diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index 223da0ea5..1da26fe3f 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -49,7 +49,6 @@ type BaseApp struct {
 	// must be set
 	txDecoder   sdk.TxDecoder   // unmarshal []byte into sdk.Tx
 	anteHandler sdk.AnteHandler // ante handler for fee and auth
-	txGasLimit  sdk.Gas         // per-transaction gas limit
 
 	// may be nil
 	initChainer      sdk.InitChainer  // initialize state with validators and state blob
@@ -74,7 +73,7 @@ var _ abci.Application = (*BaseApp)(nil)
 
 // Create and name new BaseApp
 // NOTE: The db is used to store the version number for now.
-func NewBaseApp(name string, cdc *wire.Codec, logger log.Logger, db dbm.DB, txGasLimit sdk.Gas) *BaseApp {
+func NewBaseApp(name string, cdc *wire.Codec, logger log.Logger, db dbm.DB) *BaseApp {
 	app := &BaseApp{
 		Logger:     logger,
 		name:       name,
@@ -84,7 +83,6 @@ func NewBaseApp(name string, cdc *wire.Codec, logger log.Logger, db dbm.DB, txGa
 		router:     NewRouter(),
 		codespacer: sdk.NewCodespacer(),
 		txDecoder:  defaultTxDecoder(cdc),
-		txGasLimit: txGasLimit,
 	}
 	// Register the undefined & root codespaces, which should not be used by any modules
 	app.codespacer.RegisterOrPanic(sdk.CodespaceUndefined)
@@ -235,9 +233,9 @@ func (app *BaseApp) initFromStore(mainKey sdk.StoreKey) error {
 // NewContext returns a new Context with the correct store, the given header, and nil txBytes.
 func (app *BaseApp) NewContext(isCheckTx bool, header abci.Header) sdk.Context {
 	if isCheckTx {
-		return sdk.NewContext(app.checkState.ms, header, true, nil, app.Logger, app.txGasLimit)
+		return sdk.NewContext(app.checkState.ms, header, true, nil, app.Logger, 0)
 	}
-	return sdk.NewContext(app.deliverState.ms, header, false, nil, app.Logger, app.txGasLimit)
+	return sdk.NewContext(app.deliverState.ms, header, false, nil, app.Logger, 0)
 }
 
 type state struct {
@@ -253,7 +251,7 @@ func (app *BaseApp) setCheckState(header abci.Header) {
 	ms := app.cms.CacheMultiStore()
 	app.checkState = &state{
 		ms:  ms,
-		ctx: sdk.NewContext(ms, header, true, nil, app.Logger, app.txGasLimit),
+		ctx: sdk.NewContext(ms, header, true, nil, app.Logger, 0),
 	}
 }
 
@@ -261,7 +259,7 @@ func (app *BaseApp) setDeliverState(header abci.Header) {
 	ms := app.cms.CacheMultiStore()
 	app.deliverState = &state{
 		ms:  ms,
-		ctx: sdk.NewContext(ms, header, false, nil, app.Logger, app.txGasLimit),
+		ctx: sdk.NewContext(ms, header, false, nil, app.Logger, 0),
 	}
 }
 
diff --git a/baseapp/baseapp_test.go b/baseapp/baseapp_test.go
index 25de7ef7e..969a9f9ad 100644
--- a/baseapp/baseapp_test.go
+++ b/baseapp/baseapp_test.go
@@ -29,7 +29,7 @@ func newBaseApp(name string) *BaseApp {
 	db := dbm.NewMemDB()
 	codec := wire.NewCodec()
 	wire.RegisterCrypto(codec)
-	return NewBaseApp(name, codec, logger, db, 10000)
+	return NewBaseApp(name, codec, logger, db)
 }
 
 func TestMountStores(t *testing.T) {
@@ -63,7 +63,7 @@ func TestLoadVersion(t *testing.T) {
 	logger := defaultLogger()
 	db := dbm.NewMemDB()
 	name := t.Name()
-	app := NewBaseApp(name, nil, logger, db, 10000)
+	app := NewBaseApp(name, nil, logger, db)
 
 	// make a cap key and mount the store
 	capKey := sdk.NewKVStoreKey("main")
@@ -85,7 +85,7 @@ func TestLoadVersion(t *testing.T) {
 	commitID := sdk.CommitID{1, res.Data}
 
 	// reload
-	app = NewBaseApp(name, nil, logger, db, 10000)
+	app = NewBaseApp(name, nil, logger, db)
 	app.MountStoresIAVL(capKey)
 	err = app.LoadLatestVersion(capKey) // needed to make stores non-nil
 	assert.Nil(t, err)
@@ -151,7 +151,7 @@ func TestInitChainer(t *testing.T) {
 	name := t.Name()
 	db := dbm.NewMemDB()
 	logger := defaultLogger()
-	app := NewBaseApp(name, nil, logger, db, 10000)
+	app := NewBaseApp(name, nil, logger, db)
 	// make cap keys and mount the stores
 	// NOTE/TODO: mounting multiple stores is broken
 	// see https://github.com/cosmos/cosmos-sdk/issues/532
@@ -188,7 +188,7 @@ func TestInitChainer(t *testing.T) {
 	assert.Equal(t, value, res.Value)
 
 	// reload app
-	app = NewBaseApp(name, nil, logger, db, 10000)
+	app = NewBaseApp(name, nil, logger, db)
 	app.MountStoresIAVL(capKey, capKey2)
 	err = app.LoadLatestVersion(capKey) // needed to make stores non-nil
 	assert.Nil(t, err)
@@ -328,7 +328,7 @@ func TestSimulateTx(t *testing.T) {
 func TestTxGasLimits(t *testing.T) {
 	logger := defaultLogger()
 	db := dbm.NewMemDB()
-	app := NewBaseApp(t.Name(), nil, logger, db, 0)
+	app := NewBaseApp(t.Name(), nil, logger, db)
 
 	// make a cap key and mount the store
 	capKey := sdk.NewKVStoreKey("main")
@@ -336,7 +336,10 @@ func TestTxGasLimits(t *testing.T) {
 	err := app.LoadLatestVersion(capKey) // needed to make stores non-nil
 	assert.Nil(t, err)
 
-	app.SetAnteHandler(func(ctx sdk.Context, tx sdk.Tx) (newCtx sdk.Context, res sdk.Result, abort bool) { return })
+	app.SetAnteHandler(func(ctx sdk.Context, tx sdk.Tx) (newCtx sdk.Context, res sdk.Result, abort bool) {
+		newCtx = ctx.WithGasMeter(sdk.NewGasMeter(0))
+		return
+	})
 	app.Router().AddRoute(msgType, func(ctx sdk.Context, msg sdk.Msg) sdk.Result {
 		ctx.GasMeter().ConsumeGas(10, "counter")
 		return sdk.Result{}
diff --git a/cmd/gaia/app/app.go b/cmd/gaia/app/app.go
index eac94bf5e..5ff532bff 100644
--- a/cmd/gaia/app/app.go
+++ b/cmd/gaia/app/app.go
@@ -51,7 +51,7 @@ func NewGaiaApp(logger log.Logger, db dbm.DB) *GaiaApp {
 
 	// create your application object
 	var app = &GaiaApp{
-		BaseApp:    bam.NewBaseApp(appName, cdc, logger, db, 1000000),
+		BaseApp:    bam.NewBaseApp(appName, cdc, logger, db),
 		cdc:        cdc,
 		keyMain:    sdk.NewKVStoreKey("main"),
 		keyAccount: sdk.NewKVStoreKey("acc"),
diff --git a/examples/basecoin/app/app.go b/examples/basecoin/app/app.go
index 06c493d91..b1a434fa2 100644
--- a/examples/basecoin/app/app.go
+++ b/examples/basecoin/app/app.go
@@ -48,7 +48,7 @@ func NewBasecoinApp(logger log.Logger, db dbm.DB) *BasecoinApp {
 
 	// Create your application object.
 	var app = &BasecoinApp{
-		BaseApp:    bam.NewBaseApp(appName, cdc, logger, db, 1000000),
+		BaseApp:    bam.NewBaseApp(appName, cdc, logger, db),
 		cdc:        cdc,
 		keyMain:    sdk.NewKVStoreKey("main"),
 		keyAccount: sdk.NewKVStoreKey("acc"),
diff --git a/examples/democoin/app/app.go b/examples/democoin/app/app.go
index 7f6c5fd4d..7c8250b18 100644
--- a/examples/democoin/app/app.go
+++ b/examples/democoin/app/app.go
@@ -56,7 +56,7 @@ func NewDemocoinApp(logger log.Logger, db dbm.DB) *DemocoinApp {
 
 	// Create your application object.
 	var app = &DemocoinApp{
-		BaseApp:            bam.NewBaseApp(appName, cdc, logger, db, 1000000),
+		BaseApp:            bam.NewBaseApp(appName, cdc, logger, db),
 		cdc:                cdc,
 		capKeyMainStore:    sdk.NewKVStoreKey("main"),
 		capKeyAccountStore: sdk.NewKVStoreKey("acc"),
diff --git a/examples/kvstore/main.go b/examples/kvstore/main.go
index bd10d31e9..856538f63 100644
--- a/examples/kvstore/main.go
+++ b/examples/kvstore/main.go
@@ -32,7 +32,7 @@ func main() {
 	var capKeyMainStore = sdk.NewKVStoreKey("main")
 
 	// Create BaseApp.
-	var baseApp = bam.NewBaseApp("kvstore", nil, logger, db, 10000)
+	var baseApp = bam.NewBaseApp("kvstore", nil, logger, db)
 
 	// Set mounts for BaseApp's MultiStore.
 	baseApp.MountStoresIAVL(capKeyMainStore)
diff --git a/mock/app.go b/mock/app.go
index 4799b726a..ab1a8447a 100644
--- a/mock/app.go
+++ b/mock/app.go
@@ -29,7 +29,7 @@ func NewApp(rootDir string, logger log.Logger) (abci.Application, error) {
 	capKeyMainStore := sdk.NewKVStoreKey("main")
 
 	// Create BaseApp.
-	baseApp := bam.NewBaseApp("kvstore", nil, logger, db, 10000)
+	baseApp := bam.NewBaseApp("kvstore", nil, logger, db)
 
 	// Set mounts for BaseApp's MultiStore.
 	baseApp.MountStoresIAVL(capKeyMainStore)
diff --git a/types/context.go b/types/context.go
index 50619f9b7..4ffd88160 100644
--- a/types/context.go
+++ b/types/context.go
@@ -43,7 +43,7 @@ func NewContext(ms MultiStore, header abci.Header, isCheckTx bool, txBytes []byt
 	c = c.WithIsCheckTx(isCheckTx)
 	c = c.WithTxBytes(txBytes)
 	c = c.WithLogger(logger)
-	c = c.WithGasMeter(NewGasMeter(gasLimit))
+	c = c.WithGasMeter(NewInfiniteGasMeter())
 	return c
 }
 
diff --git a/types/gas.go b/types/gas.go
index 78246be2d..49bfa27ec 100644
--- a/types/gas.go
+++ b/types/gas.go
@@ -38,3 +38,21 @@ func (g *basicGasMeter) ConsumeGas(amount Gas, descriptor string) {
 		panic(ErrorOutOfGas{descriptor})
 	}
 }
+
+type infiniteGasMeter struct {
+	consumed Gas
+}
+
+func NewInfiniteGasMeter() GasMeter {
+	return &infiniteGasMeter{
+		consumed: 0,
+	}
+}
+
+func (g *infiniteGasMeter) GasConsumed() Gas {
+	return g.consumed
+}
+
+func (g *infiniteGasMeter) ConsumeGas(amount Gas, descriptor string) {
+	g.consumed += amount
+}