diff --git a/blockdag/dag.go b/blockdag/dag.go
index 20827ba3d..80f36fcb7 100644
--- a/blockdag/dag.go
+++ b/blockdag/dag.go
@@ -672,29 +672,30 @@ func (dag *BlockDAG) checkFinalityRules(newNode *blockNode) error {
 	return nil
 }
 
-// newFinalityPoint return the (potentially) new finality point after the the introduction of a new block
-func (dag *BlockDAG) newFinalityPoint(newNode *blockNode) *blockNode {
-	// if the new node is the genesis block - it should be the new finality point
-	if newNode.isGenesis() {
-		return newNode
-	}
-
-	// We are looking for a new finality point only if the new block's finality score is higher
-	// than the existing finality point's
-	if newNode.finalityScore() <= dag.lastFinalityPoint.finalityScore() {
-		return dag.lastFinalityPoint
-	}
-
-	var currentNode *blockNode
-	for currentNode = newNode.selectedParent; ; currentNode = currentNode.selectedParent {
-		// If current node's finality score is higher than it's selectedParent's -
-		// current node is the new finalityPoint
-		if currentNode.isGenesis() || currentNode.finalityScore() > currentNode.selectedParent.finalityScore() {
-			break
+// updateFinalityPoint updates the dag's last finality point if necessary.
+func (dag *BlockDAG) updateFinalityPoint() {
+	selectedTip := dag.selectedTip()
+	var newFinalityPoint *blockNode
+	// if the selected tip is the genesis block - it should be the new finality point
+	if selectedTip.isGenesis() {
+		newFinalityPoint = selectedTip
+	} else {
+		// We are looking for a new finality point only if the new block's finality score is higher
+		// by 2 than the existing finality point's
+		if selectedTip.finalityScore() < dag.lastFinalityPoint.finalityScore()+2 {
+			return
 		}
-	}
 
-	return currentNode
+		var currentNode *blockNode
+		for currentNode = selectedTip.selectedParent; ; currentNode = currentNode.selectedParent {
+			// We look for the first node in the selected parent chain that has a higher finality score than the last finality point.
+			if currentNode.selectedParent.finalityScore() == dag.lastFinalityPoint.finalityScore() {
+				break
+			}
+		}
+		newFinalityPoint = currentNode
+	}
+	dag.lastFinalityPoint = newFinalityPoint
 }
 
 // NextBlockFeeTransactionWithLock prepares the fee transaction for the next mined block
@@ -763,7 +764,7 @@ func (dag *BlockDAG) applyDAGChanges(node *blockNode, block *util.Block, newBloc
 	dag.index.SetStatusFlags(node, statusValid)
 
 	// And now we can update the finality point of the DAG (if required)
-	dag.lastFinalityPoint = dag.newFinalityPoint(node)
+	dag.updateFinalityPoint()
 
 	return virtualUTXODiff, nil
 }