diff --git a/src/rpc/mining.cpp b/src/rpc/mining.cpp
index 26c97909c5..7f239a92e1 100644
--- a/src/rpc/mining.cpp
+++ b/src/rpc/mining.cpp
@@ -1007,7 +1007,7 @@ UniValue getnewblockhex(const JSONRPCRequest& request)
                         {
                             {"signblockscript", RPCArg::Type::STR_HEX, RPCArg::Optional::NO, "Hex-encoded block signing script to propose"},
                             {"max_block_witness", RPCArg::Type::NUM, RPCArg::Optional::NO, "Total size in witness bytes that are allowed in the dynamic federations block witness for blocksigning"},
-                            {"fedpegscript", RPCArg::Type::STR_HEX, RPCArg::Optional::NO, "Hex-encoded fedpegscript for dynamic block proposal"},
+                            {"fedpegscript", RPCArg::Type::STR_HEX, RPCArg::Optional::NO, "Hex-encoded fedpegscript for dynamic block proposal. This is interpreted as a v0 segwit witnessScript, and fills out the fedpeg_program as such."},
                             {"extension_space", RPCArg::Type::ARR, RPCArg::Optional::NO, "Array of additional fields to embed in the dynamic blockheader. Has no consensus meaning aside from serialized size changes. This space is currently is only used for PAK enforcement.",
                                 {
                                     {"", RPCArg::Type::STR_HEX, RPCArg::Optional::NO, "Hex encoded string for extension entries."},
diff --git a/test/functional/feature_fedpeg.py b/test/functional/feature_fedpeg.py
index faa13276db..55d5495135 100755
--- a/test/functional/feature_fedpeg.py
+++ b/test/functional/feature_fedpeg.py
@@ -52,6 +52,10 @@ class FedPegTest(BitcoinTestFramework):
                             help="Use a different binary for launching nodes")
         parser.add_argument("--parent_bitcoin", dest="parent_bitcoin", default=False, action="store_true",
                             help="Parent nodes are Bitcoin")
+        parser.add_argument("--pre_transition", dest="pre_transition", default=False, action="store_true",
+                            help="Run test in dynafed activated chain, without a transition")
+        parser.add_argument("--post_transition", dest="post_transition", default=False, action="store_true",
+                            help="Run test in dynafed activated chain, after transition and additional epoch to invalidate old fedpegscript")
 
     def skip_test_if_missing_module(self):
         self.skip_if_no_wallet()
@@ -134,6 +138,10 @@ class FedPegTest(BitcoinTestFramework):
                     '-con_parent_pegged_asset=%s' % parent_pegged_asset,
                 ])
 
+            # Immediate activation of dynafed when requested versus "never" from conf
+            if self.options.pre_transition or self.options.post_transition:
+                extra_args.extend(["-con_dyna_deploy_start=-1"])
+
             # Use rpcuser auth only for first parent.
             if n==0:
                 # Extract username and password from cookie file and use directly.
@@ -182,6 +190,22 @@ class FedPegTest(BitcoinTestFramework):
         #parent2 = self.nodes[1]
         sidechain = self.nodes[2]
         sidechain2 = self.nodes[3]
+
+        # If we're testing post-transition, force a fedpegscript transition and
+        # getting rid of old fedpegscript by making at least another epoch pass by
+        WSH_OP_TRUE = self.nodes[0].decodescript("51")["segwit"]["hex"]
+        # We just randomize the keys a bit to get another valid fedpegscript
+        new_fedpegscript = sidechain.tweakfedpegscript("f00dbabe")["script"]
+        if self.options.post_transition:
+            print("Running test post-transition")
+            for _ in range(30):
+                block_hex = sidechain.getnewblockhex(0, {"signblockscript":WSH_OP_TRUE, "max_block_witness":10, "fedpegscript":new_fedpegscript, "extension_space":[]})
+                sidechain.submitblock(block_hex)
+            assert_equal(sidechain.getsidechaininfo()["current_fedpegscripts"], [new_fedpegscript]*2)
+
+        if self.options.pre_transition:
+            print("Running test pre-transition, dynafed activated from first block")
+
         for node in self.nodes:
             node.importprivkey(privkey=node.get_deterministic_priv_key().key, label="mining")
         util.node_fastmerkle = sidechain
diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
index 7b71eaa5d7..9f5712a62a 100755
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -70,6 +70,8 @@ BASE_SCRIPTS = [
     # Scripts that are run by the travis build process.
     # vv First elements tests vv
     'feature_fedpeg.py',
+    'feature_fedpeg.py --pre_transition',
+    'feature_fedpeg.py --post_transition',
     'feature_mandatory_coinbase.py',
     'feature_block_subsidy.py',
     'feature_connect_genesis_outputs.py',