diff --git a/charts/linkerd2/templates/identity.yaml b/charts/linkerd2/templates/identity.yaml
index 4e3c75ef2..e26d1a18d 100644
--- a/charts/linkerd2/templates/identity.yaml
+++ b/charts/linkerd2/templates/identity.yaml
@@ -195,7 +195,7 @@ spec:
         The identity controller cannot discover policies, so we configure it with defaults that
         enforce TLS on the identity service.
       */}}
-      {{- $_ := set $tree.Values.proxy "defaultInboundPolicy" "cluster-unauthenticated" }}
+      {{- $_ := set $tree.Values.proxy "defaultInboundPolicy" "all-unauthenticated" }}
       {{- $_ := set $tree.Values.proxy "requireTLSOnInboundPorts" "8080" }}
       - {{- include "partials.proxy" $tree | indent 8 | trimPrefix (repeat 7 " ") }}
       {{ if not .Values.cniEnabled -}}
diff --git a/cli/cmd/testdata/install_controlplane_tracing_output.golden b/cli/cmd/testdata/install_controlplane_tracing_output.golden
index dfcf64960..36cab4228 100644
--- a/cli/cmd/testdata/install_controlplane_tracing_output.golden
+++ b/cli/cmd/testdata/install_controlplane_tracing_output.golden
@@ -1586,7 +1586,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_custom_domain.golden b/cli/cmd/testdata/install_custom_domain.golden
index 35a192819..04d088ec6 100644
--- a/cli/cmd/testdata/install_custom_domain.golden
+++ b/cli/cmd/testdata/install_custom_domain.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_custom_registry.golden b/cli/cmd/testdata/install_custom_registry.golden
index b45d7be21..dac2ffb58 100644
--- a/cli/cmd/testdata/install_custom_registry.golden
+++ b/cli/cmd/testdata/install_custom_registry.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_default.golden b/cli/cmd/testdata/install_default.golden
index 57f83fb48..ec6d494c8 100644
--- a/cli/cmd/testdata/install_default.golden
+++ b/cli/cmd/testdata/install_default.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_default_override_dst_get_nets.golden b/cli/cmd/testdata/install_default_override_dst_get_nets.golden
index 5e427e95c..1b9398593 100644
--- a/cli/cmd/testdata/install_default_override_dst_get_nets.golden
+++ b/cli/cmd/testdata/install_default_override_dst_get_nets.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.0.0.0/8"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_ha_output.golden b/cli/cmd/testdata/install_ha_output.golden
index 114f340eb..a2c5be406 100644
--- a/cli/cmd/testdata/install_ha_output.golden
+++ b/cli/cmd/testdata/install_ha_output.golden
@@ -1654,7 +1654,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_ha_with_overrides_output.golden b/cli/cmd/testdata/install_ha_with_overrides_output.golden
index 83e6ce1cf..474a52b9c 100644
--- a/cli/cmd/testdata/install_ha_with_overrides_output.golden
+++ b/cli/cmd/testdata/install_ha_with_overrides_output.golden
@@ -1654,7 +1654,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_heartbeat_disabled_output.golden b/cli/cmd/testdata/install_heartbeat_disabled_output.golden
index 729cab947..c065294a9 100644
--- a/cli/cmd/testdata/install_heartbeat_disabled_output.golden
+++ b/cli/cmd/testdata/install_heartbeat_disabled_output.golden
@@ -1516,7 +1516,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_helm_output.golden b/cli/cmd/testdata/install_helm_output.golden
index 5e6468dc5..70fca0ba5 100644
--- a/cli/cmd/testdata/install_helm_output.golden
+++ b/cli/cmd/testdata/install_helm_output.golden
@@ -1576,7 +1576,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_helm_output_ha.golden b/cli/cmd/testdata/install_helm_output_ha.golden
index b6d52b4a2..dba866d12 100644
--- a/cli/cmd/testdata/install_helm_output_ha.golden
+++ b/cli/cmd/testdata/install_helm_output_ha.golden
@@ -1645,7 +1645,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_helm_output_ha_labels.golden b/cli/cmd/testdata/install_helm_output_ha_labels.golden
index dd5e34300..134b4015b 100644
--- a/cli/cmd/testdata/install_helm_output_ha_labels.golden
+++ b/cli/cmd/testdata/install_helm_output_ha_labels.golden
@@ -1653,7 +1653,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_helm_output_ha_namespace_selector.golden b/cli/cmd/testdata/install_helm_output_ha_namespace_selector.golden
index a361e9981..52912128a 100644
--- a/cli/cmd/testdata/install_helm_output_ha_namespace_selector.golden
+++ b/cli/cmd/testdata/install_helm_output_ha_namespace_selector.golden
@@ -1645,7 +1645,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_no_init_container.golden b/cli/cmd/testdata/install_no_init_container.golden
index 0ab1474b4..472f8acfb 100644
--- a/cli/cmd/testdata/install_no_init_container.golden
+++ b/cli/cmd/testdata/install_no_init_container.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_output.golden b/cli/cmd/testdata/install_output.golden
index 473719a8e..bc127b2f7 100644
--- a/cli/cmd/testdata/install_output.golden
+++ b/cli/cmd/testdata/install_output.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "ClusterNetworks"
         - name: LINKERD2_PROXY_CONTROL_LISTEN_ADDR
diff --git a/cli/cmd/testdata/install_proxy_ignores.golden b/cli/cmd/testdata/install_proxy_ignores.golden
index e4087a920..5c0187b1d 100644
--- a/cli/cmd/testdata/install_proxy_ignores.golden
+++ b/cli/cmd/testdata/install_proxy_ignores.golden
@@ -1585,7 +1585,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT
diff --git a/cli/cmd/testdata/install_values_file.golden b/cli/cmd/testdata/install_values_file.golden
index 08e5b032c..eb9543894 100644
--- a/cli/cmd/testdata/install_values_file.golden
+++ b/cli/cmd/testdata/install_values_file.golden
@@ -1571,7 +1571,7 @@ spec:
         - name: LINKERD2_PROXY_POLICY_WORKLOAD
           value: "$(_pod_ns):$(_pod_name)"
         - name: LINKERD2_PROXY_INBOUND_DEFAULT_POLICY
-          value: cluster-unauthenticated
+          value: all-unauthenticated
         - name: LINKERD2_PROXY_POLICY_CLUSTER_NETWORKS
           value: "10.0.0.0/8,100.64.0.0/10,172.16.0.0/12,192.168.0.0/16"
         - name: LINKERD2_PROXY_INBOUND_CONNECT_TIMEOUT