diff --git a/apps/src/lib/node/ledger/shell/finalize_block.rs b/apps/src/lib/node/ledger/shell/finalize_block.rs
index 3af8ab9e3f..ca0dbfbb2f 100644
--- a/apps/src/lib/node/ledger/shell/finalize_block.rs
+++ b/apps/src/lib/node/ledger/shell/finalize_block.rs
@@ -110,6 +110,14 @@ where
             )?;
         }
 
+        // Invariant: Has to be applied before `record_slashes_from_evidence`
+        // because it potentially needs to be able to read validator state from
+        // previous epoch and jailing validator removes the historical state
+        self.log_block_rewards(&req.votes, height, current_epoch, new_epoch)?;
+        if new_epoch {
+            self.apply_inflation(current_epoch)?;
+        }
+
         // Invariant: This has to be applied after
         // `copy_validator_sets_and_positions` and before `self.update_epoch`.
         self.record_slashes_from_evidence();
@@ -530,42 +538,6 @@ where
             self.update_eth_oracle();
         }
 
-        // Read the block proposer of the previously committed block in storage
-        // (n-1 if we are in the process of finalizing n right now).
-        match read_last_block_proposer_address(&self.wl_storage)? {
-            Some(proposer_address) => {
-                tracing::debug!(
-                    "Found last block proposer: {proposer_address}"
-                );
-                let votes = pos_votes_from_abci(&self.wl_storage, &req.votes);
-                namada_proof_of_stake::log_block_rewards(
-                    &mut self.wl_storage,
-                    if new_epoch {
-                        current_epoch.prev()
-                    } else {
-                        current_epoch
-                    },
-                    &proposer_address,
-                    votes,
-                )?;
-            }
-            None => {
-                if height > BlockHeight::default().next_height() {
-                    tracing::error!(
-                        "Can't find the last block proposer at height {height}"
-                    );
-                } else {
-                    tracing::debug!(
-                        "No last block proposer at height {height}"
-                    );
-                }
-            }
-        }
-
-        if new_epoch {
-            self.apply_inflation(current_epoch)?;
-        }
-
         if !req.proposer_address.is_empty() {
             let tm_raw_hash_string =
                 tm_raw_hash_to_string(req.proposer_address);
@@ -887,6 +859,48 @@ where
 
         Ok(())
     }
+
+    // Process the proposer and votes in the block to assign their PoS rewards.
+    fn log_block_rewards(
+        &mut self,
+        votes: &[VoteInfo],
+        height: BlockHeight,
+        current_epoch: Epoch,
+        new_epoch: bool,
+    ) -> Result<()> {
+        // Read the block proposer of the previously committed block in storage
+        // (n-1 if we are in the process of finalizing n right now).
+        match read_last_block_proposer_address(&self.wl_storage)? {
+            Some(proposer_address) => {
+                tracing::debug!(
+                    "Found last block proposer: {proposer_address}"
+                );
+                let votes = pos_votes_from_abci(&self.wl_storage, votes);
+                namada_proof_of_stake::log_block_rewards(
+                    &mut self.wl_storage,
+                    if new_epoch {
+                        current_epoch.prev()
+                    } else {
+                        current_epoch
+                    },
+                    &proposer_address,
+                    votes,
+                )?;
+            }
+            None => {
+                if height > BlockHeight::default().next_height() {
+                    tracing::error!(
+                        "Can't find the last block proposer at height {height}"
+                    );
+                } else {
+                    tracing::debug!(
+                        "No last block proposer at height {height}"
+                    );
+                }
+            }
+        }
+        Ok(())
+    }
 }
 
 /// Convert ABCI vote info to PoS vote info. Any info which fails the conversion