diff --git a/examples/CHANGELOG.md b/examples/CHANGELOG.md
index 4da49537b..78f09ff99 100644
--- a/examples/CHANGELOG.md
+++ b/examples/CHANGELOG.md
@@ -1,5 +1,12 @@
 # @docknetwork/sdk-examples
 
+## 0.21.18
+
+### Patch Changes
+
+- Updated dependencies
+  - @docknetwork/cheqd-blockchain-api@4.1.1
+
 ## 0.21.17
 
 ### Patch Changes
diff --git a/examples/package.json b/examples/package.json
index 1453c31ed..f83ba5a3e 100644
--- a/examples/package.json
+++ b/examples/package.json
@@ -2,7 +2,7 @@
   "name": "@docknetwork/sdk-examples",
   "private": true,
   "type": "module",
-  "version": "0.21.17",
+  "version": "0.21.18",
   "scripts": {
     "bbs-dock-example": "babel-node ./src/bbs-dock.js",
     "claim-deduction-example": "babel-node ./src/claim-deduction.js",
@@ -19,7 +19,7 @@
   },
   "dependencies": {
     "@docknetwork/credential-sdk": "0.54.16",
-    "@docknetwork/cheqd-blockchain-api": "4.1.0",
+    "@docknetwork/cheqd-blockchain-api": "4.1.1",
     "@docknetwork/cheqd-blockchain-modules": "4.0.8"
   },
   "devDependencies": {
diff --git a/packages/cheqd-blockchain-api/CHANGELOG.md b/packages/cheqd-blockchain-api/CHANGELOG.md
index 9a4b14d14..e21f47004 100644
--- a/packages/cheqd-blockchain-api/CHANGELOG.md
+++ b/packages/cheqd-blockchain-api/CHANGELOG.md
@@ -1,5 +1,11 @@
 # @docknetwork/cheqd-blockchain-api
 
+## 4.1.1
+
+### Patch Changes
+
+- Proper cheqd fee estimation
+
 ## 4.1.0
 
 ### Minor Changes
diff --git a/packages/cheqd-blockchain-api/package.json b/packages/cheqd-blockchain-api/package.json
index e992a0ae3..64f10fe39 100644
--- a/packages/cheqd-blockchain-api/package.json
+++ b/packages/cheqd-blockchain-api/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@docknetwork/cheqd-blockchain-api",
-  "version": "4.1.0",
+  "version": "4.1.1",
   "license": "MIT",
   "main": "./dist/esm/index.js",
   "type": "module",
diff --git a/packages/cheqd-blockchain-api/src/api/index.js b/packages/cheqd-blockchain-api/src/api/index.js
index ae9bce072..4f2068b6b 100644
--- a/packages/cheqd-blockchain-api/src/api/index.js
+++ b/packages/cheqd-blockchain-api/src/api/index.js
@@ -1,4 +1,5 @@
 import { AbstractApiProvider } from '@docknetwork/credential-sdk/modules/abstract/common';
+import { GasPrice } from '@cosmjs/stargate';
 import {
   maybeToJSONString,
   fmtIterable,
@@ -15,6 +16,9 @@ import {
   FeemarketModule,
   // eslint-disable-next-line no-unused-vars
   CheqdSDK,
+  calculateDidFee,
+  CheqdQuerier,
+  setupFeemarketExtension,
 } from '@cheqd/sdk';
 import {
   DidRef,
@@ -53,7 +57,7 @@ import {
 } from '@docknetwork/credential-sdk/types';
 import { TypedEnum } from '@docknetwork/credential-sdk/types/generic';
 import pLimit from 'p-limit';
-import { buildTypeUrlObject, fullTypeUrl, fullTypeUrls } from './type-url';
+import { buildTypeUrlObject, fullTypeUrl } from './type-url';
 
 export class CheqdAPI extends AbstractApiProvider {
   #sdk;
@@ -84,13 +88,6 @@ export class CheqdAPI extends AbstractApiProvider {
     return this.ensureInitialized().#sdk;
   }
 
-  static Fees = buildTypeUrlObject(
-    DIDModule.fees.DefaultCreateDidDocFee,
-    DIDModule.fees.DefaultUpdateDidDocFee,
-    DIDModule.fees.DefaultDeactivateDidDocFee,
-    ResourceModule.fees.DefaultCreateResourceDefaultFee,
-  );
-
   static PayloadWrappers = buildTypeUrlObject(
     CheqdSetDidDocumentPayloadWithTypeUrlAndSignatures,
     CheqdSetDidDocumentPayloadWithTypeUrlAndSignatures,
@@ -247,9 +244,29 @@ export class CheqdAPI extends AbstractApiProvider {
     };
     this.#sdk.signer.endpoint = options.endpoint; // HACK: cheqd SDK doesnt pass this with createCheqdSDK yet
 
+    if (options.gasPrice) {
+      this.setGasPrice(options.gasPrice);
+    } else {
+      const querier = (await CheqdQuerier.connectWithExtension(
+        rpcUrls[0],
+        setupFeemarketExtension,
+      ));
+
+      const feemarketModule = new FeemarketModule(this.#sdk.signer, querier);
+      const gasPrice = await feemarketModule.queryGasPrice('ncheq');
+      this.setGasPrice(gasPrice?.price ? GasPrice.fromString(`${gasPrice.price.amount}${gasPrice.price.denom}`) : undefined);
+    }
+
     return this;
   }
 
+  /**
+   * Sets the gas price for fee estimation
+   */
+  setGasPrice(gasPrice) {
+    this.gasPrice = gasPrice ?? GasPrice.fromString('5000ncheq');
+  }
+
   /**
    * @returns {Promise<this>}
    */
@@ -287,18 +304,10 @@ export class CheqdAPI extends AbstractApiProvider {
    * @param {object|Array<object>} txOrTxs
    * @returns {BigInt}
    */
-  calculateFee(txOrTxs) {
-    const { Fees } = this.constructor;
-
-    const amount = fullTypeUrls(txOrTxs).reduce(
-      (total, typeUrl) => total + BigInt(Fees[typeUrl].amount),
-      0n,
-    );
-
-    return {
-      amount: String(amount),
-      denom: 'ncheq',
-    };
+  async calculateFee(txOrTxs, signerAddress, estimatedGas = null, multiplier = 1.3, memo = '') {
+    const gasEstimation = estimatedGas ?? (await this.simulate(signerAddress, Array.isArray(txOrTxs) ? txOrTxs : [txOrTxs], memo));
+    const usedFee = calculateDidFee(Math.round(gasEstimation * multiplier), this.gasPrice);
+    return usedFee.amount[0];
   }
 
   /**
@@ -395,9 +404,10 @@ export class CheqdAPI extends AbstractApiProvider {
     const sender = from ?? (await this.address());
     const txJSON = this.constructor.txToJSON(tx);
 
+    const estimatedGas = gas ?? (await this.estimateGas(tx, sender));
     const paymentObj = payment || {
-      amount: [].concat(fee ?? this.calculateFee(tx)),
-      gas: gas ?? (await this.estimateGas(tx, sender)),
+      amount: [].concat(fee ?? (await this.calculateFee(tx, sender, estimatedGas))),
+      gas: estimatedGas,
       payer: sender,
     };
 
diff --git a/packages/cheqd-blockchain-modules/package.json b/packages/cheqd-blockchain-modules/package.json
index 9ff3bfbad..b67d49a4d 100644
--- a/packages/cheqd-blockchain-modules/package.json
+++ b/packages/cheqd-blockchain-modules/package.json
@@ -41,7 +41,7 @@
     "@babel/plugin-syntax-import-attributes": "^7.25.6",
     "@babel/plugin-transform-modules-commonjs": "^7.24.1",
     "@babel/preset-env": "^7.24.3",
-    "@docknetwork/cheqd-blockchain-api": "4.1.0",
+    "@docknetwork/cheqd-blockchain-api": "4.1.1",
     "@docknetwork/credential-sdk": "^0.54.11",
     "@rollup/plugin-alias": "^4.0.2",
     "@rollup/plugin-babel": "^6.0.4",
diff --git a/scripts/bench/CHANGELOG.md b/scripts/bench/CHANGELOG.md
index 6f2dd2fec..b759fd78a 100644
--- a/scripts/bench/CHANGELOG.md
+++ b/scripts/bench/CHANGELOG.md
@@ -1,5 +1,12 @@
 # @docknetwork/benchmarks
 
+## 0.4.18
+
+### Patch Changes
+
+- Updated dependencies
+  - @docknetwork/cheqd-blockchain-api@4.1.1
+
 ## 0.4.17
 
 ### Patch Changes
diff --git a/scripts/bench/package.json b/scripts/bench/package.json
index e95cd169b..68d345982 100644
--- a/scripts/bench/package.json
+++ b/scripts/bench/package.json
@@ -2,12 +2,12 @@
   "name": "@docknetwork/benchmarks",
   "private": true,
   "type": "module",
-  "version": "0.4.17",
+  "version": "0.4.18",
   "scripts": {
     "bench": "babel-node src/main.js"
   },
   "dependencies": {
-    "@docknetwork/cheqd-blockchain-api": "4.1.0",
+    "@docknetwork/cheqd-blockchain-api": "4.1.1",
     "@docknetwork/cheqd-blockchain-modules": "4.0.8",
     "@docknetwork/credential-sdk": "0.54.16",
     "@docknetwork/crypto-wasm-ts": "^0.63.0"