/celestiaorg/celestia-app/v2/x/blob"
 	blobkeeper "github.com/celestiaorg/celestia-app/v2/x/blob/keeper"
 	blobtypes "github.com/celestiaorg/celestia-app/v2/x/blob/types"
 	"github.com/celestiaorg/celestia-app/v2/x/paramfilter"
 	"github.com/celestiaorg/celestia-app/v2/x/tokenfilter"
 
-	"github.com/celestiaorg/celestia-app/v2/x/blobstream"
 	blobstreamkeeper "github.com/celestiaorg/celestia-app/v2/x/blobstream/keeper"
 	blobstreamtypes "github.com/celestiaorg/celestia-app/v2/x/blobstream/types"
 	"github.com/celestiaorg/celestia-app/v2/x/signal"
@@ -105,59 +88,23 @@ import (
 	packetforwardkeeper "github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v6/packetforward/keeper"
 	packetforwardtypes "github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v6/packetforward/types"
 
-	ica "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts"
 	icahost "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/host"
 	icahostkeeper "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/host/keeper"
 	icahosttypes "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/host/types"
 	icatypes "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/types"
 )
 
-var (
-	// ModuleBasics defines the module BasicManager is in charge of setting up basic,
-	// non-dependant module elements, such as codec registration
-	// and genesis verification.
-	ModuleBasics = sdkmodule.NewBasicManager(
-		auth.AppModuleBasic{},
-		genutil.AppModuleBasic{},
-		bankModule{},
-		capability.AppModuleBasic{},
-		stakingModule{},
-		mintModule{},
-		distributionModule{},
-		newGovModule(),
-		params.AppModuleBasic{},
-		crisisModule{},
-		slashingModule{},
-		authzmodule.AppModuleBasic{},
-		feegrantmodule.AppModuleBasic{},
-		ibcModule{},
-		evidence.AppModuleBasic{},
-		transfer.AppModuleBasic{},
-		vesting.AppModuleBasic{},
-		blob.AppModuleBasic{},
-		blobstream.AppModuleBasic{},
-		signal.AppModuleBasic{},
-		minfee.AppModuleBasic{},
-		packetforward.AppModuleBasic{},
-		icaModule{},
-	)
-
-	// ModuleEncodingRegisters keeps track of all the module methods needed to
-	// register interfaces and specific type to encoding config
-	ModuleEncodingRegisters = extractRegisters(ModuleBasics)
-
-	// maccPerms is short for module account permissions.
-	maccPerms = map[string][]string{
-		authtypes.FeeCollectorName:     nil,
-		distrtypes.ModuleName:          nil,
-		govtypes.ModuleName:            {authtypes.Burner},
-		minttypes.ModuleName:           {authtypes.Minter},
-		stakingtypes.BondedPoolName:    {authtypes.Burner, authtypes.Staking},
-		stakingtypes.NotBondedPoolName: {authtypes.Burner, authtypes.Staking},
-		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
-		icatypes.ModuleName:            nil,
-	}
-)
+// maccPerms is short for module account permissions.
+var maccPerms = map[string][]string{
+	authtypes.FeeCollectorName:     nil,
+	distrtypes.ModuleName:          nil,
+	govtypes.ModuleName:            {authtypes.Burner},
+	minttypes.ModuleName:           {authtypes.Minter},
+	stakingtypes.BondedPoolName:    {authtypes.Burner, authtypes.Staking},
+	stakingtypes.NotBondedPoolName: {authtypes.Burner, authtypes.Staking},
+	ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
+	icatypes.ModuleName:            nil,
+}
 
 const (
 	v1                    = appv1.Version
@@ -181,29 +128,31 @@ type App struct {
 	invCheckPeriod uint
 
 	// keys to access the substores
-	keys    map[string]*storetypes.KVStoreKey
-	tkeys   map[string]*storetypes.TransientStoreKey
-	memKeys map[string]*storetypes.MemoryStoreKey
+	keyVersions map[uint64][]string
+	keys        map[string]*storetypes.KVStoreKey
+	tkeys       map[string]*storetypes.TransientStoreKey
+	memKeys     map[string]*storetypes.MemoryStoreKey
 
 	// keepers
-	AccountKeeper    authkeeper.AccountKeeper
-	BankKeeper       bankkeeper.Keeper
-	AuthzKeeper      authzkeeper.Keeper
-	CapabilityKeeper *capabilitykeeper.Keeper
-	StakingKeeper    stakingkeeper.Keeper
-	SlashingKeeper   slashingkeeper.Keeper
-	MintKeeper       mintkeeper.Keeper
-	DistrKeeper      distrkeeper.Keeper
-	GovKeeper        govkeeper.Keeper
-	CrisisKeeper     crisiskeeper.Keeper
-	UpgradeKeeper    upgradekeeper.Keeper // This is included purely for the IBC Keeper. It is not used for upgrading
-	SignalKeeper     signal.Keeper
-	ParamsKeeper     paramskeeper.Keeper
-	IBCKeeper        *ibckeeper.Keeper // IBCKeeper must be a pointer in the app, so we can SetRouter on it correctly
-	EvidenceKeeper   evidencekeeper.Keeper
-	TransferKeeper   ibctransferkeeper.Keeper
-	FeeGrantKeeper   feegrantkeeper.Keeper
-	ICAHostKeeper    icahostkeeper.Keeper
+	AccountKeeper       authkeeper.AccountKeeper
+	BankKeeper          bankkeeper.Keeper
+	AuthzKeeper         authzkeeper.Keeper
+	CapabilityKeeper    *capabilitykeeper.Keeper
+	StakingKeeper       stakingkeeper.Keeper
+	SlashingKeeper      slashingkeeper.Keeper
+	MintKeeper          mintkeeper.Keeper
+	DistrKeeper         distrkeeper.Keeper
+	GovKeeper           govkeeper.Keeper
+	CrisisKeeper        crisiskeeper.Keeper
+	UpgradeKeeper       upgradekeeper.Keeper // This is included purely for the IBC Keeper. It is not used for upgrading
+	SignalKeeper        signal.Keeper
+	ParamsKeeper        paramskeeper.Keeper
+	IBCKeeper           *ibckeeper.Keeper // IBCKeeper must be a pointer in the app, so we can SetRouter on it correctly
+	EvidenceKeeper      evidencekeeper.Keeper
+	TransferKeeper      ibctransferkeeper.Keeper
+	FeeGrantKeeper      feegrantkeeper.Keeper
+	ICAHostKeeper       icahostkeeper.Keeper
+	PacketForwardKeeper *packetforwardkeeper.Keeper
 
 	ScopedIBCKeeper      capabilitykeeper.ScopedKeeper // This keeper is public for test purposes
 	ScopedTransferKeeper capabilitykeeper.ScopedKeeper // This keeper is public for test purposes
@@ -218,8 +167,6 @@ type App struct {
 	upgradeHeight int64
 	// used to define what messages are accepted for a given app version
 	MsgGateKeeper *ante.MsgVersioningGateKeeper
-
-	PacketForwardKeeper *packetforwardkeeper.Keeper
 }
 
 // New returns a reference to an initialized celestia app.
@@ -231,7 +178,6 @@ func New(
 	logger log.Logger,
 	db dbm.DB,
 	traceStore io.Writer,
-	loadLatest bool,
 	invCheckPeriod uint,
 	encodingConfig encoding.Config,
 	upgradeHeight int64,
@@ -247,18 +193,7 @@ func New(
 	bApp.SetVersion(version.Version)
 	bApp.SetInterfaceRegistry(interfaceRegistry)
 
-	keys := sdk.NewKVStoreKeys(
-		authtypes.StoreKey, authzkeeper.StoreKey, banktypes.StoreKey, stakingtypes.StoreKey,
-		minttypes.StoreKey, distrtypes.StoreKey, slashingtypes.StoreKey,
-		govtypes.StoreKey, paramstypes.StoreKey, upgradetypes.StoreKey, feegrant.StoreKey,
-		evidencetypes.StoreKey, capabilitytypes.StoreKey,
-		blobstreamtypes.StoreKey,
-		ibctransfertypes.StoreKey,
-		ibchost.StoreKey,
-		packetforwardtypes.StoreKey,
-		icahosttypes.StoreKey,
-		signaltypes.StoreKey,
-	)
+	keys := sdk.NewKVStoreKeys(allStoreKeys()...)
 	tkeys := sdk.NewTransientStoreKeys(paramstypes.TStoreKey)
 	memKeys := sdk.NewMemoryStoreKeys(capabilitytypes.MemStoreKey)
 
@@ -268,6 +203,7 @@ func New(
 		interfaceRegistry: interfaceRegistry,
 		txConfig:          encodingConfig.TxConfig,
 		invCheckPeriod:    invCheckPeriod,
+		keyVersions:       versionedStoreKeys(),
 		keys:              keys,
 		tkeys:             tkeys,
 		memKeys:           memKeys,
@@ -436,195 +372,14 @@ func New(
 	// we prefer to be more strict in what arguments the modules expect.
 	skipGenesisInvariants := cast.ToBool(appOpts.Get(crisis.FlagSkipGenesisInvariants))
 
-	// NOTE: Any module instantiated in the module manager that is later modified
-	// must be passed by reference here.
-	var err error
-	app.mm, err = module.NewManager([]module.VersionedModule{
-		{
-			Module:      genutil.NewAppModule(app.AccountKeeper, app.StakingKeeper, app.BaseApp.DeliverTx, encodingConfig.TxConfig),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      auth.NewAppModule(appCodec, app.AccountKeeper, nil),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      vesting.NewAppModule(app.AccountKeeper, app.BankKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      bank.NewAppModule(appCodec, app.BankKeeper, app.AccountKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      capability.NewAppModule(appCodec, *app.CapabilityKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      feegrantmodule.NewAppModule(appCodec, app.AccountKeeper, app.BankKeeper, app.FeeGrantKeeper, app.interfaceRegistry),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      crisis.NewAppModule(&app.CrisisKeeper, skipGenesisInvariants),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      gov.NewAppModule(appCodec, app.GovKeeper, app.AccountKeeper, app.BankKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      mint.NewAppModule(appCodec, app.MintKeeper, app.AccountKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      slashing.NewAppModule(appCodec, app.SlashingKeeper, app.AccountKeeper, app.BankKeeper, app.StakingKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      distr.NewAppModule(appCodec, app.DistrKeeper, app.AccountKeeper, app.BankKeeper, app.StakingKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      staking.NewAppModule(appCodec, app.StakingKeeper, app.AccountKeeper, app.BankKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      evidence.NewAppModule(app.EvidenceKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      authzmodule.NewAppModule(appCodec, app.AuthzKeeper, app.AccountKeeper, app.BankKeeper, app.interfaceRegistry),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      ibc.NewAppModule(app.IBCKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      params.NewAppModule(app.ParamsKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      transfer.NewAppModule(app.TransferKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      blob.NewAppModule(appCodec, app.BlobKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      blobstream.NewAppModule(appCodec, app.BlobstreamKeeper),
-			FromVersion: v1, ToVersion: v2,
-		},
-		{
-			Module:      signal.NewAppModule(app.SignalKeeper),
-			FromVersion: v2, ToVersion: v2,
-		},
-		{
-			Module:      minfee.NewAppModule(app.ParamsKeeper),
-			FromVersion: v2, ToVersion: v2,
-		},
-		{
-			Module:      packetforward.NewAppModule(app.PacketForwardKeeper),
-			FromVersion: v2, ToVersion: v2,
-		},
-		{
-			Module:      ica.NewAppModule(nil, &app.ICAHostKeeper),
-			FromVersion: v2, ToVersion: v2,
-		},
-	})
+	// NOTE: Modules can't be modified or else must be passed by reference to the module manager
+	err := app.setupModuleManager(skipGenesisInvariants)
 	if err != nil {
 		panic(err)
 	}
 
-	// During begin block slashing happens after distr.BeginBlocker so that
-	// there is nothing left over in the validator fee pool, so as to keep the
-	// CanWithdrawInvariant invariant.
-	// NOTE: staking module is required if HistoricalEntries param > 0
-	app.mm.SetOrderBeginBlockers(
-		capabilitytypes.ModuleName,
-		minttypes.ModuleName,
-		distrtypes.ModuleName,
-		slashingtypes.ModuleName,
-		evidencetypes.ModuleName,
-		stakingtypes.ModuleName,
-		ibchost.ModuleName,
-		ibctransfertypes.ModuleName,
-		feegrant.ModuleName,
-		authtypes.ModuleName,
-		banktypes.ModuleName,
-		crisistypes.ModuleName,
-		govtypes.ModuleName,
-		genutiltypes.ModuleName,
-		blobtypes.ModuleName,
-		blobstreamtypes.ModuleName,
-		paramstypes.ModuleName,
-		authz.ModuleName,
-		vestingtypes.ModuleName,
-		signaltypes.ModuleName,
-		minfee.ModuleName,
-		icatypes.ModuleName,
-		packetforwardtypes.ModuleName,
-	)
-
-	app.mm.SetOrderEndBlockers(
-		crisistypes.ModuleName,
-		govtypes.ModuleName,
-		stakingtypes.ModuleName,
-		capabilitytypes.ModuleName,
-		minttypes.ModuleName,
-		distrtypes.ModuleName,
-		slashingtypes.ModuleName,
-		evidencetypes.ModuleName,
-		ibchost.ModuleName,
-		ibctransfertypes.ModuleName,
-		feegrant.ModuleName,
-		authtypes.ModuleName,
-		banktypes.ModuleName,
-		genutiltypes.ModuleName,
-		blobtypes.ModuleName,
-		blobstreamtypes.ModuleName,
-		paramstypes.ModuleName,
-		authz.ModuleName,
-		vestingtypes.ModuleName,
-		signaltypes.ModuleName,
-		minfee.ModuleName,
-		packetforwardtypes.ModuleName,
-		icatypes.ModuleName,
-	)
-
-	// NOTE: The genutils module must occur after staking so that pools are
-	// properly initialized with tokens from genesis accounts.
-	// NOTE: Capability module must occur first so that it can initialize any capabilities
-	// so that other modules that want to create or claim capabilities afterwards in InitChain
-	// can do so safely.
-	// NOTE: The minfee module must occur before genutil so DeliverTx can
-	// successfully pass the fee checking logic
-	app.mm.SetOrderInitGenesis(
-		capabilitytypes.ModuleName,
-		authtypes.ModuleName,
-		banktypes.ModuleName,
-		distrtypes.ModuleName,
-		stakingtypes.ModuleName,
-		slashingtypes.ModuleName,
-		govtypes.ModuleName,
-		minttypes.ModuleName,
-		crisistypes.ModuleName,
-		ibchost.ModuleName,
-		minfee.ModuleName,
-		genutiltypes.ModuleName,
-		evidencetypes.ModuleName,
-		ibctransfertypes.ModuleName,
-		blobtypes.ModuleName,
-		blobstreamtypes.ModuleName,
-		vestingtypes.ModuleName,
-		feegrant.ModuleName,
-		paramstypes.ModuleName,
-		authz.ModuleName,
-		signaltypes.ModuleName,
-		packetforwardtypes.ModuleName,
-		icatypes.ModuleName,
-	)
+	// order begin block, end block and init genesis
+	app.setModuleOrder()
 
 	app.QueryRouter().AddRoute(proof.TxInclusionQueryPath, proof.QueryTxInclusionProof)
 	app.QueryRouter().AddRoute(proof.ShareInclusionQueryPath, proof.QueryShareInclusionProof)
@@ -639,8 +394,8 @@ func New(
 	app.MsgGateKeeper = ante.NewMsgVersioningGateKeeper(app.configurator.GetAcceptedMessages())
 	app.MsgServiceRouter().SetCircuit(app.MsgGateKeeper)
 
-	// initialize stores
-	app.MountKVStores(keys)
+	// Initialize the KV stores for the base modules (e.g. params). The base modules will be included in every app version.
+	app.MountKVStores(app.baseKeys())
 	app.MountTransientStores(tkeys)
 	app.MountMemoryStores(memKeys)
 
@@ -661,10 +416,16 @@ func New(
 	))
 	app.SetPostHandler(posthandler.New())
 
-	if loadLatest {
-		if err := app.LoadLatestVersion(); err != nil {
-			tmos.Exit(err.Error())
-		}
+	app.SetMigrateStoreFn(app.migrateCommitStore)
+	app.SetMigrateModuleFn(app.migrateModules)
+
+	// assert that keys are present for all supported versions
+	app.assertAllKeysArePresent()
+
+	// we don't seal the store until the app version has been initailised
+	// this will just initialize the base keys (i.e. the param store)
+	if err := app.CommitMultiStore().LoadLatestVersion(); err != nil {
+		tmos.Exit(err.Error())
 	}
 
 	return app
@@ -686,42 +447,66 @@ func (app *App) EndBlocker(ctx sdk.Context, req abci.RequestEndBlock) abci.Respo
 	if currentVersion == v1 {
 		// check that we are at the height before the upgrade
 		if req.Height == app.upgradeHeight-1 {
-			if err := app.Upgrade(ctx, currentVersion, currentVersion+1); err != nil {
-				panic(err)
-			}
+			app.SetInitialAppVersionInConsensusParams(ctx, v2)
+			app.SetAppVersion(ctx, v2)
 		}
 		// from v2 to v3 and onwards we use a signalling mechanism
 	} else if shouldUpgrade, newVersion := app.SignalKeeper.ShouldUpgrade(); shouldUpgrade {
 		// Version changes must be increasing. Downgrades are not permitted
 		if newVersion > currentVersion {
-			if err := app.Upgrade(ctx, currentVersion, newVersion); err != nil {
-				panic(err)
-			}
+			app.SetAppVersion(ctx, newVersion)
+			app.SignalKeeper.ResetTally(ctx)
 		}
 	}
 	return res
 }
 
-func (app *App) Upgrade(ctx sdk.Context, fromVersion, toVersion uint64) error {
-	if err := app.mm.RunMigrations(ctx, app.configurator, fromVersion, toVersion); err != nil {
-		return err
+// migrateCommitStore tells the baseapp during a version upgrade, which stores to add and which
+// stores to remove
+func (app *App) migrateCommitStore(fromVersion, toVersion uint64) (baseapp.StoreMigrations, error) {
+	oldStoreKeys := app.keyVersions[fromVersion]
+	newStoreKeys := app.keyVersions[toVersion]
+	result := baseapp.StoreMigrations{
+		Added:   make(map[string]*storetypes.KVStoreKey),
+		Deleted: make(map[string]*storetypes.KVStoreKey),
+	}
+	for _, oldKey := range oldStoreKeys {
+		if !slices.Contains(newStoreKeys, oldKey) {
+			result.Deleted[oldKey] = app.keys[oldKey]
+		}
 	}
-	if toVersion == v2 {
-		// we need to set the app version in the param store for the first time
-		app.SetInitialAppVersionInConsensusParams(ctx, toVersion)
+	for _, newKey := range newStoreKeys {
+		if !slices.Contains(oldStoreKeys, newKey) {
+			result.Added[newKey] = app.keys[newKey]
+		}
 	}
-	app.SetAppVersion(ctx, toVersion)
-	app.SignalKeeper.ResetTally(ctx)
-	return nil
+	return result, nil
 }
 
-// InitChainer application update at chain initialization
-func (app *App) InitChainer(ctx sdk.Context, req abci.RequestInitChain) abci.ResponseInitChain {
-	var genesisState GenesisState
-	if err := tmjson.Unmarshal(req.AppStateBytes, &genesisState); err != nil {
-		panic(err)
+// migrateModules performs migrations on existing modules that have registered migrations
+// between versions and initializes the state of new modules for the specified app version.
+func (app *App) migrateModules(ctx sdk.Context, fromVersion, toVersion uint64) error {
+	return app.mm.RunMigrations(ctx, app.configurator, fromVersion, toVersion)
+}
+
+// We wrap Info around baseapp so we can take the app version and
+// setup the multicommit store.
+func (app *App) Info(req abci.RequestInfo) abci.ResponseInfo {
+	resp := app.BaseApp.Info(req)
+	// mount the stores for the provided app version
+	if resp.AppVersion > 0 && !app.IsSealed() {
+		app.MountKVStores(app.versionedKeys(resp.AppVersion))
+		if err := app.LoadLatestVersion(); err != nil {
+			panic(fmt.Sprintf("loading latest version: %s", err.Error()))
+		}
 	}
-	// genesis must always contain the consensus params. The validator set howerver is derived from the
+	return resp
+}
+
+// We wrap InitChain around baseapp so we can take the app version and
+// setup the multicommit store.
+func (app *App) InitChain(req abci.RequestInitChain) (res abci.ResponseInitChain) {
+	// genesis must always contain the consensus params. The validator set however is derived from the
 	// initial genesis state. The genesis must always contain a non zero app version which is the initial
 	// version that the chain starts on
 	if req.ConsensusParams == nil || req.ConsensusParams.Version == nil {
@@ -730,6 +515,26 @@ func (app *App) InitChainer(ctx sdk.Context, req abci.RequestInitChain) abci.Res
 	if req.ConsensusParams.Version.AppVersion == 0 {
 		panic("app version 0 is not accepted. Please set an app version in the genesis")
 	}
+
+	// mount the stores for the provided app version if it has not already been mounted
+	if app.AppVersion() == 0 && !app.IsSealed() {
+		app.MountKVStores(app.versionedKeys(req.ConsensusParams.Version.AppVersion))
+		if err := app.LoadLatestVersion(); err != nil {
+			panic(fmt.Sprintf("loading latest version: %s", err.Error()))
+		}
+	}
+
+	return app.BaseApp.InitChain(req)
+}
+
+// InitChainer application update at chain initialization
+func (app *App) InitChainer(ctx sdk.Context, req abci.RequestInitChain) abci.ResponseInitChain {
+	var genesisState GenesisState
+	if err := tmjson.Unmarshal(req.AppStateBytes, &genesisState); err != nil {
+		panic(err)
+	}
+
+	app.UpgradeKeeper.SetModuleVersionMap(ctx, app.mm.GetVersionMap(req.ConsensusParams.Version.AppVersion))
 	return app.mm.InitGenesis(ctx, app.appCodec, genesisState, req.ConsensusParams.Version.AppVersion)
 }
 
@@ -744,6 +549,28 @@ func (app *App) SupportedVersions() []uint64 {
 	return app.mm.SupportedVersions()
 }
 
+// versionedKeys returns the keys for the kv stores for a given app version
+func (app *App) versionedKeys(appVersion uint64) map[string]*storetypes.KVStoreKey {
+	output := make(map[string]*storetypes.KVStoreKey)
+	if keys, exists := app.keyVersions[appVersion]; exists {
+		for _, moduleName := range keys {
+			if key, exists := app.keys[moduleName]; exists {
+				output[moduleName] = key
+			}
+		}
+	}
+	return output
+}
+
+// baseKeys returns the base keys that are mounted to every version
+func (app *App) baseKeys() map[string]*storetypes.KVStoreKey {
+	return map[string]*storetypes.KVStoreKey{
+		// we need to know the app version to know what stores to mount
+		// thus the paramstore must always be a store that is mounted
+		paramstypes.StoreKey: app.keys[paramstypes.StoreKey],
+	}
+}
+
 // ModuleAccountAddrs returns all the app's module account addresses.
 func (app *App) ModuleAccountAddrs() map[string]bool {
 	modAccAddrs := make(map[string]bool)
@@ -899,16 +726,13 @@ func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino
 
 // extractRegisters isolates the encoding module registers from the module
 // manager, and appends any solo registers.
-func extractRegisters(m sdkmodule.BasicManager, soloRegisters ...encoding.ModuleRegister) []encoding.ModuleRegister {
+func extractRegisters(m sdkmodule.BasicManager) []encoding.ModuleRegister {
 	// TODO: might be able to use some standard generics in go 1.18
-	s := make([]encoding.ModuleRegister, len(m)+len(soloRegisters))
+	s := make([]encoding.ModuleRegister, len(m))
 	i := 0
 	for _, v := range m {
 		s[i] = v
 		i++
 	}
-	for i, v := range soloRegisters {
-		s[i+len(m)] = v
-	}
 	return s
 }
diff --git a/app/app_test.go b/app/app_test.go
index 10fae524..b83a0f9c 100644
--- a/app/app_test.go
+++ b/app/app_test.go
@@ -14,13 +14,12 @@ func TestNew(t *testing.T) {
 	logger := log.NewNopLogger()
 	db := tmdb.NewMemDB()
 	traceStore := &NoopWriter{}
-	loadLatest := true
 	invCheckPeriod := uint(1)
 	encodingConfig := encoding.MakeConfig(app.ModuleEncodingRegisters...)
 	upgradeHeight := int64(0)
 	appOptions := NoopAppOptions{}
 
-	got := app.New(logger, db, traceStore, loadLatest, invCheckPeriod, encodingConfig, upgradeHeight, appOptions)
+	got := app.New(logger, db, traceStore, invCheckPeriod, encodingConfig, upgradeHeight, appOptions)
 
 	t.Run("initializes ICAHostKeeper", func(t *testing.T) {
 		assert.NotNil(t, got.ICAHostKeeper)
diff --git a/app/module/module.go b/app/module/module.go
index ce782e77..ac986533 100644
--- a/app/module/module.go
+++ b/app/module/module.go
@@ -223,9 +223,6 @@ func (m *Manager) assertNoForgottenModules(setOrderFnName string, moduleNames []
 // MigrationHandler is the migration function that each module registers.
 type MigrationHandler func(sdk.Context) error
 
-// VersionMap is a map of moduleName -> version
-type VersionMap map[string]uint64
-
 // RunMigrations performs in-place store migrations for all modules. This
 // function MUST be called when the state machine changes appVersion
 func (m Manager) RunMigrations(ctx sdk.Context, cfg sdkmodule.Configurator, fromVersion, toVersion uint64) error {
@@ -335,6 +332,22 @@ func (m *Manager) EndBlock(ctx sdk.Context, req abci.RequestEndBlock) abci.Respo
 	}
 }
 
+// GetVersionMap gets consensus version from all modules
+func (m *Manager) GetVersionMap(version uint64) sdkmodule.VersionMap {
+	vermap := make(sdkmodule.VersionMap)
+	if version > m.lastVersion || version < m.firstVersion {
+		return vermap
+	}
+
+	for _, v := range m.versionedModules[version] {
+		version := v.ConsensusVersion()
+		name := v.Name()
+		vermap[name] = version
+	}
+
+	return vermap
+}
+
 // ModuleNames returns list of all module names, without any particular order.
 func (m *Manager) ModuleNames(version uint64) []string {
 	modules, ok := m.versionedModules[version]
@@ -351,6 +364,7 @@ func (m *Manager) ModuleNames(version uint64) []string {
 	return ms
 }
 
+// SupportedVersions returns all the supported versions for the module manager
 func (m *Manager) SupportedVersions() []uint64 {
 	output := make([]uint64, 0, m.lastVersion-m.firstVersion+1)
 	for version := m.firstVersion; version <= m.lastVersion; version++ {
@@ -385,6 +399,17 @@ func (m *Manager) checkUpgradeSchedule() error {
 	return nil
 }
 
+// assertMatchingModules performs a sanity check that the basic module manager
+// contains all the same modules present in the module manager
+func (m *Manager) AssertMatchingModules(basicModuleManager sdkmodule.BasicManager) error {
+	for _, module := range m.allModules {
+		if _, exists := basicModuleManager[module.Name()]; !exists {
+			return fmt.Errorf("module %s not found in basic module manager", module.Name())
+		}
+	}
+	return nil
+}
+
 // DefaultMigrationsOrder returns a default migrations order: ascending alphabetical by module name,
 // except x/auth which will run last, see:
 // https://github.com/cosmos/cosmos-sdk/issues/10591
diff --git a/app/modules.go b/app/modules.go
new file mode 100644
index 00000000..210d0f75
--- /dev/null
+++ b/app/modules.go
@@ -0,0 +1,373 @@
+package app
+
+import (
+	"fmt"
+
+	"github.com/celestiaorg/celestia-app/v2/app/module"
+	"github.com/celestiaorg/celestia-app/v2/x/blob"
+	blobtypes "github.com/celestiaorg/celestia-app/v2/x/blob/types"
+	"github.com/celestiaorg/celestia-app/v2/x/blobstream"
+	blobstreamtypes "github.com/celestiaorg/celestia-app/v2/x/blobstream/types"
+	"github.com/celestiaorg/celestia-app/v2/x/minfee"
+	"github.com/celestiaorg/celestia-app/v2/x/mint"
+	minttypes "github.com/celestiaorg/celestia-app/v2/x/mint/types"
+	"github.com/celestiaorg/celestia-app/v2/x/signal"
+	signaltypes "github.com/celestiaorg/celestia-app/v2/x/signal/types"
+	sdkmodule "github.com/cosmos/cosmos-sdk/types/module"
+	"github.com/cosmos/cosmos-sdk/x/auth"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	"github.com/cosmos/cosmos-sdk/x/auth/vesting"
+	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
+	"github.com/cosmos/cosmos-sdk/x/authz"
+	authzkeeper "github.com/cosmos/cosmos-sdk/x/authz/keeper"
+	authzmodule "github.com/cosmos/cosmos-sdk/x/authz/module"
+	"github.com/cosmos/cosmos-sdk/x/bank"
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+	"github.com/cosmos/cosmos-sdk/x/capability"
+	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
+	"github.com/cosmos/cosmos-sdk/x/crisis"
+	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
+	distr "github.com/cosmos/cosmos-sdk/x/distribution"
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
+	"github.com/cosmos/cosmos-sdk/x/evidence"
+	evidencetypes "github.com/cosmos/cosmos-sdk/x/evidence/types"
+	"github.com/cosmos/cosmos-sdk/x/feegrant"
+	feegrantmodule "github.com/cosmos/cosmos-sdk/x/feegrant/module"
+	"github.com/cosmos/cosmos-sdk/x/genutil"
+	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
+	"github.com/cosmos/cosmos-sdk/x/gov"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	"github.com/cosmos/cosmos-sdk/x/params"
+	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	"github.com/cosmos/cosmos-sdk/x/slashing"
+	slashingtypes "github.com/cosmos/cosmos-sdk/x/slashing/types"
+	"github.com/cosmos/cosmos-sdk/x/staking"
+	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+	"github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v6/packetforward"
+	packetforwardtypes "github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v6/packetforward/types"
+	ica "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts"
+	icahosttypes "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/host/types"
+	icatypes "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/types"
+	"github.com/cosmos/ibc-go/v6/modules/apps/transfer"
+	ibctransfertypes "github.com/cosmos/ibc-go/v6/modules/apps/transfer/types"
+	ibc "github.com/cosmos/ibc-go/v6/modules/core"
+	ibchost "github.com/cosmos/ibc-go/v6/modules/core/24-host"
+)
+
+var (
+	// ModuleBasics defines the module BasicManager is in charge of setting up basic,
+	// non-dependant module elements, such as codec registration
+	// and genesis verification.
+	ModuleBasics = sdkmodule.NewBasicManager(
+		auth.AppModuleBasic{},
+		genutil.AppModuleBasic{},
+		bankModule{},
+		capability.AppModuleBasic{},
+		stakingModule{},
+		mintModule{},
+		distributionModule{},
+		newGovModule(),
+		params.AppModuleBasic{},
+		crisisModule{},
+		slashingModule{},
+		authzmodule.AppModuleBasic{},
+		feegrantmodule.AppModuleBasic{},
+		ibcModule{},
+		evidence.AppModuleBasic{},
+		transfer.AppModuleBasic{},
+		vesting.AppModuleBasic{},
+		blob.AppModuleBasic{},
+		blobstream.AppModuleBasic{},
+		signal.AppModuleBasic{},
+		minfee.AppModuleBasic{},
+		packetforward.AppModuleBasic{},
+		icaModule{},
+	)
+
+	// ModuleEncodingRegisters keeps track of all the module methods needed to
+	// register interfaces and specific type to encoding config
+	ModuleEncodingRegisters = extractRegisters(ModuleBasics)
+)
+
+func (app *App) setupModuleManager(skipGenesisInvariants bool) error {
+	var err error
+	app.mm, err = module.NewManager([]module.VersionedModule{
+		{
+			Module:      genutil.NewAppModule(app.AccountKeeper, app.StakingKeeper, app.BaseApp.DeliverTx, app.txConfig),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      auth.NewAppModule(app.appCodec, app.AccountKeeper, nil),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      vesting.NewAppModule(app.AccountKeeper, app.BankKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      bank.NewAppModule(app.appCodec, app.BankKeeper, app.AccountKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      capability.NewAppModule(app.appCodec, *app.CapabilityKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      feegrantmodule.NewAppModule(app.appCodec, app.AccountKeeper, app.BankKeeper, app.FeeGrantKeeper, app.interfaceRegistry),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      crisis.NewAppModule(&app.CrisisKeeper, skipGenesisInvariants),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      gov.NewAppModule(app.appCodec, app.GovKeeper, app.AccountKeeper, app.BankKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      mint.NewAppModule(app.appCodec, app.MintKeeper, app.AccountKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      slashing.NewAppModule(app.appCodec, app.SlashingKeeper, app.AccountKeeper, app.BankKeeper, app.StakingKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      distr.NewAppModule(app.appCodec, app.DistrKeeper, app.AccountKeeper, app.BankKeeper, app.StakingKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      staking.NewAppModule(app.appCodec, app.StakingKeeper, app.AccountKeeper, app.BankKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      evidence.NewAppModule(app.EvidenceKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      authzmodule.NewAppModule(app.appCodec, app.AuthzKeeper, app.AccountKeeper, app.BankKeeper, app.interfaceRegistry),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      ibc.NewAppModule(app.IBCKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      params.NewAppModule(app.ParamsKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      transfer.NewAppModule(app.TransferKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      blob.NewAppModule(app.appCodec, app.BlobKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      blobstream.NewAppModule(app.appCodec, app.BlobstreamKeeper),
+			FromVersion: v1, ToVersion: v2,
+		},
+		{
+			Module:      signal.NewAppModule(app.SignalKeeper),
+			FromVersion: v2, ToVersion: v2,
+		},
+		{
+			Module:      minfee.NewAppModule(app.ParamsKeeper),
+			FromVersion: v2, ToVersion: v2,
+		},
+		{
+			Module:      packetforward.NewAppModule(app.PacketForwardKeeper),
+			FromVersion: v2, ToVersion: v2,
+		},
+		{
+			Module:      ica.NewAppModule(nil, &app.ICAHostKeeper),
+			FromVersion: v2, ToVersion: v2,
+		},
+	})
+	if err != nil {
+		return err
+	}
+	return app.mm.AssertMatchingModules(ModuleBasics)
+}
+
+func (app *App) setModuleOrder() {
+	// During begin block slashing happens after distr.BeginBlocker so that
+	// there is nothing left over in the validator fee pool, so as to keep the
+	// CanWithdrawInvariant invariant.
+	// NOTE: staking module is required if HistoricalEntries param > 0
+	app.mm.SetOrderBeginBlockers(
+		capabilitytypes.ModuleName,
+		minttypes.ModuleName,
+		distrtypes.ModuleName,
+		slashingtypes.ModuleName,
+		evidencetypes.ModuleName,
+		stakingtypes.ModuleName,
+		ibchost.ModuleName,
+		ibctransfertypes.ModuleName,
+		feegrant.ModuleName,
+		authtypes.ModuleName,
+		banktypes.ModuleName,
+		crisistypes.ModuleName,
+		govtypes.ModuleName,
+		genutiltypes.ModuleName,
+		blobtypes.ModuleName,
+		blobstreamtypes.ModuleName,
+		paramstypes.ModuleName,
+		authz.ModuleName,
+		vestingtypes.ModuleName,
+		signaltypes.ModuleName,
+		minfee.ModuleName,
+		icatypes.ModuleName,
+		packetforwardtypes.ModuleName,
+	)
+
+	app.mm.SetOrderEndBlockers(
+		crisistypes.ModuleName,
+		govtypes.ModuleName,
+		stakingtypes.ModuleName,
+		capabilitytypes.ModuleName,
+		minttypes.ModuleName,
+		distrtypes.ModuleName,
+		slashingtypes.ModuleName,
+		evidencetypes.ModuleName,
+		ibchost.ModuleName,
+		ibctransfertypes.ModuleName,
+		feegrant.ModuleName,
+		authtypes.ModuleName,
+		banktypes.ModuleName,
+		genutiltypes.ModuleName,
+		blobtypes.ModuleName,
+		blobstreamtypes.ModuleName,
+		paramstypes.ModuleName,
+		authz.ModuleName,
+		vestingtypes.ModuleName,
+		signaltypes.ModuleName,
+		minfee.ModuleName,
+		packetforwardtypes.ModuleName,
+		icatypes.ModuleName,
+	)
+
+	// NOTE: The genutils module must occur after staking so that pools are
+	// properly initialized with tokens from genesis accounts.
+	// NOTE: Capability module must occur first so that it can initialize any capabilities
+	// so that other modules that want to create or claim capabilities afterwards in InitChain
+	// can do so safely.
+	// NOTE: The minfee module must occur before genutil so DeliverTx can
+	// successfully pass the fee checking logic
+	app.mm.SetOrderInitGenesis(
+		capabilitytypes.ModuleName,
+		authtypes.ModuleName,
+		banktypes.ModuleName,
+		distrtypes.ModuleName,
+		stakingtypes.ModuleName,
+		slashingtypes.ModuleName,
+		govtypes.ModuleName,
+		minttypes.ModuleName,
+		crisistypes.ModuleName,
+		ibchost.ModuleName,
+		minfee.ModuleName,
+		genutiltypes.ModuleName,
+		evidencetypes.ModuleName,
+		ibctransfertypes.ModuleName,
+		blobtypes.ModuleName,
+		blobstreamtypes.ModuleName,
+		vestingtypes.ModuleName,
+		feegrant.ModuleName,
+		paramstypes.ModuleName,
+		authz.ModuleName,
+		signaltypes.ModuleName,
+		packetforwardtypes.ModuleName,
+		icatypes.ModuleName,
+	)
+}
+
+func allStoreKeys() []string {
+	return []string{
+		authtypes.StoreKey, authzkeeper.StoreKey, banktypes.StoreKey, stakingtypes.StoreKey,
+		minttypes.StoreKey, distrtypes.StoreKey, slashingtypes.StoreKey,
+		govtypes.StoreKey, paramstypes.StoreKey, upgradetypes.StoreKey, feegrant.StoreKey,
+		evidencetypes.StoreKey, capabilitytypes.StoreKey,
+		blobstreamtypes.StoreKey,
+		ibctransfertypes.StoreKey,
+		ibchost.StoreKey,
+		packetforwardtypes.StoreKey,
+		icahosttypes.StoreKey,
+		signaltypes.StoreKey,
+		blobtypes.StoreKey,
+	}
+}
+
+// versionedStoreKeys returns the store keys for each app version
+// ... I wish there was an easier way than this (like using the modules which are already versioned)
+func versionedStoreKeys() map[uint64][]string {
+	return map[uint64][]string{
+		1: {
+			authtypes.StoreKey,
+			authzkeeper.StoreKey,
+			banktypes.StoreKey,
+			stakingtypes.StoreKey,
+			minttypes.StoreKey,
+			distrtypes.StoreKey,
+			slashingtypes.StoreKey,
+			govtypes.StoreKey,
+			upgradetypes.StoreKey,
+			feegrant.StoreKey,
+			evidencetypes.StoreKey,
+			capabilitytypes.StoreKey,
+			blobstreamtypes.StoreKey,
+			ibctransfertypes.StoreKey,
+			ibchost.StoreKey,
+			blobtypes.StoreKey,
+		},
+		2: {
+			authtypes.StoreKey,
+			authzkeeper.StoreKey,
+			banktypes.StoreKey,
+			stakingtypes.StoreKey,
+			minttypes.StoreKey,
+			distrtypes.StoreKey,
+			slashingtypes.StoreKey,
+			govtypes.StoreKey,
+			upgradetypes.StoreKey,
+			feegrant.StoreKey,
+			evidencetypes.StoreKey,
+			capabilitytypes.StoreKey,
+			blobstreamtypes.StoreKey,
+			ibctransfertypes.StoreKey,
+			ibchost.StoreKey,
+			packetforwardtypes.StoreKey,
+			icahosttypes.StoreKey,
+			signaltypes.StoreKey,
+		},
+	}
+}
+
+// assertAllKeysArePresent performs a couple sanity checks on startup to ensure each versions key names have
+// a key and that all versions supported by the module manager have a respective versioned key
+func (app *App) assertAllKeysArePresent() {
+	supportedAppVersions := app.SupportedVersions()
+	supportedVersionsMap := make(map[uint64]bool, len(supportedAppVersions))
+	for _, version := range supportedAppVersions {
+		supportedVersionsMap[version] = false
+	}
+
+	for appVersion, keys := range app.keyVersions {
+		if _, exists := supportedVersionsMap[appVersion]; exists {
+			supportedVersionsMap[appVersion] = true
+		} else {
+			panic(fmt.Sprintf("keys %v for app version %d are not supported by the module manager", keys, appVersion))
+		}
+		for _, key := range keys {
+			if _, ok := app.keys[key]; !ok {
+				panic(fmt.Sprintf("key %s is not present", key))
+			}
+		}
+	}
+	for appVersion, supported := range supportedVersionsMap {
+		if !supported {
+			panic(fmt.Sprintf("app version %d is supported by the module manager but has no keys", appVersion))
+		}
+	}
+}
diff --git a/app/test/ica_upgrade_test.go b/app/test/ica_upgrade_test.go
index 5a1fc8e0..6a86ba42 100644
--- a/app/test/ica_upgrade_test.go
+++ b/app/test/ica_upgrade_test.go
@@ -1,30 +1,21 @@
 package app_test
 
 import (
-	"encoding/json"
 	"testing"
-	"time"
 
-	"github.com/celestiaorg/celestia-app/v2/app"
-	"github.com/celestiaorg/celestia-app/v2/app/encoding"
-	v1 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v1"
-	v2 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v2"
 	"github.com/celestiaorg/celestia-app/v2/test/util"
-	"github.com/cosmos/cosmos-sdk/crypto/keyring"
 	"github.com/cosmos/cosmos-sdk/x/params/types/proposal"
 	icahosttypes "github.com/cosmos/ibc-go/v6/modules/apps/27-interchain-accounts/host/types"
 	"github.com/stretchr/testify/require"
 	abci "github.com/tendermint/tendermint/abci/types"
-	"github.com/tendermint/tendermint/libs/log"
 	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
 	version "github.com/tendermint/tendermint/proto/tendermint/version"
-	dbm "github.com/tendermint/tm-db"
 )
 
 // TestICA verifies that the ICA module's params are overridden during an
 // upgrade from v1 -> v2.
 func TestICA(t *testing.T) {
-	testApp, _ := setupTestApp(t, 3)
+	testApp, _ := util.SetupTestAppWithUpgradeHeight(t, 3)
 	ctx := testApp.NewContext(true, tmproto.Header{
 		Version: version.Consensus{
 			App: 1,
@@ -57,46 +48,3 @@ func TestICA(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, "true", got.Param.Value)
 }
-
-func setupTestApp(t *testing.T, upgradeHeight int64) (*app.App, keyring.Keyring) {
-	t.Helper()
-
-	db := dbm.NewMemDB()
-	chainID := "test_chain"
-	encCfg := encoding.MakeConfig(app.ModuleEncodingRegisters...)
-	testApp := app.New(log.NewNopLogger(), db, nil, true, 0, encCfg, upgradeHeight, util.EmptyAppOptions{})
-	genesisState, _, kr := util.GenesisStateWithSingleValidator(testApp, "account")
-	stateBytes, err := json.MarshalIndent(genesisState, "", " ")
-	require.NoError(t, err)
-	infoResp := testApp.Info(abci.RequestInfo{})
-	require.EqualValues(t, 0, infoResp.AppVersion)
-	cp := app.DefaultInitialConsensusParams()
-	abciParams := &abci.ConsensusParams{
-		Block: &abci.BlockParams{
-			MaxBytes: cp.Block.MaxBytes,
-			MaxGas:   cp.Block.MaxGas,
-		},
-		Evidence:  &cp.Evidence,
-		Validator: &cp.Validator,
-		Version:   &cp.Version,
-	}
-
-	_ = testApp.InitChain(
-		abci.RequestInitChain{
-			Time:            time.Now(),
-			Validators:      []abci.ValidatorUpdate{},
-			ConsensusParams: abciParams,
-			AppStateBytes:   stateBytes,
-			ChainId:         chainID,
-		},
-	)
-
-	// assert that the chain starts with version provided in genesis
-	infoResp = testApp.Info(abci.RequestInfo{})
-	require.EqualValues(t, app.DefaultInitialConsensusParams().Version.AppVersion, infoResp.AppVersion)
-
-	_ = testApp.Commit()
-	supportedVersions := []uint64{v1.Version, v2.Version}
-	require.Equal(t, supportedVersions, testApp.SupportedVersions())
-	return testApp, kr
-}
diff --git a/app/test/upgrade_test.go b/app/test/upgrade_test.go
index 4cea5212..441586c9 100644
--- a/app/test/upgrade_test.go
+++ b/app/test/upgrade_test.go
@@ -5,6 +5,7 @@ import (
 
 	v1 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v1"
 	v2 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v2"
+	"github.com/celestiaorg/celestia-app/v2/test/util"
 	"github.com/stretchr/testify/require"
 	abci "github.com/tendermint/tendermint/abci/types"
 	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
@@ -12,7 +13,7 @@ import (
 )
 
 func TestUpgradeAppVersion(t *testing.T) {
-	testApp, _ := setupTestApp(t, 3)
+	testApp, _ := util.SetupTestAppWithUpgradeHeight(t, 3)
 
 	supportedVersions := []uint64{v1.Version, v2.Version}
 
diff --git a/cmd/celestia-appd/cmd/root.go b/cmd/celestia-appd/cmd/root.go
index 3dbcc66f..61dc7e32 100644
--- a/cmd/celestia-appd/cmd/root.go
+++ b/cmd/celestia-appd/cmd/root.go
@@ -236,7 +236,7 @@ func NewAppServer(logger log.Logger, db dbm.DB, traceStore io.Writer, appOpts se
 	}
 
 	return app.New(
-		logger, db, traceStore, true,
+		logger, db, traceStore,
 		cast.ToUint(appOpts.Get(server.FlagInvCheckPeriod)),
 		encoding.MakeConfig(app.ModuleEncodingRegisters...), // Ideally, we would reuse the one created by NewRootCmd.
 		cast.ToInt64(appOpts.Get(UpgradeHeightFlag)),
@@ -262,13 +262,13 @@ func createAppAndExport(
 	encCfg.Codec = codec.NewProtoCodec(encCfg.InterfaceRegistry)
 	var capp *app.App
 	if height != -1 {
-		capp = app.New(logger, db, traceStore, false, uint(1), encCfg, 0, appOpts)
+		capp = app.New(logger, db, traceStore, uint(1), encCfg, 0, appOpts)
 
 		if err := capp.LoadHeight(height); err != nil {
 			return servertypes.ExportedApp{}, err
 		}
 	} else {
-		capp = app.New(logger, db, traceStore, true, uint(1), encCfg, 0, appOpts)
+		capp = app.New(logger, db, traceStore, uint(1), encCfg, 0, appOpts)
 	}
 
 	return capp.ExportAppStateAndValidators(forZeroHeight, jailWhiteList)
diff --git a/go.mod b/go.mod
index c130d8f3..6558e177 100644
--- a/go.mod
+++ b/go.mod
@@ -257,7 +257,7 @@ require (
 )
 
 replace (
-	github.com/cosmos/cosmos-sdk => github.com/celestiaorg/cosmos-sdk v1.20.2-sdk-v0.46.16
+	github.com/cosmos/cosmos-sdk => github.com/celestiaorg/cosmos-sdk v1.21.0-sdk-v0.46.16
 	// Pin to ledger-cosmos-go v0.12.4 to avoid a breaking change introduced in v0.13.0
 	// The following replace statement can be removed when we upgrade to cosmos-sdk >= v0.50.0
 	github.com/cosmos/ledger-cosmos-go => github.com/cosmos/ledger-cosmos-go v0.12.4
diff --git a/go.sum b/go.sum
index 93125984..829e457d 100644
--- a/go.sum
+++ b/go.sum
@@ -326,8 +326,8 @@ github.com/celestiaorg/blobstream-contracts/v3 v3.1.0 h1:h1Y4V3EMQ2mFmNtWt2sIhZI
 github.com/celestiaorg/blobstream-contracts/v3 v3.1.0/go.mod h1:x4DKyfKOSv1ZJM9NwV+Pw01kH2CD7N5zTFclXIVJ6GQ=
 github.com/celestiaorg/celestia-core v1.35.0-tm-v0.34.29 h1:sXERzNXgyHyqTKNQx4S29C/NMDzgav62DaQDNF49HUQ=
 github.com/celestiaorg/celestia-core v1.35.0-tm-v0.34.29/go.mod h1:weZR4wYx1Vcw3g1Jc5G8VipG4M+KUDSqeIzyyWszmsQ=
-github.com/celestiaorg/cosmos-sdk v1.20.2-sdk-v0.46.16 h1:EmzwDx64oG8eKZPar50VCkpzxDNqjjtt7rOBJsMQY8E=
-github.com/celestiaorg/cosmos-sdk v1.20.2-sdk-v0.46.16/go.mod h1:AmuR63HTlX8vNV3+NGWNPIZa95J1UweTUmWDHSdTGj0=
+github.com/celestiaorg/cosmos-sdk v1.21.0-sdk-v0.46.16 h1:P44npoIUuortDf0nQSUpTwO8zsWoHufbDD/doU+CtxY=
+github.com/celestiaorg/cosmos-sdk v1.21.0-sdk-v0.46.16/go.mod h1:AmuR63HTlX8vNV3+NGWNPIZa95J1UweTUmWDHSdTGj0=
 github.com/celestiaorg/go-square v1.0.1 h1:LEG1zrw4i03VBMElQF8GAbKYgh1bT1uGzWxasU2ePuo=
 github.com/celestiaorg/go-square v1.0.1/go.mod h1:XMv5SGCeGSkynW2OOsedugaW/rQlvzxGzWGxTKsyYOU=
 github.com/celestiaorg/go-square/merkle v0.0.0-20240117232118-fd78256df076 h1:PYInrsYzrDIsZW9Yb86OTi2aEKuPcpgJt6Mc0Jlc/yg=
diff --git a/test/packetforward/packetforward_upgrade_test.go b/test/packetforward/packetforward_upgrade_test.go
index d35f1057..45e5de59 100644
--- a/test/packetforward/packetforward_upgrade_test.go
+++ b/test/packetforward/packetforward_upgrade_test.go
@@ -1,31 +1,24 @@
 package packetforward_test
 
 import (
-	"encoding/json"
 	"strings"
 	"testing"
-	"time"
 
-	"github.com/celestiaorg/celestia-app/v2/app"
-	"github.com/celestiaorg/celestia-app/v2/app/encoding"
 	v1 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v1"
 	v2 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v2"
 	"github.com/celestiaorg/celestia-app/v2/test/util"
-	"github.com/cosmos/cosmos-sdk/crypto/keyring"
 	"github.com/cosmos/cosmos-sdk/x/params/types/proposal"
 	packetforwardtypes "github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v6/packetforward/types"
 	"github.com/stretchr/testify/require"
 	abci "github.com/tendermint/tendermint/abci/types"
-	"github.com/tendermint/tendermint/libs/log"
 	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
 	version "github.com/tendermint/tendermint/proto/tendermint/version"
-	dbm "github.com/tendermint/tm-db"
 )
 
 // TestPacketForwardMiddlewareAgainstAppUpgrades verifies that the PFM module's params are overridden during an
 // upgrade from v1 -> v2.
 func TestPacketForwardMiddlewareAgainstAppUpgrades(t *testing.T) {
-	testApp, _ := setupTestApp(t, 3)
+	testApp, _ := util.SetupTestAppWithUpgradeHeight(t, 3)
 	supportedVersions := []uint64{v1.Version, v2.Version}
 	require.Equal(t, supportedVersions, testApp.SupportedVersions())
 
@@ -74,44 +67,3 @@ func TestPacketForwardMiddlewareAgainstAppUpgrades(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, "0.000000000000000000", strings.Trim(got.Param.Value, "\""))
 }
-
-func setupTestApp(t *testing.T, upgradeHeight int64) (*app.App, keyring.Keyring) {
-	t.Helper()
-
-	db := dbm.NewMemDB()
-	chainID := "test_chain"
-	encCfg := encoding.MakeConfig(app.ModuleEncodingRegisters...)
-	testApp := app.New(log.NewNopLogger(), db, nil, true, 0, encCfg, upgradeHeight, util.EmptyAppOptions{})
-	genesisState, _, kr := util.GenesisStateWithSingleValidator(testApp, "account")
-	stateBytes, err := json.MarshalIndent(genesisState, "", " ")
-	require.NoError(t, err)
-	infoResp := testApp.Info(abci.RequestInfo{})
-	require.EqualValues(t, 0, infoResp.AppVersion)
-	cp := app.DefaultInitialConsensusParams()
-	abciParams := &abci.ConsensusParams{
-		Block: &abci.BlockParams{
-			MaxBytes: cp.Block.MaxBytes,
-			MaxGas:   cp.Block.MaxGas,
-		},
-		Evidence:  &cp.Evidence,
-		Validator: &cp.Validator,
-		Version:   &cp.Version,
-	}
-
-	_ = testApp.InitChain(
-		abci.RequestInitChain{
-			Time:            time.Now(),
-			Validators:      []abci.ValidatorUpdate{},
-			ConsensusParams: abciParams,
-			AppStateBytes:   stateBytes,
-			ChainId:         chainID,
-		},
-	)
-
-	// assert that the chain starts with version provided in genesis
-	infoResp = testApp.Info(abci.RequestInfo{})
-	require.EqualValues(t, app.DefaultInitialConsensusParams().Version.AppVersion, infoResp.AppVersion)
-
-	_ = testApp.Commit()
-	return testApp, kr
-}
diff --git a/test/testground/go.mod b/test/testground/go.mod
index 294efae0..9bb25f03 100644
--- a/test/testground/go.mod
+++ b/test/testground/go.mod
@@ -222,7 +222,7 @@ require (
 )
 
 replace (
-	github.com/cosmos/cosmos-sdk => github.com/celestiaorg/cosmos-sdk v1.20.2-sdk-v0.46.16
+	github.com/cosmos/cosmos-sdk => github.com/celestiaorg/cosmos-sdk v1.21.0-sdk-v0.46.16
 	github.com/dgrijalva/jwt-go => github.com/golang-jwt/jwt/v4 v4.4.2
 	github.com/gin-gonic/gin => github.com/gin-gonic/gin v1.9.0
 	github.com/gogo/protobuf => github.com/regen-network/protobuf v1.3.3-alpha.regen.1
diff --git a/test/testground/go.sum b/test/testground/go.sum
index fbe539fd..77f3db8d 100644
--- a/test/testground/go.sum
+++ b/test/testground/go.sum
@@ -340,8 +340,8 @@ github.com/celestiaorg/celestia-app v1.0.0-rc0.0.20240304150808-f0a1f87c0253 h1:
 github.com/celestiaorg/celestia-app v1.0.0-rc0.0.20240304150808-f0a1f87c0253/go.mod h1:z3gMQZkUUe2MYrQQGnrYy+gDP0QpX0f5EPWtVNM0u/E=
 github.com/celestiaorg/celestia-core v1.35.0-tm-v0.34.29 h1:sXERzNXgyHyqTKNQx4S29C/NMDzgav62DaQDNF49HUQ=
 github.com/celestiaorg/celestia-core v1.35.0-tm-v0.34.29/go.mod h1:weZR4wYx1Vcw3g1Jc5G8VipG4M+KUDSqeIzyyWszmsQ=
-github.com/celestiaorg/cosmos-sdk v1.20.2-sdk-v0.46.16 h1:EmzwDx64oG8eKZPar50VCkpzxDNqjjtt7rOBJsMQY8E=
-github.com/celestiaorg/cosmos-sdk v1.20.2-sdk-v0.46.16/go.mod h1:AmuR63HTlX8vNV3+NGWNPIZa95J1UweTUmWDHSdTGj0=
+github.com/celestiaorg/cosmos-sdk v1.21.0-sdk-v0.46.16 h1:P44npoIUuortDf0nQSUpTwO8zsWoHufbDD/doU+CtxY=
+github.com/celestiaorg/cosmos-sdk v1.21.0-sdk-v0.46.16/go.mod h1:AmuR63HTlX8vNV3+NGWNPIZa95J1UweTUmWDHSdTGj0=
 github.com/celestiaorg/go-square v1.0.1 h1:LEG1zrw4i03VBMElQF8GAbKYgh1bT1uGzWxasU2ePuo=
 github.com/celestiaorg/go-square v1.0.1/go.mod h1:XMv5SGCeGSkynW2OOsedugaW/rQlvzxGzWGxTKsyYOU=
 github.com/celestiaorg/go-square/merkle v0.0.0-20240117232118-fd78256df076 h1:PYInrsYzrDIsZW9Yb86OTi2aEKuPcpgJt6Mc0Jlc/yg=
diff --git a/test/tokenfilter/setup.go b/test/tokenfilter/setup.go
index a9000042..aea94a1f 100644
--- a/test/tokenfilter/setup.go
+++ b/test/tokenfilter/setup.go
@@ -146,7 +146,7 @@ func SetupWithGenesisValSet(t testing.TB, valSet *tmtypes.ValidatorSet, genAccs
 	encCdc := encoding.MakeConfig(app.ModuleEncodingRegisters...)
 	genesisState := app.NewDefaultGenesisState(encCdc.Codec)
 	app := app.New(
-		log.NewNopLogger(), db, nil, true, 5, encCdc, 0, simapp.EmptyAppOptions{},
+		log.NewNopLogger(), db, nil, 5, encCdc, 0, simapp.EmptyAppOptions{},
 	)
 
 	// set genesis accounts
diff --git a/test/util/malicious/app.go b/test/util/malicious/app.go
index fdd0263a..9212e966 100644
--- a/test/util/malicious/app.go
+++ b/test/util/malicious/app.go
@@ -51,13 +51,12 @@ func New(
 	logger log.Logger,
 	db dbm.DB,
 	traceStore io.Writer,
-	loadLatest bool,
 	invCheckPeriod uint,
 	encodingConfig encoding.Config,
 	appOpts servertypes.AppOptions,
 	baseAppOptions ...func(*baseapp.BaseApp),
 ) *App {
-	goodApp := app.New(logger, db, traceStore, loadLatest, invCheckPeriod, encodingConfig, 0, appOpts, baseAppOptions...)
+	goodApp := app.New(logger, db, traceStore, invCheckPeriod, encodingConfig, 0, appOpts, baseAppOptions...)
 	badApp := &App{App: goodApp}
 
 	// set the malicious prepare proposal handler if it is set in the app options
diff --git a/test/util/malicious/test_app.go b/test/util/malicious/test_app.go
index 24b3f652..35943f61 100644
--- a/test/util/malicious/test_app.go
+++ b/test/util/malicious/test_app.go
@@ -77,7 +77,7 @@ func NewAppServer(logger log.Logger, db dbm.DB, traceStore io.Writer, appOpts se
 	}
 
 	return New(
-		logger, db, traceStore, true,
+		logger, db, traceStore,
 		cast.ToUint(appOpts.Get(server.FlagInvCheckPeriod)),
 		encoding.MakeConfig(app.ModuleEncodingRegisters...), // Ideally, we would reuse the one created by NewRootCmd.
 		appOpts,
diff --git a/test/util/test_app.go b/test/util/test_app.go
index 59b7f3cb..765b53d3 100644
--- a/test/util/test_app.go
+++ b/test/util/test_app.go
@@ -3,11 +3,14 @@ package util
 import (
 	"encoding/json"
 	"fmt"
+	"testing"
 	"time"
 
 	"github.com/celestiaorg/celestia-app/v2/app"
 	"github.com/celestiaorg/celestia-app/v2/app/encoding"
 	"github.com/celestiaorg/celestia-app/v2/pkg/appconsts"
+	v1 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v1"
+	v2 "github.com/celestiaorg/celestia-app/v2/pkg/appconsts/v2"
 	"github.com/celestiaorg/celestia-app/v2/test/util/testfactory"
 	"github.com/celestiaorg/celestia-app/v2/test/util/testnode"
 	"github.com/cosmos/cosmos-sdk/codec"
@@ -22,6 +25,7 @@ import (
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
 	"github.com/spf13/cast"
+	"github.com/stretchr/testify/require"
 	abci "github.com/tendermint/tendermint/abci/types"
 	"github.com/tendermint/tendermint/libs/log"
 	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
@@ -79,7 +83,7 @@ func NewTestAppWithGenesisSet(cparams *tmproto.ConsensusParams, genAccounts ...s
 	encCfg := encoding.MakeConfig(app.ModuleEncodingRegisters...)
 
 	testApp := app.New(
-		log.NewNopLogger(), db, nil, true,
+		log.NewNopLogger(), db, nil,
 		cast.ToUint(emptyOpts.Get(server.FlagInvCheckPeriod)),
 		encCfg,
 		0,
@@ -107,6 +111,8 @@ func NewTestAppWithGenesisSet(cparams *tmproto.ConsensusParams, genAccounts ...s
 
 	genesisTime := time.Date(2023, 1, 1, 1, 1, 1, 1, time.UTC).UTC()
 
+	_ = testApp.Info(abci.RequestInfo{})
+
 	// init chain will set the validator set and initialize the genesis accounts
 	testApp.InitChain(
 		abci.RequestInitChain{
@@ -293,3 +299,46 @@ func genesisStateWithValSet(
 func NewDefaultGenesisState(cdc codec.JSONCodec) app.GenesisState {
 	return app.ModuleBasics.DefaultGenesis(cdc)
 }
+
+func SetupTestAppWithUpgradeHeight(t *testing.T, upgradeHeight int64) (*app.App, keyring.Keyring) {
+	t.Helper()
+
+	db := dbm.NewMemDB()
+	chainID := "test_chain"
+	encCfg := encoding.MakeConfig(app.ModuleEncodingRegisters...)
+	testApp := app.New(log.NewNopLogger(), db, nil, 0, encCfg, upgradeHeight, EmptyAppOptions{})
+	genesisState, _, kr := GenesisStateWithSingleValidator(testApp, "account")
+	stateBytes, err := json.MarshalIndent(genesisState, "", " ")
+	require.NoError(t, err)
+	infoResp := testApp.Info(abci.RequestInfo{})
+	require.EqualValues(t, 0, infoResp.AppVersion)
+	cp := app.DefaultInitialConsensusParams()
+	abciParams := &abci.ConsensusParams{
+		Block: &abci.BlockParams{
+			MaxBytes: cp.Block.MaxBytes,
+			MaxGas:   cp.Block.MaxGas,
+		},
+		Evidence:  &cp.Evidence,
+		Validator: &cp.Validator,
+		Version:   &cp.Version,
+	}
+
+	_ = testApp.InitChain(
+		abci.RequestInitChain{
+			Time:            time.Now(),
+			Validators:      []abci.ValidatorUpdate{},
+			ConsensusParams: abciParams,
+			AppStateBytes:   stateBytes,
+			ChainId:         chainID,
+		},
+	)
+
+	// assert that the chain starts with version provided in genesis
+	infoResp = testApp.Info(abci.RequestInfo{})
+	require.EqualValues(t, app.DefaultInitialConsensusParams().Version.AppVersion, infoResp.AppVersion)
+
+	_ = testApp.Commit()
+	supportedVersions := []uint64{v1.Version, v2.Version}
+	require.Equal(t, supportedVersions, testApp.SupportedVersions())
+	return testApp, kr
+}
diff --git a/x/minfee/upgrade_test.go b/x/minfee/upgrade_test.go
index 7ce3566f..3fb5c02c 100644
--- a/x/minfee/upgrade_test.go
+++ b/x/minfee/upgrade_test.go
@@ -89,7 +89,7 @@ func setupTestApp(t *testing.T, upgradeHeight int64) (*app.App, keyring.Keyring)
 	db := dbm.NewMemDB()
 	chainID := "test_chain"
 	encCfg := encoding.MakeConfig(app.ModuleEncodingRegisters...)
-	testApp := app.New(log.NewNopLogger(), db, nil, true, 0, encCfg, upgradeHeight, util.EmptyAppOptions{})
+	testApp := app.New(log.NewNopLogger(), db, nil, 0, encCfg, upgradeHeight, util.EmptyAppOptions{})
 
 	genesisState, _, kr := util.GenesisStateWithSingleValidator(testApp, "account")