diff --git a/x/auction/types/msgs_test.go b/x/auction/types/msgs_test.go
index 2415333..80d599b 100644
--- a/x/auction/types/msgs_test.go
+++ b/x/auction/types/msgs_test.go
@@ -99,6 +99,7 @@ func TestMsgUpdateParams(t *testing.T) {
 				Authority: "",
 				Params:    types.Params{},
 			},
+			expectPass: false,
 		},
 		{
 			description: "invalid message with invalid params (invalid escrow address)",
@@ -110,6 +111,16 @@ func TestMsgUpdateParams(t *testing.T) {
 			},
 			expectPass: false,
 		},
+		{
+			description: "valid message",
+			msg: types.MsgUpdateParams{
+				Authority: sdk.AccAddress([]byte("test")).String(),
+				Params: types.Params{
+					EscrowAccountAddress: sdk.AccAddress([]byte("test")).String(),
+				},
+			},
+			expectPass: true,
+		},
 	}
 
 	for _, tc := range cases {
diff --git a/x/auction/types/params.go b/x/auction/types/params.go
index fd53732..ffeada2 100644
--- a/x/auction/types/params.go
+++ b/x/auction/types/params.go
@@ -7,10 +7,7 @@ import (
 )
 
 var (
-	// TODO: Choose reasonable default values.
-	//
-	// Ref: https://github.com/skip-mev/pob/issues/7
-	DefaultMaxBundleSize        uint32
+	DefaultMaxBundleSize        uint32 = 2
 	DefaultEscrowAccountAddress string
 	DefaultReserveFee           = sdk.Coins{}
 	DefaultMinBuyInFee          = sdk.Coins{}