diff --git a/app/default_overrides_test.go b/app/default_overrides_test.go
index 8cb59571ce..7728dc8375 100644
--- a/app/default_overrides_test.go
+++ b/app/default_overrides_test.go
@@ -62,7 +62,7 @@ func TestDefaultAppConfig(t *testing.T) {
 
 	assert.Equal(t, uint64(1500), cfg.StateSync.SnapshotInterval)
 	assert.Equal(t, uint32(2), cfg.StateSync.SnapshotKeepRecent)
-	assert.Equal(t, "0.01utia", cfg.MinGasPrices)
+	assert.Equal(t, "0.002utia", cfg.MinGasPrices)
 }
 
 func TestDefaultConsensusConfig(t *testing.T) {
diff --git a/pkg/appconsts/initial_consts.go b/pkg/appconsts/initial_consts.go
index 928477414c..c74cc2ebaf 100644
--- a/pkg/appconsts/initial_consts.go
+++ b/pkg/appconsts/initial_consts.go
@@ -20,7 +20,7 @@ const (
 	// DefaultMinGasPrice is the default min gas price that gets set in the app.toml file.
 	// The min gas price acts as a filter. Transactions below that limit will not pass
 	// a nodes `CheckTx` and thus not be proposed by that node.
-	DefaultMinGasPrice = 0.01
+	DefaultMinGasPrice = 0.002
 
 	// DefaultUnbondingTime is the default time a validator must wait
 	// to unbond in a proof of stake system. Any validator within this