From 208efe06edffb907e94fad99c5695beeb2712fa6 Mon Sep 17 00:00:00 2001
From: matteyu <matt@kiiglobal.io>
Date: Wed, 24 Jun 2026 22:03:58 -0700
Subject: [PATCH 1/2] fix: cosmwasm evm query path repeatable undercharged evm
 exec

---
 x/vm/keeper/call_evm.go | 24 ++++++++++++++++++++++--
 1 file changed, 22 insertions(+), 2 deletions(-)

diff --git a/x/vm/keeper/call_evm.go b/x/vm/keeper/call_evm.go
index 2abe5bb..9d66b28 100644
--- a/x/vm/keeper/call_evm.go
+++ b/x/vm/keeper/call_evm.go
@@ -45,12 +45,22 @@ func (k Keeper) CallEVMWithData(ctx sdk.Context, stateDB *statedb.StateDB, from
 		return nil, err
 	}
 
+	// Bound the EVM gas limit by the caller-provided gasCap when set, falling
+	// back to DefaultGasCap. This prevents callers (e.g. CosmWasm query bindings)
+	// from triggering EVM execution larger than their remaining gas budget.
+	gasLimit := config.DefaultGasCap
+	if gasCap != nil && gasCap.IsUint64() {
+		if capped := gasCap.Uint64(); capped < gasLimit {
+			gasLimit = capped
+		}
+	}
+
 	msg := core.Message{
 		From:       from,
 		To:         contract,
 		Nonce:      nonce,
 		Value:      big.NewInt(0),
-		GasLimit:   config.DefaultGasCap,
+		GasLimit:   gasLimit,
 		GasPrice:   big.NewInt(0),
 		GasTipCap:  big.NewInt(0),
 		GasFeeCap:  big.NewInt(0),
@@ -68,7 +78,17 @@ func (k Keeper) CallEVMWithData(ctx sdk.Context, stateDB *statedb.StateDB, from
 		return res, errorsmod.Wrap(types.ErrVMExecution, res.VmError)
 	}
 
-	ctx.GasMeter().ConsumeGas(res.GasUsed, "apply evm message")
+	// Charge the SDK gas meter for the actual pre-refund EVM work (MaxUsedGas)
+	// rather than the post-refund GasUsed. Internal calls run with a full refund
+	// and no minimum-gas floor, so GasUsed can fall far below the real compute
+	// performed by validators; billing MaxUsedGas removes that undercharge.
+	// Precompile sub-calls keep their existing accounting.
+	chargedGas := res.GasUsed
+	if !callFromPrecompile && res.MaxUsedGas > chargedGas {
+		chargedGas = res.MaxUsedGas
+	}
+
+	ctx.GasMeter().ConsumeGas(chargedGas, "apply evm message")
 
 	return res, nil
 }

From 2a567c7ba61b5bbbe33b501daffe2583e6044e0b Mon Sep 17 00:00:00 2001
From: matteyu <matt@kiiglobal.io>
Date: Wed, 24 Jun 2026 22:24:31 -0700
Subject: [PATCH 2/2] fix: add changelog entry

---
 CHANGELOG.md | 1 +
 1 file changed, 1 insertion(+)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index a70e545..723e512 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,6 +16,7 @@ Follow the [migration document](docs/migrations/v0.5.x_to_v0.6.0.md) for upgrade
 
 ### BUG FIXES
 
+- Fix undercharged internal EVM execution in `CallEVMWithData` by (1) bounding the message `GasLimit` to the caller-provided `gasCap` when set (`min(gasCap, DefaultGasCap)`) instead of always using `DefaultGasCap`, and (2) charging the SDK gas meter for the actual pre-refund work (`MaxUsedGas`) rather than the post-refund `GasUsed` on non-precompile calls, preventing a refund-maximizing contract from forcing repeatable, undercharged internal EVM compute (e.g. via the CosmWasm ERC20 query bindings).
 - Fix EVM fee-abstraction gas refund to compute the refund against the full transaction gas (`gasUsed + leftoverGas`) instead of `gasUsed`, bounding the refund by the paid fee and preventing the fee collector from being drained by high gas limit transactions.
 - [\#15](https://github.com/KiiChain/evm/pull/15) Fix distribution precompile 32-byte withdraw address inflating native supply by skipping non-20-byte accounts when mirroring balance changes to the StateDB.