diff --git a/packages/protocol/contracts/L1/TaikoData.sol b/packages/protocol/contracts/L1/TaikoData.sol
index a95b0edaca..a2aa5db8c4 100644
--- a/packages/protocol/contracts/L1/TaikoData.sol
+++ b/packages/protocol/contracts/L1/TaikoData.sol
@@ -24,7 +24,7 @@ library TaikoData {
         uint256 maxBytesPerTxList;
         uint256 minTxGasLimit;
         uint256 anchorTxGasLimit;
-        uint256 feePremiumLamda;
+        uint256 slotSmoothingFactor;
         uint256 rewardBurnBips;
         uint256 proposerDepositPctg;
         // Moving average factors
diff --git a/packages/protocol/contracts/L1/libs/LibUtils.sol b/packages/protocol/contracts/L1/libs/LibUtils.sol
index bd4e0d6722..0c02da4edc 100644
--- a/packages/protocol/contracts/L1/libs/LibUtils.sol
+++ b/packages/protocol/contracts/L1/libs/LibUtils.sol
@@ -124,12 +124,14 @@ library LibUtils {
         uint256 feeBase
     ) internal view returns (uint256) {
         // m is the `n'` in the whitepaper
-        uint256 m = config.maxNumBlocks - 1 + config.feePremiumLamda;
+        uint256 m = 1000 *
+            (config.maxNumBlocks - 1) +
+            config.slotSmoothingFactor;
         // n is the number of unverified blocks
-        uint256 n = state.nextBlockId - state.latestVerifiedId - 1;
+        uint256 n = 1000 * (state.nextBlockId - state.latestVerifiedId - 1);
         // k is `m − n + 1` or `m − n - 1`in the whitepaper
-        uint256 k = isProposal ? m - n - 1 : m - n + 1;
-        return (feeBase * (m - 1) * m) / (m - n) / k;
+        uint256 k = isProposal ? m - n - 1000 : m - n + 1000;
+        return (feeBase * (m - 1000) * m) / (m - n) / k;
     }
 
     // Implement "Bootstrap Discount Multipliers", see the whitepaper.
diff --git a/packages/protocol/contracts/libs/LibSharedConfig.sol b/packages/protocol/contracts/libs/LibSharedConfig.sol
index fefbc3d8fa..1a38a3dac2 100644
--- a/packages/protocol/contracts/libs/LibSharedConfig.sol
+++ b/packages/protocol/contracts/libs/LibSharedConfig.sol
@@ -27,7 +27,7 @@ library LibSharedConfig {
                 maxBytesPerTxList: 10240, // TODO
                 minTxGasLimit: 21000, // TODO
                 anchorTxGasLimit: 250000,
-                feePremiumLamda: 590,
+                slotSmoothingFactor: 590000,
                 rewardBurnBips: 100, // 100 basis points or 1%
                 proposerDepositPctg: 25, // 25%
                 // Moving average factors
diff --git a/packages/protocol/contracts/test/L1/TestTaikoL1.sol b/packages/protocol/contracts/test/L1/TestTaikoL1.sol
index 86921b823a..c6b28ef0c0 100644
--- a/packages/protocol/contracts/test/L1/TestTaikoL1.sol
+++ b/packages/protocol/contracts/test/L1/TestTaikoL1.sol
@@ -31,7 +31,7 @@ contract TestTaikoL1 is TaikoL1, IProofVerifier {
         config.maxBytesPerTxList = 10240; // TODO
         config.minTxGasLimit = 21000; // TODO
         config.anchorTxGasLimit = 250000;
-        config.feePremiumLamda = 590;
+        config.slotSmoothingFactor = 590000;
         config.rewardBurnBips = 100; // 100 basis points or 1%
         config.proposerDepositPctg = 25; // 25%
 
diff --git a/packages/protocol/contracts/test/L1/TestTaikoL1EnableTokenomics.sol b/packages/protocol/contracts/test/L1/TestTaikoL1EnableTokenomics.sol
index 1aca5730f3..6a593e7b4f 100644
--- a/packages/protocol/contracts/test/L1/TestTaikoL1EnableTokenomics.sol
+++ b/packages/protocol/contracts/test/L1/TestTaikoL1EnableTokenomics.sol
@@ -31,7 +31,7 @@ contract TestTaikoL1EnableTokenomics is TaikoL1, IProofVerifier {
         config.maxBytesPerTxList = 10240; // TODO
         config.minTxGasLimit = 21000; // TODO
         config.anchorTxGasLimit = 250000;
-        config.feePremiumLamda = 590;
+        config.slotSmoothingFactor = 590000;
         config.rewardBurnBips = 100; // 100 basis points or 1%
         config.proposerDepositPctg = 25; // 25%
 
diff --git a/packages/protocol/contracts/test/L1/TestTaikoL2.sol b/packages/protocol/contracts/test/L1/TestTaikoL2.sol
index 2904fbb95a..91642bbe58 100644
--- a/packages/protocol/contracts/test/L1/TestTaikoL2.sol
+++ b/packages/protocol/contracts/test/L1/TestTaikoL2.sol
@@ -32,7 +32,7 @@ contract TestTaikoL2 is TaikoL2 {
         config.maxBytesPerTxList = 10240; // TODO
         config.minTxGasLimit = 21000; // TODO
         config.anchorTxGasLimit = 250000;
-        config.feePremiumLamda = 590;
+        config.slotSmoothingFactor = 590000;
         config.rewardBurnBips = 100; // 100 basis points or 1%
         config.proposerDepositPctg = 25; // 25%
 
diff --git a/packages/protocol/contracts/test/L1/TestTaikoL2EnablePublicInputsCheck.sol b/packages/protocol/contracts/test/L1/TestTaikoL2EnablePublicInputsCheck.sol
index e5f4affec4..dc5ff33b5f 100644
--- a/packages/protocol/contracts/test/L1/TestTaikoL2EnablePublicInputsCheck.sol
+++ b/packages/protocol/contracts/test/L1/TestTaikoL2EnablePublicInputsCheck.sol
@@ -32,7 +32,7 @@ contract TestTaikoL2EnablePublicInputsCheck is TaikoL2 {
         config.maxBytesPerTxList = 10240; // TODO
         config.minTxGasLimit = 21000; // TODO
         config.anchorTxGasLimit = 250000;
-        config.feePremiumLamda = 590;
+        config.slotSmoothingFactor = 590000;
         config.rewardBurnBips = 100; // 100 basis points or 1%
         config.proposerDepositPctg = 25; // 25%