diff --git a/network/config.go b/network/config.go
index 16a15f0f4..ec73f0f10 100644
--- a/network/config.go
+++ b/network/config.go
@@ -145,7 +145,3 @@ func (conf *Config) ScaledMaxConns() int {
 func (conf *Config) ScaledMinConns() int {
 	return conf.ScaledMaxConns() / 4
 }
-
-func (conf *Config) ConnsThreshold() int {
-	return conf.ScaledMaxConns() / 8
-}
diff --git a/network/config_test.go b/network/config_test.go
index ee9506a51..e2b5dfb2c 100644
--- a/network/config_test.go
+++ b/network/config_test.go
@@ -136,32 +136,27 @@ func TestIsBootstrapper(t *testing.T) {
 
 func TestScaledConns(t *testing.T) {
 	tests := []struct {
-		config            Config
-		expectedMax       int
-		expectedMin       int
-		expectedThreshold int
+		config      Config
+		expectedMax int
+		expectedMin int
 	}{
-		{Config{MaxConns: 1}, 1, 0, 0},
-		{Config{MaxConns: 8}, 8, 2, 1},
-		{Config{MaxConns: 30}, 32, 8, 4},
-		{Config{MaxConns: 1000}, 1024, 256, 128},
+		{Config{MaxConns: 1}, 1, 0},
+		{Config{MaxConns: 8}, 8, 2},
+		{Config{MaxConns: 30}, 32, 8},
+		{Config{MaxConns: 1000}, 1024, 256},
 	}
 
 	for _, test := range tests {
 		resultMax := test.config.ScaledMaxConns()
 		resultMin := test.config.ScaledMinConns()
-		resultThreshold := test.config.ConnsThreshold()
 		if resultMax != test.expectedMax ||
-			resultMin != test.expectedMin ||
-			resultThreshold != test.expectedThreshold {
+			resultMin != test.expectedMin {
 			t.Errorf("For MaxConns %d, "+
 				"NormedMaxConns() returned %d (expected %d), "+
-				"NormedMinConns() returned %d (expected %d), "+
-				"ConnsThreshold() returned %d (expected %d)",
+				"NormedMinConns() returned %d (expected %d)",
 				test.config.MaxConns,
 				resultMax, test.expectedMax,
-				resultMin, test.expectedMin,
-				resultThreshold, test.expectedThreshold)
+				resultMin, test.expectedMin)
 		}
 	}
 }
diff --git a/network/gater.go b/network/gater.go
index cf615309c..2622da78a 100644
--- a/network/gater.go
+++ b/network/gater.go
@@ -16,10 +16,11 @@ var _ lp2pconnmgr.ConnectionGater = &ConnectionGater{}
 type ConnectionGater struct {
 	lk sync.RWMutex
 
-	filters    *multiaddr.Filters
-	peerMgr    *peerMgr
-	connsLimit int
-	logger     *logger.SubLogger
+	filters     *multiaddr.Filters
+	peerMgr     *peerMgr
+	acceptLimit int
+	dialLimit   int
+	logger      *logger.SubLogger
 }
 
 func NewConnectionGater(conf *Config, log *logger.SubLogger) (*ConnectionGater, error) {
@@ -29,13 +30,15 @@ func NewConnectionGater(conf *Config, log *logger.SubLogger) (*ConnectionGater,
 		filters = SubnetsToFilters(privateSubnets, multiaddr.ActionDeny)
 	}
 
-	connsLimit := conf.ScaledMaxConns() + conf.ConnsThreshold()
-	log.Info("connection gater created", "connsLimit", connsLimit)
+	acceptLimit := conf.ScaledMaxConns()
+	dialLimit := conf.ScaledMaxConns() / 4
+	log.Info("connection gater created", "listen", acceptLimit, "dial", dialLimit)
 
 	return &ConnectionGater{
-		filters:    filters,
-		connsLimit: connsLimit,
-		logger:     log,
+		filters:     filters,
+		acceptLimit: acceptLimit,
+		dialLimit:   dialLimit,
+		logger:      log,
 	}, nil
 }
 
@@ -46,20 +49,29 @@ func (g *ConnectionGater) SetPeerManager(peerMgr *peerMgr) {
 	g.peerMgr = peerMgr
 }
 
-func (g *ConnectionGater) onConnectionLimit() bool {
+func (g *ConnectionGater) onDialLimit() bool {
 	if g.peerMgr == nil {
 		return false
 	}
 
-	return g.peerMgr.NumOfConnected() > g.connsLimit
+	return g.peerMgr.NumOutbound() > g.dialLimit
+}
+
+func (g *ConnectionGater) onAcceptLimit() bool {
+	if g.peerMgr == nil {
+		return false
+	}
+
+	return g.peerMgr.NumInbound() > g.acceptLimit
 }
 
 func (g *ConnectionGater) InterceptPeerDial(pid lp2ppeer.ID) bool {
 	g.lk.RLock()
 	defer g.lk.RUnlock()
 
-	if g.onConnectionLimit() {
-		g.logger.Info("InterceptPeerDial rejected: many connections", "pid", pid)
+	if g.onDialLimit() {
+		g.logger.Info("InterceptPeerDial rejected: many connections",
+			"pid", pid, "outbound", g.peerMgr.NumOutbound())
 
 		return false
 	}
@@ -71,8 +83,9 @@ func (g *ConnectionGater) InterceptAddrDial(pid lp2ppeer.ID, ma multiaddr.Multia
 	g.lk.RLock()
 	defer g.lk.RUnlock()
 
-	if g.onConnectionLimit() {
-		g.logger.Info("InterceptAddrDial rejected: many connections", "pid", pid, "ma", ma.String())
+	if g.onDialLimit() {
+		g.logger.Info("InterceptAddrDial rejected: many connections",
+			"pid", pid, "ma", ma.String(), "outbound", g.peerMgr.NumOutbound())
 
 		return false
 	}
@@ -91,8 +104,9 @@ func (g *ConnectionGater) InterceptAccept(cma lp2pnetwork.ConnMultiaddrs) bool {
 	g.lk.RLock()
 	defer g.lk.RUnlock()
 
-	if g.onConnectionLimit() {
-		g.logger.Info("InterceptAccept rejected: many connections")
+	if g.onAcceptLimit() {
+		g.logger.Info("InterceptAccept rejected: many connections",
+			"inbound", g.peerMgr.NumInbound())
 
 		return false
 	}
diff --git a/network/gater_test.go b/network/gater_test.go
index 4fb25523f..c01bbe0cb 100644
--- a/network/gater_test.go
+++ b/network/gater_test.go
@@ -61,22 +61,22 @@ func TestDenyPrivate(t *testing.T) {
 func TestMaxConnection(t *testing.T) {
 	ts := testsuite.NewTestSuite(t)
 	conf := testConfig()
-	conf.MaxConns = 8
-	assert.Equal(t, conf.ScaledMinConns(), 2)
-	assert.Equal(t, conf.ScaledMaxConns(), 8)
-	assert.Equal(t, conf.ConnsThreshold(), 1)
+	conf.MaxConns = 4
+	assert.Equal(t, conf.ScaledMaxConns(), 4)
 	net := makeTestNetwork(t, conf, nil)
 
 	maPrivate := multiaddr.StringCast("/ip4/127.0.0.1/tcp/1234")
 	maPublic := multiaddr.StringCast("/ip4/8.8.8.8/tcp/1234")
+	aMultiAddr := multiaddr.StringCast("/ip4/1.1.1.1/tcp/1234")
 	cmaPrivate := &mockConnMultiaddrs{remote: maPrivate}
 	cmaPublic := &mockConnMultiaddrs{remote: maPublic}
 	pid := ts.RandPeerID()
 
-	for i := 0; i < 9; i++ {
-		net.peerMgr.AddPeer(ts.RandPeerID(),
-			multiaddr.StringCast("/ip4/1.1.1.1/tcp/1234"), lp2pnetwork.DirInbound)
-	}
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirOutbound)
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirInbound)
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirInbound)
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirInbound)
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirInbound)
 
 	assert.True(t, net.connGater.InterceptPeerDial(pid))
 	assert.True(t, net.connGater.InterceptAddrDial(pid, maPrivate))
@@ -84,8 +84,15 @@ func TestMaxConnection(t *testing.T) {
 	assert.True(t, net.connGater.InterceptAccept(cmaPrivate))
 	assert.True(t, net.connGater.InterceptAccept(cmaPublic))
 
-	net.peerMgr.AddPeer(ts.RandPeerID(),
-		multiaddr.StringCast("/ip4/1.1.1.1/tcp/1234"), lp2pnetwork.DirInbound)
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirOutbound)
+
+	assert.False(t, net.connGater.InterceptPeerDial(pid))
+	assert.False(t, net.connGater.InterceptAddrDial(pid, maPrivate))
+	assert.False(t, net.connGater.InterceptAddrDial(pid, maPublic))
+	assert.True(t, net.connGater.InterceptAccept(cmaPrivate))
+	assert.True(t, net.connGater.InterceptAccept(cmaPublic))
+
+	net.peerMgr.AddPeer(ts.RandPeerID(), aMultiAddr, lp2pnetwork.DirInbound)
 
 	assert.False(t, net.connGater.InterceptPeerDial(pid))
 	assert.False(t, net.connGater.InterceptAddrDial(pid, maPrivate))
diff --git a/network/network.go b/network/network.go
index 833f2d5ac..0c88da789 100644
--- a/network/network.go
+++ b/network/network.go
@@ -133,8 +133,9 @@ func newNetwork(conf *Config, log *logger.SubLogger, opts []lp2p.Option) (*netwo
 	// The connection manager doesn't reject any connections.
 	// It just triggers a pruning run once the high watermark is reached (or surpassed).
 
-	lowWM := conf.ScaledMinConns()                          // Low Watermark
-	highWM := conf.ScaledMaxConns() - conf.ConnsThreshold() // High Watermark
+	//
+	lowWM := conf.ScaledMinConns()                          // Low Watermark, ex: 64 (max)
+	highWM := conf.ScaledMaxConns() - conf.ScaledMinConns() // High Watermark, ex: 64 (max) - 16 (min) = 48
 	connMgr, err := lp2pconnmgr.NewConnManager(
 		lowWM, highWM,
 		lp2pconnmgr.WithGracePeriod(time.Minute),
@@ -272,7 +273,8 @@ func newNetwork(conf *Config, log *logger.SubLogger, opts []lp2p.Option) (*netwo
 	self.logger.Info("network setup", "id", self.host.ID(),
 		"name", conf.NetworkName,
 		"address", conf.ListenAddrs(),
-		"bootstrapper", conf.IsBootstrapper)
+		"bootstrapper", conf.IsBootstrapper,
+		"maxConns", conf.MaxConns)
 
 	return self, nil
 }
diff --git a/network/peermgr.go b/network/peermgr.go
index 45a84bbb2..b56f6decd 100644
--- a/network/peermgr.go
+++ b/network/peermgr.go
@@ -26,6 +26,8 @@ type peerMgr struct {
 	bootstrapAddrs []lp2ppeer.AddrInfo
 	minConns       int
 	maxConns       int
+	numInbound     int
+	numOutbound    int
 	host           lp2phost.Host
 	peers          map[lp2ppeer.ID]*peerInfo
 	logger         *logger.SubLogger
@@ -70,18 +72,20 @@ func (mgr *peerMgr) Start() {
 func (mgr *peerMgr) Stop() {
 }
 
-func (mgr *peerMgr) NumOfConnected() int {
-	mgr.lk.RLock()
-	defer mgr.lk.RUnlock()
-
-	return len(mgr.peers) // TODO: try to keep record of all peers + connected peers
-}
-
-func (mgr *peerMgr) AddPeer(pid lp2ppeer.ID, ma multiaddr.Multiaddr, direction lp2pnet.Direction,
+func (mgr *peerMgr) AddPeer(pid lp2ppeer.ID, ma multiaddr.Multiaddr,
+	direction lp2pnet.Direction,
 ) {
 	mgr.lk.Lock()
 	defer mgr.lk.Unlock()
 
+	switch direction {
+	case lp2pnet.DirInbound:
+		mgr.numInbound++
+
+	case lp2pnet.DirOutbound:
+		mgr.numOutbound++
+	}
+
 	mgr.peers[pid] = &peerInfo{
 		MultiAddress: ma,
 		Direction:    direction,
@@ -92,6 +96,21 @@ func (mgr *peerMgr) RemovePeer(pid lp2ppeer.ID) {
 	mgr.lk.Lock()
 	defer mgr.lk.Unlock()
 
+	peer, ok := mgr.peers[pid]
+	if !ok {
+		mgr.logger.Warn("unable to find a peer", "pid", pid)
+
+		return
+	}
+
+	switch peer.Direction {
+	case lp2pnet.DirInbound:
+		mgr.numInbound--
+
+	case lp2pnet.DirOutbound:
+		mgr.numOutbound--
+	}
+
 	delete(mgr.peers, pid)
 }
 
@@ -113,9 +132,8 @@ func (mgr *peerMgr) CheckConnectivity() {
 	mgr.lk.Lock()
 	defer mgr.lk.Unlock()
 
-	net := mgr.host.Network()
-	connectedPeers := len(net.Peers())
-	mgr.logger.Debug("check connectivity", "peers", len(mgr.peers), "connected", connectedPeers)
+	connectedPeers := len(mgr.peers)
+	mgr.logger.Debug("check connectivity", "peers", connectedPeers)
 
 	switch {
 	case connectedPeers > mgr.maxConns:
@@ -139,7 +157,7 @@ func (mgr *peerMgr) CheckConnectivity() {
 			mgr.logger.Debug("try connecting to a bootstrap peer", "peer", ai.String())
 
 			// Don't try to connect to an already connected peer.
-			if net.Connectedness(ai.ID) == lp2pnet.Connected {
+			if mgr.host.Network().Connectedness(ai.ID) == lp2pnet.Connected {
 				mgr.logger.Trace("already connected", "peer", ai.String())
 
 				continue
@@ -149,3 +167,17 @@ func (mgr *peerMgr) CheckConnectivity() {
 		}
 	}
 }
+
+func (mgr *peerMgr) NumInbound() int {
+	mgr.lk.RLock()
+	defer mgr.lk.RUnlock()
+
+	return mgr.numInbound
+}
+
+func (mgr *peerMgr) NumOutbound() int {
+	mgr.lk.RLock()
+	defer mgr.lk.RUnlock()
+
+	return mgr.numOutbound
+}
diff --git a/network/peermgr_test.go b/network/peermgr_test.go
index e1a262ca5..2f1931597 100644
--- a/network/peermgr_test.go
+++ b/network/peermgr_test.go
@@ -24,3 +24,30 @@ func TestGetMultiAddr(t *testing.T) {
 	net.peerMgr.RemovePeer(pid)
 	assert.Nil(t, net.peerMgr.GetMultiAddr(pid))
 }
+
+func TestNumInboundOutbound(t *testing.T) {
+	ts := testsuite.NewTestSuite(t)
+
+	conf := testConfig()
+	net := makeTestNetwork(t, conf, nil)
+
+	addr, _ := IPToMultiAddr("1.2.3.4", 1234)
+
+	pid1 := ts.RandPeerID()
+	pid2 := ts.RandPeerID()
+	pid3 := ts.RandPeerID()
+
+	net.peerMgr.AddPeer(pid1, addr, lp2pnet.DirInbound)
+	net.peerMgr.AddPeer(pid2, addr, lp2pnet.DirOutbound)
+	net.peerMgr.AddPeer(pid3, addr, lp2pnet.DirOutbound)
+
+	assert.Equal(t, 1, net.peerMgr.NumInbound())
+	assert.Equal(t, 2, net.peerMgr.NumOutbound())
+
+	net.peerMgr.RemovePeer(pid1)
+	net.peerMgr.RemovePeer(pid2)
+	net.peerMgr.RemovePeer(ts.RandPeerID())
+
+	assert.Equal(t, 0, net.peerMgr.NumInbound())
+	assert.Equal(t, 1, net.peerMgr.NumOutbound())
+}
diff --git a/network/utils.go b/network/utils.go
index c4f19ab2b..b1297f99b 100644
--- a/network/utils.go
+++ b/network/utils.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"fmt"
 	"net"
+	"slices"
 	"time"
 
 	lp2pspb "github.com/libp2p/go-libp2p-pubsub/pb"
@@ -67,13 +68,7 @@ func IPToMultiAddr(ip string, port int) (multiaddr.Multiaddr, error) {
 
 // HasPID checks if a peer ID exists in a list of peer IDs.
 func HasPID(pids []lp2ppeer.ID, pid lp2ppeer.ID) bool {
-	for _, p := range pids {
-		if p == pid {
-			return true
-		}
-	}
-
-	return false
+	return slices.Contains(pids, pid)
 }
 
 func ConnectAsync(ctx context.Context, h lp2phost.Host, addrInfo lp2ppeer.AddrInfo, log *logger.SubLogger) {
@@ -147,10 +142,10 @@ func BuildConcreteLimitConfig(maxConns int) lp2prcmgr.ConcreteLimitConfig {
 		maxConnVal := lp2prcmgr.LimitVal(int(float32(maxConns) * coefficient))
 
 		limit.ConnsInbound = maxConnVal
-		limit.ConnsOutbound = maxConnVal / 4
+		limit.ConnsOutbound = maxConnVal
 		limit.Conns = maxConnVal
 		limit.StreamsInbound = maxConnVal * 8
-		limit.StreamsOutbound = maxConnVal * 2
+		limit.StreamsOutbound = maxConnVal * 8
 		limit.Streams = maxConnVal * 8
 	}