diff --git a/docs/changelog_for_devs.md b/docs/changelog_for_devs.md
index 28b75a85d..491cdde57 100644
--- a/docs/changelog_for_devs.md
+++ b/docs/changelog_for_devs.md
@@ -14,6 +14,7 @@ APIs/RPC interface.
 
 ## v0.3.9
 
+[#1011]: https://github.com/zeitgeistpm/zeitgeist/pull/1011
 [#937]: https://github.com/zeitgeistpm/zeitgeist/pull/937
 [#903]: https://github.com/zeitgeistpm/zeitgeist/pull/903
 
@@ -21,6 +22,9 @@ APIs/RPC interface.
 
 - ⚠️ Add `outsider` field to `MarketBonds` struct. In particular, the `Market`
   struct's layout has changed ([#903]).
+- Adjust `deposit` function used to calculate storage fees for the following
+  pallets: identity, multisig, preimage, proxy. The cost of adding an identity
+  reduced from a minimum of 125 ZTG to a minimum of 1.5243 ZTG ([#1011])
 
 ### Fixed
 
diff --git a/primitives/src/constants.rs b/primitives/src/constants.rs
index 1c66ffcd6..ec0dd7740 100644
--- a/primitives/src/constants.rs
+++ b/primitives/src/constants.rs
@@ -42,8 +42,10 @@ pub const CENT: Balance = BASE / 100; // 100_000_000
 pub const MILLI: Balance = CENT / 10; //  10_000_000
 pub const MICRO: Balance = MILLI / 1000; // 10_000
 
+/// Storage cost per byte and item.
+// Approach: Achieve same cost per item and bytes in relation to total supply as on Polkadot.
 pub const fn deposit(items: u32, bytes: u32) -> Balance {
-    items as Balance * 20 * BASE + (bytes as Balance) * 100 * MILLI
+    items as Balance * 150 * CENT + (bytes as Balance) * 75 * MICRO
 }
 
 // Rikiddo and TokensConfig
diff --git a/runtime/battery-station/src/parameters.rs b/runtime/battery-station/src/parameters.rs
index 0d9ee4467..753e92efd 100644
--- a/runtime/battery-station/src/parameters.rs
+++ b/runtime/battery-station/src/parameters.rs
@@ -119,9 +119,9 @@ parameter_types! {
 
     // Identity
     /// The amount held on deposit for a registered identity
-    pub const BasicDeposit: Balance = 8 * BASE;
+    pub const BasicDeposit: Balance = deposit(1, 258);
     /// The amount held on deposit per additional field for a registered identity.
-    pub const FieldDeposit: Balance = 256 * CENT;
+    pub const FieldDeposit: Balance = deposit(0, 66);
     /// Maximum number of additional fields that may be stored in an ID. Needed to bound the I/O
     /// required to access an identity, but can be pretty high.
     pub const MaxAdditionalFields: u32 = 64;
@@ -133,7 +133,7 @@ parameter_types! {
     /// The amount held on deposit for a registered subaccount. This should account for the fact
     /// that one storage item's value will increase by the size of an account ID, and there will
     /// be another trie item whose value is the size of an account ID plus 32 bytes.
-    pub const SubAccountDeposit: Balance = 2 * BASE;
+    pub const SubAccountDeposit: Balance = deposit(1, 53);
 
     // Liquidity Mining parameters
     /// Pallet identifier, mainly used for named balance reserves.
diff --git a/runtime/zeitgeist/src/parameters.rs b/runtime/zeitgeist/src/parameters.rs
index 2b550afe9..f2aa054be 100644
--- a/runtime/zeitgeist/src/parameters.rs
+++ b/runtime/zeitgeist/src/parameters.rs
@@ -119,9 +119,9 @@ parameter_types! {
 
     // Identity
     /// The amount held on deposit for a registered identity
-    pub const BasicDeposit: Balance = 100 * BASE;
+    pub const BasicDeposit: Balance = deposit(1, 258);
     /// The amount held on deposit per additional field for a registered identity.
-    pub const FieldDeposit: Balance = 25 * BASE;
+    pub const FieldDeposit: Balance = deposit(0, 66);
     /// Maximum number of additional fields that may be stored in an ID. Needed to bound the I/O
     /// required to access an identity, but can be pretty high.
     pub const MaxAdditionalFields: u32 = 16;
@@ -133,7 +133,7 @@ parameter_types! {
     /// The amount held on deposit for a registered subaccount. This should account for the fact
     /// that one storage item's value will increase by the size of an account ID, and there will
     /// be another trie item whose value is the size of an account ID plus 32 bytes.
-    pub const SubAccountDeposit: Balance = 20 * BASE;
+    pub const SubAccountDeposit: Balance = deposit(1, 53);
 
     // Liquidity Mining parameters
     /// Pallet identifier, mainly used for named balance reserves. DO NOT CHANGE.