diff --git a/src/dsnotificationinterface.cpp b/src/dsnotificationinterface.cpp
index 8f89b7315..b9da0cf2b 100644
--- a/src/dsnotificationinterface.cpp
+++ b/src/dsnotificationinterface.cpp
@@ -50,7 +50,7 @@ void CDSNotificationInterface::UpdatedBlockTip(const CBlockIndex *pindexNew, con
     fDIP0001LockedInAtTip = (VersionBitsState(pindexNew, Params().GetConsensus(), Consensus::DEPLOYMENT_DIP0001, versionbitscache) == THRESHOLD_LOCKED_IN);
     fDIP0001ActiveAtTip = (VersionBitsState(pindexNew, Params().GetConsensus(), Consensus::DEPLOYMENT_DIP0001, versionbitscache) == THRESHOLD_ACTIVE);
 
-    // Update min fees only if activation changed and we are using default minRelayTxFee
+    // Update min fees only if activation changed and we are using default fees
     if (fDIP0001ActiveAtTipTmp != fDIP0001ActiveAtTip) {
         if (!mapArgs.count("-minrelaytxfee")) {
             ::minRelayTxFee = CFeeRate(fDIP0001ActiveAtTip ? DEFAULT_DIP0001_MIN_RELAY_TX_FEE : DEFAULT_LEGACY_MIN_RELAY_TX_FEE);
@@ -59,6 +59,9 @@ void CDSNotificationInterface::UpdatedBlockTip(const CBlockIndex *pindexNew, con
         if (!mapArgs.count("-mintxfee")) {
             CWallet::minTxFee = CFeeRate(fDIP0001ActiveAtTip ? DEFAULT_DIP0001_TRANSACTION_MINFEE : DEFAULT_LEGACY_TRANSACTION_MINFEE);
         }
+        if (!mapArgs.count("-fallbackfee")) {
+            CWallet::fallbackFee = CFeeRate(fDIP0001ActiveAtTip ? DEFAULT_DIP0001_FALLBACK_FEE : DEFAULT_LEGACY_FALLBACK_FEE);
+        }
     }
 }
 
diff --git a/src/init.cpp b/src/init.cpp
index 9c4b87288..fe74fce20 100644
--- a/src/init.cpp
+++ b/src/init.cpp
@@ -476,7 +476,7 @@ std::string HelpMessage(HelpMessageMode mode)
     strUsage += HelpMessageOpt("-disablewallet", _("Do not load the wallet and disable wallet RPC calls"));
     strUsage += HelpMessageOpt("-keypool=<n>", strprintf(_("Set key pool size to <n> (default: %u)"), DEFAULT_KEYPOOL_SIZE));
     strUsage += HelpMessageOpt("-fallbackfee=<amt>", strprintf(_("A fee rate (in %s/kB) that will be used when fee estimation has insufficient data (default: %s)"),
-        CURRENCY_UNIT, FormatMoney(DEFAULT_FALLBACK_FEE)));
+        CURRENCY_UNIT, FormatMoney(DEFAULT_LEGACY_FALLBACK_FEE)));
     strUsage += HelpMessageOpt("-mintxfee=<amt>", strprintf(_("Fees (in %s/kB) smaller than this are considered zero fee for transaction creation (default: %s)"),
             CURRENCY_UNIT, FormatMoney(DEFAULT_LEGACY_TRANSACTION_MINFEE)));
     strUsage += HelpMessageOpt("-paytxfee=<amt>", strprintf(_("Fee (in %s/kB) to add to transactions you send (default: %s)"),
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index 4d2522709..e7628ae8a 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -58,7 +58,7 @@ CFeeRate CWallet::minTxFee = CFeeRate(DEFAULT_LEGACY_TRANSACTION_MINFEE);
  * Has no effect if not using fee estimation
  * Override with -fallbackfee
  */
-CFeeRate CWallet::fallbackFee = CFeeRate(DEFAULT_FALLBACK_FEE);
+CFeeRate CWallet::fallbackFee = CFeeRate(DEFAULT_LEGACY_FALLBACK_FEE);
 
 const uint256 CMerkleTx::ABANDON_HASH(uint256S("0000000000000000000000000000000000000000000000000000000000000001"));
 
diff --git a/src/wallet/wallet.h b/src/wallet/wallet.h
index 86604953b..b87250c42 100644
--- a/src/wallet/wallet.h
+++ b/src/wallet/wallet.h
@@ -48,7 +48,8 @@ static const CAmount DEFAULT_TRANSACTION_FEE = 0;
 //! -paytxfee will warn if called with a higher fee than this amount (in satoshis) per KB
 static const CAmount nHighTransactionFeeWarning = 0.01 * COIN;
 //! -fallbackfee default
-static const CAmount DEFAULT_FALLBACK_FEE = 20000;
+static const CAmount DEFAULT_LEGACY_FALLBACK_FEE = 20000;
+static const CAmount DEFAULT_DIP0001_FALLBACK_FEE = 1000;
 //! -mintxfee default
 /**
  * We are ~100 times smaller then bitcoin now (2016-03-01), set minTxFee 10 times higher