diff --git a/examples/basecoin/app/app.go b/examples/basecoin/app/app.go
index a1b94318a..5e3e63746 100644
--- a/examples/basecoin/app/app.go
+++ b/examples/basecoin/app/app.go
@@ -36,6 +36,9 @@ type BasecoinApp struct {
 
 	// Manage getting and setting accounts
 	accountMapper sdk.AccountMapper
+
+	// Handle fees
+	feeHandler sdk.FeeHandler
 }
 
 func NewBasecoinApp(logger log.Logger, db dbm.DB) *BasecoinApp {
@@ -60,6 +63,9 @@ func NewBasecoinApp(logger log.Logger, db dbm.DB) *BasecoinApp {
 		&types.AppAccount{}, // prototype
 	).Seal()
 
+	// Define the feeHandler.
+	app.feeHandler = func(ctx sdk.Context, fees sdk.Coins) {}
+
 	// Add handlers.
 	coinKeeper := bank.NewCoinKeeper(app.accountMapper)
 	ibcMapper := ibc.NewIBCMapper(app.cdc, app.capKeyIBCStore)
@@ -73,7 +79,7 @@ func NewBasecoinApp(logger log.Logger, db dbm.DB) *BasecoinApp {
 	app.SetTxDecoder(app.txDecoder)
 	app.SetInitChainer(app.initChainer)
 	app.MountStoresIAVL(app.capKeyMainStore, app.capKeyAccountStore, app.capKeyIBCStore, app.capKeyStakingStore)
-	app.SetAnteHandler(auth.NewAnteHandler(app.accountMapper))
+	app.SetAnteHandler(auth.NewAnteHandler(app.accountMapper, app.feeHandler))
 	err := app.LoadLatestVersion(app.capKeyMainStore)
 	if err != nil {
 		cmn.Exit(err.Error())
diff --git a/examples/democoin/app/app.go b/examples/democoin/app/app.go
index db2614bad..8954411f6 100644
--- a/examples/democoin/app/app.go
+++ b/examples/democoin/app/app.go
@@ -40,6 +40,9 @@ type DemocoinApp struct {
 
 	// Manage getting and setting accounts
 	accountMapper sdk.AccountMapper
+
+	// Handle fees
+	feeHandler sdk.FeeHandler
 }
 
 func NewDemocoinApp(logger log.Logger, db dbm.DB) *DemocoinApp {
@@ -65,6 +68,9 @@ func NewDemocoinApp(logger log.Logger, db dbm.DB) *DemocoinApp {
 		&types.AppAccount{}, // prototype
 	).Seal()
 
+	// Define the feeHandler.
+	app.feeHandler = func(ctx sdk.Context, fee sdk.Coins) {}
+
 	// Add handlers.
 	coinKeeper := bank.NewCoinKeeper(app.accountMapper)
 	coolKeeper := cool.NewKeeper(app.capKeyMainStore, coinKeeper)
@@ -83,7 +89,7 @@ func NewDemocoinApp(logger log.Logger, db dbm.DB) *DemocoinApp {
 	app.SetTxDecoder(app.txDecoder)
 	app.SetInitChainer(app.initChainerFn(coolKeeper, powKeeper))
 	app.MountStoresIAVL(app.capKeyMainStore, app.capKeyAccountStore, app.capKeyPowStore, app.capKeyIBCStore, app.capKeyStakingStore)
-	app.SetAnteHandler(auth.NewAnteHandler(app.accountMapper))
+	app.SetAnteHandler(auth.NewAnteHandler(app.accountMapper, app.feeHandler))
 	err := app.LoadLatestVersion(app.capKeyMainStore)
 	if err != nil {
 		cmn.Exit(err.Error())
diff --git a/types/account.go b/types/account.go
index 5217fa850..91ad49979 100644
--- a/types/account.go
+++ b/types/account.go
@@ -48,8 +48,6 @@ type AccountMapper interface {
 	NewAccountWithAddress(ctx Context, addr Address) Account
 	GetAccount(ctx Context, addr Address) Account
 	SetAccount(ctx Context, acc Account)
-	GetFeePool(ctx Context) Coins
-	SetFeePool(ctx Context, coins Coins)
 }
 
 // AccountDecoder unmarshals account bytes
diff --git a/types/handler.go b/types/handler.go
index 129f42647..6127c52d7 100644
--- a/types/handler.go
+++ b/types/handler.go
@@ -3,5 +3,8 @@ package types
 // core function variable which application runs for transactions
 type Handler func(ctx Context, msg Msg) Result
 
+// core function variable which application runs to handle fees
+type FeeHandler func(ctx Context, fee Coins)
+
 // If newCtx.IsZero(), ctx is used instead.
 type AnteHandler func(ctx Context, tx Tx) (newCtx Context, result Result, abort bool)
diff --git a/x/auth/ante.go b/x/auth/ante.go
index 20852b5d7..9db714196 100644
--- a/x/auth/ante.go
+++ b/x/auth/ante.go
@@ -11,7 +11,7 @@ import (
 // NewAnteHandler returns an AnteHandler that checks
 // and increments sequence numbers, checks signatures,
 // and deducts fees from the first signer.
-func NewAnteHandler(accountMapper sdk.AccountMapper) sdk.AnteHandler {
+func NewAnteHandler(accountMapper sdk.AccountMapper, feeHandler sdk.FeeHandler) sdk.AnteHandler {
 	return func(
 		ctx sdk.Context, tx sdk.Tx,
 	) (_ sdk.Context, _ sdk.Result, abort bool) {
@@ -74,9 +74,7 @@ func NewAnteHandler(accountMapper sdk.AccountMapper) sdk.AnteHandler {
 				// TODO: min fee
 				if !fee.Amount.IsZero() {
 					signerAcc, res = deductFees(signerAcc, fee)
-					pool := accountMapper.GetFeePool(ctx)
-					pool = pool.Plus(fee.Amount)
-					accountMapper.SetFeePool(ctx, pool)
+					feeHandler(ctx, fee.Amount)
 					if !res.IsOK() {
 						return ctx, res, true
 					}
diff --git a/x/auth/ante_test.go b/x/auth/ante_test.go
index 2f90701e6..ae12cd6cd 100644
--- a/x/auth/ante_test.go
+++ b/x/auth/ante_test.go
@@ -12,6 +12,9 @@ import (
 	wire "github.com/cosmos/cosmos-sdk/wire"
 )
 
+func nopFeeHandler(ctx sdk.Context, fee sdk.Coins) {
+}
+
 func newTestMsg(addrs ...sdk.Address) *sdk.TestMsg {
 	return sdk.NewTestMsg(addrs...)
 }
@@ -72,7 +75,7 @@ func TestAnteHandlerSigErrors(t *testing.T) {
 	cdc := wire.NewCodec()
 	RegisterBaseAccount(cdc)
 	mapper := NewAccountMapper(cdc, capKey, &BaseAccount{})
-	anteHandler := NewAnteHandler(mapper)
+	anteHandler := NewAnteHandler(mapper, nopFeeHandler)
 	ctx := sdk.NewContext(ms, abci.Header{ChainID: "mychainid"}, false, nil)
 
 	// keys and addresses
@@ -113,7 +116,7 @@ func TestAnteHandlerSequences(t *testing.T) {
 	cdc := wire.NewCodec()
 	RegisterBaseAccount(cdc)
 	mapper := NewAccountMapper(cdc, capKey, &BaseAccount{})
-	anteHandler := NewAnteHandler(mapper)
+	anteHandler := NewAnteHandler(mapper, nopFeeHandler)
 	ctx := sdk.NewContext(ms, abci.Header{ChainID: "mychainid"}, false, nil)
 
 	// keys and addresses
@@ -179,7 +182,7 @@ func TestAnteHandlerFees(t *testing.T) {
 	cdc := wire.NewCodec()
 	RegisterBaseAccount(cdc)
 	mapper := NewAccountMapper(cdc, capKey, &BaseAccount{})
-	anteHandler := NewAnteHandler(mapper)
+	anteHandler := NewAnteHandler(mapper, nopFeeHandler)
 	ctx := sdk.NewContext(ms, abci.Header{ChainID: "mychainid"}, false, nil)
 
 	// keys and addresses
@@ -216,7 +219,7 @@ func TestAnteHandlerBadSignBytes(t *testing.T) {
 	cdc := wire.NewCodec()
 	RegisterBaseAccount(cdc)
 	mapper := NewAccountMapper(cdc, capKey, &BaseAccount{})
-	anteHandler := NewAnteHandler(mapper)
+	anteHandler := NewAnteHandler(mapper, nopFeeHandler)
 	ctx := sdk.NewContext(ms, abci.Header{ChainID: "mychainid"}, false, nil)
 
 	// keys and addresses
@@ -291,7 +294,7 @@ func TestAnteHandlerSetPubKey(t *testing.T) {
 	cdc := wire.NewCodec()
 	RegisterBaseAccount(cdc)
 	mapper := NewAccountMapper(cdc, capKey, &BaseAccount{})
-	anteHandler := NewAnteHandler(mapper)
+	anteHandler := NewAnteHandler(mapper, nopFeeHandler)
 	ctx := sdk.NewContext(ms, abci.Header{ChainID: "mychainid"}, false, nil)
 
 	// keys and addresses
diff --git a/x/auth/mapper.go b/x/auth/mapper.go
index 552e10691..7bc23aee1 100644
--- a/x/auth/mapper.go
+++ b/x/auth/mapper.go
@@ -51,33 +51,6 @@ func (am accountMapper) Seal() sealedAccountMapper {
 	return sealedAccountMapper{am}
 }
 
-var feePoolKey = []byte("feePool")
-
-// Implements sdk.AccountMapper.
-func (am accountMapper) GetFeePool(ctx sdk.Context) sdk.Coins {
-	store := ctx.KVStore(am.key)
-	bz := store.Get(feePoolKey)
-	if bz == nil {
-		return sdk.Coins{}
-	}
-	var coins sdk.Coins
-	err := am.cdc.UnmarshalBinaryBare(bz, &coins)
-	if err != nil {
-		panic(err)
-	}
-	return coins
-}
-
-// Implements sdk.AccountMapper.
-func (am accountMapper) SetFeePool(ctx sdk.Context, coins sdk.Coins) {
-	store := ctx.KVStore(am.key)
-	bz, err := am.cdc.MarshalBinaryBare(coins)
-	if err != nil {
-		panic(err)
-	}
-	store.Set(feePoolKey, bz)
-}
-
 // Implements sdk.AccountMapper.
 func (am accountMapper) NewAccountWithAddress(ctx sdk.Context, addr sdk.Address) sdk.Account {
 	acc := am.clonePrototype()
diff --git a/x/auth/mapper_test.go b/x/auth/mapper_test.go
index e59139841..030207db2 100644
--- a/x/auth/mapper_test.go
+++ b/x/auth/mapper_test.go
@@ -71,19 +71,3 @@ func TestAccountMapperSealed(t *testing.T) {
 	mapperSealed := mapper.Seal()
 	assert.Panics(t, func() { mapperSealed.WireCodec() })
 }
-
-func TestAccountMapperFeePool(t *testing.T) {
-	ms, capKey := setupMultiStore()
-	cdc := wire.NewCodec()
-	ctx := sdk.NewContext(ms, abci.Header{}, false, nil)
-	mapper := NewAccountMapper(cdc, capKey, &BaseAccount{})
-
-	// default empty
-	pool := mapper.GetFeePool(ctx)
-	assert.Equal(t, pool, sdk.Coins{})
-
-	// get after set
-	mapper.SetFeePool(ctx, sdk.Coins{sdk.Coin{"doge", 1}})
-	pool = mapper.GetFeePool(ctx)
-	assert.Equal(t, pool, sdk.Coins{sdk.Coin{"doge", 1}})
-}