diff --git a/x/txfees/keeper/mempool-1559/code.go b/x/txfees/keeper/mempool-1559/code.go
index 53089173da8..0d1d8ba4043 100644
--- a/x/txfees/keeper/mempool-1559/code.go
+++ b/x/txfees/keeper/mempool-1559/code.go
@@ -47,8 +47,9 @@ var (
 
 	// Max increase per block is a factor of 1.06, max decrease is 9/10
 	// If recovering at ~30M gas per block, decrease is .94
-	MaxBlockChangeRate = sdk.NewDec(1).Quo(sdk.NewDec(10))
-	TargetGas          = int64(75_000_000)
+	MaxBlockChangeRate      = sdk.NewDec(1).Quo(sdk.NewDec(10))
+	TargetGas               = int64(187_500_000)
+	TargetBlockSpacePercent = sdk.MustNewDecFromStr("0.625")
 	// In face of continuous spam, will take ~19 blocks from base fee > spam cost, to mempool eviction
 	// ceil(log_{1.06}(RecheckFeeConstant))
 	// So potentially 1.8 minutes of impaired UX from 1559 nodes on top of time to get to base fee > spam.
diff --git a/x/txfees/module.go b/x/txfees/module.go
index 6b7c2ee63c3..88dd648c393 100644
--- a/x/txfees/module.go
+++ b/x/txfees/module.go
@@ -191,7 +191,7 @@ func (am AppModule) CheckAndSetTargetGas(ctx sdk.Context) {
 			return
 		}
 
-		newBlockMaxGas := newConsensusParams.Block.MaxGas
+		newBlockMaxGas := mempool1559.TargetBlockSpacePercent.Mul(sdk.NewDec(newConsensusParams.Block.MaxGas)).TruncateInt().Int64()
 		mempool1559.TargetGas = newBlockMaxGas
 		return
 	}
diff --git a/x/txfees/module_test.go b/x/txfees/module_test.go
index 250ef732131..f6d9e2645aa 100644
--- a/x/txfees/module_test.go
+++ b/x/txfees/module_test.go
@@ -62,19 +62,19 @@ func TestBeginBlock(t *testing.T) {
 	)
 
 	// Begin block hasn't happened yet, target gas should be equal to hard coded default value
-	hardCodedGasTarget := int64(75_000_000)
+	hardCodedGasTarget := int64(187_500_000)
 	require.Equal(t, hardCodedGasTarget, mempool1559.TargetGas)
 
 	// Run begin block
 	ctx = RunBeginBlock(ctx, app)
 
 	// Target gas should be updated to the value set in InitChain
-	defaultBlockMaxGas := sims.DefaultConsensusParams.Block.MaxGas
-	require.Equal(t, defaultBlockMaxGas, mempool1559.TargetGas)
+	defaultBlockTargetGas := mempool1559.TargetBlockSpacePercent.Mul(sdk.NewDec(sims.DefaultConsensusParams.Block.MaxGas)).TruncateInt().Int64()
+	require.Equal(t, defaultBlockTargetGas, mempool1559.TargetGas)
 
 	// Run begin block again, should not update target gas
 	ctx = RunBeginBlock(ctx, app)
-	require.Equal(t, defaultBlockMaxGas, mempool1559.TargetGas)
+	require.Equal(t, defaultBlockTargetGas, mempool1559.TargetGas)
 
 	// Update the consensus params
 	newDefaultBlockMaxGas := int64(300_000_000)
@@ -83,7 +83,7 @@ func TestBeginBlock(t *testing.T) {
 	app.ConsensusParamsKeeper.Set(ctx, &newConsensusParams)
 
 	// Ensure that the consensus params have not been updated yet
-	require.Equal(t, defaultBlockMaxGas, mempool1559.TargetGas)
+	require.Equal(t, defaultBlockTargetGas, mempool1559.TargetGas)
 
 	// Run begin block again, should update target gas
 	RunBeginBlock(ctx, app)