diff --git a/packages/contracts/src/core/dao/DAO.sol b/packages/contracts/src/core/dao/DAO.sol
index 8dcc24b89..35f245d29 100644
--- a/packages/contracts/src/core/dao/DAO.sol
+++ b/packages/contracts/src/core/dao/DAO.sol
@@ -152,7 +152,7 @@ contract DAO is
         address _initialOwner,
         address _trustedForwarder,
         string calldata daoURI_
-    ) external reinitializer(2) {
+    ) external reinitializer(3) {
         _reentrancyStatus = _NOT_ENTERED; // added in v1.3.0
 
         _registerInterface(type(IDAO).interfaceId);
@@ -173,7 +173,7 @@ contract DAO is
     function initializeFrom(
         uint8[3] calldata _previousProtocolVersion,
         bytes calldata _initData
-    ) external reinitializer(2) {
+    ) external reinitializer(3) {
         _initData; // Silences the unused function parameter warning.
 
         // Check that the contract is not upgrading from a different major release.
diff --git a/packages/contracts/test/core/dao/dao.ts b/packages/contracts/test/core/dao/dao.ts
index 95c36f226..4137b04dd 100644
--- a/packages/contracts/test/core/dao/dao.ts
+++ b/packages/contracts/test/core/dao/dao.ts
@@ -204,7 +204,7 @@ describe('DAO', function () {
       );
     });
 
-    it('sets OZs `_initialized` at storage slot [0] to 2', async () => {
+    it('sets OZs `_initialized` at storage slot [0] to 3', async () => {
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(
@@ -212,7 +212,7 @@ describe('DAO', function () {
             OZ_INITIALIZED_SLOT_POSITION
           )
         ).toNumber()
-      ).to.equal(2);
+      ).to.equal(3);
     });
 
     it('sets the `_reentrancyStatus` at storage slot [304] to `_NOT_ENTERED = 1`', async () => {
@@ -239,11 +239,11 @@ describe('DAO', function () {
         .withArgs([0, 1, 0]);
     });
 
-    it('initializes `_reentrancyStatus` for versions < 1.3.0', async () => {
+    it('increments `_initialized` to `3`', async () => {
       // Create an unitialized DAO.
       const uninitializedDao = await deployWithProxy<DAO>(DAO);
 
-      // Expect the contract to be uninitialized  with `_initialized = 0` and `_reentrancyStatus = 0`.
+      // Expect the contract to be uninitialized  with `_initialized = 0`.
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(
@@ -252,28 +252,42 @@ describe('DAO', function () {
           )
         ).toNumber()
       ).to.equal(0);
+
+      // Call `initializeFrom` with version 1.2.0.
+      await expect(uninitializedDao.initializeFrom([1, 2, 0], EMPTY_DATA)).to
+        .not.be.reverted;
+
+      // Expect the contract to be initialized with `_initialized = 3`.
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(
             uninitializedDao.address,
-            REENTRANCY_STATUS_SLOT_POSITION
+            OZ_INITIALIZED_SLOT_POSITION
           )
         ).toNumber()
-      ).to.equal(0);
+      ).to.equal(3);
+    });
 
-      // Call `initializeFrom` with version 1.2.0.
-      await expect(uninitializedDao.initializeFrom([1, 2, 0], EMPTY_DATA)).to
-        .not.be.reverted;
+    it('initializes `_reentrancyStatus` for versions < 1.3.0', async () => {
+      // Create an unitialized DAO.
+      const uninitializedDao = await deployWithProxy<DAO>(DAO);
+
+      // Expect the contract to be uninitialized  with `_reentrancyStatus = 0`.
 
-      // Expect the contract to be initialized with `_initialized = 2` and  `_reentrancyStatus = 1`.
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(
             uninitializedDao.address,
-            OZ_INITIALIZED_SLOT_POSITION
+            REENTRANCY_STATUS_SLOT_POSITION
           )
         ).toNumber()
-      ).to.equal(2);
+      ).to.equal(0);
+
+      // Call `initializeFrom` with version 1.2.0.
+      await expect(uninitializedDao.initializeFrom([1, 2, 0], EMPTY_DATA)).to
+        .not.be.reverted;
+
+      // Expect the contract to be initialized with `_reentrancyStatus = 1`.
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(
@@ -288,15 +302,8 @@ describe('DAO', function () {
       // Create an unitialized DAO.
       const uninitializedDao = await deployWithProxy<DAO>(DAO);
 
-      // Expect the contract to be uninitialized  with `_initialized = 0` and `_reentrancyStatus = 0`.
-      expect(
-        ethers.BigNumber.from(
-          await ethers.provider.getStorageAt(
-            uninitializedDao.address,
-            OZ_INITIALIZED_SLOT_POSITION
-          )
-        ).toNumber()
-      ).to.equal(0);
+      // Expect the contract to be uninitialized  with `_reentrancyStatus = 0`.
+
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(
@@ -310,15 +317,8 @@ describe('DAO', function () {
       await expect(uninitializedDao.initializeFrom([1, 3, 0], EMPTY_DATA)).to
         .not.be.reverted;
 
-      // Expect the contract to be initialized with `_initialized = 2` but `_reentrancyStatus` to remain unchanged.
-      expect(
-        ethers.BigNumber.from(
-          await ethers.provider.getStorageAt(
-            uninitializedDao.address,
-            OZ_INITIALIZED_SLOT_POSITION
-          )
-        ).toNumber()
-      ).to.equal(2);
+      // Expect `_reentrancyStatus` to remain unchanged.
+
       expect(
         ethers.BigNumber.from(
           await ethers.provider.getStorageAt(