diff --git a/src/proto_alpha/lib_parameters/default_parameters.ml b/src/proto_alpha/lib_parameters/default_parameters.ml
index af4b89778c34f47e4f426ca47b097f974f112866..60b736269b8854d10115900246ed44903b95fa6c 100644
--- a/src/proto_alpha/lib_parameters/default_parameters.ml
+++ b/src/proto_alpha/lib_parameters/default_parameters.ml
@@ -80,6 +80,7 @@ let constants_mainnet =
           baking_reward_fixed_portion;
           baking_reward_bonus_per_slot;
           endorsing_reward_per_slot;
+          liquidity_baking_subsidy;
         } =
     Constants.Generated.generate
       ~consensus_committee_size
@@ -116,7 +117,7 @@ let constants_mainnet =
     quorum_max = 70_00l;
     min_proposal_quorum = 5_00l;
     (* liquidity_baking_subsidy is 1/16th of maximum total rewards for a block *)
-    liquidity_baking_subsidy = Tez.of_mutez_exn 2_500_000L;
+    liquidity_baking_subsidy (* 2_500_000 mutez *);
     (* level after protocol activation when liquidity baking shuts off:
          about 6 months after first activation on mainnet *)
     liquidity_baking_sunset_level = 3_063_809l;
@@ -245,6 +246,7 @@ let constants_sandbox =
           baking_reward_fixed_portion;
           baking_reward_bonus_per_slot;
           endorsing_reward_per_slot;
+          liquidity_baking_subsidy;
         } =
     Constants.Generated.generate
       ~consensus_committee_size
@@ -262,6 +264,7 @@ let constants_sandbox =
     proof_of_work_threshold = Int64.of_int (-1);
     vdf_difficulty = 50_000L;
     liquidity_baking_sunset_level = 128l;
+    liquidity_baking_subsidy;
     minimal_block_delay = Period.of_seconds_exn (Int64.of_int block_time);
     delay_increment_per_round = Period.one_second;
     consensus_committee_size = 256;
@@ -281,6 +284,7 @@ let constants_test =
           baking_reward_fixed_portion;
           baking_reward_bonus_per_slot;
           endorsing_reward_per_slot;
+          liquidity_baking_subsidy;
         } =
     Constants.Generated.generate
       ~consensus_committee_size
@@ -297,6 +301,7 @@ let constants_test =
     proof_of_work_threshold = Int64.of_int (-1);
     vdf_difficulty = 50_000L;
     liquidity_baking_sunset_level = 4096l;
+    liquidity_baking_subsidy;
     consensus_committee_size;
     consensus_threshold (* 17 slots *);
     max_slashing_period = 2;
diff --git a/src/proto_alpha/lib_protocol/alpha_context.mli b/src/proto_alpha/lib_protocol/alpha_context.mli
index 35ab2c26cfa0a50685dfaa373b567fc98f47a48f..8b36d8ae76742b7f2a4ada7e7069428fae9c3fce 100644
--- a/src/proto_alpha/lib_protocol/alpha_context.mli
+++ b/src/proto_alpha/lib_protocol/alpha_context.mli
@@ -865,6 +865,7 @@ module Constants : sig
       baking_reward_fixed_portion : Tez.t;
       baking_reward_bonus_per_slot : Tez.t;
       endorsing_reward_per_slot : Tez.t;
+      liquidity_baking_subsidy : Tez.t;
     }
 
     val generate :
diff --git a/src/proto_alpha/lib_protocol/constants_repr.ml b/src/proto_alpha/lib_protocol/constants_repr.ml
index 21358c918394e1f515cc6e59f16d04cc9794703e..1a4a5e33bb784b8d51cc77c5ec9c91b5c2e14ece 100644
--- a/src/proto_alpha/lib_protocol/constants_repr.ml
+++ b/src/proto_alpha/lib_protocol/constants_repr.ml
@@ -329,6 +329,7 @@ module Generated = struct
     baking_reward_fixed_portion : Tez_repr.t;
     baking_reward_bonus_per_slot : Tez_repr.t;
     endorsing_reward_per_slot : Tez_repr.t;
+    liquidity_baking_subsidy : Tez_repr.t;
   }
 
   let generate ~consensus_committee_size ~blocks_per_minute =
@@ -358,6 +359,7 @@ module Generated = struct
         else Tez_repr.div_exn rewards_quarter bonus_committee_size);
       endorsing_reward_per_slot =
         Tez_repr.div_exn rewards_half consensus_committee_size;
+      liquidity_baking_subsidy = Tez_repr.div_exn rewards_per_block 16;
     }
 end
 
diff --git a/src/proto_alpha/lib_protocol/constants_repr.mli b/src/proto_alpha/lib_protocol/constants_repr.mli
index 9572f32d9acaae005fda36dfcf9640ced314955c..4cbd13dd9bfb0060ba65ea019f17675825ebc886 100644
--- a/src/proto_alpha/lib_protocol/constants_repr.mli
+++ b/src/proto_alpha/lib_protocol/constants_repr.mli
@@ -103,6 +103,7 @@ module Generated : sig
     baking_reward_fixed_portion : Tez_repr.t;
     baking_reward_bonus_per_slot : Tez_repr.t;
     endorsing_reward_per_slot : Tez_repr.t;
+    liquidity_baking_subsidy : Tez_repr.t;
   }
 
   (* This function is meant to be used just in lib_parameters and in the
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_add_liquidity.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_add_liquidity.out
index 781ca61eb5e026bccd189d9827b309c428693d22..93ac7296cb51d6ae2bbce260dc1d0aca732669a3 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_add_liquidity.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_add_liquidity.out
@@ -1,8 +1,8 @@
 tests_alpha/test_liquidity_baking.py::TestAddApproveTransferRemove::test_add_liquidity
 
 Node is bootstrapped.
-Estimated gas: 8553.386 units (will add 100 for safety)
-Estimated storage: 141 bytes added (will add 20 for safety)
+Estimated gas: 8553.406 units (will add 100 for safety)
+Estimated storage: 147 bytes added (will add 20 for safety)
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
 NOT waiting for the operation to be included.
@@ -15,7 +15,7 @@ This sequence of operations was run:
     Fee to the baker: ꜩ0.001221
     Expected counter: [EXPECTED_COUNTER]
     Gas limit: 8654
-    Storage limit: 161 bytes
+    Storage limit: 167 bytes
     Balance updates:
       [CONTRACT_HASH] ... -ꜩ0.001221
       payload fees(the block proposer) ....... +ꜩ0.001221
@@ -27,17 +27,17 @@ This sequence of operations was run:
       Parameter: (Pair "[CONTRACT_HASH]" 0 1000000000 "[TIMESTAMP]")
       This transaction was successfully applied
       Updated storage:
-        { 722 ;
-          9013500100 ;
-          72107 ;
+        { 21599 ;
+          9001416765 ;
+          2159830 ;
           0x01e927f00ef734dfc85919635e9afc9166c83ef9fc00 ;
           0x0115eb0104481a6d7921160bc982c5e0a561cd8a3a00 }
-      Storage size: 4633 bytes
-      Paid storage size diff: 3 bytes
-      Consumed gas: 2274.737
+      Storage size: 4635 bytes
+      Paid storage size diff: 6 bytes
+      Consumed gas: 2274.745
       Balance updates:
-        [CONTRACT_HASH] ... -ꜩ0.00075
-        storage fees ........................... +ꜩ0.00075
+        [CONTRACT_HASH] ... -ꜩ0.0015
+        storage fees ........................... +ꜩ0.0015
         [CONTRACT_HASH] ... -ꜩ9001
         [CONTRACT_HASH] ... +ꜩ9001
       Internal operations:
@@ -47,37 +47,37 @@ This sequence of operations was run:
           To: [CONTRACT_HASH]
           Entrypoint: transfer
           Parameter: (Pair 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78
-                           (Pair 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 721))
+                           (Pair 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 21598))
           This transaction was successfully applied
           Updated storage:
             { 0 ; 1 ; 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78 ; 100010000 }
           Updated big_maps:
             Set map(1)[(Pair 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78
-                  0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600)] to 999999279
-            Set map(0)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 99999279
-            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 721
-          Storage size: 2263 bytes
-          Paid storage size diff: 68 bytes
-          Consumed gas: 3065.552
+                  0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600)] to 999978402
+            Set map(0)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 99978402
+            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 21598
+          Storage size: 2264 bytes
+          Paid storage size diff: 69 bytes
+          Consumed gas: 3065.556
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ0.017
-            storage fees ........................... +ꜩ0.017
+            [CONTRACT_HASH] ... -ꜩ0.01725
+            storage fees ........................... +ꜩ0.01725
         Internal Transaction:
           Amount: ꜩ0
           From: [CONTRACT_HASH]
           To: [CONTRACT_HASH]
           Entrypoint: mintOrBurn
-          Parameter: (Pair 72007 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78)
+          Parameter: (Pair 2159730 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78)
           This transaction was successfully applied
           Updated storage:
-            { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 72107 }
+            { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 2159830 }
           Updated big_maps:
-            Set map(2)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 72007
-          Storage size: 2048 bytes
-          Paid storage size diff: 70 bytes
-          Consumed gas: 3213.097
+            Set map(2)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 2159730
+          Storage size: 2050 bytes
+          Paid storage size diff: 72 bytes
+          Consumed gas: 3213.105
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ0.0175
-            storage fees ........................... +ꜩ0.0175
+            [CONTRACT_HASH] ... -ꜩ0.018
+            storage fees ........................... +ꜩ0.018
 
 Injected block at minimal timestamp
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approval.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approval.out
index f7a5aa87445f75c17beec87d8577416635672d35..d222920d6be37cec8ba0bc649922ddbbddd3cd2d 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approval.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approval.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestAddApproveTransferRemove::test_approval
 
 Node is bootstrapped.
-Estimated gas: 1679.709 units (will add 100 for safety)
+Estimated gas: 1679.713 units (will add 100 for safety)
 Estimated storage: 68 bytes added (will add 20 for safety)
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
@@ -27,13 +27,13 @@ This sequence of operations was run:
       Parameter: (Pair "[CONTRACT_HASH]" 1000)
       This transaction was successfully applied
       Updated storage:
-        { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 72107 }
+        { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 2159830 }
       Updated big_maps:
         Set map(3)[(Pair 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78
               0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c)] to 1000
-      Storage size: 2116 bytes
+      Storage size: 2118 bytes
       Paid storage size diff: 68 bytes
-      Consumed gas: 1679.709
+      Consumed gas: 1679.713
       Balance updates:
         [CONTRACT_HASH] ... -ꜩ0.017
         storage fees ........................... +ꜩ0.017
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approved_transfer.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approved_transfer.out
index 9489d1e04057515ef4382cdaddefbc849bda380f..8cebc54e182ca970f0d97fcd5ca338d46404b4bf 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approved_transfer.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_approved_transfer.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestAddApproveTransferRemove::test_approved_transfer
 
 Node is bootstrapped.
-Estimated gas: 3044.096 units (will add 100 for safety)
+Estimated gas: 3044.106 units (will add 100 for safety)
 Estimated storage: no bytes added
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
@@ -29,13 +29,13 @@ This sequence of operations was run:
                        1000)
       This transaction was successfully applied
       Updated storage:
-        { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 72107 }
+        { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 2159830 }
       Updated big_maps:
         Unset map(3)[(Pair 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78
               0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c)]
-        Set map(2)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 71007
+        Set map(2)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 2158730
         Set map(2)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c] to 1000
-      Storage size: 2116 bytes
-      Consumed gas: 3044.096
+      Storage size: 2118 bytes
+      Consumed gas: 3044.106
 
 Injected block at minimal timestamp
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_dex_storage.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_dex_storage.out
index 8fda28039e900c1da94ad9099339362fa990f24d..49f671508ebbcc94a8eb5583a038cff640bbf341 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_dex_storage.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_dex_storage.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestAddApproveTransferRemove::test_dex_storage
 
-Pair 712
-     8895894353
-     71107
+Pair 21589
+     8997498998
+     2158830
      "[CONTRACT_HASH]"
      "[CONTRACT_HASH]"
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_lqt_storage.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_lqt_storage.out
index bc625ee5600e41140aec12b984238ab77e4d394e..f8b481d6c3de642fb45d2a7157c19e0ef2d60451 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_lqt_storage.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_lqt_storage.out
@@ -1,3 +1,3 @@
 tests_alpha/test_liquidity_baking.py::TestAddApproveTransferRemove::test_lqt_storage
 
-Pair 2 3 "[CONTRACT_HASH]" 71107
+Pair 2 3 "[CONTRACT_HASH]" 2158830
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_remove_liquidity.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_remove_liquidity.out
index 763556d3762bd5042fbe5706b5fb850610681d25..996b529f8106b9c88978921b48f7d0890d80bf68 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_remove_liquidity.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestAddApproveTransferRemove::test_remove_liquidity.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestAddApproveTransferRemove::test_remove_liquidity
 
 Node is bootstrapped.
-Estimated gas: 7517.418 units (will add 100 for safety)
+Estimated gas: 7517.436 units (will add 100 for safety)
 Estimated storage: 67 bytes added (will add 20 for safety)
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
@@ -27,13 +27,13 @@ This sequence of operations was run:
       Parameter: (Pair "[CONTRACT_HASH]" 1000 0 0 "[TIMESTAMP]")
       This transaction was successfully applied
       Updated storage:
-        { 712 ;
-          8895894353 ;
-          71107 ;
+        { 21589 ;
+          8997498998 ;
+          2158830 ;
           0x01e927f00ef734dfc85919635e9afc9166c83ef9fc00 ;
           0x0115eb0104481a6d7921160bc982c5e0a561cd8a3a00 }
-      Storage size: 4633 bytes
-      Consumed gas: 2276.351
+      Storage size: 4635 bytes
+      Consumed gas: 2276.359
       Internal operations:
         Internal Transaction:
           Amount: ꜩ0
@@ -43,11 +43,11 @@ This sequence of operations was run:
           Parameter: (Pair -1000 0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c)
           This transaction was successfully applied
           Updated storage:
-            { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 71107 }
+            { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 2158830 }
           Updated big_maps:
             Unset map(2)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c]
-          Storage size: 2048 bytes
-          Consumed gas: 1873.230
+          Storage size: 2050 bytes
+          Consumed gas: 1873.234
         Internal Transaction:
           Amount: ꜩ0
           From: [CONTRACT_HASH]
@@ -59,22 +59,22 @@ This sequence of operations was run:
           Updated storage:
             { 0 ; 1 ; 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78 ; 100010000 }
           Updated big_maps:
-            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 711
+            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 21588
             Set map(0)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c] to 10
-          Storage size: 2330 bytes
+          Storage size: 2331 bytes
           Paid storage size diff: 67 bytes
-          Consumed gas: 2367.837
+          Consumed gas: 2367.843
           Balance updates:
             [CONTRACT_HASH] ... -ꜩ0.01675
             storage fees ........................... +ꜩ0.01675
         Internal Transaction:
-          Amount: ꜩ125.105747
+          Amount: ꜩ4.167766
           From: [CONTRACT_HASH]
           To: [CONTRACT_HASH]
           This transaction was successfully applied
           Consumed gas: 1000
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ125.105747
-            [CONTRACT_HASH] ... +ꜩ125.105747
+            [CONTRACT_HASH] ... -ꜩ4.167766
+            [CONTRACT_HASH] ... +ꜩ4.167766
 
 Injected block at minimal timestamp
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_add_liquidity.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_add_liquidity.out
index f2f97a201b2e4ab4a8e6881116aab6c7ac517758..b9ad3995dbf2131ac4ea881df98b397b226a9b94 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_add_liquidity.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_add_liquidity.out
@@ -1,8 +1,8 @@
 tests_alpha/test_liquidity_baking.py::TestTrades::test_add_liquidity
 
 Node is bootstrapped.
-Estimated gas: 8553.386 units (will add 100 for safety)
-Estimated storage: 141 bytes added (will add 20 for safety)
+Estimated gas: 8553.406 units (will add 100 for safety)
+Estimated storage: 147 bytes added (will add 20 for safety)
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
 NOT waiting for the operation to be included.
@@ -15,7 +15,7 @@ This sequence of operations was run:
     Fee to the baker: ꜩ0.001221
     Expected counter: [EXPECTED_COUNTER]
     Gas limit: 8654
-    Storage limit: 161 bytes
+    Storage limit: 167 bytes
     Balance updates:
       [CONTRACT_HASH] ... -ꜩ0.001221
       payload fees(the block proposer) ....... +ꜩ0.001221
@@ -27,17 +27,17 @@ This sequence of operations was run:
       Parameter: (Pair "[CONTRACT_HASH]" 0 1000000000 "[TIMESTAMP]")
       This transaction was successfully applied
       Updated storage:
-        { 722 ;
-          9013500100 ;
-          72107 ;
+        { 21599 ;
+          9001416765 ;
+          2159830 ;
           0x01e927f00ef734dfc85919635e9afc9166c83ef9fc00 ;
           0x0115eb0104481a6d7921160bc982c5e0a561cd8a3a00 }
-      Storage size: 4633 bytes
-      Paid storage size diff: 3 bytes
-      Consumed gas: 2274.737
+      Storage size: 4635 bytes
+      Paid storage size diff: 6 bytes
+      Consumed gas: 2274.745
       Balance updates:
-        [CONTRACT_HASH] ... -ꜩ0.00075
-        storage fees ........................... +ꜩ0.00075
+        [CONTRACT_HASH] ... -ꜩ0.0015
+        storage fees ........................... +ꜩ0.0015
         [CONTRACT_HASH] ... -ꜩ9001
         [CONTRACT_HASH] ... +ꜩ9001
       Internal operations:
@@ -47,37 +47,37 @@ This sequence of operations was run:
           To: [CONTRACT_HASH]
           Entrypoint: transfer
           Parameter: (Pair 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78
-                           (Pair 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 721))
+                           (Pair 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 21598))
           This transaction was successfully applied
           Updated storage:
             { 0 ; 1 ; 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78 ; 100010000 }
           Updated big_maps:
             Set map(1)[(Pair 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78
-                  0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600)] to 999999279
-            Set map(0)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 99999279
-            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 721
-          Storage size: 2263 bytes
-          Paid storage size diff: 68 bytes
-          Consumed gas: 3065.552
+                  0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600)] to 999978402
+            Set map(0)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 99978402
+            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 21598
+          Storage size: 2264 bytes
+          Paid storage size diff: 69 bytes
+          Consumed gas: 3065.556
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ0.017
-            storage fees ........................... +ꜩ0.017
+            [CONTRACT_HASH] ... -ꜩ0.01725
+            storage fees ........................... +ꜩ0.01725
         Internal Transaction:
           Amount: ꜩ0
           From: [CONTRACT_HASH]
           To: [CONTRACT_HASH]
           Entrypoint: mintOrBurn
-          Parameter: (Pair 72007 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78)
+          Parameter: (Pair 2159730 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78)
           This transaction was successfully applied
           Updated storage:
-            { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 72107 }
+            { 2 ; 3 ; 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600 ; 2159830 }
           Updated big_maps:
-            Set map(2)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 72007
-          Storage size: 2048 bytes
-          Paid storage size diff: 70 bytes
-          Consumed gas: 3213.097
+            Set map(2)[0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78] to 2159730
+          Storage size: 2050 bytes
+          Paid storage size diff: 72 bytes
+          Consumed gas: 3213.105
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ0.0175
-            storage fees ........................... +ꜩ0.0175
+            [CONTRACT_HASH] ... -ꜩ0.018
+            storage fees ........................... +ꜩ0.018
 
 Injected block at minimal timestamp
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_buy_tok.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_buy_tok.out
index 3a325d5c51f2f8b7ee100454eecf23d1c49cbc22..24fc80467cab796571e2bcc4517c729b02613754 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_buy_tok.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_buy_tok.out
@@ -1,8 +1,8 @@
 tests_alpha/test_liquidity_baking.py::TestTrades::test_buy_tok
 
 Node is bootstrapped.
-Estimated gas: 5113.046 units (will add 100 for safety)
-Estimated storage: 326 bytes added (will add 20 for safety)
+Estimated gas: 5113.064 units (will add 100 for safety)
+Estimated storage: 327 bytes added (will add 20 for safety)
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
 NOT waiting for the operation to be included.
@@ -15,7 +15,7 @@ This sequence of operations was run:
     Fee to the baker: ꜩ0.000869
     Expected counter: [EXPECTED_COUNTER]
     Gas limit: 5214
-    Storage limit: 346 bytes
+    Storage limit: 347 bytes
     Balance updates:
       [CONTRACT_HASH] ... -ꜩ0.000869
       payload fees(the block proposer) ....... +ꜩ0.000869
@@ -27,14 +27,14 @@ This sequence of operations was run:
       Parameter: (Pair "[CONTRACT_HASH]" 0 "[TIMESTAMP]")
       This transaction was successfully applied
       Updated storage:
-        { 362 ;
-          18007999100 ;
-          72107 ;
+        { 10811 ;
+          17993499098 ;
+          2159830 ;
           0x01e927f00ef734dfc85919635e9afc9166c83ef9fc00 ;
           0x0115eb0104481a6d7921160bc982c5e0a561cd8a3a00 }
-      Storage size: 4634 bytes
+      Storage size: 4636 bytes
       Paid storage size diff: 1 bytes
-      Consumed gas: 1745.205
+      Consumed gas: 1745.213
       Balance updates:
         [CONTRACT_HASH] ... -ꜩ0.00025
         storage fees ........................... +ꜩ0.00025
@@ -47,19 +47,19 @@ This sequence of operations was run:
           To: [CONTRACT_HASH]
           Entrypoint: transfer
           Parameter: (Pair 0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600
-                           (Pair 0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c 360))
+                           (Pair 0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c 10788))
           This transaction was successfully applied
           Updated storage:
             { 0 ; 1 ; 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78 ; 100010000 }
           Updated big_maps:
-            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 361
-            Set map(0)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c] to 360
-          Storage size: 2331 bytes
-          Paid storage size diff: 68 bytes
-          Consumed gas: 2367.841
+            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 10810
+            Set map(0)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c] to 10788
+          Storage size: 2333 bytes
+          Paid storage size diff: 69 bytes
+          Consumed gas: 2367.851
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ0.017
-            storage fees ........................... +ꜩ0.017
+            [CONTRACT_HASH] ... -ꜩ0.01725
+            storage fees ........................... +ꜩ0.01725
         Internal Transaction:
           Amount: ꜩ9.001
           From: [CONTRACT_HASH]
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_dex_storage.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_dex_storage.out
index 83df705a291cd40934caafaa071cb676131c550e..f36be3f207f6383d97ac3c55678163609d403e01 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_dex_storage.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_dex_storage.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestTrades::test_dex_storage
 
-Pair 462
-     14117137204
-     72107
+Pair 10911
+     17828916091
+     2159830
      "[CONTRACT_HASH]"
      "[CONTRACT_HASH]"
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_lqt_storage.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_lqt_storage.out
index 09066a5425bfd62e487dd9f43015da7e80a34481..6cf0b5c2826ed86f2e9eaeae1ef2d5d214fbac31 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_lqt_storage.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_lqt_storage.out
@@ -1,3 +1,3 @@
 tests_alpha/test_liquidity_baking.py::TestTrades::test_lqt_storage
 
-Pair 2 3 "[CONTRACT_HASH]" 72107
+Pair 2 3 "[CONTRACT_HASH]" 2159830
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_sell_tok.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_sell_tok.out
index 4659d038264f6ba2b06eb44a12cf49e24534f636..70359a03322da74f500e09b7305562ad3cf3328c 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_sell_tok.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_sell_tok.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestTrades::test_sell_tok
 
 Node is bootstrapped.
-Estimated gas: 7011.441 units (will add 100 for safety)
+Estimated gas: 7011.459 units (will add 100 for safety)
 Estimated storage: no bytes added
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
@@ -27,13 +27,13 @@ This sequence of operations was run:
       Parameter: (Pair "[CONTRACT_HASH]" 100 0 "[TIMESTAMP]")
       This transaction was successfully applied
       Updated storage:
-        { 462 ;
-          14117137204 ;
-          72107 ;
+        { 10911 ;
+          17828916091 ;
+          2159830 ;
           0x01e927f00ef734dfc85919635e9afc9166c83ef9fc00 ;
           0x0115eb0104481a6d7921160bc982c5e0a561cd8a3a00 }
-      Storage size: 4633 bytes
-      Consumed gas: 1745.853
+      Storage size: 4636 bytes
+      Consumed gas: 1745.865
       Internal operations:
         Internal Transaction:
           Amount: ꜩ0
@@ -49,26 +49,26 @@ This sequence of operations was run:
             Set map(1)[(Pair 0x0000dac9f52543da1aed0bc1d6b46bf7c10db7014cd6
                   0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600)] to 999999900
             Unset map(0)[0x0000dac9f52543da1aed0bc1d6b46bf7c10db7014cd6]
-            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 461
-          Storage size: 2331 bytes
-          Consumed gas: 3265.588
+            Set map(0)[0x01d496def47a3be89f5d54c6e6bb13cc6645d6e16600] to 10910
+          Storage size: 2333 bytes
+          Consumed gas: 3265.594
         Internal Transaction:
-          Amount: ꜩ3891.966034
+          Amount: ꜩ164.584923
           From: [CONTRACT_HASH]
           To: [CONTRACT_HASH]
           This transaction was successfully applied
           Consumed gas: 1000
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ3891.966034
-            [CONTRACT_HASH] ... +ꜩ3891.966034
+            [CONTRACT_HASH] ... -ꜩ164.584923
+            [CONTRACT_HASH] ... +ꜩ164.584923
         Internal Transaction:
-          Amount: ꜩ3.895862
+          Amount: ꜩ0.16475
           From: [CONTRACT_HASH]
           To: [CONTRACT_HASH]
           This transaction was successfully applied
           Consumed gas: 1000
           Balance updates:
-            [CONTRACT_HASH] ... -ꜩ3.895862
-            [CONTRACT_HASH] ... +ꜩ3.895862
+            [CONTRACT_HASH] ... -ꜩ0.16475
+            [CONTRACT_HASH] ... +ꜩ0.16475
 
 Injected block at minimal timestamp
diff --git a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_transfer.out b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_transfer.out
index 9f7c7516026eb5d5f1aebb8403f5db7efe1595d2..62d7a1af4e1f6c2895921c733deb12273c55b9ff 100644
--- a/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_transfer.out
+++ b/tests_python/tests_alpha/_regtest_outputs/test_liquidity_baking.TestTrades::test_transfer.out
@@ -1,7 +1,7 @@
 tests_alpha/test_liquidity_baking.py::TestTrades::test_transfer
 
 Node is bootstrapped.
-Estimated gas: 2376.541 units (will add 100 for safety)
+Estimated gas: 2376.547 units (will add 100 for safety)
 Estimated storage: 68 bytes added (will add 20 for safety)
 Operation successfully injected in the node.
 Operation hash is '[BLOCK_HASH]'
@@ -32,10 +32,10 @@ This sequence of operations was run:
         { 0 ; 1 ; 0x000002298c03ed7d454a101eb7022bc95f7e5f41ac78 ; 100010000 }
       Updated big_maps:
         Set map(0)[0x0000dac9f52543da1aed0bc1d6b46bf7c10db7014cd6] to 100
-        Set map(0)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c] to 260
-      Storage size: 2399 bytes
+        Set map(0)[0x0000e7670f32038107a59a2b9cfefae36ea21f5aa63c] to 10688
+      Storage size: 2401 bytes
       Paid storage size diff: 68 bytes
-      Consumed gas: 2376.541
+      Consumed gas: 2376.547
       Balance updates:
         [CONTRACT_HASH] ... -ꜩ0.017
         storage fees ........................... +ꜩ0.017
diff --git a/tezt/tests/expected/RPC_test.ml/Alpha- (mode client) RPC regression tests- misc_protocol.out b/tezt/tests/expected/RPC_test.ml/Alpha- (mode client) RPC regression tests- misc_protocol.out
index b5678a51111b6ae25b5eb0aeda8396971c5c3e78..be3cdd737a287c3568da778b221ebb5de2c51950 100644
--- a/tezt/tests/expected/RPC_test.ml/Alpha- (mode client) RPC regression tests- misc_protocol.out	
+++ b/tezt/tests/expected/RPC_test.ml/Alpha- (mode client) RPC regression tests- misc_protocol.out	
@@ -19,8 +19,7 @@
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,
diff --git a/tezt/tests/expected/RPC_test.ml/Alpha- (mode light) RPC regression tests- misc_protocol.out b/tezt/tests/expected/RPC_test.ml/Alpha- (mode light) RPC regression tests- misc_protocol.out
index bdc8e1ec5f6f246dede1f4cabc56964ebff9ca67..7721a40b8d0320654fcd561049d7921693b98f16 100644
--- a/tezt/tests/expected/RPC_test.ml/Alpha- (mode light) RPC regression tests- misc_protocol.out	
+++ b/tezt/tests/expected/RPC_test.ml/Alpha- (mode light) RPC regression tests- misc_protocol.out	
@@ -19,8 +19,7 @@
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,
diff --git a/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy) RPC regression tests- misc_protocol.out b/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy) RPC regression tests- misc_protocol.out
index 34da8ea04e0b26949e489c90163bf69d92fa2514..f983510561bdd9a4be9f44cddedfdf25f29e31cd 100644
--- a/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy) RPC regression tests- misc_protocol.out	
+++ b/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy) RPC regression tests- misc_protocol.out	
@@ -19,8 +19,7 @@
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,
diff --git a/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_data_dir) RPC regression tests- misc_protocol.out b/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_data_dir) RPC regression tests- misc_protocol.out
index 7bda4428314352016127a0556febe6348ee96c08..ff2d2c09aff49ebc8efc7787e7d931e93a282126 100644
--- a/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_data_dir) RPC regression tests- misc_protocol.out	
+++ b/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_data_dir) RPC regression tests- misc_protocol.out	
@@ -19,8 +19,7 @@
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,
diff --git a/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_rpc) RPC regression tests- misc_protocol.out b/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_rpc) RPC regression tests- misc_protocol.out
index 7bda4428314352016127a0556febe6348ee96c08..ff2d2c09aff49ebc8efc7787e7d931e93a282126 100644
--- a/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_rpc) RPC regression tests- misc_protocol.out	
+++ b/tezt/tests/expected/RPC_test.ml/Alpha- (mode proxy_server_rpc) RPC regression tests- misc_protocol.out	
@@ -19,8 +19,7 @@
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,
diff --git a/tezt/tests/expected/sc_rollup.ml/Alpha- observing the correct handling of commitments in the rollup node (no_comm.out b/tezt/tests/expected/sc_rollup.ml/Alpha- observing the correct handling of commitments in the rollup node (no_comm.out
index a72d01c1a9e2f64403b6cf8e45376e359b8c343f..1163e04b7d7904c2800c800ce2dd27b31c6e30d5 100644
--- a/tezt/tests/expected/sc_rollup.ml/Alpha- observing the correct handling of commitments in the rollup node (no_comm.out	
+++ b/tezt/tests/expected/sc_rollup.ml/Alpha- observing the correct handling of commitments in the rollup node (no_comm.out	
@@ -76,8 +76,7 @@ This sequence of operations was run:
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,
@@ -183,8 +182,7 @@ This sequence of operations was run:
   "endorsing_reward_per_slot": "2604", "cost_per_byte": "250",
   "hard_storage_limit_per_operation": "60000", "quorum_min": 2000,
   "quorum_max": 7000, "min_proposal_quorum": 500,
-  "liquidity_baking_subsidy": "2500000",
-  "liquidity_baking_sunset_level": 128,
+  "liquidity_baking_subsidy": "83333", "liquidity_baking_sunset_level": 128,
   "liquidity_baking_toggle_ema_threshold": 1000000000,
   "max_operations_time_to_live": 120, "minimal_block_delay": "1",
   "delay_increment_per_round": "1", "consensus_committee_size": 256,