# Gas Fee Model

Otto Chain has introduced [EIP-1559](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-1559.md) 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.](https://docs.cosmos.network/main/modules/distribution)

For more information, please refer to the [feemarket](https://docs.evmos.org/protocol/modules/feemarket) documentation.

<br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://ottochains-organization.gitbook.io/ottochain-documentation/~/changes/5TJlG0OFr1yZPiP2seBR/ottochain-technical-details/gas-fee-model.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.