diff --git a/aleph-client/src/aleph_zero.rs b/aleph-client/src/aleph_zero.rs
index 3fde2708ea..8c75b15c46 100644
--- a/aleph-client/src/aleph_zero.rs
+++ b/aleph-client/src/aleph_zero.rs
@@ -2076,9 +2076,9 @@ pub mod api {
             .hash();
         runtime_metadata_hash
             == [
-                111u8, 233u8, 121u8, 88u8, 247u8, 52u8, 135u8, 105u8, 167u8, 108u8, 97u8, 139u8,
-                177u8, 122u8, 62u8, 130u8, 3u8, 106u8, 117u8, 91u8, 223u8, 244u8, 111u8, 47u8,
-                35u8, 184u8, 0u8, 203u8, 98u8, 253u8, 156u8, 92u8,
+                46u8, 76u8, 121u8, 124u8, 214u8, 182u8, 28u8, 12u8, 114u8, 169u8, 159u8, 10u8,
+                128u8, 9u8, 179u8, 188u8, 124u8, 56u8, 110u8, 108u8, 24u8, 15u8, 236u8, 3u8, 213u8,
+                142u8, 207u8, 48u8, 23u8, 113u8, 170u8, 43u8,
             ]
     }
     pub mod system {
@@ -9517,10 +9517,10 @@ pub mod api {
                         "AzeroCap",
                         vec![],
                         [
-                            68u8, 239u8, 10u8, 241u8, 109u8, 153u8, 129u8, 3u8, 237u8, 251u8,
-                            251u8, 221u8, 156u8, 81u8, 117u8, 166u8, 101u8, 196u8, 227u8, 176u8,
-                            209u8, 123u8, 127u8, 146u8, 252u8, 88u8, 138u8, 227u8, 183u8, 117u8,
-                            148u8, 36u8,
+                            232u8, 50u8, 48u8, 200u8, 187u8, 205u8, 197u8, 195u8, 172u8, 140u8,
+                            72u8, 253u8, 63u8, 190u8, 23u8, 70u8, 154u8, 96u8, 238u8, 203u8, 39u8,
+                            129u8, 219u8, 220u8, 119u8, 214u8, 95u8, 174u8, 65u8, 80u8, 25u8,
+                            156u8,
                         ],
                     )
                 }
@@ -9538,10 +9538,10 @@ pub mod api {
                         "ExponentialInflationHorizon",
                         vec![],
                         [
-                            7u8, 241u8, 156u8, 243u8, 174u8, 255u8, 212u8, 252u8, 53u8, 59u8,
-                            145u8, 100u8, 166u8, 17u8, 167u8, 127u8, 41u8, 227u8, 188u8, 149u8,
-                            207u8, 61u8, 65u8, 215u8, 42u8, 241u8, 18u8, 145u8, 24u8, 123u8, 1u8,
-                            65u8,
+                            96u8, 228u8, 98u8, 28u8, 209u8, 210u8, 67u8, 181u8, 1u8, 111u8, 174u8,
+                            131u8, 254u8, 131u8, 238u8, 112u8, 243u8, 203u8, 160u8, 240u8, 65u8,
+                            141u8, 108u8, 235u8, 114u8, 44u8, 115u8, 114u8, 135u8, 217u8, 90u8,
+                            63u8,
                         ],
                     )
                 }
diff --git a/e2e-tests/src/test/era_payout.rs b/e2e-tests/src/test/era_payout.rs
index 1b223ca1ee..911c515fc2 100644
--- a/e2e-tests/src/test/era_payout.rs
+++ b/e2e-tests/src/test/era_payout.rs
@@ -69,8 +69,8 @@ async fn force_era_payout(config: &Config) -> anyhow::Result<()> {
     // These must be adjusted every time we change the default values of:
     // * AzeroCap
     // * ExponentialInflationHorizon
-    let expected_payout = 1776 * TOKEN;
-    let delta = 3 * TOKEN;
+    let expected_payout = 114 * TOKEN;
+    let delta =  TOKEN;
 
     assert_within_delta_interval(
         expected_era_duration,
@@ -101,8 +101,8 @@ async fn normal_era_payout(config: &Config) -> anyhow::Result<()> {
     // These must be adjusted every time we change the default values of:
     // * AzeroCap
     // * ExponentialInflationHorizon
-    let expected_payout = 1776 * TOKEN;
-    let delta = 3 * TOKEN;
+    let expected_payout = 114 * TOKEN;
+    let delta = TOKEN;
 
     assert_within_delta_interval(
         expected_era_duration,
diff --git a/pallets/aleph/src/lib.rs b/pallets/aleph/src/lib.rs
index 96eccdad58..5af3b9c3ac 100644
--- a/pallets/aleph/src/lib.rs
+++ b/pallets/aleph/src/lib.rs
@@ -73,15 +73,14 @@ pub mod pallet {
     /// Default AZERO Cap. Relevant for eras before we set this value by hand.
     #[pallet::type_value]
     pub fn DefaultAzeroCap() -> Balance {
-        1_000_000_000 * TOKEN
+        520_000_000 * TOKEN
     }
 
     /// Default length of the exponential inflation horizon.
     /// Relevant for eras before we set this value by hand.
     #[pallet::type_value]
     pub fn DefaultExponentialInflationHorizon() -> u64 {
-        const MILLISECS_PER_YEAR: u64 = 1000 * 3600 * 24 * 36525 / 100;
-        MILLISECS_PER_YEAR
+        154_283_512_497
     }
 
     #[pallet::storage]