# How are Gas and Fees Handled on E Money Network?​

Fundamentally, the E Money Network is a Cosmos SDK chain that enables EVM compatibility as part of a Cosmos SDK module. As a result of this architecture all EVM transactions are ultimately encoded as Cosmos SDK transactions that update a Cosmos SDK-managed state.

Since all transactions are represented as Cosmos SDK transactions their corresponding transaction fees can be treated identically across execution layers. In practice, dealing with fees requires 3 types of logic. These are the standard Cosmos SDK logic, some Ethereum logic and custom e-money logic. For the most part, fees are collected by the fee\_collector module and then paid out to validators and delegators. A few key distinctions are as follows:

1\. Fee Market Module

In order to support EIP-1559 gas and fee calculation on E Money Network EVM layer, E Money Network tracks the gas supplied for each block. This is used to calculate a base fee for future EVM transactions. In this way EVM dynamic fees are enabled and transaction prioritisation is as specified by EIP-1559. For EVM transactions each node bypasses their local min-gas-prices configuration and instead applies EIP-1559 fee logic. The gas price must be greater than both the global min-gas-price and the block's BaseFee. The surplus is considered a priority tip. This allows validators to compute Ethereum fees without applying Cosmos SDK fee logic. Unlike on Ethereum, the BaseFee on E Money Network is not burned but is instead distributed to validators and delegators. Furthermore, the BaseFee is lower-bounded by the global min-gas-price. Currently, the global min-gas-price parameter is set to zero although it can be updated via Governance.

2\. EVM Gas Refunds

E Money Network refunds a fraction (at least 50% by default) of the unused gas for EVM transactions to approximate the current behaviour on Ethereum.[ Why not always 100%?](https://github.com/evmos/ethermint/issues/1085)

3\. Revenue Module

E Money Network developed the Revenue Module as a way to reward developers for creating useful Dapps. Any contract that is registered with E Money Network Revenue Module rewards a fraction of the transaction fee (currently 95%) from each transaction that interacts with the contract to the contract developer. Validators and Delegators earn the remaining portion.<br>


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