diff --git a/evmd/app.go b/evmd/app.go
index fe494f779..2fd75014e 100644
--- a/evmd/app.go
+++ b/evmd/app.go
@@ -32,6 +32,7 @@ import (
 	"github.com/cosmos/evm/x/feemarket"
 	feemarketkeeper "github.com/cosmos/evm/x/feemarket/keeper"
 	feemarkettypes "github.com/cosmos/evm/x/feemarket/types"
+
 	// NOTE: override ICS20 keeper to support IBC transfers of ERC20 tokens
 	"github.com/cosmos/evm/x/ibc/transfer"
 	transferkeeper "github.com/cosmos/evm/x/ibc/transfer/keeper"
@@ -154,7 +155,7 @@ var (
 
 	// module account permissions
 	maccPerms = map[string][]string{
-		authtypes.FeeCollectorName:     nil,
+		authtypes.FeeCollectorName:     {authtypes.Burner},
 		distrtypes.ModuleName:          nil,
 		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
 		minttypes.ModuleName:           {authtypes.Minter},
diff --git a/rpc/backend/blocks.go b/rpc/backend/blocks.go
index 31b692a21..b1d552123 100644
--- a/rpc/backend/blocks.go
+++ b/rpc/backend/blocks.go
@@ -337,6 +337,37 @@ func (b *Backend) parseDerivedTxFromAdditionalFields(
 	ethMsg.From = additional.Sender.Hex()
 	return ethMsg
 }
+func (b *Backend) parseDerivedTxFromAdditionalFieldsForTrace(
+	additional *rpctypes.TxResultAdditionalFields,
+) *evmtypes.MsgEthereumTx {
+	recipient := additional.Recipient
+
+	// for transactions before v31 this value was mistakenly used for Gas field
+	gas := additional.GasUsed
+	if additional.GasLimit != nil {
+		gas = *additional.GasLimit
+	}
+	t := ethtypes.NewTx(&ethtypes.LegacyTx{
+		Nonce:    additional.Nonce,
+		Data:     additional.Data,
+		Gas:      gas,
+		To:       &recipient,
+		GasPrice: nil,
+		Value:    additional.Value,
+		V:        big.NewInt(0),
+		R:        big.NewInt(0),
+		S:        big.NewInt(0),
+	})
+	ethMsg := &evmtypes.MsgEthereumTx{}
+	err := ethMsg.FromEthereumTx(t)
+	if err != nil {
+		b.logger.Error("can not create eth msg", err.Error())
+		return nil
+	}
+	ethMsg.Hash = additional.Hash.Hex()
+	ethMsg.From = additional.Sender.Hex()
+	return ethMsg
+}
 
 // HeaderByNumber returns the block header identified by height.
 func (b *Backend) HeaderByNumber(blockNum rpctypes.BlockNumber) (*ethtypes.Header, error) {
diff --git a/rpc/backend/tracing.go b/rpc/backend/tracing.go
index c3885cfa3..12170509c 100644
--- a/rpc/backend/tracing.go
+++ b/rpc/backend/tracing.go
@@ -21,7 +21,7 @@ import (
 // and returns them as a JSON object.
 func (b *Backend) TraceTransaction(hash common.Hash, config *evmtypes.TraceConfig) (interface{}, error) {
 	// Get transaction by hash
-	transaction, _, err := b.GetTxByEthHash(hash)
+	transaction, additional, err := b.GetTxByEthHash(hash)
 	if err != nil {
 		b.logger.Debug("tx not found", "hash", hash)
 		return nil, err
@@ -49,19 +49,39 @@ func (b *Backend) TraceTransaction(hash common.Hash, config *evmtypes.TraceConfi
 	}
 
 	var predecessors []*evmtypes.MsgEthereumTx
-	for _, txBz := range blk.Block.Txs[:transaction.TxIndex] {
-		tx, err := b.clientCtx.TxConfig.TxDecoder()(txBz)
+	for i := 0; i < int(transaction.TxIndex); i++ {
+		_, txAdditional, err := b.GetTxByTxIndex(blk.Block.Height, uint(i))
 		if err != nil {
-			b.logger.Debug("failed to decode transaction in block", "height", blk.Block.Height, "error", err.Error())
+			b.logger.Debug("failed to get tx by index",
+				"height", blk.Block.Height,
+				"index", i,
+				"error", err.Error())
 			continue
 		}
-		for _, msg := range tx.GetMsgs() {
-			ethMsg, ok := msg.(*evmtypes.MsgEthereumTx)
-			if !ok {
-				continue
+
+		if txAdditional != nil {
+			// Handle synthetic EVM transaction
+			ethMsg := b.parseDerivedTxFromAdditionalFieldsForTrace(txAdditional)
+			if ethMsg != nil {
+				predecessors = append(predecessors, ethMsg)
 			}
+			continue
+		}
 
-			predecessors = append(predecessors, ethMsg)
+		// Fallback: decode as normal Cosmos tx
+		tx, err := b.clientCtx.TxConfig.TxDecoder()(blk.Block.Txs[i])
+		if err != nil {
+			b.logger.Debug("failed to decode transaction in block",
+				"height", blk.Block.Height,
+				"index", i,
+				"error", err.Error())
+			continue
+		}
+
+		for _, msg := range tx.GetMsgs() {
+			if ethMsg, ok := msg.(*evmtypes.MsgEthereumTx); ok {
+				predecessors = append(predecessors, ethMsg)
+			}
 		}
 	}
 
@@ -73,18 +93,43 @@ func (b *Backend) TraceTransaction(hash common.Hash, config *evmtypes.TraceConfi
 
 	// add predecessor messages in current cosmos tx
 	index := int(transaction.MsgIndex) // #nosec G115
+
 	for i := 0; i < index; i++ {
-		ethMsg, ok := tx.GetMsgs()[i].(*evmtypes.MsgEthereumTx)
-		if !ok {
+		msg := tx.GetMsgs()[i]
+		// Check if it’s a normal Ethereum tx
+		if ethMsg, ok := msg.(*evmtypes.MsgEthereumTx); ok {
+			predecessors = append(predecessors, ethMsg)
 			continue
 		}
-		predecessors = append(predecessors, ethMsg)
+		// Fetch additional data for predecessors
+		_, txAdditional, err := b.GetTxByEthHashAndMsgIndex(hash, i)
+		if err != nil {
+			b.logger.Debug("failed to get tx additional info", "error", err.Error())
+			continue
+		}
+
+		if txAdditional != nil {
+			ethMsg := b.parseDerivedTxFromAdditionalFieldsForTrace(txAdditional)
+			if ethMsg != nil {
+				predecessors = append(predecessors, ethMsg)
+			}
+		}
 	}
+	var ethMessage *evmtypes.MsgEthereumTx
+	var ok bool
 
-	ethMessage, ok := tx.GetMsgs()[transaction.MsgIndex].(*evmtypes.MsgEthereumTx)
-	if !ok {
-		b.logger.Debug("invalid transaction type", "type", fmt.Sprintf("%T", tx))
-		return nil, fmt.Errorf("invalid transaction type %T", tx)
+	if additional == nil {
+		ethMessage, ok = tx.GetMsgs()[transaction.MsgIndex].(*evmtypes.MsgEthereumTx)
+		if !ok {
+			b.logger.Debug("invalid transaction type", "type", fmt.Sprintf("%T", tx.GetMsgs()[transaction.MsgIndex]))
+			return nil, fmt.Errorf("invalid transaction type %T", tx.GetMsgs()[transaction.MsgIndex])
+		}
+	} else {
+		ethMessage = b.parseDerivedTxFromAdditionalFieldsForTrace(additional)
+		if ethMessage == nil {
+			b.logger.Error("failed to get derived eth msg from additional fields")
+			return nil, fmt.Errorf("failed to get derived eth msg from additional fields")
+		}
 	}
 
 	nc, ok := b.clientCtx.Client.(tmrpcclient.NetworkClient)
diff --git a/rpc/backend/tx_info.go b/rpc/backend/tx_info.go
index bf556e3a8..923feb239 100644
--- a/rpc/backend/tx_info.go
+++ b/rpc/backend/tx_info.go
@@ -430,6 +430,26 @@ func (b *Backend) GetTxByEthHash(hash common.Hash) (*types.TxResult, *rpctypes.T
 	return txResult, txAdditional, nil
 }
 
+func (b *Backend) GetTxByEthHashAndMsgIndex(hash common.Hash, index int) (*types.TxResult, *rpctypes.TxResultAdditionalFields, error) {
+	if b.indexer != nil {
+		txRes, err := b.indexer.GetByTxHash(hash)
+		if err != nil {
+			return nil, nil, err
+		}
+		return txRes, nil, nil
+	}
+
+	// fallback to tendermint tx indexer
+	query := fmt.Sprintf("%s.%s='%s'", evmtypes.TypeMsgEthereumTx, evmtypes.AttributeKeyEthereumTxHash, hash.Hex())
+	txResult, txAdditional, err := b.queryTendermintTxIndexer(query, func(txs *rpctypes.ParsedTxs) *rpctypes.ParsedTx {
+		return txs.GetTxByMsgIndex(index)
+	})
+	if err != nil {
+		return nil, nil, errorsmod.Wrapf(err, "GetTxByEthHash %s", hash.Hex())
+	}
+	return txResult, txAdditional, nil
+}
+
 // GetTxByTxIndex uses `/tx_query` to find transaction by tx index of valid ethereum txs
 func (b *Backend) GetTxByTxIndex(height int64, index uint) (*types.TxResult, *rpctypes.TxResultAdditionalFields, error) {
 	int32Index := int32(index) //#nosec G115 -- checked for int overflow already
diff --git a/rpc/types/events.go b/rpc/types/events.go
index 97c45c239..c03f82222 100644
--- a/rpc/types/events.go
+++ b/rpc/types/events.go
@@ -74,6 +74,7 @@ type ParsedTx struct {
 	Recipient common.Address
 	Sender    common.Address
 	Nonce     uint64
+	GasLimit  uint64
 	Data      []byte
 }
 
@@ -233,6 +234,7 @@ func ParseTxIndexerResult(
 				GasUsed:   parsedTx.GasUsed,
 				Data:      parsedTx.Data,
 				Nonce:     parsedTx.Nonce,
+				GasLimit:  &parsedTx.GasLimit,
 			}, nil
 	}
 	return &types.TxResult{
@@ -285,6 +287,7 @@ func ParseTxBlockResult(
 				GasUsed:   parsedTx.GasUsed,
 				Data:      parsedTx.Data,
 				Nonce:     parsedTx.Nonce,
+				GasLimit:  &parsedTx.GasLimit,
 			}, nil
 	}
 	return &types.TxResult{
@@ -411,6 +414,13 @@ func fillTxAttribute(tx *ParsedTx, key, value string) error {
 		}
 		tx.Nonce = nonce
 
+	case evmtypes.AttributeKeyTxGasLimit:
+		gasLimit, err := strconv.ParseUint(value, 10, 64)
+		if err != nil {
+			return err
+		}
+		tx.GasLimit = gasLimit
+
 	case evmtypes.AttributeKeyTxData:
 		hexBytes, err := hexutil.Decode(value)
 		if err != nil {
diff --git a/rpc/types/types.go b/rpc/types/types.go
index e2a3dee58..4d42ea724 100644
--- a/rpc/types/types.go
+++ b/rpc/types/types.go
@@ -40,6 +40,7 @@ type TxResultAdditionalFields struct {
 	GasUsed   uint64         `json:"gasUsed"`
 	Nonce     uint64         `json:"nonce"`
 	Data      []byte         `json:"data"`
+	GasLimit  *uint64        `json:"gasLimit"`
 }
 
 // RPCTransaction represents a transaction that will serialize to the RPC representation of a transaction
diff --git a/x/vm/keeper/call_evm.go b/x/vm/keeper/call_evm.go
index 286508bae..341c30d35 100644
--- a/x/vm/keeper/call_evm.go
+++ b/x/vm/keeper/call_evm.go
@@ -289,6 +289,7 @@ func (k Keeper) DerivedEVMCallWithData(
 		attrs = append(attrs, sdk.NewAttribute(types.AttributeKeyTxData, hexutil.Encode(msg.Data())))
 		// adding nonce for more info in rpc methods in order to parse derived txs
 		attrs = append(attrs, sdk.NewAttribute(types.AttributeKeyTxNonce, strconv.FormatUint(nonce, 10)))
+		attrs = append(attrs, sdk.NewAttribute(types.AttributeKeyTxGasLimit, strconv.FormatUint(gasCap, 10)))
 		ctx.EventManager().EmitEvents(sdk.Events{
 			sdk.NewEvent(
 				types.EventTypeEthereumTx,
diff --git a/x/vm/keeper/grpc_query.go b/x/vm/keeper/grpc_query.go
index 4c7c0028d..ec988cc1f 100644
--- a/x/vm/keeper/grpc_query.go
+++ b/x/vm/keeper/grpc_query.go
@@ -10,6 +10,7 @@ import (
 
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/common/hexutil"
+	"github.com/ethereum/go-ethereum/common/math"
 	"github.com/ethereum/go-ethereum/core"
 	ethtypes "github.com/ethereum/go-ethereum/core/types"
 	"github.com/ethereum/go-ethereum/core/vm"
@@ -487,10 +488,18 @@ func (k Keeper) TraceTx(c context.Context, req *types.QueryTraceTxRequest) (*typ
 
 	for i, tx := range req.Predecessors {
 		ethTx := tx.AsTransaction()
-		msg, err := ethTx.AsMessage(signer, cfg.BaseFee)
-		if err != nil {
-			continue
+
+		var msg ethtypes.Message
+		// if tx is not unsigned, from field should be derived from signer, which can be done using AsMessage function
+		if !isUnsigned(ethTx) {
+			msg, err = ethTx.AsMessage(signer, cfg.BaseFee)
+			if err != nil {
+				continue
+			}
+		} else {
+			msg = unsignedTxAsMessage(common.BytesToAddress(req.Msg.GetFrom()), ethTx, cfg.BaseFee)
 		}
+
 		txConfig.TxHash = ethTx.Hash()
 		txConfig.TxIndex = uint(i) //nolint:gosec // G115 // won't exceed uint64
 		// reset gas meter for each transaction
@@ -515,7 +524,7 @@ func (k Keeper) TraceTx(c context.Context, req *types.QueryTraceTxRequest) (*typ
 		_ = json.Unmarshal([]byte(req.TraceConfig.TracerJsonConfig), &tracerConfig)
 	}
 
-	result, _, err := k.traceTx(ctx, cfg, txConfig, signer, tx, req.TraceConfig, false, tracerConfig)
+	result, _, err := k.traceTx(ctx, cfg, txConfig, signer, common.BytesToAddress(req.Msg.GetFrom()), tx, req.TraceConfig, false, tracerConfig)
 	if err != nil {
 		// error will be returned with detail status from traceTx
 		return nil, err
@@ -582,7 +591,7 @@ func (k Keeper) TraceBlock(c context.Context, req *types.QueryTraceBlockRequest)
 		ethTx := tx.AsTransaction()
 		txConfig.TxHash = ethTx.Hash()
 		txConfig.TxIndex = uint(i) //nolint:gosec // G115 // won't exceed uint64
-		traceResult, logIndex, err := k.traceTx(ctx, cfg, txConfig, signer, ethTx, req.TraceConfig, true, nil)
+		traceResult, logIndex, err := k.traceTx(ctx, cfg, txConfig, signer, common.BytesToAddress(tx.GetFrom()), ethTx, req.TraceConfig, true, nil)
 		if err != nil {
 			result.Error = err.Error()
 		} else {
@@ -608,6 +617,7 @@ func (k *Keeper) traceTx(
 	cfg *statedb.EVMConfig,
 	txConfig statedb.TxConfig,
 	signer ethtypes.Signer,
+	from common.Address,
 	tx *ethtypes.Transaction,
 	traceConfig *types.TraceConfig,
 	commitMessage bool,
@@ -620,9 +630,15 @@ func (k *Keeper) traceTx(
 		err       error
 		timeout   = defaultTraceTimeout
 	)
-	msg, err := tx.AsMessage(signer, cfg.BaseFee)
-	if err != nil {
-		return nil, 0, status.Error(codes.Internal, err.Error())
+	var msg ethtypes.Message
+	// if tx is not unsigned, from field should be derived from signer, which can be done using AsMessage function
+	if !isUnsigned(tx) {
+		msg, err = tx.AsMessage(signer, cfg.BaseFee)
+		if err != nil {
+			return nil, 0, status.Error(codes.Internal, err.Error())
+		}
+	} else {
+		msg = unsignedTxAsMessage(from, tx, cfg.BaseFee)
 	}
 
 	if traceConfig == nil {
@@ -722,3 +738,29 @@ func (k Keeper) Config(_ context.Context, _ *types.QueryConfigRequest) (*types.Q
 
 	return &types.QueryConfigResponse{Config: config}, nil
 }
+
+func isUnsigned(ethTx *ethtypes.Transaction) bool {
+	r, v, s := ethTx.RawSignatureValues()
+
+	return (r == nil && v == nil && s == nil) || (r.Int64() == 0 && v.Int64() == 0 && s.Int64() == 0)
+}
+func unsignedTxAsMessage(fromAddress common.Address, tx *ethtypes.Transaction, baseFee *big.Int) ethtypes.Message {
+	gasPrice := new(big.Int).Set(tx.GasPrice())
+	// If baseFee provided, set gasPrice to effectiveGasPrice.
+	if baseFee != nil {
+		gasPrice = math.BigMin(new(big.Int).Add(tx.GasTipCap(), baseFee), tx.GasFeeCap())
+	}
+	return ethtypes.NewMessage(
+		fromAddress,
+		tx.To(),
+		tx.Nonce(),
+		tx.Value(),
+		tx.Gas(),
+		gasPrice,
+		tx.GasFeeCap(),
+		tx.GasTipCap(),
+		tx.Data(),
+		tx.AccessList(),
+		false,
+	)
+}
diff --git a/x/vm/keeper/state_transition.go b/x/vm/keeper/state_transition.go
index 665429a62..cef84e27b 100644
--- a/x/vm/keeper/state_transition.go
+++ b/x/vm/keeper/state_transition.go
@@ -18,8 +18,10 @@ import (
 
 	errorsmod "cosmossdk.io/errors"
 	"cosmossdk.io/math"
+	sdkmath "cosmossdk.io/math"
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 )
 
 // NewEVM generates a go-ethereum VM from the provided Message fields and the chain parameters
@@ -243,6 +245,27 @@ func (k *Keeper) ApplyTransaction(ctx sdk.Context, tx *ethtypes.Transaction) (*t
 	if err = k.RefundGas(ctx, msg, msg.Gas()-res.GasUsed, evmDenom); err != nil {
 		return nil, errorsmod.Wrapf(err, "failed to refund gas leftover gas to sender %s", msg.From())
 	}
+	// burn base fee (EIP-1559): baseFee * gasUsed
+	if cfg.BaseFee != nil && cfg.BaseFee.Sign() > 0 && res.GasUsed > 0 {
+		// compute amount = baseFee * gasUsed
+		burnAmt := new(big.Int).Mul(cfg.BaseFee, new(big.Int).SetUint64(res.GasUsed))
+
+		// create coin in EVM denom
+		burnCoin := sdk.Coin{Denom: types.GetEVMCoinDenom(), Amount: sdkmath.NewIntFromBigInt(burnAmt)}
+
+		// convert to extended denom (chain denom) and burn from fee collector
+		converted, err := types.ConvertEvmCoinDenomToExtendedDenom(burnCoin)
+		if err != nil {
+			// handle error (log and/or return). If you return, it may fail the tx; choose behavior.
+			k.Logger(ctx).Error("failed to convert evm denom for base fee burn", "err", err)
+		} else {
+			burnCoins := sdk.Coins{converted}
+			if err := k.bankWrapper.BurnCoins(ctx, authtypes.FeeCollectorName, burnCoins); err != nil {
+				// handle error - either log or return error. Logging avoids failing block.
+				k.Logger(ctx).Error("failed to burn base fee from fee collector", "err", err)
+			}
+		}
+	}
 
 	if len(logs) > 0 {
 		// Update transient block bloom filter
diff --git a/x/vm/types/events.go b/x/vm/types/events.go
index 5e2681af2..489635e41 100644
--- a/x/vm/types/events.go
+++ b/x/vm/types/events.go
@@ -17,6 +17,7 @@ const (
 	AttributeKeyTxType          = "txType"
 	AttributeKeyTxLog           = "txLog"
 	AttributeKeyTxNonce         = "txNonce"
+	AttributeKeyTxGasLimit      = "txGasLimit"
 	AttributeKeyTxData          = "txData"
 
 	// tx failed in eth vm execution