diff --git a/x/distribution/types/fee_pool.go b/x/distribution/types/fee_pool.go
index 0cf974608e4b..83a83b4ad813 100644
--- a/x/distribution/types/fee_pool.go
+++ b/x/distribution/types/fee_pool.go
@@ -20,8 +20,10 @@ func (f FeePool) ValidateGenesis() error {
 		return fmt.Errorf("negative DecimalPool in distribution fee pool, is %v", f.DecimalPool)
 	}
 
-	if !f.CommunityPool.IsZero() {
-		panic(fmt.Sprintf("CommunityPool must be zero in distribution fee pool as it should be specified in protocolpool, current value: %v", f.CommunityPool))
+	// Negative values in CommunityPool represent an invalid state that should never occur
+	// We panic instead of returning an error to prevent the chain from starting with an invalid state
+	if f.CommunityPool.IsAnyNegative() {
+		panic(fmt.Sprintf("negative CommunityPool in distribution fee pool, is %v", f.CommunityPool))
 	}
 
 	return nil