diff --git a/app/ante.go b/app/ante.go
index 04d3c2037..83860b199 100644
--- a/app/ante.go
+++ b/app/ante.go
@@ -12,7 +12,6 @@ import (
 	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
 	ibcante "github.com/cosmos/ibc-go/v7/modules/core/ante"
 	ibckeeper "github.com/cosmos/ibc-go/v7/modules/core/keeper"
-	"github.com/skip-mev/block-sdk/block"
 	auctionanteskip "github.com/skip-mev/block-sdk/x/auction/ante"
 	auctionkeeperskip "github.com/skip-mev/block-sdk/x/auction/keeper"
 )
@@ -31,7 +30,6 @@ type HandlerOptions struct {
 	TxDecoder         sdk.TxDecoder
 	TxEncoder         sdk.TxEncoder
 	auctionkeeperskip auctionkeeperskip.Keeper
-	FreeLane          block.Lane
 }
 
 func NewAnteHandler(options HandlerOptions) (sdk.AnteHandler, error) {
@@ -60,10 +58,7 @@ func NewAnteHandler(options HandlerOptions) (sdk.AnteHandler, error) {
 		ante.NewTxTimeoutHeightDecorator(),
 		ante.NewValidateMemoDecorator(options.AccountKeeper),
 		ante.NewConsumeGasForTxSizeDecorator(options.AccountKeeper),
-		block.NewIgnoreDecorator(
-			ante.NewDeductFeeDecorator(options.AccountKeeper, options.BankKeeper, options.FeegrantKeeper, options.TxFeeChecker),
-			options.FreeLane,
-		),
+		ante.NewDeductFeeDecorator(options.AccountKeeper, options.BankKeeper, options.FeegrantKeeper, options.TxFeeChecker),
 		// SetPubKeyDecorator must be called before all signature verification decorators
 		ante.NewSetPubKeyDecorator(options.AccountKeeper),
 		ante.NewValidateSigCountDecorator(options.AccountKeeper),
diff --git a/app/app.go b/app/app.go
index 90d7ca3e6..1835cab96 100644
--- a/app/app.go
+++ b/app/app.go
@@ -1269,14 +1269,14 @@ func New(
 	reflectionv1.RegisterReflectionServiceServer(app.GRPCQueryRouter(), reflectionSvc)
 
 	// STEP 1-3: Create the Block SDK lanes.
-	mevLane, freeLane, defaultLane := CreateLanes(app)
+	mevLane, defaultLane := CreateLanes(app)
 
 	// STEP 4: Construct a mempool based off the lanes. Note that the order of the lanes
 	// matters. Blocks are constructed from the top lane to the bottom lane. The top lane
 	// is the first lane in the array and the bottom lane is the last lane in the array.
 	mempool, err := block.NewLanedMempool(
 		app.Logger(),
-		[]block.Lane{mevLane, freeLane, defaultLane},
+		[]block.Lane{mevLane, defaultLane},
 	)
 	if err != nil {
 		panic(err)
@@ -1306,7 +1306,6 @@ func New(
 			TxDecoder:         encoding.TxConfig.TxDecoder(),
 			TxEncoder:         encoding.TxConfig.TxEncoder(),
 			auctionkeeperskip: app.AuctionKeeperSkip,
-			FreeLane:          freeLane,
 		},
 	)
 	if err != nil {
@@ -1322,9 +1321,6 @@ func New(
 	mevLane.WithOptions(
 		opt...,
 	)
-	freeLane.WithOptions(
-		opt...,
-	)
 	defaultLane.WithOptions(
 		opt...,
 	)
diff --git a/app/lanes.go b/app/lanes.go
index 25086a920..20d98d6e6 100644
--- a/app/lanes.go
+++ b/app/lanes.go
@@ -6,7 +6,6 @@ import (
 	signerextraction "github.com/skip-mev/block-sdk/adapters/signer_extraction_adapter"
 	"github.com/skip-mev/block-sdk/block/base"
 	defaultlane "github.com/skip-mev/block-sdk/lanes/base"
-	freelane "github.com/skip-mev/block-sdk/lanes/free"
 	mevlane "github.com/skip-mev/block-sdk/lanes/mev"
 )
 
@@ -14,7 +13,7 @@ import (
 // we create three separate lanes - MEV, Free, and Default - and then return them.
 //
 // NOTE: Application Developers should closely replicate this function in their own application.
-func CreateLanes(app *App) (*mevlane.MEVLane, *base.BaseLane, *base.BaseLane) {
+func CreateLanes(app *App) (*mevlane.MEVLane, *base.BaseLane) {
 	// 1. Create the signer extractor. This is used to extract the expected signers from
 	// a transaction. Each lane can have a different signer extractor if needed.
 	signerAdapter := signerextraction.NewDefaultAdapter()
@@ -33,18 +32,7 @@ func CreateLanes(app *App) (*mevlane.MEVLane, *base.BaseLane, *base.BaseLane) {
 		Logger:          app.Logger(),
 		TxEncoder:       encodingConfig.TxConfig.TxEncoder(),
 		TxDecoder:       encodingConfig.TxConfig.TxDecoder(),
-		MaxBlockSpace:   math.LegacyMustNewDecFromStr("0.2"),
-		SignerExtractor: signerAdapter,
-		MaxTxs:          0,
-	}
-
-	// Create a free configuration that accepts 1000 transactions and consumes 20% of the
-	// block space.
-	freeConfig := base.LaneConfig{
-		Logger:          app.Logger(),
-		TxEncoder:       encodingConfig.TxConfig.TxEncoder(),
-		TxDecoder:       encodingConfig.TxConfig.TxDecoder(),
-		MaxBlockSpace:   math.LegacyMustNewDecFromStr("0.2"),
+		MaxBlockSpace:   math.LegacyMustNewDecFromStr("0.1"),
 		SignerExtractor: signerAdapter,
 		MaxTxs:          0,
 	}
@@ -55,7 +43,7 @@ func CreateLanes(app *App) (*mevlane.MEVLane, *base.BaseLane, *base.BaseLane) {
 		Logger:          app.Logger(),
 		TxEncoder:       encodingConfig.TxConfig.TxEncoder(),
 		TxDecoder:       encodingConfig.TxConfig.TxDecoder(),
-		MaxBlockSpace:   math.LegacyMustNewDecFromStr("0.6"),
+		MaxBlockSpace:   math.LegacyMustNewDecFromStr("0.9"),
 		SignerExtractor: signerAdapter,
 		MaxTxs:          0,
 	}
@@ -68,7 +56,6 @@ func CreateLanes(app *App) (*mevlane.MEVLane, *base.BaseLane, *base.BaseLane) {
 	mevMatchHandler := factory.MatchHandler()
 
 	// Create the final match handler for the free lane.
-	freeMatchHandler := freelane.DefaultMatchHandler()
 
 	// Create the final match handler for the default lane.
 	defaultMatchHandler := base.DefaultMatchHandler()
@@ -80,16 +67,10 @@ func CreateLanes(app *App) (*mevlane.MEVLane, *base.BaseLane, *base.BaseLane) {
 		mevMatchHandler,
 	)
 
-	freeLane := freelane.NewFreeLane(
-		freeConfig,
-		base.DefaultTxPriority(),
-		freeMatchHandler,
-	)
-
 	defaultLane := defaultlane.NewDefaultLane(
 		defaultConfig,
 		defaultMatchHandler,
 	)
 
-	return mevLane, freeLane, defaultLane
+	return mevLane, defaultLane
 }
diff --git a/app/upgrades/testnet/v14/upgrades.go b/app/upgrades/testnet/v14/upgrades.go
index 2237e2616..aacd6a6dd 100644
--- a/app/upgrades/testnet/v14/upgrades.go
+++ b/app/upgrades/testnet/v14/upgrades.go
@@ -49,9 +49,9 @@ func setDefaultMEVParams(ctx sdk.Context, auctionkeeperskip auctionkeeperskip.Ke
 	// Skip MEV (x/auction)
 	return auctionkeeperskip.SetParams(ctx, auctionmoduleskiptypes.Params{
 		MaxBundleSize:          auctionmoduleskiptypes.DefaultMaxBundleSize,
-		EscrowAccountAddress:   authtypes.NewModuleAddress(auctionmoduleskiptypes.ModuleName),
-		ReserveFee:             sdk.NewCoin(nativeDenom, sdk.NewInt(1)),
-		MinBidIncrement:        sdk.NewCoin(nativeDenom, sdk.NewInt(1)),
+		EscrowAccountAddress:   authtypes.NewModuleAddress(auctionmoduleskiptypes.ModuleName), // TODO: revisit
+		ReserveFee:             sdk.NewCoin(nativeDenom, sdk.NewInt(10)),
+		MinBidIncrement:        sdk.NewCoin(nativeDenom, sdk.NewInt(5)),
 		FrontRunningProtection: auctionmoduleskiptypes.DefaultFrontRunningProtection,
 		ProposerFee:            auctionmoduleskiptypes.DefaultProposerFee,
 	})