Gas Fee Model

Otto Chain has introduced EIP-1559 as similar to Ethereum, which calculates transaction fees as follows:

fee = (baseFee + priorityTip) * gasLimit

However, the Cosmos SDK currently does not have the concept of transaction prioritisation when packing transactions. Therefore, the priorityTip for an EIP-1559 transaction is set to 0 on the Otto Chain. Additionally, unlike the gas burning mechanism on Ethereum, the gas generated on the Otto Chain is used for regular Cosmos SDK fee distribution.

For more information, please refer to the feemarket documentation.