BurnBaseFee in ApplyTransaction after RefundGas#4
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0xNilesh merged 23 commits intofeat/derived-txfrom Feb 18, 2026
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0xNilesh
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Feb 10, 2026
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Description
Base Fee Burn
Previously, the
baseFeewas collected in the ante-handler and later distributed by the Cosmos SDK distribution module.This PR changes that behavior to burn the base fee, aligning the mechanism more closely with Ethereum’s EIP-1559 model.
New Logic
After a transaction is executed:
refundGas, the sender is refunded:baseFee * gasUsedbaseFee * gasUsedfrom the sender’s account.This effectively removes the base fee from circulation instead of redistributing it.
Fixes
Issue 1:
TxEthereumTest FailureProblem:
The
TxEthereumtest case was failing because thefeeCollectorhad zero funds.This happened because the test bypassed the ante-handler, where fees are normally collected.
Solution:
Funded the
feeCollectoraccount before executingTxEthereumin the test setup.Issue 2: Bank Extension Integration Test Failures
Problem:
After introducing the
burnBaseFeefeature, integration tests started failing.Previously:
With the new logic:
Failure Scenario
During test setup:
BeforeEachdeploys a contract, consuming gas (~0.337 tokens).Solution
Updated tests to query the total supply dynamically instead of using hardcoded values.
Author Checklist
All items are required. Please add a note to the item if the item is not applicable and
please add links to any relevant follow up issues.
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