diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index 8de849200..60e32afa4 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -23,6 +23,17 @@ import (
 // and to avoid affecting the Merkle root.
 var dbHeaderKey = []byte("header")
 
+type RunTxMode uint8
+
+const (
+	// Check a transaction
+	RunTxModeCheck RunTxMode = iota
+	// Simulate a transaction
+	RunTxModeSimulate RunTxMode = iota
+	// Deliver a transaction
+	RunTxModeDeliver RunTxMode = iota
+)
+
 // The ABCI application
 type BaseApp struct {
 	// initialized on creation
@@ -309,13 +320,17 @@ func (app *BaseApp) FilterPeerByPubKey(info string) abci.ResponseQuery {
 // Implements ABCI.
 // Delegates to CommitMultiStore if it implements Queryable
 func (app *BaseApp) Query(req abci.RequestQuery) (res abci.ResponseQuery) {
-	path := req.Path
+	path := strings.Split(req.Path, "/")
+	// first element is empty string
+	if len(path) > 0 && path[0] == "" {
+		path = path[1:]
+	}
+	fmt.Sprintf("Path: %v\n", path)
 	// "/app" prefix for special application queries
-	if strings.HasPrefix(path, "/app") {
-		query := path[4:]
+	if len(path) >= 2 && path[0] == "app" {
 		var result sdk.Result
-		switch query {
-		case "/simulate":
+		switch path[1] {
+		case "simulate":
 			txBytes := req.Data
 			tx, err := app.txDecoder(txBytes)
 			if err != nil {
@@ -333,27 +348,23 @@ func (app *BaseApp) Query(req abci.RequestQuery) (res abci.ResponseQuery) {
 		}
 	}
 	// "/store" prefix for store queries
-	if strings.HasPrefix(path, "/store") {
+	if len(path) >= 1 && path[0] == "store" {
 		queryable, ok := app.cms.(sdk.Queryable)
 		if !ok {
 			msg := "multistore doesn't support queries"
 			return sdk.ErrUnknownRequest(msg).QueryResult()
 		}
-		req.Path = req.Path[6:] // slice off "/store"
+		req.Path = "/" + strings.Join(path[1:], "/")
 		return queryable.Query(req)
 	}
 	// "/p2p" prefix for p2p queries
-	if strings.HasPrefix(path, "/p2p") {
-		path = path[4:]
-		if strings.HasPrefix(path, "/filter") {
-			path = path[7:]
-			if strings.HasPrefix(path, "/addr") {
-				path = path[6:]
-				return app.FilterPeerByAddrPort(path)
+	if len(path) >= 4 && path[0] == "p2p" {
+		if path[1] == "filter" {
+			if path[2] == "addr" {
+				return app.FilterPeerByAddrPort(path[3])
 			}
-			if strings.HasPrefix(path, "/pubkey") {
-				path = path[8:]
-				return app.FilterPeerByPubKey(path)
+			if path[2] == "pubkey" {
+				return app.FilterPeerByPubKey(path[3])
 			}
 		}
 	}
@@ -385,7 +396,7 @@ func (app *BaseApp) CheckTx(txBytes []byte) (res abci.ResponseCheckTx) {
 	if err != nil {
 		result = err.Result()
 	} else {
-		result = app.runTx(true, false, txBytes, tx)
+		result = app.runTx(RunTxModeCheck, txBytes, tx)
 	}
 
 	return abci.ResponseCheckTx{
@@ -410,7 +421,7 @@ func (app *BaseApp) DeliverTx(txBytes []byte) (res abci.ResponseDeliverTx) {
 	if err != nil {
 		result = err.Result()
 	} else {
-		result = app.runTx(false, false, txBytes, tx)
+		result = app.runTx(RunTxModeDeliver, txBytes, tx)
 	}
 
 	// After-handler hooks.
@@ -434,22 +445,22 @@ func (app *BaseApp) DeliverTx(txBytes []byte) (res abci.ResponseDeliverTx) {
 
 // nolint - Mostly for testing
 func (app *BaseApp) Check(tx sdk.Tx) (result sdk.Result) {
-	return app.runTx(true, false, nil, tx)
+	return app.runTx(RunTxModeCheck, nil, tx)
 }
 
 // nolint - full tx execution
 func (app *BaseApp) Simulate(tx sdk.Tx) (result sdk.Result) {
-	return app.runTx(true, true, nil, tx)
+	return app.runTx(RunTxModeSimulate, nil, tx)
 }
 
 // nolint
 func (app *BaseApp) Deliver(tx sdk.Tx) (result sdk.Result) {
-	return app.runTx(false, false, nil, tx)
+	return app.runTx(RunTxModeDeliver, nil, tx)
 }
 
 // txBytes may be nil in some cases, eg. in tests.
 // Also, in the future we may support "internal" transactions.
-func (app *BaseApp) runTx(isCheckTx bool, simulateDeliver bool, txBytes []byte, tx sdk.Tx) (result sdk.Result) {
+func (app *BaseApp) runTx(mode RunTxMode, txBytes []byte, tx sdk.Tx) (result sdk.Result) {
 	// Handle any panics.
 	defer func() {
 		if r := recover(); r != nil {
@@ -479,17 +490,14 @@ func (app *BaseApp) runTx(isCheckTx bool, simulateDeliver bool, txBytes []byte,
 
 	// Get the context
 	var ctx sdk.Context
-	if isCheckTx {
+	if mode == RunTxModeCheck || mode == RunTxModeSimulate {
 		ctx = app.checkState.ctx.WithTxBytes(txBytes)
 	} else {
 		ctx = app.deliverState.ctx.WithTxBytes(txBytes)
 	}
 
-	// Create a new zeroed gas meter
-	ctx = ctx.WithGasMeter(sdk.NewGasMeter(app.txGasLimit))
-
 	// Simulate a DeliverTx for gas calculation
-	if isCheckTx && simulateDeliver {
+	if mode == RunTxModeSimulate {
 		ctx = ctx.WithIsCheckTx(false)
 	}
 
@@ -513,7 +521,7 @@ func (app *BaseApp) runTx(isCheckTx bool, simulateDeliver bool, txBytes []byte,
 
 	// Get the correct cache
 	var msCache sdk.CacheMultiStore
-	if isCheckTx {
+	if mode == RunTxModeCheck || mode == RunTxModeSimulate {
 		// CacheWrap app.checkState.ms in case it fails.
 		msCache = app.checkState.CacheMultiStore()
 		ctx = ctx.WithMultiStore(msCache)
@@ -529,7 +537,7 @@ func (app *BaseApp) runTx(isCheckTx bool, simulateDeliver bool, txBytes []byte,
 	result.GasUsed = ctx.GasMeter().GasConsumed()
 
 	// If not a simulated run and result was successful, write to app.checkState.ms or app.deliverState.ms
-	if !simulateDeliver && result.IsOK() {
+	if mode != RunTxModeSimulate && result.IsOK() {
 		msCache.Write()
 	}
 
diff --git a/baseapp/baseapp_test.go b/baseapp/baseapp_test.go
index e54993648..25de7ef7e 100644
--- a/baseapp/baseapp_test.go
+++ b/baseapp/baseapp_test.go
@@ -305,7 +305,7 @@ func TestSimulateTx(t *testing.T) {
 		app.BeginBlock(abci.RequestBeginBlock{Header: header})
 		result := app.Simulate(tx)
 		require.Equal(t, result.Code, sdk.ABCICodeOK)
-		require.Equal(t, result.GasUsed, int64(80))
+		require.Equal(t, int64(80), result.GasUsed)
 		counter--
 		encoded, err := json.Marshal(tx)
 		require.Nil(t, err)
@@ -317,8 +317,8 @@ func TestSimulateTx(t *testing.T) {
 		require.Equal(t, queryResult.Code, uint32(sdk.ABCICodeOK))
 		var res sdk.Result
 		app.cdc.MustUnmarshalBinary(queryResult.Value, &res)
-		require.Equal(t, res.Code, sdk.ABCICodeOK)
-		require.Equal(t, res.GasUsed, int64(80))
+		require.Equal(t, sdk.ABCICodeOK, res.Code)
+		require.Equal(t, int64(160), res.GasUsed)
 		app.EndBlock(abci.RequestEndBlock{})
 		app.Commit()
 	}
diff --git a/client/context/helpers.go b/client/context/helpers.go
index 47c94c98e..562bde9b4 100644
--- a/client/context/helpers.go
+++ b/client/context/helpers.go
@@ -113,6 +113,7 @@ func (ctx CoreContext) SignAndBuild(name, passphrase string, msg sdk.Msg, cdc *w
 		ChainID:   chainID,
 		Sequences: []int64{sequence},
 		Msg:       msg,
+		Fee:       sdk.NewStdFee(10000, sdk.Coin{}), // TODO run simulate to estimate gas?
 	}
 
 	keybase, err := keys.GetKeyBase()
diff --git a/cmd/gaia/app/app_test.go b/cmd/gaia/app/app_test.go
index 3bca2654b..fd26ce27a 100644
--- a/cmd/gaia/app/app_test.go
+++ b/cmd/gaia/app/app_test.go
@@ -40,7 +40,7 @@ var (
 	manyCoins = sdk.Coins{{"foocoin", 1}, {"barcoin", 1}}
 	fee       = sdk.StdFee{
 		sdk.Coins{{"foocoin", 0}},
-		0,
+		100000,
 	}
 
 	sendMsg1 = bank.MsgSend{
diff --git a/examples/basecoin/app/app_test.go b/examples/basecoin/app/app_test.go
index 034e19860..d0b59f331 100644
--- a/examples/basecoin/app/app_test.go
+++ b/examples/basecoin/app/app_test.go
@@ -39,7 +39,7 @@ var (
 	manyCoins = sdk.Coins{{"foocoin", 1}, {"barcoin", 1}}
 	fee       = sdk.StdFee{
 		sdk.Coins{{"foocoin", 0}},
-		0,
+		100000,
 	}
 
 	sendMsg1 = bank.MsgSend{
diff --git a/examples/democoin/app/app_test.go b/examples/democoin/app/app_test.go
index c67782d92..b0f188f10 100644
--- a/examples/democoin/app/app_test.go
+++ b/examples/democoin/app/app_test.go
@@ -33,7 +33,7 @@ var (
 	coins = sdk.Coins{{"foocoin", 10}}
 	fee   = sdk.StdFee{
 		sdk.Coins{{"foocoin", 0}},
-		0,
+		1000000,
 	}
 
 	sendMsg = bank.MsgSend{
diff --git a/x/auth/ante.go b/x/auth/ante.go
index 69b867e17..248083206 100644
--- a/x/auth/ante.go
+++ b/x/auth/ante.go
@@ -92,6 +92,9 @@ func NewAnteHandler(am sdk.AccountMapper, feeHandler sdk.FeeHandler) sdk.AnteHan
 		// cache the signer accounts in the context
 		ctx = WithSigners(ctx, signerAccs)
 
+		// set the gas meter
+		ctx = ctx.WithGasMeter(sdk.NewGasMeter(stdTx.Fee.Gas))
+
 		// TODO: tx tags (?)
 
 		return ctx, sdk.Result{}, false // continue...
diff --git a/x/bank/keeper.go b/x/bank/keeper.go
index 129ffa792..6ef73c68b 100644
--- a/x/bank/keeper.go
+++ b/x/bank/keeper.go
@@ -6,6 +6,14 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )
 
+const (
+	costGetCoins      sdk.Gas = 10
+	costHasCoins      sdk.Gas = 10
+	costSetCoins      sdk.Gas = 100
+	costSubtractCoins sdk.Gas = 10
+	costAddCoins      sdk.Gas = 10
+)
+
 // Keeper manages transfers between accounts
 type Keeper struct {
 	am sdk.AccountMapper
@@ -108,7 +116,7 @@ func (keeper ViewKeeper) HasCoins(ctx sdk.Context, addr sdk.Address, amt sdk.Coi
 //______________________________________________________________________________________________
 
 func getCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address) sdk.Coins {
-	ctx.GasMeter().ConsumeGas(10, "getCoins")
+	ctx.GasMeter().ConsumeGas(costGetCoins, "getCoins")
 	acc := am.GetAccount(ctx, addr)
 	if acc == nil {
 		return sdk.Coins{}
@@ -117,7 +125,7 @@ func getCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address) sdk.Coins
 }
 
 func setCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address, amt sdk.Coins) sdk.Error {
-	ctx.GasMeter().ConsumeGas(100, "setCoins")
+	ctx.GasMeter().ConsumeGas(costSetCoins, "setCoins")
 	acc := am.GetAccount(ctx, addr)
 	if acc == nil {
 		acc = am.NewAccountWithAddress(ctx, addr)
@@ -129,13 +137,13 @@ func setCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address, amt sdk.C
 
 // HasCoins returns whether or not an account has at least amt coins.
 func hasCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address, amt sdk.Coins) bool {
-	ctx.GasMeter().ConsumeGas(10, "hasCoins")
+	ctx.GasMeter().ConsumeGas(costHasCoins, "hasCoins")
 	return getCoins(ctx, am, addr).IsGTE(amt)
 }
 
 // SubtractCoins subtracts amt from the coins at the addr.
 func subtractCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address, amt sdk.Coins) (sdk.Coins, sdk.Tags, sdk.Error) {
-	ctx.GasMeter().ConsumeGas(10, "subtractCoins")
+	ctx.GasMeter().ConsumeGas(costSubtractCoins, "subtractCoins")
 	oldCoins := getCoins(ctx, am, addr)
 	newCoins := oldCoins.Minus(amt)
 	if !newCoins.IsNotNegative() {
@@ -148,7 +156,7 @@ func subtractCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address, amt
 
 // AddCoins adds amt to the coins at the addr.
 func addCoins(ctx sdk.Context, am sdk.AccountMapper, addr sdk.Address, amt sdk.Coins) (sdk.Coins, sdk.Tags, sdk.Error) {
-	ctx.GasMeter().ConsumeGas(10, "addCoins")
+	ctx.GasMeter().ConsumeGas(costAddCoins, "addCoins")
 	oldCoins := getCoins(ctx, am, addr)
 	newCoins := oldCoins.Plus(amt)
 	if !newCoins.IsNotNegative() {