diff --git a/app.go b/app.go
index 452bfd7a8f97..c619251b4f83 100644
--- a/app.go
+++ b/app.go
@@ -65,6 +65,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/genutil"
 	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
 	"github.com/cosmos/cosmos-sdk/x/gov"
+	govclient "github.com/cosmos/cosmos-sdk/x/gov/client"
 	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
 	govv1beta1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1beta1"
@@ -116,7 +117,7 @@ var (
 		mint.AppModuleBasic{},
 		distr.AppModuleBasic{},
 		gov.NewAppModuleBasic(
-			paramsclient.ProposalHandler, distrclient.ProposalHandler, upgradeclient.ProposalHandler, upgradeclient.CancelProposalHandler,
+			[]govclient.ProposalHandler{paramsclient.ProposalHandler, distrclient.ProposalHandler, upgradeclient.LegacyProposalHandler, upgradeclient.LegacyCancelProposalHandler},
 		),
 		params.AppModuleBasic{},
 		crisis.AppModuleBasic{},
@@ -285,7 +286,7 @@ func NewSimApp(
 	)
 
 	app.FeeGrantKeeper = feegrantkeeper.NewKeeper(appCodec, keys[feegrant.StoreKey], app.AccountKeeper)
-	app.UpgradeKeeper = upgradekeeper.NewKeeper(skipUpgradeHeights, keys[upgradetypes.StoreKey], appCodec, homePath, app.BaseApp)
+
 
 	// register the staking hooks
 	// NOTE: stakingKeeper above is passed by reference, so that it will contain these hooks
@@ -323,6 +324,8 @@ func NewSimApp(
 		// register the governance hooks
 		),
 	)
+	// set the governance module account as the authority for conducting upgrades
+	app.UpgradeKeeper = upgradekeeper.NewKeeper(skipUpgradeHeights, keys[upgradetypes.StoreKey], appCodec, homePath, app.BaseApp, authtypes.NewModuleAddress(govtypes.ModuleName).String())
 	app.NFTKeeper = nftkeeper.NewKeeper(keys[nftkeeper.StoreKey], appCodec, app.AccountKeeper, app.BankKeeper)
 
 	// create evidence keeper with router