diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index b380fc2c5169..05c0a5ce1638 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -2,6 +2,7 @@ package baseapp
 
 import (
 	"context"
+	"cosmossdk.io/core/server"
 	"errors"
 	"fmt"
 	"maps"
@@ -89,6 +90,7 @@ type BaseApp struct {
 	verifyVoteExt      sdk.VerifyVoteExtensionHandler // ABCI VerifyVoteExtension handler
 	prepareCheckStater sdk.PrepareCheckStater         // logic to run during commit using the checkState
 	precommiter        sdk.Precommiter                // logic to run during commit using the deliverState
+	versionModifier    server.VersionModifier         // interface to get and set the app version
 
 	addrPeerFilter sdk.PeerFilter // filter peers by address and port
 	idPeerFilter   sdk.PeerFilter // filter peers by node ID
@@ -254,18 +256,11 @@ func (app *BaseApp) Name() string {
 
 // AppVersion returns the application's protocol version.
 func (app *BaseApp) AppVersion(ctx context.Context) (uint64, error) {
-	if app.paramStore == nil {
-		return 0, errors.New("app.paramStore is nil")
+	if app.versionModifier == nil {
+		return 0, errors.New("app.versionModifier is nil")
 	}
 
-	cp, err := app.paramStore.Get(ctx)
-	if err != nil {
-		return 0, fmt.Errorf("failed to get consensus params: %w", err)
-	}
-	if cp.Version == nil {
-		return 0, nil
-	}
-	return cp.Version.App, nil
+	return app.versionModifier.AppVersion(ctx)
 }
 
 // Version returns the application's version string.
diff --git a/baseapp/baseapp_test.go b/baseapp/baseapp_test.go
index ecaf6894b400..22b046cf8a63 100644
--- a/baseapp/baseapp_test.go
+++ b/baseapp/baseapp_test.go
@@ -81,6 +81,7 @@ func NewBaseAppSuite(t *testing.T, opts ...func(*baseapp.BaseApp)) *BaseAppSuite
 	app.SetParamStore(paramStore{db: dbm.NewMemDB()})
 	app.SetTxDecoder(txConfig.TxDecoder())
 	app.SetTxEncoder(txConfig.TxEncoder())
+	app.SetVersionModifier(newMockedVersionModifier(0))
 
 	// mount stores and seal
 	require.Nil(t, app.LoadLatestVersion())
diff --git a/baseapp/options.go b/baseapp/options.go
index 9b657f4136cf..05c4467a0ef4 100644
--- a/baseapp/options.go
+++ b/baseapp/options.go
@@ -2,6 +2,7 @@ package baseapp
 
 import (
 	"context"
+	"cosmossdk.io/core/server"
 	"errors"
 	"fmt"
 	"io"
@@ -159,22 +160,11 @@ func (app *BaseApp) SetVersion(v string) {
 // SetAppVersion sets the application's version this is used as part of the
 // header in blocks and is returned to the consensus engine in EndBlock.
 func (app *BaseApp) SetAppVersion(ctx context.Context, v uint64) error {
-	if app.paramStore == nil {
-		return errors.New("param store must be set to set app version")
+	if app.versionModifier == nil {
+		return errors.New("version modifier must be set to set app version")
 	}
 
-	cp, err := app.paramStore.Get(ctx)
-	if err != nil {
-		return fmt.Errorf("failed to get consensus params: %w", err)
-	}
-	if cp.Version == nil {
-		return errors.New("version is not set in param store")
-	}
-	cp.Version.App = v
-	if err := app.paramStore.Set(ctx, cp); err != nil {
-		return err
-	}
-	return nil
+	return app.versionModifier.SetAppVersion(ctx, v)
 }
 
 func (app *BaseApp) SetDB(db corestore.KVStoreWithBatch) {
@@ -336,6 +326,15 @@ func (app *BaseApp) SetTxEncoder(txEncoder sdk.TxEncoder) {
 	app.txEncoder = txEncoder
 }
 
+// SetVersionModifier sets the version modifier for the BaseApp that allows to set the app version.
+func (app *BaseApp) SetVersionModifier(versionModifier server.VersionModifier) {
+	if app.sealed {
+		panic("SetVersionModifier() on sealed BaseApp")
+	}
+
+	app.versionModifier = versionModifier
+}
+
 // SetQueryMultiStore set a alternative MultiStore implementation to support grpc query service.
 //
 // Ref: https://github.com/cosmos/cosmos-sdk/issues/13317
diff --git a/baseapp/utils_test.go b/baseapp/utils_test.go
index 970aa0cedce5..3d1a867100f1 100644
--- a/baseapp/utils_test.go
+++ b/baseapp/utils_test.go
@@ -3,6 +3,7 @@ package baseapp_test
 import (
 	"bytes"
 	"context"
+	"cosmossdk.io/core/server"
 	"encoding/binary"
 	"encoding/json"
 	"errors"
@@ -445,3 +446,20 @@ func (n NestedMessgesServerImpl) Check(ctx context.Context, message *baseapptest
 	sdkCtx.GasMeter().ConsumeGas(gas, "nested messages test")
 	return nil, nil
 }
+
+func newMockedVersionModifier(startingVersion uint64) server.VersionModifier {
+	return &mockedVersionModifier{version: startingVersion}
+}
+
+type mockedVersionModifier struct {
+	version uint64
+}
+
+func (m *mockedVersionModifier) SetAppVersion(ctx context.Context, u uint64) error {
+	m.version = u
+	return nil
+}
+
+func (m *mockedVersionModifier) AppVersion(ctx context.Context) (uint64, error) {
+	return m.version, nil
+}
diff --git a/core/server/app.go b/core/server/app.go
index a785de5011a7..9576fa8825f8 100644
--- a/core/server/app.go
+++ b/core/server/app.go
@@ -50,7 +50,7 @@ type TxResult struct {
 }
 
 // VersionModifier defines the interface fulfilled by BaseApp
-// which allows getting and setting it's appVersion field. This
+// which allows getting and setting its appVersion field. This
 // in turn updates the consensus params that are sent to the
 // consensus engine in EndBlock
 type VersionModifier interface {
diff --git a/runtime/module.go b/runtime/module.go
index 2b2a9bb1b9df..95595fc209f8 100644
--- a/runtime/module.go
+++ b/runtime/module.go
@@ -15,7 +15,6 @@ import (
 	"cosmossdk.io/core/appmodule"
 	"cosmossdk.io/core/comet"
 	"cosmossdk.io/core/registry"
-	"cosmossdk.io/core/server"
 	"cosmossdk.io/core/store"
 	"cosmossdk.io/depinject"
 	"cosmossdk.io/depinject/appconfig"
@@ -103,7 +102,6 @@ func init() {
 			ProvideEnvironment,
 			ProvideTransientStoreService,
 			ProvideModuleManager,
-			ProvideAppVersionModifier,
 			ProvideCometService,
 		),
 		appconfig.Invoke(SetupAppBuilder),
@@ -293,10 +291,6 @@ func ProvideTransientStoreService(
 	return transientStoreService{key: storeKey}
 }
 
-func ProvideAppVersionModifier(app *AppBuilder) server.VersionModifier {
-	return app.app
-}
-
 func ProvideCometService() comet.Service {
 	return NewContextAwareCometInfoService()
 }
diff --git a/runtime/v2/module.go b/runtime/v2/module.go
index d67c31b7a9e5..1cda0a577fd4 100644
--- a/runtime/v2/module.go
+++ b/runtime/v2/module.go
@@ -18,7 +18,6 @@ import (
 	appmodulev2 "cosmossdk.io/core/appmodule/v2"
 	"cosmossdk.io/core/comet"
 	"cosmossdk.io/core/registry"
-	"cosmossdk.io/core/server"
 	"cosmossdk.io/core/store"
 	"cosmossdk.io/core/transaction"
 	"cosmossdk.io/depinject"
@@ -98,7 +97,6 @@ func init() {
 			ProvideEnvironment[transaction.Tx],
 			ProvideModuleManager[transaction.Tx],
 			ProvideCometService,
-			ProvideAppVersionModifier[transaction.Tx],
 		),
 		appconfig.Invoke(SetupAppBuilder),
 	)
@@ -238,9 +236,3 @@ func storeKeyOverride(config *runtimev2.Module, moduleName string) *runtimev2.St
 func ProvideCometService() comet.Service {
 	return &services.ContextAwareCometInfoService{}
 }
-
-// ProvideAppVersionModifier returns nil, `app.VersionModifier` is a feature of BaseApp and neither used nor required for runtime/v2.
-// nil is acceptable, see: https://github.com/cosmos/cosmos-sdk/blob/0a6ee406a02477ae8ccbfcbe1b51fc3930087f4c/x/upgrade/keeper/keeper.go#L438
-func ProvideAppVersionModifier[T transaction.Tx](app *AppBuilder[T]) server.VersionModifier {
-	return nil
-}
diff --git a/server/v2/stf/core_branch_service.go b/server/v2/stf/core_branch_service.go
index 431730b2334a..5a83dff6be7c 100644
--- a/server/v2/stf/core_branch_service.go
+++ b/server/v2/stf/core_branch_service.go
@@ -41,7 +41,7 @@ func (bs BranchService) ExecuteWithGasLimit(
 	// restore original context
 	gasUsed = exCtx.meter.Limit() - exCtx.meter.Remaining()
 	_ = originalGasMeter.Consume(gasUsed, "execute-with-gas-limit")
-	exCtx.setGasLimit(originalGasMeter.Limit() - originalGasMeter.Remaining())
+	exCtx.setGasLimit(originalGasMeter.Remaining())
 
 	return gasUsed, err
 }
@@ -62,6 +62,8 @@ func (bs BranchService) execute(ctx *executionContext, f func(ctx context.Contex
 		branchFn:            ctx.branchFn,
 		makeGasMeter:        ctx.makeGasMeter,
 		makeGasMeteredStore: ctx.makeGasMeteredStore,
+		msgRouter:           ctx.msgRouter,
+		queryRouter:         ctx.queryRouter,
 	}
 
 	err := f(branchedCtx)
diff --git a/server/v2/stf/core_branch_service_test.go b/server/v2/stf/core_branch_service_test.go
index a54783b605e7..0394ce0f3b1a 100644
--- a/server/v2/stf/core_branch_service_test.go
+++ b/server/v2/stf/core_branch_service_test.go
@@ -5,12 +5,11 @@ import (
 	"errors"
 	"testing"
 
-	gogotypes "github.com/cosmos/gogoproto/types"
-
 	appmodulev2 "cosmossdk.io/core/appmodule/v2"
 	"cosmossdk.io/server/v2/stf/branch"
 	"cosmossdk.io/server/v2/stf/gas"
 	"cosmossdk.io/server/v2/stf/mock"
+	gogotypes "github.com/cosmos/gogoproto/types"
 )
 
 func TestBranchService(t *testing.T) {
@@ -71,6 +70,7 @@ func TestBranchService(t *testing.T) {
 
 	t.Run("fail - reverts state", func(t *testing.T) {
 		stfCtx := makeContext()
+		originalGas := stfCtx.meter.Remaining()
 		gasUsed, err := branchService.ExecuteWithGasLimit(stfCtx, 10000, func(ctx context.Context) error {
 			kvSet(t, ctx, "cookies")
 			return errors.New("fail")
@@ -81,6 +81,10 @@ func TestBranchService(t *testing.T) {
 		if gasUsed == 0 {
 			t.Error("expected non-zero gasUsed")
 		}
+		if stfCtx.meter.Remaining() != originalGas-gasUsed {
+			t.Error("expected gas to be reverted")
+		}
+
 		stateNotHas(t, stfCtx.state, "cookies")
 	})
 
diff --git a/simapp/CHANGELOG.md b/simapp/CHANGELOG.md
index 5e6dae65ec2b..678870d8b74a 100644
--- a/simapp/CHANGELOG.md
+++ b/simapp/CHANGELOG.md
@@ -46,6 +46,8 @@ Always refer to the [UPGRADING.md](https://github.com/cosmos/cosmos-sdk/blob/mai
 * [#20490](https://github.com/cosmos/cosmos-sdk/pull/20490) Refactor simulations to make use of `testutil/sims` instead of `runsims`.
 * [#19726](https://github.com/cosmos/cosmos-sdk/pull/19726) Update APIs to match CometBFT v1.
 * [#21466](https://github.com/cosmos/cosmos-sdk/pull/21466) Allow chains to plug in their own public key types in `base.Account`
+* [#21508](https://github.com/cosmos/cosmos-sdk/pull/21508) Abstract the way we update the version of the app state in `app.go` using the interface `VersionModifier`.
+ 
 <!-- TODO: move changelog.md elements to here -->
 
 ## v0.47 to v0.50
diff --git a/simapp/app.go b/simapp/app.go
index e15c14c0d9e5..6cf93e4046d0 100644
--- a/simapp/app.go
+++ b/simapp/app.go
@@ -296,6 +296,9 @@ func NewSimApp(
 	app.ConsensusParamsKeeper = consensusparamkeeper.NewKeeper(appCodec, runtime.NewEnvironment(runtime.NewKVStoreService(keys[consensustypes.StoreKey]), logger.With(log.ModuleKey, "x/consensus")), govModuleAddr)
 	bApp.SetParamStore(app.ConsensusParamsKeeper.ParamsStore)
 
+	// set the version modifier
+	bApp.SetVersionModifier(consensus.ProvideAppVersionModifier(app.ConsensusParamsKeeper))
+
 	// add keepers
 	accountsKeeper, err := accounts.NewKeeper(
 		appCodec,
diff --git a/x/consensus/depinject.go b/x/consensus/depinject.go
index 127144d91a51..07048b4c8684 100644
--- a/x/consensus/depinject.go
+++ b/x/consensus/depinject.go
@@ -1,13 +1,14 @@
 package consensus
 
 import (
+	"context"
 	modulev1 "cosmossdk.io/api/cosmos/consensus/module/v1"
 	"cosmossdk.io/core/address"
 	"cosmossdk.io/core/appmodule"
+	"cosmossdk.io/core/server"
 	"cosmossdk.io/depinject"
 	"cosmossdk.io/depinject/appconfig"
 	"cosmossdk.io/x/consensus/keeper"
-
 	"github.com/cosmos/cosmos-sdk/baseapp"
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/runtime"
@@ -23,6 +24,7 @@ func init() {
 	appconfig.RegisterModule(
 		&modulev1.Module{},
 		appconfig.Provide(ProvideModule),
+		appconfig.Provide(ProvideAppVersionModifier),
 	)
 }
 
@@ -64,6 +66,7 @@ func ProvideModule(in ModuleInputs) ModuleOutputs {
 	m := NewAppModule(in.Cdc, k)
 	baseappOpt := func(app *baseapp.BaseApp) {
 		app.SetParamStore(k.ParamsStore)
+		app.SetVersionModifier(versionModifier{Keeper: k})
 	}
 
 	return ModuleOutputs{
@@ -72,3 +75,37 @@ func ProvideModule(in ModuleInputs) ModuleOutputs {
 		BaseAppOption: baseappOpt,
 	}
 }
+
+type versionModifier struct {
+	Keeper keeper.Keeper
+}
+
+func (v versionModifier) SetAppVersion(ctx context.Context, version uint64) error {
+	params, err := v.Keeper.Params(ctx, nil)
+	if err != nil {
+		return err
+	}
+
+	updatedParams := params.Params
+	updatedParams.Version.App = version
+
+	err = v.Keeper.ParamsStore.Set(ctx, *updatedParams)
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func (v versionModifier) AppVersion(ctx context.Context) (uint64, error) {
+	params, err := v.Keeper.Params(ctx, nil)
+	if err != nil {
+		return 0, err
+	}
+
+	return params.Params.Version.GetApp(), nil
+}
+
+func ProvideAppVersionModifier(k keeper.Keeper) server.VersionModifier {
+	return versionModifier{Keeper: k}
+}