diff --git a/app/prefix.go b/app/prefix.go
index ab215987f2..2e97fc9519 100644
--- a/app/prefix.go
+++ b/app/prefix.go
@@ -1,8 +1,6 @@
 package app
 
 import (
-	"fmt"
-
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )
 
@@ -11,6 +9,7 @@ const (
 	AccountAddressPrefixTestNet = "tp"
 	CoinTypeMainNet             = 505
 	CoinTypeTestNet             = 1
+	Purpose                     = 44
 )
 
 var (
@@ -26,7 +25,7 @@ var (
 )
 
 // SetConfig sets the configuration for the network using mainnet or testnet
-func SetConfig(testnet bool) {
+func SetConfig(testnet bool, seal bool) {
 	// not the default (mainnet) so reset with testnet config
 	if testnet {
 		AccountAddressPrefix = AccountAddressPrefixTestNet
@@ -40,9 +39,11 @@ func SetConfig(testnet bool) {
 
 	config := sdk.GetConfig()
 	config.SetCoinType(uint32(CoinType))
-	config.SetFullFundraiserPath(fmt.Sprintf("m/44'/%d'/0'/0/0", CoinType))
+	config.SetPurpose(Purpose)
 	config.SetBech32PrefixForAccount(AccountAddressPrefix, AccountPubKeyPrefix)
 	config.SetBech32PrefixForValidator(ValidatorAddressPrefix, ValidatorPubKeyPrefix)
 	config.SetBech32PrefixForConsensusNode(ConsNodeAddressPrefix, ConsNodePubKeyPrefix)
-	config.Seal()
+	if seal {
+		config.Seal()
+	}
 }
diff --git a/app/prefix_test.go b/app/prefix_test.go
new file mode 100644
index 0000000000..9071cb693d
--- /dev/null
+++ b/app/prefix_test.go
@@ -0,0 +1,59 @@
+package app
+
+import (
+	"testing"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/stretchr/testify/require"
+)
+
+func TestFullBIP44PathForTestnet(t *testing.T) {
+	cases := []struct {
+		name         string
+		expected     string
+		isTestnet    bool
+		seal         bool
+		shouldPanic  bool
+		panicMessage string
+	}{
+		{
+			"has correct bip44th path for testnet",
+			"m/44'/118'/0'/0/0",
+			true,
+			false,
+			false,
+			"",
+		},
+		{
+			"has correct bip44th path for mainnet",
+			"m/44'/118'/0'/0/0",
+			true,
+			true,
+			false,
+			"",
+		},
+		{
+			"cannot double seal",
+			"m/44'/118'/0'/0/0",
+			true,
+			true,
+			true,
+			"Config is sealed",
+		},
+	}
+
+	for _, tc := range cases {
+		t.Run(tc.name, func(t *testing.T) {
+			config := sdk.NewConfig()
+			if tc.shouldPanic {
+				require.Panics(t, func() {
+					SetConfig(tc.isTestnet, tc.seal)
+				}, tc.name)
+			} else {
+				SetConfig(tc.isTestnet, tc.seal)
+				require.Equal(t, tc.expected, config.GetFullBIP44Path(), tc.name)
+			}
+
+		})
+	}
+}
diff --git a/cmd/provenanced/cmd/root.go b/cmd/provenanced/cmd/root.go
index f343518395..56050e6a78 100644
--- a/cmd/provenanced/cmd/root.go
+++ b/cmd/provenanced/cmd/root.go
@@ -90,7 +90,7 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 
 			// set app context based on initialized EnvTypeFlag
 			testnet := server.GetServerContextFromCmd(cmd).Viper.GetBool(EnvTypeFlag)
-			app.SetConfig(testnet)
+			app.SetConfig(testnet, true)
 			overwriteFlagDefaults(cmd, map[string]string{
 				// Override default value for coin-type to match our mainnet or testnet value.
 				CoinTypeFlag: fmt.Sprint(app.CoinType),