diff --git a/CHANGELOG_UNRELEASED.md b/CHANGELOG_UNRELEASED.md
index 89e9f85147..76949b4243 100644
--- a/CHANGELOG_UNRELEASED.md
+++ b/CHANGELOG_UNRELEASED.md
@@ -18,7 +18,7 @@
 - (bug) [\#2047](https://github.com/bandprotocol/bandchain/pull/2047) Fix request search ordering in 0.38.
 - (bug) [\#2046](https://github.com/bandprotocol/bandchain/pull/2043) Use dash for bandcli report-info.
 - (impv) [\#2043](https://github.com/bandprotocol/bandchain/pull/2043) Add full raw requests information in request struct.
-- (chore) [\#2040](https://github.com/bandprotocol/bandchain/pull/2040) Set HomeFlag to /tmp for SimApp.
+- (chore) [\#2040](https://github.com/bandprotocol/bandchain/pull/2040) + [\#2044](https://github.com/bandprotocol/bandchain/pull/2044) Set HomeFlag to /tmp for SimApp.
 - (patch) [\#2037](https://github.com/bandprotocol/bandchain/pull/2037) Patch Multistore proof to new structure tree of 0.38.
 - (impv) [\#1892](https://github.com/bandprotocol/bandchain/pull/1892) Rewrite execution environment for wasmer
 - (patch) [\#1999](https://github.com/bandprotocol/bandchain/pull/1999) Patch to Cosmos-SDK 0.38.4
diff --git a/chain/simapp/app.go b/chain/simapp/app.go
index 2311cfe0ec..c349d8a06f 100644
--- a/chain/simapp/app.go
+++ b/chain/simapp/app.go
@@ -1,6 +1,7 @@
 package simapp
 
 import (
+	"io/ioutil"
 	"math/rand"
 	"time"
 
@@ -101,8 +102,12 @@ func createValidatorTx(chainID string, acc Account, moniker string, selfDelegati
 
 // NewSimApp creates instance of our app using in test.
 func NewSimApp(chainID string, logger log.Logger) *bandapp.BandApp {
-	// Set HomeFlag to /tmp folder for simulation run.
-	viper.Set(cli.HomeFlag, "/tmp")
+	// Sets HomeFlag to a temp folder for simulation run.
+	dir, err := ioutil.TempDir("", "bandd")
+	if err != nil {
+		panic(err)
+	}
+	viper.Set(cli.HomeFlag, dir)
 	db := dbm.NewMemDB()
 	app := bandapp.NewBandApp(logger, db, nil, true, 0, map[int64]bool{}, "")
 	genesis := bandapp.NewDefaultGenesisState()