Two opposing requirements, such as thermal load and nonlinear effects are important limitations in rapid progress of high-power fiber laser technologies. Thermal effects, which limit the average power, can be minimized by using low-doped, longer gain fibers, whereas presence of nonlinear effects requires use of high-doped, shorter fibers to maximize the peak power. Proposed solution of the problem is the use of varying doping levels along the gain fiber to circumvent to mitigate the trade-off between thermal load and nonlinear effects.