diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0925518..7a86d5a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,7 +9,14 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 <!-- ### Added -->
 
-<!-- ### Changed -->
+### Changed
+
+- (!) History uses `XDG_STATE_HOME` directory by default:
+  This constitutes a break in behavior if you relied a lot on your pick history in the default
+  location. To retain your old history file, simply move it from the old cache directory
+  (`~/.cache/bemoji-history.txt` by default) to the new one (`~/.local/state/bemoji-history.txt`
+  by default).
+- (!) `XDG_CACHE_LOCATION` renamed to `XDG_HISTORY_LOCATION` to better signify its purpose
 
 <!-- ### Deprecated -->
 
diff --git a/README.md b/README.md
index ba08616..f87eb72 100644
--- a/README.md
+++ b/README.md
@@ -144,14 +144,14 @@ If you don't wish those to show up, make use of these options.
 
 ### Setting custom directories
 
-By default bemoji stores your recent history in `$XDG_CACHE_HOME/bemoji-history.txt`,
-so most often in `~/.cache/bemoji-history.txt`
+By default bemoji stores your recent history in `$XDG_STATE_HOME/bemoji-history.txt`,
+so most often in `~/.local/state/bemoji-history.txt`
 
 You can overwrite the directories bemoji uses for its emoji lists and history files with the following two environment variables:
 
 ```
 BEMOJI_DB_LOCATION=/path/to/my/emoji/directory
-BEMOJI_CACHE_LOCATION=/path/to/my/cache/directory
+BEMOJI_HISTORY_LOCATION=/path/to/my/state/directory
 ```
 
 There are no equivalent commandline arguments to overwrite these two settings.
@@ -247,7 +247,7 @@ with their default settings
 
 ```bash
 BEMOJI_DB_LOCATION=$XDG_DATA_HOME/bemoji # where the emoji lists reside
-BEMOJI_CACHE_LOCATION=$XDG_CACHE_HOME # where the cache file resides
+BEMOJI_HISTORY_LOCATION=$XDG_STATE_HOME # where the state file resides
 BEMOJI_CUSTOM_LIST="" # the custom emoji list to display
 BEMOJI_DOWNLOAD_LIST="" # the default emoji lists to download to database
 BEMOJI_DEFAULT_COMMAND=<clip-tool> # which command to invoke by default
diff --git a/bemoji b/bemoji
index 723b911..d3df589 100755
--- a/bemoji
+++ b/bemoji
@@ -5,10 +5,10 @@ bm_version=0.3.0
 bm_db_location=${BEMOJI_DB_LOCATION:-"${XDG_DATA_HOME:-$HOME/.local/share}/bemoji"}
 # Setting custom emoji list file location:
 # BEMOJI_CUSTOM_LIST=/my/location/emojis.txt
-# Setting custom recent emoji cache:
-# BEMOJI_CACHE_LOCATION=/path/to/my/recents/directory
-bm_cache_dir="${BEMOJI_CACHE_LOCATION:-${XDG_CACHE_HOME:-$HOME/.cache}}"
-bm_history_file="${bm_cache_dir}/bemoji-history.txt"
+# Setting custom recent emoji history:
+# BEMOJI_HISTORY_LOCATION=/path/to/my/recents/directory
+bm_state_dir="${BEMOJI_HISTORY_LOCATION:-${XDG_STATE_HOME:-$HOME/.local/state}}"
+bm_history_file="${bm_state_dir}/bemoji-history.txt"
 
 # Command to run after user chooses an emoji
 bm_default_cmd="$BEMOJI_DEFAULT_CMD"
@@ -140,8 +140,8 @@ get_most_recent() {
 
 add_to_recent() {
     if [ -z "$1" ]; then return; fi
-    if [ ! -d "$bm_cache_dir" ]; then
-        mkdir -p "$bm_cache_dir"
+    if [ ! -d "$bm_state_dir" ]; then
+        mkdir -p "$bm_state_dir"
     fi
     echo "$1" >>"$bm_history_file"
 }
diff --git a/test/bemoji_cmds.bats b/test/bemoji_cmds.bats
index 2b0a937..2d0f324 100644
--- a/test/bemoji_cmds.bats
+++ b/test/bemoji_cmds.bats
@@ -15,8 +15,8 @@ setup() {
 
     # set up small default set of test emoji for each test
     export BEMOJI_DB_LOCATION="$BATS_TEST_TMPDIR/database"
-    export BEMOJI_CACHE_LOCATION="$BATS_TEST_TMPDIR/cache"
-    mkdir -p "$BEMOJI_DB_LOCATION" "$BEMOJI_CACHE_LOCATION"
+    export BEMOJI_HISTORY_LOCATION="$BATS_TEST_TMPDIR/history"
+    mkdir -p "$BEMOJI_DB_LOCATION" "$BEMOJI_HISTORY_LOCATION"
     cat "$BATS_TEST_DIRNAME/resources/test_emoji.txt" > "$BEMOJI_DB_LOCATION/emoji.txt"
 }
 
diff --git a/test/bemoji_directories.bats b/test/bemoji_directories.bats
index 28068e1..ede78a0 100644
--- a/test/bemoji_directories.bats
+++ b/test/bemoji_directories.bats
@@ -15,8 +15,8 @@ setup() {
 
     # set up small default set of test emoji for each test
     export BEMOJI_DB_LOCATION="$BATS_TEST_TMPDIR/database"
-    export BEMOJI_CACHE_LOCATION="$BATS_TEST_TMPDIR/cache"
-    mkdir -p "$BEMOJI_DB_LOCATION" "$BEMOJI_CACHE_LOCATION"
+    export BEMOJI_HISTORY_LOCATION="$BATS_TEST_TMPDIR/history"
+    mkdir -p "$BEMOJI_DB_LOCATION" "$BEMOJI_HISTORY_LOCATION"
     cat "$BATS_TEST_DIRNAME/resources/test_emoji.txt" > "$BEMOJI_DB_LOCATION/emoji.txt"
 }
 
@@ -38,8 +38,8 @@ database=$BATS_TEST_TMPDIR/xdb-db/bemoji
 }
 
 @test "sets XDG directory for history by default" {
-    unset BEMOJI_CACHE_LOCATION
-    export XDG_CACHE_HOME="$BATS_TEST_TMPDIR/xdb-cache"
+    unset BEMOJI_HISTORY_LOCATION
+    export XDG_STATE_HOME="$BATS_TEST_TMPDIR/xdb-cache"
     run bemoji -v
     assert_output --regexp "
 history=$BATS_TEST_TMPDIR/xdb-cache/bemoji-history.txt$"
@@ -54,10 +54,10 @@ database=$HOME/.local/share/bemoji
 }
 
 @test "falls back to default history location if no XDG found" {
-    unset BEMOJI_CACHE_LOCATION
+    unset BEMOJI_HISTORY_LOCATION
     run bemoji -v
     assert_output --regexp "
-history=$HOME/.cache/bemoji-history.txt$"
+history=$HOME/.local/state/bemoji-history.txt$"
 }
 
 @test "BEMOJI_DB_LOCATION sets correct db directory" {
@@ -67,8 +67,8 @@ database=$BATS_TEST_TMPDIR/database
 "
 }
 
-@test "BEMOJI_CACHE_LOCATION sets correct cache directory" {
+@test "BEMOJI_HISTORY_LOCATION sets correct history directory" {
     run bemoji -v
     assert_output --regexp "
-history=$BATS_TEST_TMPDIR/cache/bemoji-history.txt$"
+history=$BATS_TEST_TMPDIR/history/bemoji-history.txt$"
 }