diff --git a/Cargo.lock b/Cargo.lock
index 2733a0754fb..df68abadce6 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -847,7 +847,7 @@ dependencies = [
  "bp-runtime",
  "frame-support",
  "parity-scale-codec",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-api",
  "sp-runtime",
  "sp-std",
@@ -1289,7 +1289,7 @@ dependencies = [
  "gimli",
  "log",
  "regalloc",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "target-lexicon",
 ]
 
@@ -1326,7 +1326,7 @@ checksum = "e07339bd461766deb7605169de039e01954768ff730fa1254e149001884a8525"
 dependencies = [
  "cranelift-codegen",
  "log",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "target-lexicon",
 ]
 
@@ -1352,7 +1352,7 @@ dependencies = [
  "cranelift-frontend",
  "itertools",
  "log",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "wasmparser",
  "wasmtime-types",
 ]
@@ -2791,7 +2791,7 @@ dependencies = [
  "paste",
  "scale-info",
  "serde",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-arithmetic",
  "sp-core",
  "sp-core-hashing-proc-macro",
@@ -4024,7 +4024,7 @@ dependencies = [
  "scale-info",
  "serde",
  "serde_derive",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-api",
  "sp-arithmetic",
  "sp-authority-discovery",
@@ -4064,7 +4064,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "45a3f58dc069ec0e205a27f5b45920722a46faed802a0541538241af6228f512"
 dependencies = [
  "parity-util-mem",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
 ]
 
 [[package]]
@@ -4093,7 +4093,7 @@ dependencies = [
  "parking_lot 0.11.1",
  "regex",
  "rocksdb",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
 ]
 
 [[package]]
@@ -4180,7 +4180,7 @@ dependencies = [
  "multiaddr",
  "parking_lot 0.11.1",
  "pin-project 1.0.8",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "wasm-timer",
 ]
 
@@ -4211,7 +4211,7 @@ dependencies = [
  "ring",
  "rw-stream-sink",
  "sha2 0.9.8",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "thiserror",
  "unsigned-varint 0.7.0",
  "void",
@@ -4239,7 +4239,7 @@ dependencies = [
  "futures 0.3.17",
  "libp2p-core",
  "log",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "trust-dns-resolver",
 ]
 
@@ -4258,7 +4258,7 @@ dependencies = [
  "prost",
  "prost-build",
  "rand 0.7.3",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
 ]
 
 [[package]]
@@ -4282,7 +4282,7 @@ dependencies = [
  "rand 0.7.3",
  "regex",
  "sha2 0.9.8",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "unsigned-varint 0.7.0",
  "wasm-timer",
 ]
@@ -4300,7 +4300,7 @@ dependencies = [
  "lru 0.6.6",
  "prost",
  "prost-build",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "wasm-timer",
 ]
 
@@ -4323,7 +4323,7 @@ dependencies = [
  "prost-build",
  "rand 0.7.3",
  "sha2 0.9.8",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "uint",
  "unsigned-varint 0.7.0",
  "void",
@@ -4346,7 +4346,7 @@ dependencies = [
  "libp2p-swarm",
  "log",
  "rand 0.8.4",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "socket2 0.4.0",
  "void",
 ]
@@ -4379,7 +4379,7 @@ dependencies = [
  "nohash-hasher",
  "parking_lot 0.11.1",
  "rand 0.7.3",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "unsigned-varint 0.7.0",
 ]
 
@@ -4468,7 +4468,7 @@ dependencies = [
  "prost",
  "prost-build",
  "rand 0.7.3",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "unsigned-varint 0.7.0",
  "void",
  "wasm-timer",
@@ -4510,7 +4510,7 @@ dependencies = [
  "log",
  "lru 0.7.0",
  "rand 0.7.3",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "unsigned-varint 0.7.0",
  "wasm-timer",
 ]
@@ -4526,7 +4526,7 @@ dependencies = [
  "libp2p-core",
  "log",
  "rand 0.7.3",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "void",
  "wasm-timer",
 ]
@@ -5214,6 +5214,7 @@ dependencies = [
  "serde",
  "sha3 0.8.2",
  "sha3 0.9.1",
+ "smallvec 1.8.0",
  "sp-api",
  "sp-block-builder",
  "sp-core",
@@ -5985,7 +5986,7 @@ dependencies = [
  "futures 0.3.17",
  "log",
  "pin-project 1.0.8",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "unsigned-varint 0.7.0",
 ]
 
@@ -7536,7 +7537,7 @@ dependencies = [
  "parity-scale-codec",
  "scale-info",
  "serde",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-core",
  "sp-io",
  "sp-runtime",
@@ -7773,7 +7774,7 @@ dependencies = [
  "parity-util-mem-derive",
  "parking_lot 0.11.1",
  "primitive-types",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "winapi 0.3.9",
 ]
 
@@ -7907,7 +7908,7 @@ dependencies = [
  "cloudabi",
  "libc",
  "redox_syscall 0.1.57",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "winapi 0.3.9",
 ]
 
@@ -7921,7 +7922,7 @@ dependencies = [
  "instant",
  "libc",
  "redox_syscall 0.2.9",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "winapi 0.3.9",
 ]
 
@@ -8732,7 +8733,7 @@ dependencies = [
  "polkadot-primitives",
  "polkadot-statement-table",
  "sc-network",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "substrate-prometheus-endpoint",
  "thiserror",
 ]
@@ -8944,7 +8945,7 @@ dependencies = [
  "scale-info",
  "serde",
  "serde_derive",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-api",
  "sp-authority-discovery",
  "sp-block-builder",
@@ -9845,7 +9846,7 @@ checksum = "a6304468554ed921da3d32c355ea107b8d13d7b8996c3adfb7aab48d3bc321f4"
 dependencies = [
  "log",
  "rustc-hash",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
 ]
 
 [[package]]
@@ -10065,7 +10066,7 @@ dependencies = [
  "scale-info",
  "serde",
  "serde_derive",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-api",
  "sp-authority-discovery",
  "sp-block-builder",
@@ -10828,7 +10829,7 @@ dependencies = [
  "sc-utils",
  "serde",
  "serde_json",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-arithmetic",
  "sp-blockchain",
  "sp-consensus",
@@ -11586,9 +11587,9 @@ dependencies = [
 
 [[package]]
 name = "smallvec"
-version = "1.7.0"
+version = "1.8.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1ecab6c735a6bb4139c0caafd0cc3635748bbb3acf4550e8138122099251f309"
+checksum = "f2dd574626839106c320a323308629dcb1acfc96e32a8cba364ddc61ac23ee83"
 
 [[package]]
 name = "smol"
@@ -12211,7 +12212,7 @@ dependencies = [
  "parity-scale-codec",
  "parking_lot 0.11.1",
  "rand 0.7.3",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-core",
  "sp-externalities",
  "sp-panic-handler",
@@ -13049,7 +13050,7 @@ dependencies = [
  "serde",
  "serde_json",
  "sharded-slab",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "thread_local",
  "tracing",
  "tracing-core",
@@ -13073,7 +13074,7 @@ dependencies = [
  "hashbrown",
  "log",
  "rustc-hex",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
 ]
 
 [[package]]
@@ -13122,7 +13123,7 @@ dependencies = [
  "lazy_static",
  "log",
  "rand 0.8.4",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "thiserror",
  "tinyvec",
  "url 2.2.2",
@@ -13142,7 +13143,7 @@ dependencies = [
  "lru-cache",
  "parking_lot 0.11.1",
  "resolv-conf",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "thiserror",
  "trust-dns-proto",
 ]
@@ -13819,7 +13820,7 @@ dependencies = [
  "scale-info",
  "serde",
  "serde_derive",
- "smallvec 1.7.0",
+ "smallvec 1.8.0",
  "sp-api",
  "sp-authority-discovery",
  "sp-block-builder",
diff --git a/runtime/moonbase/Cargo.toml b/runtime/moonbase/Cargo.toml
index aa0c3b8d4a0..b61db6d1ef6 100644
--- a/runtime/moonbase/Cargo.toml
+++ b/runtime/moonbase/Cargo.toml
@@ -13,6 +13,7 @@ log = "0.4"
 rlp = { version = "0.5", optional = true, default-features = false }
 serde = { version = "1.0.101", optional = true, default-features = false, features = [ "derive" ] }
 sha3 = { version = "0.8", optional = true, default-features = false }
+smallvec = "1.8.0"
 
 # Moonbeam
 account = { path = "../../primitives/account/", default-features = false }
diff --git a/runtime/moonbase/src/lib.rs b/runtime/moonbase/src/lib.rs
index a03480feffb..ac21609dc4a 100644
--- a/runtime/moonbase/src/lib.rs
+++ b/runtime/moonbase/src/lib.rs
@@ -44,7 +44,8 @@ use frame_support::{
 	},
 	weights::{
 		constants::{RocksDbWeight, WEIGHT_PER_SECOND},
-		DispatchClass, GetDispatchInfo, IdentityFee, Weight,
+		DispatchClass, GetDispatchInfo, IdentityFee, Weight, WeightToFeeCoefficient,
+		WeightToFeeCoefficients, WeightToFeePolynomial,
 	},
 	PalletId,
 };
@@ -60,7 +61,7 @@ use xcm_builder::{
 
 use xcm_executor::traits::JustTry;
 
-use frame_system::{EnsureOneOf, EnsureRoot, EnsureSigned};
+use frame_system::{limits::BlockWeights, EnsureOneOf, EnsureRoot, EnsureSigned};
 pub use moonbeam_core_primitives::{
 	AccountId, AccountIndex, Address, AssetId, Balance, BlockNumber, DigestItem, Hash, Header,
 	Index, Signature,
@@ -101,6 +102,8 @@ use xcm::latest::prelude::*;
 
 use nimbus_primitives::{CanAuthor, NimbusId};
 
+use smallvec::smallvec;
+
 mod precompiles;
 use precompiles::{MoonbasePrecompiles, ASSET_PRECOMPILE_ADDRESS_PREFIX};
 
@@ -130,8 +133,12 @@ pub mod currency {
 	pub const UNIT: Balance = 1_000_000_000_000_000_000;
 	pub const KILOUNIT: Balance = 1_000_000_000_000_000_000_000;
 
-	pub const TRANSACTION_BYTE_FEE: Balance = 10 * MICROUNIT * SUPPLY_FACTOR;
+	// NOTE: Kusama sets this to 40000 (their supply is 10^10*12 though)
+	//       Ethereum charges 4 or 16 (right?) gas per byte (0 byte or non-zero byte)
+	//       An avg of this is 10.
+	pub const TRANSACTION_BYTE_FEE: Balance = 10 * GIGAWEI * SUPPLY_FACTOR;
 	pub const STORAGE_BYTE_FEE: Balance = 100 * MICROUNIT * SUPPLY_FACTOR;
+	pub const WEIGHT_FEE: Balance = 50 * KILOWEI * SUPPLY_FACTOR;
 
 	pub const fn deposit(items: u32, bytes: u32) -> Balance {
 		items as Balance * 1 * UNIT * SUPPLY_FACTOR + (bytes as Balance) * STORAGE_BYTE_FEE
@@ -188,14 +195,33 @@ pub fn native_version() -> NativeVersion {
 }
 
 const NORMAL_DISPATCH_RATIO: Perbill = Perbill::from_percent(75);
+const NORMAL_WEIGHT: Weight = MAXIMUM_BLOCK_WEIGHT * 3 / 4;
+// Here we assume Ethereum's base fee of 21000 gas and convert to weight, but we
+// subtract roughly the cost of a balance transfer from it (about 1/3 the cost)
+// and some cost to account for per-byte-fee.
+pub const EXTRINSIC_BASE_WEIGHT: Weight = 10000 * WEIGHT_PER_GAS;
+
+pub struct RuntimeBlockWeights;
+impl Get<BlockWeights> for RuntimeBlockWeights {
+	fn get() -> BlockWeights {
+		BlockWeights::builder()
+			.for_class(DispatchClass::Normal, |weights| {
+				weights.base_extrinsic = EXTRINSIC_BASE_WEIGHT;
+				weights.max_total = NORMAL_WEIGHT.into();
+			})
+			.for_class(DispatchClass::Operational, |weights| {
+				weights.max_total = MAXIMUM_BLOCK_WEIGHT.into();
+				weights.reserved = (MAXIMUM_BLOCK_WEIGHT - NORMAL_WEIGHT).into();
+			})
+			.avg_block_initialization(Perbill::from_percent(10))
+			.build()
+			.expect("Should work")
+	}
+}
 
 parameter_types! {
 	pub const BlockHashCount: BlockNumber = 256;
 	pub const Version: RuntimeVersion = VERSION;
-	/// We allow for one half second of compute with a 6 second average block time.
-	/// These values are dictated by Polkadot for the parachain.
-	pub BlockWeights: frame_system::limits::BlockWeights = frame_system::limits::BlockWeights
-		::with_sensible_defaults(MAXIMUM_BLOCK_WEIGHT, NORMAL_DISPATCH_RATIO);
 	/// We allow for 5 MB blocks.
 	pub BlockLength: frame_system::limits::BlockLength = frame_system::limits::BlockLength
 		::max_with_normal_ratio(5 * 1024 * 1024, NORMAL_DISPATCH_RATIO);
@@ -226,7 +252,7 @@ impl frame_system::Config for Runtime {
 	/// Maximum number of block number to block hash mappings to keep (oldest pruned first).
 	type BlockHashCount = BlockHashCount;
 	/// Maximum weight of each block. With a default weight system of 1byte == 1weight, 4mb is ok.
-	type BlockWeights = BlockWeights;
+	type BlockWeights = RuntimeBlockWeights;
 	/// Maximum size of all encoded transactions (in bytes) that are allowed in one block.
 	type BlockLength = BlockLength;
 	/// Runtime version.
@@ -314,11 +340,33 @@ parameter_types! {
 	pub OperationalFeeMultiplier: u8 = 5;
 }
 
+pub struct WeightToFee;
+impl WeightToFeePolynomial for WeightToFee {
+	type Balance = Balance;
+
+	/// Return a vec of coefficients. Here we just use one coefficient and reduce it to a constant
+	/// modifier in order to closely match Ethereum-based fees.
+	///
+	/// Calculation, per the documentation in `frame_support`:
+	///
+	/// ```ignore
+	/// coeff_integer * x^(degree) + coeff_frac * x^(degree)
+	/// ```
+	fn polynomial() -> WeightToFeeCoefficients<Self::Balance> {
+		smallvec![WeightToFeeCoefficient {
+			degree: 1,
+			coeff_frac: Perbill::zero(),
+			coeff_integer: currency::WEIGHT_FEE,
+			negative: false,
+		}]
+	}
+}
+
 impl pallet_transaction_payment::Config for Runtime {
 	type OnChargeTransaction = CurrencyAdapter<Balances, DealWithFees<Runtime>>;
 	type TransactionByteFee = TransactionByteFee;
 	type OperationalFeeMultiplier = OperationalFeeMultiplier;
-	type WeightToFee = IdentityFee<Balance>;
+	type WeightToFee = WeightToFee;
 	type FeeMultiplierUpdate = SlowAdjustingFeeUpdate<Runtime>;
 }
 
@@ -492,7 +540,7 @@ impl pallet_evm::Config for Runtime {
 }
 
 parameter_types! {
-	pub MaximumSchedulerWeight: Weight = NORMAL_DISPATCH_RATIO * BlockWeights::get().max_block;
+	pub MaximumSchedulerWeight: Weight = NORMAL_DISPATCH_RATIO * RuntimeBlockWeights::get().max_block;
 	pub const MaxScheduledPerBlock: u32 = 50;
 }
 
@@ -1144,7 +1192,7 @@ impl xcm_executor::Config for XcmExecutorConfig {
 	// units per second we should charge
 	type Trader = (
 		UsingComponents<
-			IdentityFee<Balance>,
+			WeightToFee,
 			SelfReserve,
 			AccountId,
 			Balances,
@@ -1950,6 +1998,13 @@ mod tests {
 		);
 	}
 
+	#[test]
+	fn weight_to_fee_is_constant() {
+		assert_eq!(WeightToFee::calc(&1u64), MEGAWEI);
+		assert_eq!(WeightToFee::calc(&10u64), 10u128 * MEGAWEI);
+		assert_eq!(WeightToFee::calc(&1_000u64), 1_000u128 * MEGAWEI);
+	}
+
 	#[test]
 	// Required migration is parachain_staking::migrations::IncreaseMaxDelegatorsPerCandidate
 	// Purpose of this test is to remind of required migration if constant is ever changed
diff --git a/runtime/moonbase/tests/integration_test.rs b/runtime/moonbase/tests/integration_test.rs
index 578f26b1df8..39b65da2670 100644
--- a/runtime/moonbase/tests/integration_test.rs
+++ b/runtime/moonbase/tests/integration_test.rs
@@ -31,8 +31,8 @@ use frame_support::{
 };
 use moonbase_runtime::{
 	currency::UNIT, AccountId, AssetId, AssetManager, AssetRegistrarMetadata, AssetType, Assets,
-	Balances, BlockWeights, Call, CrowdloanRewards, Event, ParachainStaking, PolkadotXcm,
-	Precompiles, Runtime, System, XTokens, XcmTransactor,
+	Balances, Call, CrowdloanRewards, Event, ParachainStaking, PolkadotXcm, Precompiles, Runtime,
+	RuntimeBlockWeights, System, TransactionPayment, XTokens, XcmTransactor,
 };
 use nimbus_primitives::NimbusId;
 use pallet_author_mapping_precompiles::Action as AuthorMappingAction;
@@ -1458,9 +1458,11 @@ where
 
 #[test]
 fn multiplier_can_grow_from_zero() {
+	use frame_support::traits::Get;
+
 	let minimum_multiplier = moonbase_runtime::MinimumMultiplier::get();
 	let target = moonbase_runtime::TargetBlockFullness::get()
-		* BlockWeights::get()
+		* RuntimeBlockWeights::get()
 			.get(DispatchClass::Normal)
 			.max_total
 			.unwrap();
@@ -1480,11 +1482,13 @@ fn multiplier_can_grow_from_zero() {
 #[test]
 #[ignore] // test runs for a very long time
 fn multiplier_growth_simulator() {
+	use frame_support::traits::Get;
+
 	// assume the multiplier is initially set to its minimum. We update it with values twice the
 	//target (target is 25%, thus 50%) and we see at which point it reaches 1.
 	let mut multiplier = moonbase_runtime::MinimumMultiplier::get();
 	let block_weight = moonbase_runtime::TargetBlockFullness::get()
-		* BlockWeights::get()
+		* RuntimeBlockWeights::get()
 			.get(DispatchClass::Normal)
 			.max_total
 			.unwrap()
@@ -1908,3 +1912,24 @@ fn precompile_existance() {
 		}
 	});
 }
+
+#[test]
+fn substrate_based_fees_zero_txn_costs_only_base_extrinsic() {
+	use frame_support::weights::{DispatchInfo, Pays};
+	use moonbase_runtime::{currency::MEGAWEI, EXTRINSIC_BASE_WEIGHT};
+
+	ExtBuilder::default().build().execute_with(|| {
+		let size_bytes = 0;
+		let tip = 0;
+		let dispatch_info = DispatchInfo {
+			weight: 0,
+			class: DispatchClass::Normal,
+			pays_fee: Pays::Yes,
+		};
+
+		assert_eq!(
+			TransactionPayment::compute_fee(size_bytes, &dispatch_info, tip),
+			EXTRINSIC_BASE_WEIGHT as u128 * MEGAWEI,
+		);
+	});
+}