diff --git a/toolkit/offchain/src/update_governance/mod.rs b/toolkit/offchain/src/update_governance/mod.rs
index 07e0df6a9..495fa233e 100644
--- a/toolkit/offchain/src/update_governance/mod.rs
+++ b/toolkit/offchain/src/update_governance/mod.rs
@@ -114,7 +114,7 @@ fn update_governance_tx(
 	let mut tx_builder = TransactionBuilder::new(&config);
 
 	tx_builder.add_mint_one_script_token_using_reference_script(
-		&multi_sig_policy,
+		&governance_data.policy_script,
 		&governance_data.utxo_id_as_tx_input(),
 		&mint_ex_units,
 	)?;
diff --git a/toolkit/offchain/src/update_governance/test.rs b/toolkit/offchain/src/update_governance/test.rs
index 30f1decf4..103748c60 100644
--- a/toolkit/offchain/src/update_governance/test.rs
+++ b/toolkit/offchain/src/update_governance/test.rs
@@ -97,7 +97,7 @@ fn governance_data() -> GovernanceData {
 
 fn new_governance_authority() -> MainchainAddressHash {
 	MainchainAddressHash(hex_literal::hex!(
-		"76da17b2e3371ab7ca88ce0500441149f03cc5091009f99c99c080d9"
+		"84ba05c28879b299a8377e62128adc7a0e0df3ac438ff95efc7c8443"
 	))
 }
 
@@ -110,7 +110,8 @@ fn spend_ex_units() -> ExUnits {
 }
 
 fn multisig_policy_hash() -> [u8; 28] {
-	hex!("f298532e5be52f55bb60602ada0e4b7038569ec728fbe03c7254d2b9")
+	// important: this is the hash of the multisig policy parametrized with the *old* authority
+	hex!("a646474b8f5431261506b6c273d307c7569a4eb6c96b42dd4a29520a")
 }
 
 fn version_oracle_validator_address() -> Address {
diff --git a/toolkit/offchain/src/update_governance/test_values.rs b/toolkit/offchain/src/update_governance/test_values.rs
index a5d7411ba..ff7ca9516 100644
--- a/toolkit/offchain/src/update_governance/test_values.rs
+++ b/toolkit/offchain/src/update_governance/test_values.rs
@@ -35,17 +35,17 @@ pub(crate) fn test_update_governance_tx() -> serde_json::Value {
 						"Data": "{\"list\":[{\"int\":32},{\"bytes\":\"c11dee532646a9b226aac75f77ea7ae5fba9270674327c882794701e\"}]}"
 					},
 					"script_ref": {
-						"PlutusScript": "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"
+						"PlutusScript": "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"
 					}
 				},
 				{
 					// change returned
 					"address": "addr_test1vpmd59ajuvm34d723r8q2qzyz9ylq0x9pygqn7vun8qgpkgs7y5hw",
 					"amount": {
-						"coin": "9922268377",
+						"coin": "9922275427",
 						// minted governance token
 						"multiasset": {
-							"f298532e5be52f55bb60602ada0e4b7038569ec728fbe03c7254d2b9": {
+							"a646474b8f5431261506b6c273d307c7569a4eb6c96b42dd4a29520a": {
 								"": "1"
 							}
 						}
@@ -54,7 +54,7 @@ pub(crate) fn test_update_governance_tx() -> serde_json::Value {
 					"script_ref": null
 				}
 			],
-			"fee": "304797",
+			"fee": "297747",
 			"ttl": null,
 			"certs": null,
 			"withdrawals": null,
@@ -64,7 +64,7 @@ pub(crate) fn test_update_governance_tx() -> serde_json::Value {
 			"mint": [
 				[
 					// governance token
-					"f298532e5be52f55bb60602ada0e4b7038569ec728fbe03c7254d2b9",
+					"a646474b8f5431261506b6c273d307c7569a4eb6c96b42dd4a29520a",
 					{
 						"": "1"
 					}
@@ -84,13 +84,13 @@ pub(crate) fn test_update_governance_tx() -> serde_json::Value {
 			"collateral_return": {
 				"address": "addr_test1vpmd59ajuvm34d723r8q2qzyz9ylq0x9pygqn7vun8qgpkgs7y5hw",
 				"amount": {
-					"coin": "9922488741",
+					"coin": "9922499316",
 					"multiasset": null
 				},
 				"plutus_data": null,
 				"script_ref": null
 			},
-			"total_collateral": "457196",
+			"total_collateral": "446621",
 			"reference_inputs": null,
 			"voting_procedures": null,
 			"voting_proposals": null,
diff --git a/toolkit/offchain/tests/integration_tests.rs b/toolkit/offchain/tests/integration_tests.rs
index 0ae841982..e00938c37 100644
--- a/toolkit/offchain/tests/integration_tests.rs
+++ b/toolkit/offchain/tests/integration_tests.rs
@@ -60,23 +60,14 @@ const REWARDS_TOKEN_POLICY_ID: PolicyId =
 const REWARDS_TOKEN_ASSET_NAME_STR: &str = "5043526f636b73";
 
 #[tokio::test]
-async fn init_goveranance() {
-	let image = GenericImage::new(TEST_IMAGE, TEST_IMAGE_TAG);
-	let client = Cli::default();
-	let container = client.run(image);
-	let client = initialize(&container).await;
-	let _ = run_init_goveranance(&client).await;
-	()
-}
-
-#[tokio::test]
-async fn update_governance() {
+async fn governance_flow() {
 	let image = GenericImage::new(TEST_IMAGE, TEST_IMAGE_TAG);
 	let client = Cli::default();
 	let container = client.run(image);
 	let client = initialize(&container).await;
 	let genesis_utxo = run_init_goveranance(&client).await;
 	let _ = run_update_goveranance(&client, genesis_utxo).await;
+	assert!(run_upsert_d_param(genesis_utxo, 0, 1, EVE_PAYMENT_KEY, &client).await.is_some());
 }
 
 #[tokio::test]
@@ -86,9 +77,15 @@ async fn upsert_d_param() {
 	let container = client.run(image);
 	let client = initialize(&container).await;
 	let genesis_utxo = run_init_goveranance(&client).await;
-	assert!(run_upsert_d_param(genesis_utxo, 0, 1, &client).await.is_some());
-	assert!(run_upsert_d_param(genesis_utxo, 0, 1, &client).await.is_none());
-	assert!(run_upsert_d_param(genesis_utxo, 1, 1, &client).await.is_some())
+	assert!(run_upsert_d_param(genesis_utxo, 0, 1, GOVERNANCE_AUTHORITY_PAYMENT_KEY, &client)
+		.await
+		.is_some());
+	assert!(run_upsert_d_param(genesis_utxo, 0, 1, GOVERNANCE_AUTHORITY_PAYMENT_KEY, &client)
+		.await
+		.is_none());
+	assert!(run_upsert_d_param(genesis_utxo, 1, 1, GOVERNANCE_AUTHORITY_PAYMENT_KEY, &client)
+		.await
+		.is_some())
 }
 
 #[tokio::test]
@@ -201,7 +198,7 @@ async fn run_update_goveranance<
 	genesis_utxo: UtxoId,
 ) -> () {
 	let _ = update_governance::run_update_governance(
-		GOVERNANCE_AUTHORITY,
+		EVE_PUBLIC_KEY_HASH,
 		GOVERNANCE_AUTHORITY_PAYMENT_KEY,
 		genesis_utxo,
 		client,
@@ -217,12 +214,13 @@ async fn run_upsert_d_param<
 	genesis_utxo: UtxoId,
 	num_permissioned_candidates: u16,
 	num_registered_candidates: u16,
+	pkey: MainchainPrivateKey,
 	client: &T,
 ) -> Option<McTxHash> {
 	let tx_hash = d_param::upsert_d_param(
 		genesis_utxo,
 		&DParameter { num_permissioned_candidates, num_registered_candidates },
-		GOVERNANCE_AUTHORITY_PAYMENT_KEY.0,
+		pkey.0,
 		client,
 	)
 	.await