From 629b3b9df8defb2a857765ef140fb169fe325661 Mon Sep 17 00:00:00 2001
From: "mergify[bot]" <37929162+mergify[bot]@users.noreply.github.com>
Date: Thu, 11 Aug 2022 10:32:48 -0400
Subject: [PATCH] fix: move downgrade verification after store migration
 (#12906) (#12907)

---
 CHANGELOG.md      |  1 +
 x/upgrade/abci.go | 44 ++++++++++++++++++++++----------------------
 2 files changed, 23 insertions(+), 22 deletions(-)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index aadb987d3581..0f0d2a8d650e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -47,6 +47,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 ### Bug Fixes
 
 * (x/group) [#12888](https://github.com/cosmos/cosmos-sdk/pull/12888) Fix event propagation to the current context of `x/group` message execution `[]sdk.Result`.
+* (x/upgrade) [#12906](https://github.com/cosmos/cosmos-sdk/pull/12906) Fix upgrade failure by moving downgrade verification logic after store migration.
 
 ## [v0.46.0](https://github.com/cosmos/cosmos-sdk/releases/tag/v0.46.0) - 2022-07-26
 
diff --git a/x/upgrade/abci.go b/x/upgrade/abci.go
index 5212cd9e2ed5..f0214751422c 100644
--- a/x/upgrade/abci.go
+++ b/x/upgrade/abci.go
@@ -25,28 +25,6 @@ func BeginBlocker(k keeper.Keeper, ctx sdk.Context, _ abci.RequestBeginBlock) {
 
 	plan, found := k.GetUpgradePlan(ctx)
 
-	if !k.DowngradeVerified() {
-		k.SetDowngradeVerified(true)
-		lastAppliedPlan, _ := k.GetLastCompletedUpgrade(ctx)
-		// This check will make sure that we are using a valid binary.
-		// It'll panic in these cases if there is no upgrade handler registered for the last applied upgrade.
-		// 1. If there is no scheduled upgrade.
-		// 2. If the plan is not ready.
-		// 3. If the plan is ready and skip upgrade height is set for current height.
-		if !found || !plan.ShouldExecute(ctx) || (plan.ShouldExecute(ctx) && k.IsSkipHeight(ctx.BlockHeight())) {
-			if lastAppliedPlan != "" && !k.HasHandler(lastAppliedPlan) {
-				var appVersion uint64
-
-				cp := ctx.ConsensusParams()
-				if cp != nil && cp.Version != nil {
-					appVersion = cp.Version.AppVersion
-				}
-
-				panic(fmt.Sprintf("Wrong app version %d, upgrade handler is missing for %s upgrade plan", appVersion, lastAppliedPlan))
-			}
-		}
-	}
-
 	if !found {
 		return
 	}
@@ -92,6 +70,28 @@ func BeginBlocker(k keeper.Keeper, ctx sdk.Context, _ abci.RequestBeginBlock) {
 		ctx.Logger().Error(downgradeMsg)
 		panic(downgradeMsg)
 	}
+
+	if !k.DowngradeVerified() {
+		k.SetDowngradeVerified(true)
+		lastAppliedPlan, _ := k.GetLastCompletedUpgrade(ctx)
+		// This check will make sure that we are using a valid binary.
+		// It'll panic in these cases if there is no upgrade handler registered for the last applied upgrade.
+		// 1. If there is no scheduled upgrade.
+		// 2. If the plan is not ready.
+		// 3. If the plan is ready and skip upgrade height is set for current height.
+		if !found || !plan.ShouldExecute(ctx) || (plan.ShouldExecute(ctx) && k.IsSkipHeight(ctx.BlockHeight())) {
+			if lastAppliedPlan != "" && !k.HasHandler(lastAppliedPlan) {
+				var appVersion uint64
+
+				cp := ctx.ConsensusParams()
+				if cp != nil && cp.Version != nil {
+					appVersion = cp.Version.AppVersion
+				}
+
+				panic(fmt.Sprintf("Wrong app version %d, upgrade handler is missing for %s upgrade plan", appVersion, lastAppliedPlan))
+			}
+		}
+	}
 }
 
 // BuildUpgradeNeededMsg prints the message that notifies that an upgrade is needed.