diff --git a/.pending/improvements/sdk/3940-Codespace-shoul b/.pending/improvements/sdk/3940-Codespace-shoul
new file mode 100644
index 000000000..0721a2c78
--- /dev/null
+++ b/.pending/improvements/sdk/3940-Codespace-shoul
@@ -0,0 +1 @@
+#3940 Codespace should be lowercase.
\ No newline at end of file
diff --git a/x/distribution/types/errors.go b/x/distribution/types/errors.go
index 907ad226e..274cb4419 100644
--- a/x/distribution/types/errors.go
+++ b/x/distribution/types/errors.go
@@ -8,7 +8,7 @@ import (
 type CodeType = sdk.CodeType
 
 const (
-	DefaultCodespace            sdk.CodespaceType = "DISTR"
+	DefaultCodespace            sdk.CodespaceType = "distr"
 	CodeInvalidInput            CodeType          = 103
 	CodeNoDistributionInfo      CodeType          = 104
 	CodeNoValidatorCommission   CodeType          = 105