diff --git a/app/upgrades.go b/app/upgrades.go
index 42100b1d69..c3b745b723 100644
--- a/app/upgrades.go
+++ b/app/upgrades.go
@@ -66,7 +66,7 @@ func (app *UmeeApp) registerUpgrade6_5(upgradeInfo upgradetypes.Plan) {
 
 			// update leverage and metoken params to include burn auction fee share.
 			lparams := app.LeverageKeeper.GetParams(ctx)
-			lparams.RewardsAuctionFee = leveragetypes.DefaultParams().RewardsAuctionFee
+			lparams.RewardsAuctionFee = sdk.MustNewDecFromStr("0.01")
 			if err := app.LeverageKeeper.SetParams(ctx, lparams); err != nil {
 				return nil, err
 			}
diff --git a/x/leverage/types/params.go b/x/leverage/types/params.go
index d02f2e4947..4425e355d5 100644
--- a/x/leverage/types/params.go
+++ b/x/leverage/types/params.go
@@ -12,7 +12,7 @@ func DefaultParams() Params {
 		CompleteLiquidationThreshold: sdk.MustNewDecFromStr("0.4"),
 		MinimumCloseFactor:           sdk.MustNewDecFromStr("0.05"),
 		OracleRewardFactor:           sdk.MustNewDecFromStr("0.01"),
-		RewardsAuctionFee:            sdk.MustNewDecFromStr("0.20"),
+		RewardsAuctionFee:            sdk.MustNewDecFromStr("0.02"),
 		SmallLiquidationSize:         sdk.MustNewDecFromStr("500.00"),
 		DirectLiquidationFee:         sdk.MustNewDecFromStr("0.05"),
 	}
diff --git a/x/metoken/params.go b/x/metoken/params.go
index 65731846ae..7c08920cdd 100644
--- a/x/metoken/params.go
+++ b/x/metoken/params.go
@@ -5,6 +5,6 @@ func DefaultParams() Params {
 	return Params{
 		RebalancingFrequency:    60 * 60 * 12,     // 12h
 		ClaimingFrequency:       60 * 60 * 24 * 7, // 7d
-		RewardsAuctionFeeFactor: 2000,             // 20% of fees goes to rewards auction
+		RewardsAuctionFeeFactor: 10000,            // 100% of fees goes to rewards auction
 	}
 }