diff --git a/go.mod b/go.mod
index 6c4103ce3bb0..67e91aaac278 100644
--- a/go.mod
+++ b/go.mod
@@ -27,7 +27,7 @@ require (
 	github.com/cosmos/go-bip39 v1.0.0
 	github.com/cosmos/gogogateway v1.2.0
 	github.com/cosmos/gogoproto v1.4.10
-	github.com/cosmos/iavl v1.0.0
+	github.com/cosmos/iavl v1.2.0
 	github.com/cosmos/ics23/go v0.10.0
 	github.com/cosmos/ledger-cosmos-go v0.13.1
 	github.com/golang/mock v1.6.0
@@ -193,7 +193,7 @@ replace (
 	github.com/99designs/keyring => github.com/cosmos/keyring v1.2.0
 	// Use cometbft fork of tendermint
 	github.com/cometbft/cometbft => github.com/kava-labs/cometbft v0.37.4-kava.1
-	github.com/cosmos/iavl => github.com/kava-labs/iavl v1.2.0-kava.1.0.20240816225759-c1d6db02ef02
+	github.com/cosmos/iavl => github.com/kava-labs/iavl v1.2.0-kava.2
 	// dgrijalva/jwt-go is deprecated and doesn't receive security updates.
 	// TODO: remove it: https://github.com/cosmos/cosmos-sdk/issues/13134
 	github.com/dgrijalva/jwt-go => github.com/golang-jwt/jwt/v4 v4.4.2
diff --git a/go.sum b/go.sum
index 332896f8e016..c0d0b98d5bb6 100644
--- a/go.sum
+++ b/go.sum
@@ -693,8 +693,8 @@ github.com/julienschmidt/httprouter v1.2.0/go.mod h1:SYymIcj16QtmaHHD7aYtjjsJG7V
 github.com/julienschmidt/httprouter v1.3.0/go.mod h1:JR6WtHb+2LUe8TCKY3cZOxFyyO8IZAc4RVcycCCAKdM=
 github.com/kava-labs/cometbft v0.37.4-kava.1 h1:QRuyBieWdUBpe4pcXgzu1SdMH2lkTaqXr/JPIeqdiHE=
 github.com/kava-labs/cometbft v0.37.4-kava.1/go.mod h1:Cmg5Hp4sNpapm7j+x0xRyt2g0juQfmB752ous+pA0G8=
-github.com/kava-labs/iavl v1.2.0-kava.1.0.20240816225759-c1d6db02ef02 h1:7PO7PE5zpdhN349h5UJo51AF0k2rtGdBxW+x7mryCMw=
-github.com/kava-labs/iavl v1.2.0-kava.1.0.20240816225759-c1d6db02ef02/go.mod h1:HidWWLVAtODJqFD6Hbne2Y0q3SdxByJepHUOeoH4LiI=
+github.com/kava-labs/iavl v1.2.0-kava.2 h1:RfEqQ9u7fvhzXOfYxxqEnVNCTb3pYJiT7X86N6cgI0M=
+github.com/kava-labs/iavl v1.2.0-kava.2/go.mod h1:nNoeUFw64lfPvcj3yZ7W7BvmlTxu9ANGsJcUiPSOAdw=
 github.com/kisielk/errcheck v1.1.0/go.mod h1:EZBBE59ingxPouuu3KfxchcWSUPOHkagtvWXihfKN4Q=
 github.com/kisielk/errcheck v1.2.0/go.mod h1:/BMXB+zMLi60iA8Vv6Ksmxu/1UDYcXs4uQLJ+jE2L00=
 github.com/kisielk/errcheck v1.5.0/go.mod h1:pFxgyoBC7bSaBwPgfKdkLd5X25qrDl4LWUI2bnpBCr8=