diff --git a/packages/arb-rpc-node/web3/eth.go b/packages/arb-rpc-node/web3/eth.go
index d39fd88bc9..01ce27b55d 100644
--- a/packages/arb-rpc-node/web3/eth.go
+++ b/packages/arb-rpc-node/web3/eth.go
@@ -39,9 +39,15 @@ import (
 	"github.com/offchainlabs/arbitrum/packages/arb-util/machine"
 )
 
-var gasPriceFactor = big.NewInt(2)
+var gasPriceFactorNum = big.NewInt(5)
+var gasPriceFactorDenom = big.NewInt(4)
 var gasEstimationCushion = 10
 
+func applyGasPriceBidFactor(price *big.Int) *big.Int {
+	adjustedPrice := new(big.Int).Mul(price, gasPriceFactorNum)
+	return adjustedPrice.Div(adjustedPrice, gasPriceFactorDenom)
+}
+
 const maxGas = 1<<31 - 1
 
 type ServerConfig struct {
@@ -96,7 +102,7 @@ func (s *Server) GasPrice() (*hexutil.Big, error) {
 	if err != nil {
 		return nil, err
 	}
-	return (*hexutil.Big)(new(big.Int).Mul(prices[5], gasPriceFactor)), nil
+	return (*hexutil.Big)(applyGasPriceBidFactor(prices[5])), nil
 }
 
 func (s *Server) Accounts() []common.Address {
@@ -285,7 +291,7 @@ func (s *Server) EstimateGas(args CallTxArgs) (hexutil.Uint64, error) {
 	if res.FeeStats.Price.L2Computation.Cmp(big.NewInt(0)) == 0 {
 		return hexutil.Uint64(res.GasUsed.Uint64() + 10000), nil
 	} else {
-		extraCalldataUnits := (len(res.FeeStats.GasUsed().Bytes()) + len(new(big.Int).Mul(res.FeeStats.Price.L2Computation, gasPriceFactor).Bytes()) + gasEstimationCushion) * 16
+		extraCalldataUnits := (len(res.FeeStats.GasUsed().Bytes()) + len(applyGasPriceBidFactor(res.FeeStats.Price.L2Computation).Bytes()) + gasEstimationCushion) * 16
 		// Adjust calldata units used for calldata from gas limit
 		res.FeeStats.UnitsUsed.L1Calldata = res.FeeStats.UnitsUsed.L1Calldata.Add(res.FeeStats.UnitsUsed.L1Calldata, big.NewInt(int64(extraCalldataUnits)))
 		used := res.FeeStats.TargetGasUsed()
diff --git a/packages/arb-rpc-node/web3/nodeInterface.go b/packages/arb-rpc-node/web3/nodeInterface.go
index eef052374d..fb1213a5e5 100644
--- a/packages/arb-rpc-node/web3/nodeInterface.go
+++ b/packages/arb-rpc-node/web3/nodeInterface.go
@@ -142,6 +142,6 @@ func handleEstimateRetryableTicket(srv *Server, calldata []byte, blockNum rpc.Bl
 	used = used.Div(used, big.NewInt(10))
 	return estimateRetryableTicket.Outputs.PackValues([]interface{}{
 		new(big.Int).Add(used, big.NewInt(100)),
-		new(big.Int).Mul(res.GasPrice, gasPriceFactor),
+		applyGasPriceBidFactor(res.GasPrice),
 	})
 }