diff --git a/.env.example b/.env.example
index 496bb905b..d911096db 100644
--- a/.env.example
+++ b/.env.example
@@ -34,6 +34,9 @@ LNBITS_BACKEND_WALLET_CLASS=VoidWallet
 # VoidWallet is just a fallback that works without any actual Lightning capabilities,
 # just so you can see the UI before dealing with this file.
 
+# How many times to retry connectiong to the Funding Source before defaulting to the VoidWallet
+# FUNDING_SOURCE_MAX_RETRIES=4
+
 # Invoice expiry for LND, CLN, Eclair, LNbits funding sources
 LIGHTNING_INVOICE_EXPIRY=3600
 
diff --git a/lnbits/app.py b/lnbits/app.py
index da82cfe84..5062b8612 100644
--- a/lnbits/app.py
+++ b/lnbits/app.py
@@ -180,8 +180,7 @@ async def check_funding_source() -> None:
 
     WALLET = get_wallet_class()
 
-    sleep_time = 5
-    max_retries = 5
+    max_retries = settings.funding_source_max_retries
     retry_counter = 0
 
     while True:
@@ -203,12 +202,13 @@ async def check_funding_source() -> None:
         except Exception as e:
             logger.error(f"Error connecting to {WALLET.__class__.__name__}: {e}")
 
-        if retry_counter == max_retries:
+        if retry_counter >= max_retries:
             set_void_wallet_class()
             WALLET = get_wallet_class()
             break
 
         retry_counter += 1
+        sleep_time = 0.25 * (2**retry_counter)
         logger.warning(
             f"Retrying connection to backend in {sleep_time} seconds... "
             f"({retry_counter}/{max_retries})"
diff --git a/lnbits/settings.py b/lnbits/settings.py
index 2e7459fa9..2388f3132 100644
--- a/lnbits/settings.py
+++ b/lnbits/settings.py
@@ -377,6 +377,7 @@ class EnvSettings(LNbitsSettings):
     log_retention: str = Field(default="3 months")
     server_startup_time: int = Field(default=time())
     cleanup_wallets_days: int = Field(default=90)
+    funding_source_max_retries: int = Field(default=4)
 
     @property
     def has_default_extension_path(self) -> bool: