The current badges are very tightly padded, and because the top and bottom padding are the same, and aligned to the baseline, this makes badges with descenders (e.g. the "g" in "Danger") look uncomfortably close to the bottom. Adding more ample padding masks this a bit. An alternative would be to have separate top and bottom padding, with the bottom one slightly larger than the top - but conversely, that then makes badges that contain no text with descenders, and particularly badges that contain all uppercase characters, look too bottom-heavy. Also adding some left/right extra padding, as currently the pill badges look uncomfortably tight on the sides due to the rounding.