diff --git a/eras/allegra/impl/cardano-ledger-allegra.cabal b/eras/allegra/impl/cardano-ledger-allegra.cabal
index 89369f71447..a3cb783ee97 100644
--- a/eras/allegra/impl/cardano-ledger-allegra.cabal
+++ b/eras/allegra/impl/cardano-ledger-allegra.cabal
@@ -52,7 +52,7 @@ library
         bytestring,
         cardano-crypto-class,
         cardano-ledger-binary >=1.0,
-        cardano-ledger-core >=1.6.1 && <1.7,
+        cardano-ledger-core >=1.6.1 && <1.8,
         cardano-ledger-shelley >=1.6.1 && <1.7,
         cardano-strict-containers,
         cardano-slotting,
diff --git a/eras/alonzo/impl/cardano-ledger-alonzo.cabal b/eras/alonzo/impl/cardano-ledger-alonzo.cabal
index 7df0b0bf1e4..6aa0331d34f 100644
--- a/eras/alonzo/impl/cardano-ledger-alonzo.cabal
+++ b/eras/alonzo/impl/cardano-ledger-alonzo.cabal
@@ -67,7 +67,7 @@ library
         cardano-ledger-allegra >=1.1,
         cardano-crypto-class,
         cardano-ledger-binary >=1.0.1,
-        cardano-ledger-core >=1.6.1 && <1.7,
+        cardano-ledger-core >=1.6.1 && <1.8,
         cardano-ledger-mary >=1.1,
         cardano-ledger-shelley ^>=1.6.1,
         cardano-slotting,
diff --git a/eras/alonzo/test-suite/cardano-ledger-alonzo-test.cabal b/eras/alonzo/test-suite/cardano-ledger-alonzo-test.cabal
index f1dec523c99..c0fd8859026 100644
--- a/eras/alonzo/test-suite/cardano-ledger-alonzo-test.cabal
+++ b/eras/alonzo/test-suite/cardano-ledger-alonzo-test.cabal
@@ -51,7 +51,7 @@ library
         bytestring,
         cardano-ledger-alonzo:{cardano-ledger-alonzo, testlib} >=1.4,
         cardano-ledger-binary:{cardano-ledger-binary, testlib} >=1.0,
-        cardano-ledger-core:{cardano-ledger-core, testlib} >=1.5 && <1.7,
+        cardano-ledger-core:{cardano-ledger-core, testlib} >=1.5 && <1.8,
         cardano-ledger-pretty,
         cardano-ledger-allegra ^>=1.2,
         cardano-ledger-shelley:{cardano-ledger-shelley, testlib} >=1.6 && <1.7,
diff --git a/eras/babbage/impl/cardano-ledger-babbage.cabal b/eras/babbage/impl/cardano-ledger-babbage.cabal
index cf506fab5b8..b32a8241d55 100644
--- a/eras/babbage/impl/cardano-ledger-babbage.cabal
+++ b/eras/babbage/impl/cardano-ledger-babbage.cabal
@@ -62,7 +62,7 @@ library
         cardano-ledger-allegra >=1.1,
         cardano-ledger-alonzo ^>=1.4.2,
         cardano-ledger-binary >=1.0,
-        cardano-ledger-core >=1.6.1 && <1.7,
+        cardano-ledger-core >=1.6.1 && <1.8,
         cardano-ledger-mary >=1.1,
         cardano-ledger-shelley ^>=1.6,
         cardano-slotting,
diff --git a/eras/babbage/test-suite/cardano-ledger-babbage-test.cabal b/eras/babbage/test-suite/cardano-ledger-babbage-test.cabal
index 85f56c6d312..fa163c491b3 100644
--- a/eras/babbage/test-suite/cardano-ledger-babbage-test.cabal
+++ b/eras/babbage/test-suite/cardano-ledger-babbage-test.cabal
@@ -41,7 +41,7 @@ library
         cardano-ledger-alonzo:{cardano-ledger-alonzo, testlib} >=1.3 && <1.5,
         cardano-ledger-alonzo-test >=1.1,
         cardano-ledger-babbage:{cardano-ledger-babbage, testlib} ^>=1.4,
-        cardano-ledger-core:{cardano-ledger-core, testlib} >=1.3 && <1.7,
+        cardano-ledger-core:{cardano-ledger-core, testlib} >=1.3 && <1.8,
         cardano-ledger-shelley-ma-test >=1.1,
         cardano-ledger-mary ^>=1.3,
         cardano-ledger-shelley-test >=1.1,
diff --git a/eras/conway/impl/CHANGELOG.md b/eras/conway/impl/CHANGELOG.md
index 8905e4acdab..fa805902447 100644
--- a/eras/conway/impl/CHANGELOG.md
+++ b/eras/conway/impl/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## 1.9.0.0
 
+* Prevent `DRep` expiry when there are no active governance proposals to vote on (in ConwayCERTS). #3729
+  * Add `updateNumDormantEpochs` function in `ConwayEPOCH` to update the dormant-epochs counter
+  * Refactor access to `ConwayGovState` by making its lens part of `ConwayEraGov`.
+  * Export `gasExpiresAfterL` for use in tests
 * Add `ExpirationEpochTooSmall` data constructor to `ConwayGovPredFailure`
 * Add `ConflictingCommitteeUpdate` data constructor to `ConwayGovPredFailure`
 * Rename `NewCommitte` to `UpdateCommittee`
diff --git a/eras/conway/impl/cardano-ledger-conway.cabal b/eras/conway/impl/cardano-ledger-conway.cabal
index 5dae2fd4741..2bebfb3a1f4 100644
--- a/eras/conway/impl/cardano-ledger-conway.cabal
+++ b/eras/conway/impl/cardano-ledger-conway.cabal
@@ -73,7 +73,7 @@ library
         cardano-ledger-allegra >=1.1,
         cardano-ledger-alonzo ^>=1.4.2,
         cardano-ledger-babbage >=1.4.1,
-        cardano-ledger-core ^>=1.6.1,
+        cardano-ledger-core ^>=1.7,
         cardano-ledger-mary >=1.1,
         cardano-ledger-shelley ^>=1.6.1,
         cardano-slotting,
diff --git a/eras/conway/impl/src/Cardano/Ledger/Conway/Governance.hs b/eras/conway/impl/src/Cardano/Ledger/Conway/Governance.hs
index d3cfd98deef..caac2ccee07 100644
--- a/eras/conway/impl/src/Cardano/Ledger/Conway/Governance.hs
+++ b/eras/conway/impl/src/Cardano/Ledger/Conway/Governance.hs
@@ -81,6 +81,7 @@ module Cardano.Ledger.Conway.Governance (
   prevCommitteeStateL,
   gasCommitteeVotesL,
   gasDRepVotesL,
+  gasExpiresAfterL,
   gasStakePoolVotesL,
 ) where
 
@@ -133,6 +134,7 @@ import Cardano.Ledger.Conway.Governance.Procedures (
   VotingProcedures (..),
   gasCommitteeVotesL,
   gasDRepVotesL,
+  gasExpiresAfterL,
   gasStakePoolVotesL,
   govActionIdToText,
   indexedGovProps,
@@ -552,9 +554,11 @@ instance EraPParams (ConwayEra c) => EraGov (ConwayEra c) where
 
 class EraGov era => ConwayEraGov era where
   constitutionGovStateL :: Lens' (GovState era) (Constitution era)
+  snapshotsGovStateL :: Lens' (GovState era) (GovSnapshots era)
 
 instance Crypto c => ConwayEraGov (ConwayEra c) where
   constitutionGovStateL = cgEnactStateL . ensConstitutionL
+  snapshotsGovStateL = cgGovSnapshotsL
 
 pparamsUpdateThreshold ::
   forall era.
diff --git a/eras/conway/impl/src/Cardano/Ledger/Conway/Governance/Procedures.hs b/eras/conway/impl/src/Cardano/Ledger/Conway/Governance/Procedures.hs
index acd0c94db06..e7057c4e6a7 100644
--- a/eras/conway/impl/src/Cardano/Ledger/Conway/Governance/Procedures.hs
+++ b/eras/conway/impl/src/Cardano/Ledger/Conway/Governance/Procedures.hs
@@ -41,6 +41,7 @@ module Cardano.Ledger.Conway.Governance.Procedures (
   gasDRepVotesL,
   gasStakePoolVotesL,
   gasCommitteeVotesL,
+  gasExpiresAfterL,
 ) where
 
 import Cardano.Crypto.Hash (hashToTextAsHex)
@@ -193,6 +194,9 @@ gasDRepVotesL = lens gasDRepVotes (\x y -> x {gasDRepVotes = y})
 gasStakePoolVotesL :: Lens' (GovActionState era) (Map (KeyHash 'StakePool (EraCrypto era)) Vote)
 gasStakePoolVotesL = lens gasStakePoolVotes (\x y -> x {gasStakePoolVotes = y})
 
+gasExpiresAfterL :: Lens' (GovActionState era) EpochNo
+gasExpiresAfterL = lens gasExpiresAfter $ \x y -> x {gasExpiresAfter = y}
+
 instance EraPParams era => ToExpr (GovActionState era)
 
 instance EraPParams era => ToJSON (GovActionState era) where
diff --git a/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Certs.hs b/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Certs.hs
index 1723f6ae16a..1a89bfd809e 100644
--- a/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Certs.hs
+++ b/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Certs.hs
@@ -32,7 +32,7 @@ import Cardano.Ledger.Binary.Coders (
   (!>),
   (<!),
  )
-import Cardano.Ledger.CertState (certDStateL, certVStateL, vsDRepsL)
+import Cardano.Ledger.CertState (certDStateL, certVStateL, vsDRepsL, vsNumDormantEpochsL)
 import Cardano.Ledger.Conway.Core (
   Era (EraCrypto),
   EraRule,
@@ -72,6 +72,7 @@ import Control.State.Transition.Extended (
  )
 import qualified Data.Map.Strict as Map
 import Data.Sequence (Seq (..))
+import qualified Data.Sequence.Strict as SSeq
 import GHC.Generics (Generic)
 import Lens.Micro
 import NoThunks.Class (NoThunks (..))
@@ -176,7 +177,28 @@ conwayCertsTransition = do
 
   case certificates of
     Empty -> do
-      -- Update DRep expiry for all DReps that are voting in this transaction
+      -- If there is a new governance proposal to vote on in this transaction,
+      -- AND the number of dormant-epochs recorded is greater than zero, we bump
+      -- the expiry for all DReps by the number of dormant epochs, and reset the
+      -- counter to zero.
+      -- It does not matter that this rule (CERTS) is called _before_ the GOV rule
+      -- in LEDGER, even though we cannot validate any governance proposal here,
+      -- since the entire transaction will fail if the proposal is not accepted in
+      -- GOV, and so will this expiry bump done here. It will be discarded.
+      let certState' =
+            let hasProposals = not . SSeq.null $ tx ^. bodyTxL . proposalProceduresTxBodyL
+                numDormantEpochs = certState ^. certVStateL . vsNumDormantEpochsL
+                isNumDormantEpochsNonZero = numDormantEpochs /= 0
+             in if hasProposals && isNumDormantEpochsNonZero
+                  then
+                    certState
+                      & certVStateL . vsDRepsL %~ (<&> (drepExpiryL %~ (+ numDormantEpochs)))
+                      & certVStateL . vsNumDormantEpochsL .~ 0
+                  else certState
+
+      -- Update DRep expiry for all DReps that are voting in this transaction.
+      -- This will execute in mutual-exclusion to the previous updates to DRep expiry,
+      -- because if there are no proposals to vote on , there will be no votes either.
       let drepActivity = pp ^. ppDRepActivityL
           updatedVSDReps =
             Map.foldlWithKey'
@@ -184,14 +206,15 @@ conwayCertsTransition = do
                   DRepVoter cred -> Map.adjust (drepExpiryL .~ currentEpoch + drepActivity) cred dreps
                   _ -> dreps
               )
-              (certState ^. certVStateL . vsDRepsL)
+              (certState' ^. certVStateL . vsDRepsL)
               (unVotingProcedures $ tx ^. bodyTxL . votingProceduresTxBodyL)
-          certStateWithDRepExpiryUpdated = certState & certVStateL . vsDRepsL .~ updatedVSDReps
+          certStateWithDRepExpiryUpdated = certState' & certVStateL . vsDRepsL .~ updatedVSDReps
           dState = certStateWithDRepExpiryUpdated ^. certDStateL
           withdrawals = tx ^. bodyTxL . withdrawalsTxBodyL
+
       -- Validate withdrawals and rewards and drain withdrawals
-      validateTrans WithdrawalsNotInRewardsCERTS $
-        validateZeroRewards dState withdrawals network
+      validateTrans WithdrawalsNotInRewardsCERTS $ validateZeroRewards dState withdrawals network
+
       pure $ certStateWithDRepExpiryUpdated & certDStateL .~ drainWithdrawals dState withdrawals
     gamma :|> c -> do
       certState' <-
diff --git a/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Epoch.hs b/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Epoch.hs
index 8eec1ecd25d..c9dd9f50633 100644
--- a/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Epoch.hs
+++ b/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Epoch.hs
@@ -31,6 +31,7 @@ import Cardano.Ledger.CertState (
   dsUnifiedL,
   vsCommitteeStateL,
   vsDRepsL,
+  vsNumDormantEpochsL,
  )
 import Cardano.Ledger.Coin (Coin)
 import Cardano.Ledger.Compactible (Compactible (..))
@@ -38,6 +39,7 @@ import Cardano.Ledger.Conway.Core
 import Cardano.Ledger.Conway.Era (ConwayEPOCH, ConwayRATIFY)
 import Cardano.Ledger.Conway.Governance (
   Committee,
+  ConwayEraGov,
   ConwayGovState (..),
   GovActionState (..),
   GovSnapshots (..),
@@ -46,7 +48,10 @@ import Cardano.Ledger.Conway.Governance (
   cgGovSnapshotsL,
   curGovSnapshotsL,
   ensCommitteeL,
+  prevGovSnapshotsL,
   snapshotActions,
+  snapshotIds,
+  snapshotsGovStateL,
  )
 import Cardano.Ledger.Conway.Governance.Procedures (Committee (..))
 import Cardano.Ledger.Conway.Governance.Snapshots (snapshotLookupId, snapshotRemoveIds)
@@ -112,7 +117,7 @@ import Data.Sequence.Strict (StrictSeq (..))
 import qualified Data.Sequence.Strict as Seq
 import qualified Data.Set as Set
 import Data.Void (Void, absurd)
-import Lens.Micro (Lens', (%~), (&), (.~), (<>~), (^.))
+import Lens.Micro (Lens', (%~), (&), (+~), (.~), (<>~), (^.))
 
 data ConwayEpochEvent era
   = PoolReapEvent (Event (EraRule "POOLREAP" era))
@@ -120,7 +125,7 @@ data ConwayEpochEvent era
 
 instance
   ( EraTxOut era
-  , EraGov era
+  , ConwayEraGov era
   , Embed (EraRule "SNAP" era) (ConwayEPOCH era)
   , Environment (EraRule "SNAP" era) ~ SnapEnv era
   , State (EraRule "SNAP" era) ~ SnapShots (EraCrypto era)
@@ -173,6 +178,15 @@ returnProposalDeposits removedProposals =
   where
     updateUMap = returnProposalDepositsUMap removedProposals
 
+-- | When there have been zero governance proposals to vote on in the previous epoch
+-- increase the dormant-epoch counter by one.
+updateNumDormantEpochs :: ConwayEraGov era => LedgerState era -> LedgerState era
+updateNumDormantEpochs ls =
+  let wasPrevEpochDormant = Seq.null . snapshotIds $ ls ^. lsUTxOStateL . utxosGovStateL . snapshotsGovStateL . prevGovSnapshotsL
+   in if wasPrevEpochDormant
+        then ls & lsCertStateL . certVStateL . vsNumDormantEpochsL +~ 1
+        else ls
+
 epochTransition ::
   forall era.
   ( Embed (EraRule "SNAP" era) (ConwayEPOCH era)
@@ -188,7 +202,7 @@ epochTransition ::
   , State (EraRule "RATIFY" era) ~ RatifyState era
   , GovState era ~ ConwayGovState era
   , Signal (EraRule "RATIFY" era) ~ RatifySignal era
-  , EraGov era
+  , ConwayEraGov era
   ) =>
   TransitionRule (ConwayEPOCH era)
 epochTransition = do
@@ -197,15 +211,16 @@ epochTransition = do
       , es@EpochState
           { esAccountState = acnt
           , esSnapshots = ss
-          , esLState = ls
+          , esLState = ledgerState
           , esNonMyopic = nm
           }
       , eNo
       ) <-
     judgmentContext
-  let pp = es ^. curPParamsEpochStateL
-  let utxoSt = lsUTxOState ls
-  let CertState vstate pstate dstate = lsCertState ls
+  let ls = updateNumDormantEpochs ledgerState
+      pp = es ^. curPParamsEpochStateL
+      utxoSt = lsUTxOState ls
+      CertState vstate pstate dstate = lsCertState ls
   ss' <-
     trans @(EraRule "SNAP" era) $ TRC (SnapEnv ls pp, ss, ())
 
diff --git a/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Gov.hs b/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Gov.hs
index 7e52757c7dc..3ba78f9246a 100644
--- a/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Gov.hs
+++ b/eras/conway/impl/src/Cardano/Ledger/Conway/Rules/Gov.hs
@@ -249,6 +249,7 @@ govTransition ::
   TransitionRule (ConwayGOV era)
 govTransition = do
   TRC (GovEnv txid currentEpoch pp, st, gp) <- judgmentContext
+  expectedNetworkId <- liftSTS $ asks networkId
 
   let applyProps st' Empty = pure st'
       applyProps st' ((idx, ProposalProcedure {..}) :<| ps) = do
@@ -259,7 +260,6 @@ govTransition = do
 
         runTest $ actionWellFormed pProcGovAction
 
-        expectedNetworkId <- liftSTS $ asks networkId
         getRwdNetwork pProcReturnAddr
           == expectedNetworkId
             ?! ProposalProcedureNetworkIdMismatch pProcReturnAddr expectedNetworkId
diff --git a/eras/conway/test-suite/cardano-ledger-conway-test.cabal b/eras/conway/test-suite/cardano-ledger-conway-test.cabal
index bfa654eb757..5c83c9a7f40 100644
--- a/eras/conway/test-suite/cardano-ledger-conway-test.cabal
+++ b/eras/conway/test-suite/cardano-ledger-conway-test.cabal
@@ -43,7 +43,7 @@ library
         cardano-ledger-binary:{cardano-ledger-binary, testlib} >=1.0,
         cardano-strict-containers,
         cardano-ledger-conway:{cardano-ledger-conway, testlib} >=1.9 && <1.10,
-        cardano-ledger-core:{cardano-ledger-core, testlib} >=1.3 && <1.7,
+        cardano-ledger-core:{cardano-ledger-core, testlib} >=1.3 && <1.8,
         cardano-ledger-allegra ^>=1.2,
         cardano-ledger-mary ^>=1.3,
         cardano-ledger-shelley-ma-test >=1.1,
diff --git a/eras/mary/impl/cardano-ledger-mary.cabal b/eras/mary/impl/cardano-ledger-mary.cabal
index 2c37b96ec42..163f5e07bce 100644
--- a/eras/mary/impl/cardano-ledger-mary.cabal
+++ b/eras/mary/impl/cardano-ledger-mary.cabal
@@ -59,7 +59,7 @@ library
         cardano-data,
         cardano-ledger-allegra >=1.1,
         cardano-ledger-binary >=1.0,
-        cardano-ledger-core >=1.6.1 && <1.7,
+        cardano-ledger-core >=1.6.1 && <1.8,
         cardano-ledger-shelley >=1.6.1 && <1.7,
         containers,
         deepseq,
diff --git a/eras/shelley/impl/cardano-ledger-shelley.cabal b/eras/shelley/impl/cardano-ledger-shelley.cabal
index d4529989c47..cbd9783adf0 100644
--- a/eras/shelley/impl/cardano-ledger-shelley.cabal
+++ b/eras/shelley/impl/cardano-ledger-shelley.cabal
@@ -105,7 +105,7 @@ library
         cardano-data >=1.0,
         cardano-ledger-binary >=1.0,
         cardano-ledger-byron,
-        cardano-ledger-core >=1.6.1 && <1.7,
+        cardano-ledger-core >=1.6.1 && <1.8,
         cardano-slotting,
         vector-map >=1.0,
         containers,
diff --git a/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Serialisation/Golden/Encoding.hs b/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Serialisation/Golden/Encoding.hs
index b5956cf9605..854019dfa17 100644
--- a/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Serialisation/Golden/Encoding.hs
+++ b/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Serialisation/Golden/Encoding.hs
@@ -1138,23 +1138,18 @@ tests =
           actualHex = B16.encode actual
           expectedHex =
             mconcat
-              [ "8700a1581ce0a714319812c3f773ba04ec5d6b3ffcd5aad85"
-              , "006805b047b0825410aa1581ca646474b8f5431261506b6c2"
-              , "73d307c7569a4eb6c96b42dd4a29520a0384821927101903e"
-              , "8828383a081a0a084a0a0a0a08482a0a0a0a084a0a0000086"
-              , "a1825820ee155ace9c40292074cb6aff8c9ccdd273c81648f"
-              , "f1149ef36bcea6ebb8a3e250082583900cb9358529df4729c"
-              , "3246a2a033cb9821abbfd16de4888005904abc410d6a577e9"
-              , "441ad8ed9663931906e4d43ece8f82c712b1d0235affb060a"
-              , "1903e80184a0a092000000190800000000001864d81e82000"
-              , "1d81e820001d81e820001d81e820001810002000100920000"
-              , "00190800000000001864d81e820001d81e820001d81e82000"
-              , "1d81e82000181000200000082a0a0008483a0a0a083a0a0a0"
-              , "83a0a0a00082a000818300880082020082a000000000a0a08"
-              , "40185a0803903ba820200a0a082a0a0a1581ce0a714319812"
-              , "c3f773ba04ec5d6b3ffcd5aad85006805b047b08254182820"
-              , "1015820c5e21ab1c9f6022d81c3b25e3436cb7f1df77f9652"
-              , "ae3e1310c28e621dd87b4ca0"
+              [ "8700a1581ce0a714319812c3f773ba04ec5d6b3ffcd5aad85006805b047b0825410aa158"
+              , "1ca646474b8f5431261506b6c273d307c7569a4eb6c96b42dd4a29520a03848219271019"
+              , "03e8828384a081a0a00084a0a0a0a08482a0a0a0a084a0a0000086a1825820ee155ace9c"
+              , "40292074cb6aff8c9ccdd273c81648ff1149ef36bcea6ebb8a3e250082583900cb935852"
+              , "9df4729c3246a2a033cb9821abbfd16de4888005904abc410d6a577e9441ad8ed9663931"
+              , "906e4d43ece8f82c712b1d0235affb060a1903e80184a0a0920000001908000000000018"
+              , "64d81e820001d81e820001d81e820001d81e820001810002000100920000001908000000"
+              , "00001864d81e820001d81e820001d81e820001d81e82000181000200000082a0a0008483"
+              , "a0a0a083a0a0a083a0a0a00082a000818300880082020082a000000000a0a0840185a080"
+              , "3903ba820200a0a082a0a0a1581ce0a714319812c3f773ba04ec5d6b3ffcd5aad8500680"
+              , "5b047b082541828201015820c5e21ab1c9f6022d81c3b25e3436cb7f1df77f9652ae3e13"
+              , "10c28e621dd87b4ca0"
               ]
        in testCase "ledger state golden test" $
             unless (actual == expected) $
diff --git a/libs/cardano-ledger-api/CHANGELOG.md b/libs/cardano-ledger-api/CHANGELOG.md
index 0ae60f26341..5a7ba677c15 100644
--- a/libs/cardano-ledger-api/CHANGELOG.md
+++ b/libs/cardano-ledger-api/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 ## 1.6.0.0
 
+* Add the dormant-epochs counter to `DRep` expiry in `queryDRepState` #3729
+  * If it is not zero.
 * Rename:
   * `GovActionsState` to `GovSnapshots`
   * `cgGovActionsStateL` to `cgGovSnapshotsL`
diff --git a/libs/cardano-ledger-api/cardano-ledger-api.cabal b/libs/cardano-ledger-api/cardano-ledger-api.cabal
index b15482479e4..33fcc08a928 100644
--- a/libs/cardano-ledger-api/cardano-ledger-api.cabal
+++ b/libs/cardano-ledger-api/cardano-ledger-api.cabal
@@ -54,7 +54,7 @@ library
         cardano-ledger-babbage >=1.1,
         cardano-ledger-binary >=1.0,
         cardano-ledger-conway >=1.7,
-        cardano-ledger-core >=1.5 && <1.7,
+        cardano-ledger-core ^>=1.7,
         cardano-ledger-mary >=1.1,
         cardano-ledger-shelley ^>=1.6,
         cardano-slotting,
diff --git a/libs/cardano-ledger-api/src/Cardano/Ledger/Api/State/Query.hs b/libs/cardano-ledger-api/src/Cardano/Ledger/Api/State/Query.hs
index 2a326b497a2..d42e4dd7673 100644
--- a/libs/cardano-ledger-api/src/Cardano/Ledger/Api/State/Query.hs
+++ b/libs/cardano-ledger-api/src/Cardano/Ledger/Api/State/Query.hs
@@ -31,7 +31,7 @@ import Cardano.Ledger.Coin (Coin)
 import Cardano.Ledger.Compactible (fromCompact)
 import Cardano.Ledger.Core
 import Cardano.Ledger.Credential (Credential)
-import Cardano.Ledger.DRepDistr (extractDRepDistr)
+import Cardano.Ledger.DRepDistr (drepExpiryL, extractDRepDistr)
 import Cardano.Ledger.Keys (KeyHash, KeyRole (..))
 import Cardano.Ledger.SafeHash (SafeHash)
 import Cardano.Ledger.Shelley.Governance (EraGov (GovState, getConstitution))
@@ -93,9 +93,14 @@ queryDRepState ::
   Map (Credential 'DRepRole (EraCrypto era)) (DRepState (EraCrypto era))
 queryDRepState nes creds
   | null creds = drepsState
-  | otherwise = drepsState `Map.restrictKeys` creds
+  | otherwise =
+      drepsState `Map.restrictKeys` creds
+        & if numDormantEpochs == 0
+          then id
+          else (<&> drepExpiryL %~ (+ numDormantEpochs))
   where
     drepsState = vsDReps $ certVState $ lsCertState $ esLState $ nesEs nes
+    numDormantEpochs = vsNumDormantEpochs $ certVState $ lsCertState $ esLState $ nesEs nes
 
 -- | Query DRep stake distribution. Note that this can be an expensive query because there
 -- is a chance that current distribution has not been fully computed yet.
diff --git a/libs/cardano-ledger-core/CHANGELOG.md b/libs/cardano-ledger-core/CHANGELOG.md
index b9ce1a5efc5..c9ae4a058d4 100644
--- a/libs/cardano-ledger-core/CHANGELOG.md
+++ b/libs/cardano-ledger-core/CHANGELOG.md
@@ -1,7 +1,8 @@
 # Version history for `cardano-ledger-core`
 
-## 1.6.1.0
+## 1.7.0.0
 
+* Add `vsNumDormantEpochs` to `VState` to track the number of contiguous epochs in which there were no governance proposals to vote on. #3729
 * Add `fromEraShareCBOR`
 * Remove redundant `DecCBOR` constraint in `eraDecoder`
 * Add `FromJSON` instance to `Anchor`
diff --git a/libs/cardano-ledger-core/cardano-ledger-core.cabal b/libs/cardano-ledger-core/cardano-ledger-core.cabal
index b1606e1be4f..9f06c75a3b8 100644
--- a/libs/cardano-ledger-core/cardano-ledger-core.cabal
+++ b/libs/cardano-ledger-core/cardano-ledger-core.cabal
@@ -1,6 +1,6 @@
 cabal-version:      3.0
 name:               cardano-ledger-core
-version:            1.6.1.0
+version:            1.7.0.0
 license:            Apache-2.0
 maintainer:         operations@iohk.io
 author:             IOHK
diff --git a/libs/cardano-ledger-core/src/Cardano/Ledger/CertState.hs b/libs/cardano-ledger-core/src/Cardano/Ledger/CertState.hs
index 6405bd00543..9f696d30c7a 100644
--- a/libs/cardano-ledger-core/src/Cardano/Ledger/CertState.hs
+++ b/libs/cardano-ledger-core/src/Cardano/Ledger/CertState.hs
@@ -45,6 +45,7 @@ module Cardano.Ledger.CertState (
   vsDRepsL,
   vsDRepDistrL,
   vsCommitteeStateL,
+  vsNumDormantEpochsL,
   csCommitteeCredsL,
   lookupDepositVState,
 )
@@ -313,6 +314,14 @@ data VState era = VState
        )
   , vsDRepDistr :: !(DRepDistr (EraCrypto era))
   , vsCommitteeState :: !(CommitteeState era)
+  , vsNumDormantEpochs :: EpochNo
+  -- ^ Number of contiguous epochs in which there are exactly zero
+  -- active governance proposals to vote on. It is incremented in every
+  -- EPOCH rule if the number of active governance proposals to vote on
+  -- continues to be zero. It is reset to zero when a new governance
+  -- action is successfully proposed. We need this counter in order to
+  -- bump DRep expiries through dormant periods when DReps do not have
+  -- an opportunity to vote on anything.
   }
   deriving (Show, Eq, Generic)
 
@@ -321,7 +330,7 @@ lookupDepositVState :: VState era -> Credential 'DRepRole (EraCrypto era) -> May
 lookupDepositVState vstate = fmap drepDeposit . flip Map.lookup (vstate ^. vsDRepsL)
 
 instance Default (VState era) where
-  def = VState def (DRComplete Map.empty) def
+  def = VState def (DRComplete Map.empty) def (EpochNo 0)
 
 instance Typeable (EraCrypto era) => NoThunks (VState era)
 
@@ -334,7 +343,8 @@ instance Era era => DecShareCBOR (VState era) where
       RecD VState
         <! From
         <! From
-        <! (D decNoShareCBOR)
+        <! D decNoShareCBOR
+        <! From
 
 instance Era era => DecCBOR (VState era) where
   decCBOR = decNoShareCBOR
@@ -346,6 +356,7 @@ instance Era era => EncCBOR (VState era) where
         !> To vsDReps
         !> To vsDRepDistr
         !> To vsCommitteeState
+        !> To vsNumDormantEpochs
 
 -- | The state associated with the DELPL rule, which combines the DELEG rule
 -- and the POOL rule.
@@ -534,6 +545,9 @@ vsDRepDistrL = lens vsDRepDistr (\vs u -> vs {vsDRepDistr = u})
 vsCommitteeStateL :: Lens' (VState era) (CommitteeState era)
 vsCommitteeStateL = lens vsCommitteeState (\vs u -> vs {vsCommitteeState = u})
 
+vsNumDormantEpochsL :: Lens' (VState era) EpochNo
+vsNumDormantEpochsL = lens vsNumDormantEpochs (\vs u -> vs {vsNumDormantEpochs = u})
+
 csCommitteeCredsL ::
   Lens'
     (CommitteeState era)
diff --git a/libs/cardano-ledger-core/testlib/Test/Cardano/Ledger/Core/Arbitrary.hs b/libs/cardano-ledger-core/testlib/Test/Cardano/Ledger/Core/Arbitrary.hs
index dc4b3b1790d..3bdd96b7c6c 100644
--- a/libs/cardano-ledger-core/testlib/Test/Cardano/Ledger/Core/Arbitrary.hs
+++ b/libs/cardano-ledger-core/testlib/Test/Cardano/Ledger/Core/Arbitrary.hs
@@ -696,7 +696,7 @@ instance Crypto c => Arbitrary (Anchor c) where
 deriving instance Era era => Arbitrary (CommitteeState era)
 
 instance Era era => Arbitrary (VState era) where
-  arbitrary = VState <$> arbitrary <*> (DRComplete <$> arbitrary) <*> arbitrary
+  arbitrary = VState <$> arbitrary <*> (DRComplete <$> arbitrary) <*> arbitrary <*> arbitrary
 
 instance Crypto c => Arbitrary (InstantaneousRewards c) where
   arbitrary = InstantaneousRewards <$> arbitrary <*> arbitrary <*> arbitrary <*> arbitrary
diff --git a/libs/cardano-ledger-pretty/cardano-ledger-pretty.cabal b/libs/cardano-ledger-pretty/cardano-ledger-pretty.cabal
index 85c553c2936..1e2ff6cbafc 100644
--- a/libs/cardano-ledger-pretty/cardano-ledger-pretty.cabal
+++ b/libs/cardano-ledger-pretty/cardano-ledger-pretty.cabal
@@ -40,7 +40,7 @@ library
         cardano-ledger-babbage >=1.1,
         cardano-ledger-byron,
         cardano-ledger-conway ^>=1.9,
-        cardano-ledger-core ^>=1.6,
+        cardano-ledger-core >=1.6,
         cardano-ledger-mary >=1.0,
         cardano-ledger-shelley ^>=1.6,
         cardano-protocol-tpraos >=1.0,
diff --git a/libs/cardano-ledger-pretty/src/Cardano/Ledger/Pretty.hs b/libs/cardano-ledger-pretty/src/Cardano/Ledger/Pretty.hs
index 79f996a2027..3d9227854a3 100644
--- a/libs/cardano-ledger-pretty/src/Cardano/Ledger/Pretty.hs
+++ b/libs/cardano-ledger-pretty/src/Cardano/Ledger/Pretty.hs
@@ -1698,12 +1698,13 @@ instance PrettyA (DRepState c) where
 deriving instance PrettyA (CommitteeState era)
 
 instance PrettyA (VState era) where
-  prettyA (VState vsDReps vsDRepDistr vsCommitteeHotKeys) =
+  prettyA (VState vsDReps vsDRepDistr vsCommitteeHotKeys vsNumDormantEpochs) =
     ppRecord
       "VState"
       [ ("DReps", prettyA vsDReps)
       , ("DResDistr", ppMap prettyA (ppCoin . fromCompact) (extractDRepDistr vsDRepDistr))
       , ("CC Hot Keys", prettyA vsCommitteeHotKeys)
+      , ("Number of dormant epochs", prettyA vsNumDormantEpochs)
       ]
 
 -- ======================================================
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Examples.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Examples.hs
index 80e583fe954..39319e625a5 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Examples.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Examples.hs
@@ -580,6 +580,7 @@ dstatePreds _p =
   , Dom delegations :⊆: Dom rewards
   , Random dreps
   , Random committeeState
+  , Random numDormantEpochs
   , Dom rewards :=: Rng ptrs
   , -- This implies (Fixed (ExactSize 3) instanReserves)
     -- But it also implies that the new introduced variable instanReservesDom also has size 3
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Preds/CertState.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Preds/CertState.hs
index 6c248c89768..6eaf2fa14a1 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Preds/CertState.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Preds/CertState.hs
@@ -55,6 +55,7 @@ vstatePreds _p =
   , Sized (Range 5 7) (Dom committeeState)
   , Subset (Dom dreps) voteUniv
   , Subset (Dom committeeState) voteCredUniv
+  , Random numDormantEpochs
   ]
 
 vstateStage ::
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/TypeRep.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/TypeRep.hs
index 8117e63dd81..23690478c8f 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/TypeRep.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/TypeRep.hs
@@ -306,6 +306,7 @@ data Rep era t where
   PrevHardForkR :: Era era => Rep era (PrevGovActionId 'HardForkPurpose (EraCrypto era))
   PrevCommitteeR :: Era era => Rep era (PrevGovActionId 'CommitteePurpose (EraCrypto era))
   PrevConstitutionR :: Era era => Rep era (PrevGovActionId 'ConstitutionPurpose (EraCrypto era))
+  NumDormantEpochsR :: Era era => Rep era EpochNo
 
 stringR :: Rep era String
 stringR = ListR CharR
@@ -319,6 +320,7 @@ data IsTypeable a where
 repTypeable :: Rep era t -> IsTypeable t
 repTypeable r = case r of
   DRepStateR -> IsTypeable
+  NumDormantEpochsR -> IsTypeable
   CommColdCredR -> IsTypeable
   CommHotCredR -> IsTypeable
   GovActionR -> IsTypeable
@@ -547,6 +549,7 @@ synopsis PrevPParamUpdateR (PrevGovActionId x) = synopsis @e GovActionIdR x
 synopsis PrevHardForkR (PrevGovActionId x) = synopsis @e GovActionIdR x
 synopsis PrevCommitteeR (PrevGovActionId x) = synopsis @e GovActionIdR x
 synopsis PrevConstitutionR (PrevGovActionId x) = synopsis @e GovActionIdR x
+synopsis NumDormantEpochsR x = show x
 
 synSum :: Rep era a -> a -> String
 synSum (MapR _ CoinR) m = ", sum = " ++ show (pcCoin (Map.foldl' (<>) mempty m))
@@ -679,6 +682,7 @@ instance Shaped (Rep era) any where
   shape PrevHardForkR = Nullary 97
   shape PrevCommitteeR = Nullary 98
   shape PrevConstitutionR = Nullary 99
+  shape NumDormantEpochsR = Nullary 101
 
 compareRep :: forall era t s. Rep era t -> Rep era s -> Ordering
 compareRep = cmpIndex @(Rep era)
@@ -856,6 +860,7 @@ genSizedRep _ PrevPParamUpdateR = arbitrary
 genSizedRep _ PrevHardForkR = arbitrary
 genSizedRep _ PrevCommitteeR = arbitrary
 genSizedRep _ PrevConstitutionR = arbitrary
+genSizedRep _ NumDormantEpochsR = arbitrary
 
 genRep ::
   forall era b.
@@ -999,6 +1004,7 @@ shrinkRep PrevPParamUpdateR x = shrink x
 shrinkRep PrevHardForkR x = shrink x
 shrinkRep PrevCommitteeR x = shrink x
 shrinkRep PrevConstitutionR x = shrink x
+shrinkRep NumDormantEpochsR _ = []
 
 -- ===========================
 
@@ -1122,6 +1128,7 @@ hasOrd rep xx = explain ("'hasOrd " ++ show rep ++ "' fails") (help rep xx)
     help PrevHardForkR _ = failT ["PrevGovActionId 'HardFork, does not have an Ord instance"]
     help PrevCommitteeR _ = failT ["PrevGovActionId 'Committee, does not have an Ord instance"]
     help PrevConstitutionR _ = failT ["PrevGovActionId 'Constitution, does not have an Ord instance"]
+    help NumDormantEpochsR v = pure $ With v
 
 hasEq :: Rep era t -> s t -> Typed (HasConstraint Eq (s t))
 hasEq rep xx = explain ("'hasOrd " ++ show rep ++ "' fails") (help rep xx)
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Vars.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Vars.hs
index 6756671c711..e2f91a42c7c 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Vars.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Constrained/Vars.hs
@@ -19,7 +19,7 @@ import Cardano.Ledger.Alonzo.UTxO (AlonzoScriptsNeeded (..))
 import Cardano.Ledger.AuxiliaryData (AuxiliaryDataHash)
 import Cardano.Ledger.BaseTypes (BlocksMade (..), EpochNo, Network (..), ProtVer (..), SlotNo (..), StrictMaybe (..), UnitInterval)
 import qualified Cardano.Ledger.BaseTypes as Base (Globals (..))
-import Cardano.Ledger.CertState (CommitteeState (..), csCommitteeCredsL)
+import Cardano.Ledger.CertState (CommitteeState (..), csCommitteeCredsL, vsNumDormantEpochsL)
 import Cardano.Ledger.Coin (Coin (..), DeltaCoin)
 import Cardano.Ledger.Conway.Governance hiding (GovState)
 import Cardano.Ledger.Core (
@@ -282,6 +282,12 @@ committeeState = Var $ V "committeeState" (MapR CommColdCredR (MaybeR CommHotCre
 committeeStateL :: NELens era (Map (Credential 'ColdCommitteeRole (EraCrypto era)) (Maybe (Credential 'HotCommitteeRole (EraCrypto era))))
 committeeStateL = nesEsL . esLStateL . lsCertStateL . certVStateL . vsCommitteeStateL . csCommitteeCredsL
 
+numDormantEpochs :: Era era => Term era EpochNo
+numDormantEpochs = Var $ V "numDormantEpochs" NumDormantEpochsR (Yes NewEpochStateR numDormantEpochsL)
+
+numDormantEpochsL :: NELens era EpochNo
+numDormantEpochsL = nesEsL . esLStateL . lsCertStateL . certVStateL . vsNumDormantEpochsL
+
 -- UTxOState
 
 utxo :: Era era => Proof era -> Term era (Map (TxIn (EraCrypto era)) (TxOutF era))
@@ -911,9 +917,13 @@ certstateT =
 
 -- | Target for VState
 vstateT :: forall era. Era era => RootTarget era (VState era) (VState era)
-vstateT = Invert "VState" (typeRep @(VState era)) vStateF :$ Lensed dreps vsDRepsL :$ Lensed committeeState (vsCommitteeStateL . csCommitteeCredsL)
+vstateT =
+  Invert "VState" (typeRep @(VState era)) vStateF
+    :$ Lensed dreps vsDRepsL
+    :$ Lensed committeeState (vsCommitteeStateL . csCommitteeCredsL)
+    :$ Lensed numDormantEpochs vsNumDormantEpochsL
   where
-    vStateF x z = VState x (DRComplete Map.empty) (CommitteeState z)
+    vStateF x y z = VState x (DRComplete Map.empty) (CommitteeState y) z
 
 -- | Target for PState
 pstateT :: forall era. Era era => RootTarget era (PState era) (PState era)
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Examples/ConwayFeatures.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Examples/ConwayFeatures.hs
index 82768226e06..f98e574edb2 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Examples/ConwayFeatures.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Examples/ConwayFeatures.hs
@@ -28,15 +28,18 @@ import Cardano.Ledger.BaseTypes (
   textToUrl,
  )
 import Cardano.Ledger.Block (txid)
+import Cardano.Ledger.CertState
 import Cardano.Ledger.Coin (Coin (..), CompactForm (..))
 import Cardano.Ledger.Conway.Core (
   dvtUpdateToConstitutionL,
  )
 import Cardano.Ledger.Conway.Governance
+import Cardano.Ledger.Conway.PParams
+import Cardano.Ledger.Conway.TxBody
 import Cardano.Ledger.Conway.TxCert
 import Cardano.Ledger.Credential (Credential (..), StakeReference (..))
 import Cardano.Ledger.Crypto
-import Cardano.Ledger.DRepDistr (DRepDistr (..))
+import Cardano.Ledger.DRepDistr (DRepDistr (..), drepExpiryL)
 import Cardano.Ledger.Keys (
   KeyHash,
   KeyRole (..),
@@ -54,14 +57,18 @@ import Cardano.Ledger.Shelley.API (
 import Cardano.Ledger.Shelley.LedgerState
 import Cardano.Ledger.TxIn (TxIn (..))
 import Cardano.Ledger.Val (Val (..), inject)
+import Control.Exception (evaluate)
 import Control.State.Transition.Extended hiding (Assertion)
 import Data.Default.Class (Default (..))
 import qualified Data.Map.Strict as Map
 import Data.Maybe (fromJust)
 import Data.Proxy (Proxy (..))
 import Data.Ratio ((%))
+import qualified Data.Sequence as Seq
+import qualified Data.Sequence.Strict as SSeq
 import GHC.Stack
 import Lens.Micro
+import Test.Cardano.Ledger.Binary.TreeDiff (assertExprEqualWithMessage)
 import Test.Cardano.Ledger.Core.KeyPair (KeyPair (..))
 import Test.Cardano.Ledger.Examples.BabbageFeatures (
   InitOutputs (..),
@@ -80,6 +87,7 @@ import Test.Cardano.Ledger.Generic.Fields (
   TxBodyField (..),
   TxOutField (..),
  )
+import Test.Cardano.Ledger.Generic.PrettyCore ()
 import Test.Cardano.Ledger.Generic.Proof
 import Test.Cardano.Ledger.Generic.Scriptic (Scriptic (..))
 import Test.Cardano.Ledger.Generic.Updaters
@@ -94,14 +102,6 @@ import Test.Cardano.Protocol.Crypto.VRF (VRFKeyPair (..))
 import Test.Tasty
 import Test.Tasty.HUnit
 
-import Cardano.Ledger.Conway.PParams (ConwayEraPParams, ppDRepActivityL, ppDRepVotingThresholdsL, ppGovActionDepositL, ppGovActionExpirationL)
-import Cardano.Ledger.Conway.TxBody (ConwayEraTxBody)
-import Control.Exception (evaluate)
-import qualified Data.Sequence as Seq
-import qualified Data.Sequence.Strict as SSeq
-import Test.Cardano.Ledger.Binary.TreeDiff (assertExprEqualWithMessage)
-import Test.Cardano.Ledger.Generic.PrettyCore ()
-
 stakeKeyHash :: forall era. Era era => Proof era -> KeyHash 'Staking (EraCrypto era)
 stakeKeyHash _pf = hashKey . snd $ mkKeyPair (RawSeed 0 0 0 0 2)
 
@@ -191,6 +191,13 @@ govActionState gaid ProposalProcedure {..} =
     (EpochNo 0)
     (EpochNo 30)
 
+expiringGovActionState ::
+  EpochNo ->
+  GovActionId (EraCrypto era) ->
+  ProposalProcedure era ->
+  GovActionState era
+expiringGovActionState expiry govActionId pposal = govActionState govActionId pposal & gasExpiresAfterL .~ expiry
+
 govActionStateWithYesVotes :: Scriptic era => GovActionId (EraCrypto era) -> Proof era -> ProposalProcedure era -> GovActionState era
 govActionStateWithYesVotes gaid pf ProposalProcedure {..} =
   GovActionState
@@ -321,6 +328,129 @@ vote pf govActionId =
     , otherWitsFields = []
     }
 
+preventDRepExpiry ::
+  forall era.
+  ( State (EraRule "LEDGER" era) ~ LedgerState era
+  , State (EraRule "EPOCH" era) ~ EpochState era
+  , Show (PredicateFailure (EraRule "LEDGER" era))
+  , Show (PredicateFailure (EraRule "EPOCH" era))
+  , Scriptic era
+  , GoodCrypto (EraCrypto era)
+  , EraTx era
+  , ConwayEraTxBody era
+  , GovState era ~ ConwayGovState era
+  , ConwayEraPParams era
+  , ConwayEraGov era
+  ) =>
+  Proof era ->
+  Assertion
+preventDRepExpiry pf = do
+  let
+    (utxo0, _) = utxoFromTestCaseData pf (proposal pf)
+    pp' = pp & ppGovActionExpirationL .~ 3
+    proposalTx = txFromTestCaseData pf (proposal pf)
+    govActionId = GovActionId (txid (proposalTx ^. bodyTxL)) (GovActionIx 0)
+    initialGov =
+      def
+        & cgEnactStateL . ensCurPParamsL .~ pp'
+        & cgGovSnapshotsL . curGovSnapshotsL
+          .~ fromGovActionStateSeq (SSeq.singleton $ expiringGovActionState (EpochNo 2) govActionId $ newConstitutionProposal pf)
+    initialLedgerState = LedgerState (smartUTxOState pp' utxo0 (Coin 10) (Coin 0) initialGov zero) def
+    drepDistr = DRComplete $ Map.fromList [(DRepCredential (drepCredential pf), CompactCoin 1000)]
+    dreps = Map.singleton (drepCredential pf) (DRepState (EpochNo 2) SNothing (Coin 0))
+    epochState0 =
+      def
+        & curPParamsEpochStateL .~ pp'
+        & esLStateL .~ (initialLedgerState & lsCertStateL . certVStateL . vsDRepsL .~ dreps)
+        & epochStateDRepDistrL .~ drepDistr
+    poolDistr =
+      PoolDistr
+        ( Map.fromList
+            [
+              ( stakePoolKeyHash pf
+              , IndividualPoolStake
+                  spoThreshold
+                  (vrfKeyHash @(EraCrypto era))
+              )
+            ]
+        )
+    assertDReps epochNo epochState =
+      assertExprEqualWithMessage
+        (unwords ["Epoch", show @Int epochNo, "- DReps"])
+        (epochState ^. esLStateL . lsCertStateL . certVStateL . vsDRepsL)
+    assertCurGovSnaps epochNo epochState =
+      assertExprEqualWithMessage
+        (unwords ["Epoch", show @Int epochNo, "- CurGovSnapshot"])
+        (SSeq.null . snapshotIds $ epochState ^. esLStateL . lsUTxOStateL . utxosGovStateL . snapshotsGovStateL . curGovSnapshotsL)
+    assertPrevGovSnaps epochNo epochState =
+      assertExprEqualWithMessage
+        (unwords ["Epoch", show @Int epochNo, "- PrevGovSnapshot"])
+        (SSeq.null . snapshotIds $ epochState ^. esLStateL . lsUTxOStateL . utxosGovStateL . snapshotsGovStateL . prevGovSnapshotsL)
+    assertNumDormantEpochs epochNo prevEpochState currEpochState doesAdvance =
+      assertExprEqualWithMessage
+        (unwords ["Epoch", show @Int epochNo, "- NumDormantEpochs"])
+        (prevEpochState ^. esLStateL . lsCertStateL . certVStateL . vsNumDormantEpochsL + (if doesAdvance then 1 else 0))
+        (currEpochState ^. esLStateL . lsCertStateL . certVStateL . vsNumDormantEpochsL)
+
+  assertDReps 0 epochState0 dreps
+  assertCurGovSnaps 0 epochState0 False
+  assertPrevGovSnaps 0 epochState0 True
+
+  epochState1 <- expectRight "Error running runEPOCH: " $ runEPOCH (EPOCH pf) epochState0 (EpochNo 1) poolDistr
+
+  assertNumDormantEpochs 1 epochState0 epochState1 True
+  assertDReps 1 epochState1 dreps
+  assertCurGovSnaps 1 epochState1 False
+  assertPrevGovSnaps 1 epochState1 False
+
+  epochState2 <- expectRight "Error running runEPOCH: " $ runEPOCH (EPOCH pf) epochState1 (EpochNo 2) poolDistr
+
+  assertNumDormantEpochs 2 epochState1 epochState2 False
+  assertDReps 2 epochState2 dreps
+  assertCurGovSnaps 2 epochState2 False
+  assertPrevGovSnaps 2 epochState2 False
+
+  epochState3 <- expectRight "Error running runEPOCH: " $ runEPOCH (EPOCH pf) epochState2 (EpochNo 3) poolDistr
+
+  assertNumDormantEpochs 3 epochState2 epochState3 False
+  assertDReps 3 epochState3 dreps
+  assertCurGovSnaps 3 epochState3 False
+  assertPrevGovSnaps 3 epochState3 False
+
+  epochState4 <- expectRight "Error running runEPOCH: " $ runEPOCH (EPOCH pf) epochState3 (EpochNo 4) poolDistr
+
+  assertNumDormantEpochs 4 epochState3 epochState4 False
+  assertDReps 4 epochState4 dreps
+  assertCurGovSnaps 4 epochState4 True
+  assertPrevGovSnaps 4 epochState4 True
+
+  epochState5 <- expectRight "Error running runEPOCH: " $ runEPOCH (EPOCH pf) epochState4 (EpochNo 5) poolDistr
+
+  assertNumDormantEpochs 5 epochState4 epochState5 True
+  assertDReps 5 epochState5 dreps
+  assertCurGovSnaps 5 epochState5 True
+  assertPrevGovSnaps 5 epochState5 True
+
+  -- Propose something
+  ledgerState5 <-
+    expectRight "Error running LEDGER when proposing: " $
+      runLEDGER (LEDGER pf) (epochState5 ^. esLStateL) pp' (trustMeP pf True proposalTx)
+  let epochState5' = epochState5 & esLStateL .~ ledgerState5
+  -- Check that the vsNumDormantEpochsL has been reset to 0
+  assertExprEqualWithMessage
+    "Epoch 5 - NumDormantEpochs after proposal"
+    (ledgerState5 ^. lsCertStateL . certVStateL . vsNumDormantEpochsL)
+    0
+  -- Check that the vsDRepsL <&> drepExpiryL has been bumped by the number vsNumDormantEpochsL
+  assertDReps 5 epochState5' (dreps <&> drepExpiryL %~ (+ 2))
+
+  epochState6 <- expectRight "Error running runEPOCH: " $ runEPOCH (EPOCH pf) epochState5' (EpochNo 6) poolDistr
+
+  assertNumDormantEpochs 6 epochState5' epochState6 True
+  assertDReps 6 epochState6 (dreps <&> drepExpiryL %~ (+ 2))
+  assertCurGovSnaps 6 epochState6 False
+  assertPrevGovSnaps 6 epochState6 False
+
 testGov ::
   forall era.
   ( State (EraRule "LEDGER" era) ~ LedgerState era
@@ -475,4 +605,5 @@ conwayFeatures =
   testGroup
     "Gov examples"
     [ testCase "gov" $ testGov (Conway Mock)
+    , testCase "Prevent DRep expiry when there are no proposals to vote on" $ preventDRepExpiry (Conway Mock)
     ]
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/ModelState.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/ModelState.hs
index 6a627f67f7a..7c2dbccfc88 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/ModelState.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/ModelState.hs
@@ -338,7 +338,7 @@ instance Extract (PState era) era where
   extract x = PState (mPoolParams x) (mFPoolParams x) (mRetiring x) Map.empty
 
 instance Extract (VState era) era where
-  extract _ = VState def (DRComplete Map.empty) def
+  extract _ = VState def (DRComplete Map.empty) def (EpochNo 0)
 
 instance Extract (CertState era) era where
   extract x = CertState (extract x) (extract x) (extract x)
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/PrettyCore.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/PrettyCore.hs
index 82762d315fe..ba372e39670 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/PrettyCore.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/PrettyCore.hs
@@ -1801,12 +1801,13 @@ pcCertState (CertState vst pst dst) =
     ]
 
 pcVState :: VState era -> PDoc
-pcVState (VState dreps drepDistr (CommitteeState committeeHotCreds)) =
+pcVState (VState dreps drepDistr (CommitteeState committeeHotCreds) numDormantEpochs) =
   ppRecord
     "VState"
     [ ("DReps", ppMap pcCredential pcDRepState dreps)
     , ("DResDistr", ppMap pcDRep (pcCoin . fromCompact) (extractDRepDistr drepDistr))
     , ("CC Hot Keys", ppMap pcCredential (ppMaybe pcCredential) committeeHotCreds)
+    , ("Number of dormant epochs", ppEpochNo numDormantEpochs)
     ]
 
 pcAnchor :: Anchor c -> PDoc
diff --git a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/Same.hs b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/Same.hs
index 317bad18823..a0a69eed1ef 100644
--- a/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/Same.hs
+++ b/libs/cardano-ledger-test/src/Test/Cardano/Ledger/Generic/Same.hs
@@ -144,10 +144,11 @@ instance Same era (DState era) where
     ]
 
 instance Same era (VState era) where
-  same _proof (VState dr1 dist1 cchk1) (VState dr2 dist2 cchk2) =
+  same _proof (VState dr1 dist1 cchk1 numDE1) (VState dr2 dist2 cchk2 numDE2) =
     [ ("DReps", eqByShow dr1 dr2)
     , ("DRepDistr", eqByShow (extractDRepDistr dist1) (extractDRepDistr dist2))
     , ("CC Hot Keys", eqByShow cchk1 cchk2)
+    , ("Num Dormant Epochs", eqByShow numDE1 numDE2)
     ]
 
 sameUTxO :: Proof era -> UTxO era -> UTxO era -> Maybe PDoc