diff --git a/runtime/moonbase/src/lib.rs b/runtime/moonbase/src/lib.rs
index 2f4b0d49db8..bcc606c1063 100644
--- a/runtime/moonbase/src/lib.rs
+++ b/runtime/moonbase/src/lib.rs
@@ -47,8 +47,8 @@ use frame_support::{
 	},
 	weights::{
 		constants::{RocksDbWeight, WEIGHT_PER_SECOND},
-		ConstantMultiplier, DispatchClass, GetDispatchInfo, IdentityFee, Weight,
-		WeightToFeeCoefficient, WeightToFeeCoefficients, WeightToFeePolynomial,
+		DispatchClass, GetDispatchInfo, Weight, WeightToFeeCoefficient, WeightToFeeCoefficients,
+		WeightToFeePolynomial,
 	},
 	PalletId,
 };
@@ -129,7 +129,7 @@ pub mod currency {
 	pub const UNIT: Balance = 1_000_000_000_000_000_000;
 	pub const KILOUNIT: Balance = 1_000_000_000_000_000_000_000;
 
-	pub const TRANSACTION_BYTE_FEE: Balance = 10 * MICROUNIT * SUPPLY_FACTOR;
+	pub const TRANSACTION_BYTE_FEE: Balance = 1 * GIGAWEI * SUPPLY_FACTOR;
 	pub const STORAGE_BYTE_FEE: Balance = 100 * MICROUNIT * SUPPLY_FACTOR;
 	pub const WEIGHT_FEE: Balance = 50 * KILOWEI * SUPPLY_FACTOR;
 
@@ -322,15 +322,33 @@ impl WeightToFeePolynomial for WeightToFee {
 	}
 }
 
-parameter_types! {
-	pub const TransactionByteFee: Balance = currency::TRANSACTION_BYTE_FEE;
+pub struct LengthToFee;
+impl WeightToFeePolynomial for LengthToFee {
+	type Balance = Balance;
+
+	fn polynomial() -> WeightToFeeCoefficients<Self::Balance> {
+		smallvec![
+			WeightToFeeCoefficient {
+				degree: 1,
+				coeff_frac: Perbill::zero(),
+				coeff_integer: currency::TRANSACTION_BYTE_FEE,
+				negative: false,
+			},
+			WeightToFeeCoefficient {
+				degree: 3,
+				coeff_frac: Perbill::zero(),
+				coeff_integer: 1,
+				negative: false,
+			},
+		]
+	}
 }
 
 impl pallet_transaction_payment::Config for Runtime {
 	type OnChargeTransaction = CurrencyAdapter<Balances, DealWithFees<Runtime>>;
 	type OperationalFeeMultiplier = ConstU8<5>;
-	type WeightToFee = IdentityFee<Balance>;
-	type LengthToFee = ConstantMultiplier<Balance, TransactionByteFee>;
+	type WeightToFee = WeightToFee;
+	type LengthToFee = LengthToFee;
 	type FeeMultiplierUpdate = SlowAdjustingFeeUpdate<Runtime>;
 }
 
@@ -1373,7 +1391,7 @@ mod tests {
 		assert_eq!(SUPPLY_FACTOR, 1);
 
 		// txn fees
-		assert_eq!(TRANSACTION_BYTE_FEE, Balance::from(10 * MICROUNIT));
+		assert_eq!(TRANSACTION_BYTE_FEE, Balance::from(1 * GIGAWEI));
 		assert_eq!(
 			get!(pallet_transaction_payment, OperationalFeeMultiplier, u8),
 			5_u8
diff --git a/runtime/moonbase/tests/integration_test.rs b/runtime/moonbase/tests/integration_test.rs
index f29b048accf..27e23780417 100644
--- a/runtime/moonbase/tests/integration_test.rs
+++ b/runtime/moonbase/tests/integration_test.rs
@@ -33,7 +33,7 @@ use frame_support::{
 	StorageHasher, Twox128,
 };
 use moonbase_runtime::{
-	asset_config::AssetRegistrarMetadata, asset_config::LocalAssetInstance, currency::UNIT, get,
+	asset_config::AssetRegistrarMetadata, asset_config::LocalAssetInstance, get,
 	xcm_config::AssetType, AccountId, AssetId, AssetManager, Assets, Balances, BaseFee,
 	BlockWeights, Call, CrowdloanRewards, Event, LocalAssets, ParachainStaking, PolkadotXcm,
 	Precompiles, Runtime, System, XTokens, XcmTransactor, FOREIGN_ASSET_PRECOMPILE_ADDRESS_PREFIX,
@@ -2299,6 +2299,58 @@ where
 	});
 }
 
+#[test]
+#[rustfmt::skip]
+fn length_fee_is_sensible() {
+	use sp_runtime::testing::TestXt;
+
+	ExtBuilder::default()
+		.with_balances(vec![
+			(AccountId::from(ALICE), (1 * UNIT) + (1 * WEI)),
+			(AccountId::from(BOB), 0),
+		])
+		.build()
+		.execute_with(|| {
+			// Substrate transfer
+			assert_ok!(Balances::transfer(
+				origin_of(AccountId::from(ALICE)),
+				AccountId::from(BOB),
+				1 * UNIT,
+			));
+			// 1 WEI is left in the account
+			assert_eq!(Balances::free_balance(AccountId::from(ALICE)), 1 * WEI);
+		});
+
+	// tests that length fee is sensible for a few hypothetical transactions
+	ExtBuilder::default().build().execute_with(|| {
+		let call = frame_system::Call::remark::<Runtime> { remark: vec![] };
+		let uxt: TestXt<_, ()> = TestXt::new(call, Some((1u64, ())));
+
+		let calc_fee = |len: u32| -> Balance {
+			moonbase_runtime::TransactionPayment::query_fee_details(uxt.clone(), len)
+				.inclusion_fee
+				.expect("fee should be calculated")
+				.len_fee
+		};
+
+		// editorconfig-checker-disable
+		//                  left: cost of length fee, right: size in bytes
+		//                             /------------- proportional component: O(N * 1B)
+		//                             |           /- exponential component: O(N ** 3)
+		//                             |           |
+		assert_eq!(                    1_000_000_001, calc_fee(1));
+		assert_eq!(                   10_000_001_000, calc_fee(10));
+		assert_eq!(                  100_001_000_000, calc_fee(100));
+		assert_eq!(                1_001_000_000_000, calc_fee(1_000));
+		assert_eq!(               11_000_000_000_000, calc_fee(10_000)); // inflection point
+		assert_eq!(            1_100_000_000_000_000, calc_fee(100_000));
+		assert_eq!(        1_001_000_000_000_000_000, calc_fee(1_000_000)); // one UNIT, ~ 1MB
+		assert_eq!(    1_000_010_000_000_000_000_000, calc_fee(10_000_000));
+		assert_eq!(1_000_000_100_000_000_000_000_000, calc_fee(100_000_000));
+		// editorconfig-checker-enable
+	});
+}
+
 #[test]
 fn multiplier_can_grow_from_zero() {
 	let minimum_multiplier = moonbase_runtime::MinimumMultiplier::get();
diff --git a/tests/tests/test-author-mapping.ts b/tests/tests/test-author-mapping.ts
index b9bc9b01008..fb2d0f74696 100644
--- a/tests/tests/test-author-mapping.ts
+++ b/tests/tests/test-author-mapping.ts
@@ -68,7 +68,7 @@ describeDevMoonbeam("Author Mapping - simple association", (context) => {
     expect((await getMappingInfo(context, bobAuthorId)).account).to.eq(ALITH);
     expect(
       ((await context.polkadotApi.query.system.account(ALITH)) as any).data.free.toBigInt()
-    ).to.eq(1207725818354628664997176n);
+    ).to.eq(1207725819589017722705800n);
     expect(
       ((await context.polkadotApi.query.system.account(ALITH)) as any).data.reserved.toBigInt()
     ).to.eq(2n * DEFAULT_GENESIS_MAPPING + DEFAULT_GENESIS_STAKING);
@@ -95,7 +95,7 @@ describeDevMoonbeam("Author Mapping - Fail to reassociate alice", (context) => {
     //check state
     expect(
       ((await context.polkadotApi.query.system.account(BALTATHAR)) as any).data.free.toBigInt()
-    ).to.eq(1208925818354628664997176n);
+    ).to.eq(1208925819589017722705800n);
     expect(
       ((await context.polkadotApi.query.system.account(BALTATHAR)) as any).data.reserved.toBigInt()
     ).to.eq(0n);