diff --git a/app/upgrades/v27/constants.go b/app/upgrades/v27/constants.go
index 83764dc159d..598f223a0a1 100644
--- a/app/upgrades/v27/constants.go
+++ b/app/upgrades/v27/constants.go
@@ -7,7 +7,10 @@ import (
 )
 
 // UpgradeName defines the on-chain upgrade name for the Osmosis v27 upgrade.
-const UpgradeName = "v27"
+const (
+	UpgradeName = "v27"
+	OsmoToken   = "uosmo"
+)
 
 var Upgrade = upgrades.Upgrade{
 	UpgradeName:          UpgradeName,
diff --git a/app/upgrades/v27/upgrades.go b/app/upgrades/v27/upgrades.go
index 3b19e00e751..68c60ec3aec 100644
--- a/app/upgrades/v27/upgrades.go
+++ b/app/upgrades/v27/upgrades.go
@@ -23,6 +23,16 @@ func CreateUpgradeHandler(
 		if err != nil {
 			return nil, err
 		}
+		bk := keepers.BankKeeper
+
+		// Get the old offset from the old key: []byte{0x88}
+		offsetOld := bk.GetSupplyOffsetOld(ctx, OsmoToken)
+
+		// Add the old offset to the new key: collection.NewPrefix(88)
+		bk.AddSupplyOffset(ctx, OsmoToken, offsetOld)
+
+		// Remove the old key: []byte{0x88}
+		bk.RemoveOldSupplyOffset(ctx, OsmoToken)
 
 		return migrations, nil
 	}
diff --git a/app/upgrades/v27/upgrades_test.go b/app/upgrades/v27/upgrades_test.go
new file mode 100644
index 00000000000..33adcf70fdc
--- /dev/null
+++ b/app/upgrades/v27/upgrades_test.go
@@ -0,0 +1,77 @@
+package v27_test
+
+import (
+	"testing"
+	"time"
+
+	"github.com/stretchr/testify/suite"
+
+	"cosmossdk.io/core/appmodule"
+	"cosmossdk.io/core/header"
+	upgradetypes "cosmossdk.io/x/upgrade/types"
+
+	"github.com/osmosis-labs/osmosis/v26/app/apptesting"
+	v27 "github.com/osmosis-labs/osmosis/v26/app/upgrades/v27"
+
+	"cosmossdk.io/x/upgrade"
+
+	addresscodec "github.com/cosmos/cosmos-sdk/codec/address"
+
+	"github.com/osmosis-labs/osmosis/osmomath"
+)
+
+const (
+	v27UpgradeHeight = int64(10)
+)
+
+type UpgradeTestSuite struct {
+	apptesting.KeeperTestHelper
+	preModule appmodule.HasPreBlocker
+}
+
+func TestUpgradeTestSuite(t *testing.T) {
+	suite.Run(t, new(UpgradeTestSuite))
+}
+
+func (s *UpgradeTestSuite) TestUpgrade() {
+	s.Setup()
+	s.preModule = upgrade.NewAppModule(s.App.UpgradeKeeper, addresscodec.NewBech32Codec("osmo"))
+
+	s.PrepareSupplyOffsetTest()
+
+	// Run the upgrade
+	dummyUpgrade(s)
+	s.Require().NotPanics(func() {
+		_, err := s.preModule.PreBlock(s.Ctx)
+		s.Require().NoError(err)
+	})
+
+	s.ExecuteSupplyOffsetTest()
+}
+
+func dummyUpgrade(s *UpgradeTestSuite) {
+	s.Ctx = s.Ctx.WithBlockHeight(v27UpgradeHeight - 1)
+	plan := upgradetypes.Plan{Name: v27.Upgrade.UpgradeName, Height: v27UpgradeHeight}
+	err := s.App.UpgradeKeeper.ScheduleUpgrade(s.Ctx, plan)
+	s.Require().NoError(err)
+	_, err = s.App.UpgradeKeeper.GetUpgradePlan(s.Ctx)
+	s.Require().NoError(err)
+
+	s.Ctx = s.Ctx.WithHeaderInfo(header.Info{Height: v27UpgradeHeight, Time: s.Ctx.BlockTime().Add(time.Second)}).WithBlockHeight(v27UpgradeHeight)
+}
+
+func (s *UpgradeTestSuite) PrepareSupplyOffsetTest() {
+	// Set some supply offsets
+	s.App.BankKeeper.AddSupplyOffset(s.Ctx, v27.OsmoToken, osmomath.NewInt(1000))
+	s.App.BankKeeper.AddSupplyOffsetOld(s.Ctx, v27.OsmoToken, osmomath.NewInt(-500))
+}
+
+func (s *UpgradeTestSuite) ExecuteSupplyOffsetTest() {
+	coin := s.App.BankKeeper.GetSupplyWithOffset(s.Ctx, v27.OsmoToken)
+	offset := s.App.BankKeeper.GetSupplyOffset(s.Ctx, v27.OsmoToken)
+	oldOffset := s.App.BankKeeper.GetSupplyOffsetOld(s.Ctx, v27.OsmoToken)
+
+	s.Require().Equal("500uosmo", coin.String())
+	s.Require().Equal("500", offset.String())
+	s.Require().Equal("0", oldOffset.String())
+}
diff --git a/go.mod b/go.mod
index eaafebf9225..1d3e6e725d9 100644
--- a/go.mod
+++ b/go.mod
@@ -290,7 +290,8 @@ replace (
 	// Direct cosmos-sdk branch link: https://github.com/osmosis-labs/cosmos-sdk/tree/osmo-v26/v0.50.10, current branch: osmo-v26/v0.50.10
 	// Direct commit link: https://github.com/osmosis-labs/cosmos-sdk/commit/5a045895704de7fdc69d144895dcd9f162481502
 	// Direct tag link: https://github.com/osmosis-labs/cosmos-sdk/releases/tag/v0.50.10-v26-osmo-2
-	github.com/cosmos/cosmos-sdk => github.com/osmosis-labs/cosmos-sdk v0.50.10-v26-osmo-2
+	// NOTE: TEMP TAG, will be replaced after review and tagging
+	github.com/cosmos/cosmos-sdk => github.com/osmosis-labs/cosmos-sdk v0.50.10-v26-osmo-1.0.20241002161840-d2ff8f7253c7
 
 	// replace as directed by sdk upgrading.md https://github.com/cosmos/cosmos-sdk/blob/393de266c8675dc16cc037c1a15011b1e990975f/UPGRADING.md?plain=1#L713
 	github.com/syndtr/goleveldb => github.com/syndtr/goleveldb v1.0.1-0.20210819022825-2ae1ddf74ef7
diff --git a/go.sum b/go.sum
index c310c32b182..86b4b8dc18e 100644
--- a/go.sum
+++ b/go.sum
@@ -912,8 +912,6 @@ github.com/ory/dockertest/v3 v3.11.0 h1:OiHcxKAvSDUwsEVh2BjxQQc/5EHz9n0va9awCtNG
 github.com/ory/dockertest/v3 v3.11.0/go.mod h1:VIPxS1gwT9NpPOrfD3rACs8Y9Z7yhzO4SB194iUDnUI=
 github.com/osmosis-labs/cometbft v0.38.12-v26-osmo-2 h1:9X9qTF0nXgn/U/jb6BV1kgRg5t/CdTHHOmx9cwsiDdw=
 github.com/osmosis-labs/cometbft v0.38.12-v26-osmo-2/go.mod h1:a8NBI2IdO283RZdpH0MuXlze3j+lv6PXuzOtTCq4YGE=
-github.com/osmosis-labs/cosmos-sdk v0.50.10-v26-osmo-2 h1:R0ahhobLCJ+GIA/RxC6NzNapQcwAilT7779Mep0Uu4o=
-github.com/osmosis-labs/cosmos-sdk v0.50.10-v26-osmo-2/go.mod h1:sYSfC78jZEx6m0WOprklQJG4PMGSmNJ0Y8lYrsv/MfU=
 github.com/osmosis-labs/cosmos-sdk/store v0.1.0-alpha.1.0.20240509221435-b8feb2ffb728 h1:AMz4HWC+WA/MwBQdsb11yIF9ForIvSLYYVy/jyhJ3/I=
 github.com/osmosis-labs/cosmos-sdk/store v0.1.0-alpha.1.0.20240509221435-b8feb2ffb728/go.mod h1:gjE3DZe4t/+VeIk6CmrouyqiuDbZ7QOVDDq3nLqBTpg=
 github.com/osmosis-labs/go-mutesting v0.0.0-20221208041716-b43bcd97b3b3 h1:YlmchqTmlwdWSmrRmXKR+PcU96ntOd8u10vTaTZdcNY=
diff --git a/go.work b/go.work
index 7e6799a1ec3..6dd78cbdd8d 100644
--- a/go.work
+++ b/go.work
@@ -11,3 +11,4 @@ use ./x/ibc-hooks
 use ./x/epochs
 
 replace github.com/onsi/ginkgo => github.com/onsi/ginkgo v1.16.5
+replace	github.com/cosmos/cosmos-sdk => github.com/osmosis-labs/cosmos-sdk v0.50.10-v26-osmo-1.0.20241002161840-d2ff8f7253c7