40% damage increase is probably a bit much even for the poor UACs...
Depends on the jam rule. "Roll to-hit six times, jam on any single roll of 2-4" basically makes the weapon a one-shot, statistically. Even if it's jam on any roll of 2, that's still pretty rough. I think you can play with that to get something moderately balanced, though it may be frustrating for all involved.
How about "Each shot has a THN that's +1 worse than the previous"? You could maybe even eliminate the jam rule there.
On a base THN of 6, for example, you'd hit with the following number of shots on average:
1: 0.72 shots.
2: 1.02 shots canon rule, 1.31 shots proposed rule.
3: 1.44 shots canon rule, 1.72 shots proposed rule.
4: 1.91 shots canon rule, 2.00 shots proposed rule.
5: 2.28 shots canon rule, 2.17 shots proposed rule.
6: 2.88 shots canon rule, 2.25 shots proposed rule.
This helps smaller bursts a lot, particularly UACs, but big RAC bursts get worse unless the THNs get very low(a 6-shot burst is better than the canon rule on THNs of 2-4, and worse if it's higher).