diff --git a/x/community/abci.go b/x/community/abci.go
index 19c13f7cae..1e51386dbb 100644
--- a/x/community/abci.go
+++ b/x/community/abci.go
@@ -13,7 +13,10 @@ import (
 func BeginBlocker(ctx sdk.Context, k keeper.Keeper) {
 	defer telemetry.ModuleMeasureSince(types.ModuleName, time.Now(), telemetry.MetricKeyBeginBlocker)
 
-	k.DisableInflationAfterUpgrade(ctx)
+	if k.ShouldStartDisableInflationUpgrade(ctx) {
+		k.StartDisableInflationUpgrade(ctx)
+	}
+
 	if err := k.PayCommunityRewards(ctx); err != nil {
 		panic(err)
 	}
diff --git a/x/community/keeper/incentives.go b/x/community/keeper/incentives.go
index 62b251bc8e..08506a0739 100644
--- a/x/community/keeper/incentives.go
+++ b/x/community/keeper/incentives.go
@@ -9,30 +9,37 @@ func (k Keeper) PayCommunityRewards(ctx sdk.Context) error {
 	return nil
 }
 
-// DisableInflationAfterUpgrade disables inflation on or after the upgrade time
-func (k Keeper) DisableInflationAfterUpgrade(ctx sdk.Context) {
-	logger := k.Logger(ctx)
-
+// ShouldStartDisableInflationUpgrade returns true if the disable inflation upgrade should be started
+func (k Keeper) ShouldStartDisableInflationUpgrade(ctx sdk.Context) bool {
 	params, found := k.GetParams(ctx)
 	if !found {
-		return
+		return false
 	}
 
 	// skip if we have already upgraded - previousBlockTime is first set on upgrade
 	_, found = k.GetPreviousBlockTime(ctx)
 	if found {
-		return
+		return false
 	}
 
 	blockTime := ctx.BlockTime()
 	upgradeTime := params.UpgradeTimeDisableInflation
 
 	// a vanilla kava chain should disable inflation on the first block if `upgradeTime` is not set.
-	// thus, we only skip upgrade here if `upgradeTime` is set and `blockTime` is before `upgradeTime`.
+	// thus, we don't upgrade if `upgradeTime` is set and `blockTime` is before `upgradeTime`.
 	if !upgradeTime.IsZero() && blockTime.Before(upgradeTime) {
-		return
+		return false
 	}
 
+	return true
+}
+
+// StartDisableInflationUpgrade disables x/mint and x/kavadist inflation
+func (k Keeper) StartDisableInflationUpgrade(ctx sdk.Context) {
+	logger := k.Logger(ctx)
+
+	blockTime := ctx.BlockTime()
+
 	logger.Info("disable inflation upgrade started")
 	k.SetPreviousBlockTime(ctx, blockTime)
 
@@ -53,6 +60,4 @@ func (k Keeper) DisableInflationAfterUpgrade(ctx sdk.Context) {
 	// todo: consolidate community funds (transfer from kavadist and community pool)
 
 	logger.Info("disable inflation upgrade finished successfully!")
-
-	return
 }
diff --git a/x/community/keeper/incentives_test.go b/x/community/keeper/incentives_test.go
index 18a4cd79d7..e00cfd1634 100644
--- a/x/community/keeper/incentives_test.go
+++ b/x/community/keeper/incentives_test.go
@@ -50,11 +50,11 @@ func TestIncentivesTestSuite(t *testing.T) {
 	suite.Run(t, new(IncentivesTestSuite))
 }
 
-func (suite *IncentivesTestSuite) TestDisableInflationAfterUpgrade() {
-	isUpgraded := func() bool {
-		_, found := suite.Keeper.GetPreviousBlockTime(suite.Ctx)
-		return found
+func (suite *IncentivesTestSuite) TestShouldStartDisableInflationUpgrade() {
+	shouldUpgrade := func() bool {
+		return suite.Keeper.ShouldStartDisableInflationUpgrade(suite.Ctx)
 	}
+
 	setUpgradeTimeFromNow := func(t time.Duration) {
 		suite.Keeper.SetParams(
 			suite.Ctx,
@@ -71,16 +71,14 @@ func (suite *IncentivesTestSuite) TestDisableInflationAfterUpgrade() {
 
 		_, found := suite.Keeper.GetParams(suite.Ctx)
 		suite.False(found)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.False(isUpgraded())
+		suite.False(shouldUpgrade())
 	})
 
 	suite.Run("skips upgrade if upgrade time is set in the future", func() {
 		suite.SetupTest()
 
 		setUpgradeTimeFromNow(1 * time.Hour)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.False(isUpgraded())
+		suite.False(shouldUpgrade())
 	})
 
 	suite.Run("upgrades if params are set to the default", func() {
@@ -90,40 +88,39 @@ func (suite *IncentivesTestSuite) TestDisableInflationAfterUpgrade() {
 		param, found := suite.Keeper.GetParams(suite.Ctx)
 		suite.True(found)
 		suite.Equal(time.Time{}, param.UpgradeTimeDisableInflation)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.True(isUpgraded())
+		suite.True(shouldUpgrade())
 	})
 
 	suite.Run("upgrades if blockTime is at or after upgrade time", func() {
 		suite.SetupTest()
 
-		setUpgradeTimeFromNow(-2 * time.Minute)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.True(isUpgraded())
-
 		setUpgradeTimeFromNow(0)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.True(isUpgraded())
+		suite.True(shouldUpgrade())
+		setUpgradeTimeFromNow(-2 * time.Minute)
+		suite.True(shouldUpgrade())
 	})
 
 	suite.Run("skips upgrade if already upgraded", func() {
 		suite.SetupTest()
 
 		setUpgradeTimeFromNow(-2 * time.Minute)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.True(isUpgraded())
-
-		// reset kavadist param active to true after upgrade
-		newParams := suite.App.GetKavadistKeeper().GetParams(suite.Ctx)
-		suite.False(newParams.Active)
-		newParams.Active = true
-		suite.App.GetKavadistKeeper().SetParams(suite.Ctx, newParams)
-
-		// kavadist should be active since upgrade is not ran
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
-		suite.True(isUpgraded())
-		suite.True(suite.App.GetKavadistKeeper().GetParams(suite.Ctx).Active)
+		suite.True(shouldUpgrade())
+		suite.Keeper.StartDisableInflationUpgrade(suite.Ctx)
+		suite.False(shouldUpgrade())
 	})
+}
+
+func (suite *IncentivesTestSuite) TestStartDisableInflationUpgrade() {
+	isUpgraded := func() bool {
+		_, found := suite.Keeper.GetPreviousBlockTime(suite.Ctx)
+		return found
+	}
+	setUpgradeTimeFromNow := func(t time.Duration) {
+		suite.Keeper.SetParams(
+			suite.Ctx,
+			types.Params{UpgradeTimeDisableInflation: suite.Ctx.BlockTime().Add(t)},
+		)
+	}
 
 	suite.Run("upgrade should set mint and kavadist inflation to 0", func() {
 		suite.SetupTest()
@@ -134,7 +131,7 @@ func (suite *IncentivesTestSuite) TestDisableInflationAfterUpgrade() {
 		suite.True(kavadistParams.Active)
 
 		setUpgradeTimeFromNow(-2 * time.Minute)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
+		suite.Keeper.StartDisableInflationUpgrade(suite.Ctx)
 		suite.True(isUpgraded())
 
 		mintParams = suite.App.GetMintKeeper().GetParams(suite.Ctx)
@@ -149,7 +146,7 @@ func (suite *IncentivesTestSuite) TestDisableInflationAfterUpgrade() {
 		suite.SetupTest()
 
 		setUpgradeTimeFromNow(-2 * time.Minute)
-		suite.Keeper.DisableInflationAfterUpgrade(suite.Ctx)
+		suite.Keeper.StartDisableInflationUpgrade(suite.Ctx)
 		suite.True(isUpgraded())
 		prevBlockTime, found := suite.Keeper.GetPreviousBlockTime(suite.Ctx)
 		suite.True(found)