diff --git a/src/cryptonote_config.h b/src/cryptonote_config.h
index fd52f2e87..5e58aa757 100644
--- a/src/cryptonote_config.h
+++ b/src/cryptonote_config.h
@@ -56,9 +56,11 @@
 #define CRYPTONOTE_DISPLAY_DECIMAL_POINT                12
 // COIN - number of smallest units in one coin
 #define COIN                                            ((uint64_t)1000000000000) // pow(10, 12)
-#define DEFAULT_FEE                                     ((uint64_t)100000000000) // 5 * pow(10, 11)
+
 #define FEE_PER_KB                                      ((uint64_t)10000000000) // pow(10, 10)
 
+// temporarily to allow backward compatibility during the switch to per-kb
+#define MINING_ALLOWED_LEGACY_FEE                       ((uint64_t)100000000000) // pow(10, 11)
 
 #define ORPHANED_BLOCKS_MAX_COUNT                       100
 
@@ -115,7 +117,7 @@ namespace config
 {
   uint64_t const DEFAULT_FEE_ATOMIC_XMR_PER_KB = 500; // Just a placeholder!  Change me!
   uint8_t const FEE_CALCULATION_MAX_RETRIES = 10;
-  uint64_t const DEFAULT_DUST_THRESHOLD = 5000000000; // 5 * 10^9
+  uint64_t const DEFAULT_DUST_THRESHOLD = ((uint64_t)10000000000); // pow(10, 10)
   std::string const P2P_REMOTE_DEBUG_TRUSTED_PUB_KEY = "0000000000000000000000000000000000000000000000000000000000000000";
 
   uint64_t const CRYPTONOTE_PUBLIC_ADDRESS_BASE58_PREFIX = 18;
diff --git a/src/cryptonote_core/cryptonote_format_utils.cpp b/src/cryptonote_core/cryptonote_format_utils.cpp
index 33cad30c4..8c7b2fbaa 100644
--- a/src/cryptonote_core/cryptonote_format_utils.cpp
+++ b/src/cryptonote_core/cryptonote_format_utils.cpp
@@ -107,7 +107,7 @@ namespace cryptonote
     block_reward += fee;
 
     std::vector<uint64_t> out_amounts;
-    decompose_amount_into_digits(block_reward, DEFAULT_FEE,
+    decompose_amount_into_digits(block_reward, ::config::DEFAULT_DUST_THRESHOLD,
       [&out_amounts](uint64_t a_chunk) { out_amounts.push_back(a_chunk); },
       [&out_amounts](uint64_t a_dust) { out_amounts.push_back(a_dust); });
 
diff --git a/src/cryptonote_core/tx_pool.cpp b/src/cryptonote_core/tx_pool.cpp
index f623037ee..1a57a2b5e 100644
--- a/src/cryptonote_core/tx_pool.cpp
+++ b/src/cryptonote_core/tx_pool.cpp
@@ -89,7 +89,7 @@ namespace cryptonote
     uint64_t needed_fee = blob_size / 1024;
     needed_fee += (blob_size % 1024) ? 1 : 0;
     needed_fee *= FEE_PER_KB;
-    if (!kept_by_block && fee < needed_fee)
+    if (!kept_by_block && fee < needed_fee && fee < MINING_ALLOWED_LEGACY_FEE)
     {
       LOG_PRINT_L1("transaction fee is not enough: " << print_money(fee) << ", minumim fee: " << print_money(needed_fee));
       tvc.m_verifivation_failed = true;
diff --git a/src/simplewallet/simplewallet.cpp b/src/simplewallet/simplewallet.cpp
index 4cb9cff21..5bc8090a8 100644
--- a/src/simplewallet/simplewallet.cpp
+++ b/src/simplewallet/simplewallet.cpp
@@ -1054,15 +1054,14 @@ bool simple_wallet::transfer(const std::vector<std::string> &args_)
   try
   {
     // figure out what tx will be necessary
-    auto ptx_vector = m_wallet->create_transactions(dsts, fake_outs_count, 0 /* unlock_time */, DEFAULT_FEE, extra);
+    auto ptx_vector = m_wallet->create_transactions(dsts, fake_outs_count, 0 /* unlock_time */, 0 /* unused fee arg*/, extra);
 
     // if more than one tx necessary, prompt user to confirm
     if (ptx_vector.size() > 1)
     {
         std::string prompt_str = "Your transaction needs to be split into ";
         prompt_str += std::to_string(ptx_vector.size());
-        prompt_str += " transactions.  This will result in a fee of ";
-        prompt_str += print_money(ptx_vector.size() * DEFAULT_FEE);
+        prompt_str += " transactions.  This will result in a transaction fee being applied to each transaction";
         prompt_str += ".  Is this okay?  (Y/Yes/N/No)";
         std::string accepted = command_line::input_line(prompt_str);
         if (accepted != "Y" && accepted != "y" && accepted != "Yes" && accepted != "yes")
diff --git a/src/wallet/wallet2.cpp b/src/wallet/wallet2.cpp
index 5b247ff47..8a868f3d8 100644
--- a/src/wallet/wallet2.cpp
+++ b/src/wallet/wallet2.cpp
@@ -764,7 +764,7 @@ void wallet2::add_unconfirmed_tx(const cryptonote::transaction& tx, uint64_t cha
 void wallet2::transfer(const std::vector<cryptonote::tx_destination_entry>& dsts, size_t fake_outputs_count,
                        uint64_t unlock_time, uint64_t fee, const std::vector<uint8_t>& extra, cryptonote::transaction& tx, pending_tx& ptx)
 {
-  transfer(dsts, fake_outputs_count, unlock_time, fee, extra, detail::digit_split_strategy, tx_dust_policy(fee), tx, ptx);
+  transfer(dsts, fake_outputs_count, unlock_time, fee, extra, detail::digit_split_strategy, tx_dust_policy(::config::DEFAULT_DUST_THRESHOLD), tx, ptx);
 }
 //----------------------------------------------------------------------------------------------------
 void wallet2::transfer(const std::vector<cryptonote::tx_destination_entry>& dsts, size_t fake_outputs_count,
@@ -930,7 +930,7 @@ void wallet2::commit_tx(std::vector<pending_tx>& ptx_vector)
 //
 // this function will make multiple calls to wallet2::transfer if multiple
 // transactions will be required
-std::vector<wallet2::pending_tx> wallet2::create_transactions(std::vector<cryptonote::tx_destination_entry> dsts, const size_t fake_outs_count, const uint64_t unlock_time, const uint64_t fee, const std::vector<uint8_t> extra)
+std::vector<wallet2::pending_tx> wallet2::create_transactions(std::vector<cryptonote::tx_destination_entry> dsts, const size_t fake_outs_count, const uint64_t unlock_time, const uint64_t fee_UNUSED, const std::vector<uint8_t> extra)
 {
 
   // failsafe split attempt counter