diff --git a/cmd/geth/main.go b/cmd/geth/main.go
index e7a61f8254..483b2aca7c 100644
--- a/cmd/geth/main.go
+++ b/cmd/geth/main.go
@@ -466,8 +466,8 @@ func startNode(ctx *cli.Context, stack *node.Node, backend ethapi.Backend, isCon
 	// Start auxiliary services if enabled
 	ethBackend, ok := backend.(*eth.EthAPIBackend)
 	gasCeil := ethBackend.Miner().GasCeil()
-	if gasCeil > params.SystemTxsGas {
-		ethBackend.TxPool().SetMaxGas(gasCeil - params.SystemTxsGas)
+	if gasCeil > params.SystemTxsGasSoftLimit {
+		ethBackend.TxPool().SetMaxGas(gasCeil - params.SystemTxsGasSoftLimit)
 	}
 	if ctx.Bool(utils.MiningEnabledFlag.Name) {
 		// Mining only makes sense if a full Ethereum node is running
diff --git a/consensus/parlia/parlia.go b/consensus/parlia/parlia.go
index 64b4b12a3c..322d387840 100644
--- a/consensus/parlia/parlia.go
+++ b/consensus/parlia/parlia.go
@@ -1258,6 +1258,44 @@ func (p *Parlia) distributeFinalityReward(chain consensus.ChainHeaderReader, sta
 	return p.applyTransaction(msg, state, header, cx, txs, receipts, systemTxs, usedGas, mining, tracer)
 }
 
+func (p *Parlia) EstimateGasReservedForSystemTxs(chain consensus.ChainHeaderReader, header *types.Header) uint64 {
+	parent := chain.GetHeaderByHash(header.ParentHash)
+	if parent != nil {
+		// Mainnet and Chapel have both passed Feynman. Now, simplify the logic before and during the Feynman hard fork.
+		if p.chainConfig.IsFeynman(header.Number, header.Time) &&
+			!p.chainConfig.IsOnFeynman(header.Number, parent.Time, header.Time) {
+			// const (
+			// 	the following values represent the maximum values found in the most recent blocks on the mainnet
+			// 	depositTxGas         = uint64(60_000)
+			// 	slashTxGas           = uint64(140_000)
+			// 	finalityRewardTxGas  = uint64(350_000)
+			// 	updateValidatorTxGas = uint64(12_160_000)
+			// )
+			// suggestReservedGas := depositTxGas
+			// if header.Difficulty.Cmp(diffInTurn) != 0 {
+			// 	snap, err := p.snapshot(chain, header.Number.Uint64()-1, header.ParentHash, nil)
+			// 	if err != nil || !snap.SignRecently(snap.inturnValidator()) {
+			// 		suggestReservedGas += slashTxGas
+			// 	}
+			// }
+			// if header.Number.Uint64()%p.config.Epoch == 0 {
+			// 	suggestReservedGas += finalityRewardTxGas
+			// }
+			// if isBreatheBlock(parent.Time, header.Time) {
+			// 	suggestReservedGas += updateValidatorTxGas
+			// }
+			// return suggestReservedGas * 150 / 100
+			if !isBreatheBlock(parent.Time, header.Time) {
+				// params.SystemTxsGasSoftLimit > (depositTxGas+slashTxGas+finalityRewardTxGas)*150/100
+				return params.SystemTxsGasSoftLimit
+			}
+		}
+	}
+
+	// params.SystemTxsGasHardLimit > (depositTxGas+slashTxGas+finalityRewardTxGas+updateValidatorTxGas)*150/100
+	return params.SystemTxsGasHardLimit
+}
+
 // Finalize implements consensus.Engine, ensuring no uncles are set, nor block
 // rewards given.
 func (p *Parlia) Finalize(chain consensus.ChainHeaderReader, header *types.Header, state vm.StateDB, txs *[]*types.Transaction,
diff --git a/eth/api_miner.go b/eth/api_miner.go
index 56db9e94b1..64b3130dae 100644
--- a/eth/api_miner.go
+++ b/eth/api_miner.go
@@ -73,8 +73,8 @@ func (api *MinerAPI) SetGasPrice(gasPrice hexutil.Big) bool {
 // SetGasLimit sets the gaslimit to target towards during mining.
 func (api *MinerAPI) SetGasLimit(gasLimit hexutil.Uint64) bool {
 	api.e.Miner().SetGasCeil(uint64(gasLimit))
-	if uint64(gasLimit) > params.SystemTxsGas {
-		api.e.TxPool().SetMaxGas(uint64(gasLimit) - params.SystemTxsGas)
+	if uint64(gasLimit) > params.SystemTxsGasSoftLimit {
+		api.e.TxPool().SetMaxGas(uint64(gasLimit) - params.SystemTxsGasSoftLimit)
 	}
 	return true
 }
diff --git a/miner/bid_simulator.go b/miner/bid_simulator.go
index a48407b7e2..baa2c9c1c5 100644
--- a/miner/bid_simulator.go
+++ b/miner/bid_simulator.go
@@ -17,6 +17,7 @@ import (
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/common/bidutil"
 	"github.com/ethereum/go-ethereum/consensus"
+	"github.com/ethereum/go-ethereum/consensus/parlia"
 	"github.com/ethereum/go-ethereum/core"
 	"github.com/ethereum/go-ethereum/core/txpool"
 	"github.com/ethereum/go-ethereum/core/types"
@@ -582,7 +583,9 @@ func (b *bidSimulator) simBid(interruptCh chan int32, bidRuntime *BidRuntime) {
 	gasLimit := bidRuntime.env.header.GasLimit
 	if bidRuntime.env.gasPool == nil {
 		bidRuntime.env.gasPool = new(core.GasPool).AddGas(gasLimit)
-		bidRuntime.env.gasPool.SubGas(params.SystemTxsGas)
+		if p, ok := b.engine.(*parlia.Parlia); ok {
+			bidRuntime.env.gasPool.SubGas(p.EstimateGasReservedForSystemTxs(b.chain, bidRuntime.env.header))
+		}
 		bidRuntime.env.gasPool.SubGas(params.PayBidTxGasLimit)
 	}
 
diff --git a/miner/worker.go b/miner/worker.go
index e23b0eced0..f84e862b55 100644
--- a/miner/worker.go
+++ b/miner/worker.go
@@ -790,7 +790,11 @@ func (w *worker) commitTransactions(env *environment, plainTxs, blobTxs *transac
 	gasLimit := env.header.GasLimit
 	if env.gasPool == nil {
 		env.gasPool = new(core.GasPool).AddGas(gasLimit)
-		env.gasPool.SubGas(params.SystemTxsGas)
+		if p, ok := w.engine.(*parlia.Parlia); ok {
+			gasReserved := p.EstimateGasReservedForSystemTxs(w.chain, env.header)
+			env.gasPool.SubGas(gasReserved)
+			log.Debug("commitTransactions", "number", env.header.Number.Uint64(), "time", env.header.Time, "EstimateGasReservedForSystemTxs", gasReserved)
+		}
 	}
 
 	var coalescedLogs []*types.Log
diff --git a/params/protocol_params.go b/params/protocol_params.go
index c83e330a8c..800c8578cd 100644
--- a/params/protocol_params.go
+++ b/params/protocol_params.go
@@ -38,7 +38,8 @@ const (
 	CallValueTransferGas  uint64 = 9000     // Paid for CALL when the value transfer is non-zero.
 	CallNewAccountGas     uint64 = 25000    // Paid for CALL when the destination address didn't exist prior.
 	TxGas                 uint64 = 21000    // Per transaction not creating a contract. NOTE: Not payable on data of calls between transactions.
-	SystemTxsGas          uint64 = 20000000 // The gas reserved for system txs; only for parlia consensus
+	SystemTxsGasHardLimit uint64 = 20000000 // Maximum gas reserved for system transactions (Parlia consensus only)
+	SystemTxsGasSoftLimit uint64 = 1000000  // Maximum gas reserved for system transactions, excluding validator update transactions (Parlia consensus only)
 	TxGasContractCreation uint64 = 53000    // Per transaction that creates a contract. NOTE: Not payable on data of calls between transactions.
 	TxDataZeroGas         uint64 = 4        // Per byte of data attached to a transaction that equals zero. NOTE: Not payable on data of calls between transactions.
 	QuadCoeffDiv          uint64 = 512      // Divisor for the quadratic particle of the memory cost equation.