From 3c0cafa9e64a7045e059525fd7782f787afa1c92 Mon Sep 17 00:00:00 2001
From: Aleksandr Bezobchuk <aleks.bezobchuk@gmail.com>
Date: Tue, 23 May 2023 10:13:05 -0400
Subject: [PATCH 1/2] updates

---
 baseapp/abci.go          | 14 ++++++++++++--
 baseapp/abci_test.go     | 27 ++++++++++++++++++++-------
 baseapp/test_helpers.go  |  4 ++++
 x/auth/ante/sigverify.go |  1 +
 4 files changed, 37 insertions(+), 9 deletions(-)

diff --git a/baseapp/abci.go b/baseapp/abci.go
index 123f23197039..084838d603b9 100644
--- a/baseapp/abci.go
+++ b/baseapp/abci.go
@@ -74,6 +74,16 @@ func (app *BaseApp) InitChain(req abci.RequestInitChain) (res abci.ResponseInitC
 		}
 	}
 
+	defer func() {
+		// InitChain represents the state of the application BEFORE the first block,
+		// i.e. the genesis block. This means that when processing the app's InitChain
+		// handler, the block height is zero by default. However, after Commit is called
+		// the height needs to reflect the true block height.
+		initHeader.Height = req.InitialHeight
+		app.checkState.ctx = app.checkState.ctx.WithBlockHeader(initHeader)
+		app.deliverState.ctx = app.deliverState.ctx.WithBlockHeader(initHeader)
+	}()
+
 	if app.initChainer == nil {
 		return
 	}
@@ -119,8 +129,8 @@ func (app *BaseApp) InitChain(req abci.RequestInitChain) (res abci.ResponseInitC
 		appHash = emptyHash[:]
 	}
 
-	// NOTE: We don't commit, but BeginBlock for block `initial_height` starts from this
-	// deliverState.
+	// NOTE: We don't commit, but BeginBlock for block InitialHeight starts from
+	// this deliverState.
 	return abci.ResponseInitChain{
 		ConsensusParams: res.ConsensusParams,
 		Validators:      res.Validators,
diff --git a/baseapp/abci_test.go b/baseapp/abci_test.go
index 674a209b3a08..74f61c5aa11f 100644
--- a/baseapp/abci_test.go
+++ b/baseapp/abci_test.go
@@ -7,19 +7,17 @@ import (
 	"strings"
 	"testing"
 
-	dbm "github.com/cosmos/cosmos-db"
-
-	abci "github.com/cometbft/cometbft/abci/types"
-	cmtproto "github.com/cometbft/cometbft/proto/tendermint/types"
-	"github.com/cosmos/gogoproto/jsonpb"
-	"github.com/stretchr/testify/require"
-
 	errorsmod "cosmossdk.io/errors"
 	"cosmossdk.io/log"
 	pruningtypes "cosmossdk.io/store/pruning/types"
 	"cosmossdk.io/store/snapshots"
 	snapshottypes "cosmossdk.io/store/snapshots/types"
 	storetypes "cosmossdk.io/store/types"
+	abci "github.com/cometbft/cometbft/abci/types"
+	cmtproto "github.com/cometbft/cometbft/proto/tendermint/types"
+	dbm "github.com/cosmos/cosmos-db"
+	"github.com/cosmos/gogoproto/jsonpb"
+	"github.com/stretchr/testify/require"
 
 	"github.com/cosmos/cosmos-sdk/baseapp"
 	baseapptestutil "github.com/cosmos/cosmos-sdk/baseapp/testutil"
@@ -44,6 +42,21 @@ func TestABCI_Info(t *testing.T) {
 	require.Equal(t, suite.baseApp.AppVersion(), res.AppVersion)
 }
 
+func TestABCI_First_block_Height(t *testing.T) {
+	suite := NewBaseAppSuite(t, baseapp.SetChainID("test-chain-id"))
+	app := suite.baseApp
+
+	app.InitChain(abci.RequestInitChain{
+		ChainId:         "test-chain-id",
+		ConsensusParams: &cmtproto.ConsensusParams{Block: &cmtproto.BlockParams{MaxGas: 5000000}},
+		InitialHeight:   1,
+	})
+	_ = app.Commit()
+
+	ctx := app.GetContextForCheckTx(nil)
+	require.Equal(t, int64(1), ctx.BlockHeight())
+}
+
 func TestABCI_InitChain(t *testing.T) {
 	name := t.Name()
 	db := dbm.NewMemDB()
diff --git a/baseapp/test_helpers.go b/baseapp/test_helpers.go
index d3f24d6ef419..37be5ed02c2a 100644
--- a/baseapp/test_helpers.go
+++ b/baseapp/test_helpers.go
@@ -55,3 +55,7 @@ func (app *BaseApp) NewUncachedContext(isCheckTx bool, header cmtproto.Header) s
 func (app *BaseApp) GetContextForDeliverTx(txBytes []byte) sdk.Context {
 	return app.getContextForTx(runTxModeDeliver, txBytes)
 }
+
+func (app *BaseApp) GetContextForCheckTx(txBytes []byte) sdk.Context {
+	return app.getContextForTx(runTxModeCheck, txBytes)
+}
diff --git a/x/auth/ante/sigverify.go b/x/auth/ante/sigverify.go
index 6021842b2a8f..16e042c0e9a1 100644
--- a/x/auth/ante/sigverify.go
+++ b/x/auth/ante/sigverify.go
@@ -11,6 +11,7 @@ import (
 	errorsmod "cosmossdk.io/errors"
 	storetypes "cosmossdk.io/store/types"
 	txsigning "cosmossdk.io/x/tx/signing"
+
 	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
 
 	"github.com/cosmos/cosmos-sdk/crypto/keys/ed25519"

From 50135af2dc19dcb4ce170ed77cb1c7de902c17da Mon Sep 17 00:00:00 2001
From: Aleksandr Bezobchuk <aleks.bezobchuk@gmail.com>
Date: Tue, 23 May 2023 10:21:20 -0400
Subject: [PATCH 2/2] updates

---
 CHANGELOG.md | 1 +
 1 file changed, 1 insertion(+)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index ddccd6a9b001..20441f53c988 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -239,6 +239,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (baseapp) [#16259](https://github.com/cosmos/cosmos-sdk/pull/16259) Ensure the `Context` block height is correct after `InitChain` and prior to the second block.
 * (x/staking) [#16043](https://github.com/cosmos/cosmos-sdk/pull/16043) Call `AfterUnbondingInitiated` hook for new unbonding entries only and fix `UnbondingDelegation` entries handling
 * (types) [#16010](https://github.com/cosmos/cosmos-sdk/pull/16010) Let `module.CoreAppModuleBasicAdaptor` fallback to legacy genesis handling.
 * (x/group) [#16017](https://github.com/cosmos/cosmos-sdk/pull/16017) Correctly apply account number in group v2 migration.