diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9d7328ca8f50..61cfdff885de 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,14 @@
 # Changelog
 
+## 0.34.7
+
+### Bug Fixes
+
+#### SDK
+
+* Fix gas consumption bug in `Undelegate` preventing the ability to sync from
+genesis. 
+
 ## 0.34.6
 
 ### Bug Fixes
diff --git a/x/staking/keeper/delegation.go b/x/staking/keeper/delegation.go
index 9559398923db..4a4db00ad6ed 100644
--- a/x/staking/keeper/delegation.go
+++ b/x/staking/keeper/delegation.go
@@ -597,10 +597,10 @@ func (k Keeper) Undelegate(
 			return completionTime, err
 		}
 
+		balance := sdk.NewCoin(k.BondDenom(ctx), returnAmount)
+
 		// no need to create the ubd object just complete now
 		if completeNow {
-			balance := sdk.NewCoin(k.BondDenom(ctx), returnAmount)
-
 			// track undelegation only when remaining or truncated shares are non-zero
 			if !balance.IsZero() {
 				if _, err := k.bankKeeper.UndelegateCoins(ctx, delAddr, sdk.Coins{balance}); err != nil {