diff --git a/.github/actions/nix-cachix-setup/action.yml b/.github/actions/nix-cachix-setup/action.yml
index fcf19333bb5..6c24c24a284 100644
--- a/.github/actions/nix-cachix-setup/action.yml
+++ b/.github/actions/nix-cachix-setup/action.yml
@@ -9,6 +9,21 @@ runs:
   using: composite
 
   steps:
+  - name: 🧹 Free disk space
+    if: runner.os == 'Linux'
+    shell: bash
+    run: |
+      echo "Disk space before cleanup:"
+      df -h /
+      # Remove unnecessary tools to free up disk space
+      sudo rm -rf /usr/share/dotnet
+      sudo rm -rf /usr/local/lib/android
+      sudo rm -rf /opt/ghc
+      sudo rm -rf /opt/hostedtoolcache/CodeQL
+      sudo docker image prune --all --force || true
+      echo "Disk space after cleanup:"
+      df -h /
+
   - name: ❄ Prepare nix
     uses: cachix/install-nix-action@v30
     with:
diff --git a/.github/workflows/ci-nix.yaml b/.github/workflows/ci-nix.yaml
index 8477afbd02d..d3843fa4815 100644
--- a/.github/workflows/ci-nix.yaml
+++ b/.github/workflows/ci-nix.yaml
@@ -11,7 +11,11 @@ on:
     branches:
     - master
     - release
+    - v1.2.0-base
   pull_request:
+    branches:
+    - master
+    - v1.2.0-base
   schedule:
     # Everyday at 4:00 AM
     - cron: "0 4 * * *"
diff --git a/.github/workflows/docker.yaml b/.github/workflows/docker.yaml
index e0021638606..f9262c0609f 100644
--- a/.github/workflows/docker.yaml
+++ b/.github/workflows/docker.yaml
@@ -11,8 +11,10 @@ concurrency:
 
 on:
   push:
-    branches: [ "master" ]
+    branches: [ "master", "v1.2.0-base" ]
     tags: [ "*.*.*" ]
+  pull_request:
+    branches: [ "master", "v1.2.0-base" ]
   workflow_dispatch:
     inputs:
       ref_name:
@@ -73,6 +75,12 @@ jobs:
         # And the version as the git commit.
         VERSION=${{github.sha}}
 
+        # For PRs, tag as pr-<number>
+        if [[ "${{github.event_name}}" == "pull_request" ]]; then
+          IMAGE_LABEL=pr-${{github.event.pull_request.number}}
+          VERSION=${{github.event.pull_request.head.sha}}
+        fi
+
         # Determine whether we are building a tag and if yes, set the label
         # name to be the tag name, and the version to be the tag.
         BUILDING_TAG=${{github.ref_type == 'tag'}}
diff --git a/README.md b/README.md
index 4938dadd46f..4d33dc3fe7e 100644
--- a/README.md
+++ b/README.md
@@ -92,7 +92,6 @@ Please follow our [Contributing Guidelines](./CONTRIBUTING.md) and [Code of Cond
 ## 🙏 Credits
 
 - Logo created by Alexander Wende
-
 ---
 
 <p align="center">
diff --git a/hydra-node/hydra-node.cabal b/hydra-node/hydra-node.cabal
index 90205b097b8..2ff54fa1451 100644
--- a/hydra-node/hydra-node.cabal
+++ b/hydra-node/hydra-node.cabal
@@ -36,6 +36,7 @@ common project-config
     OverloadedStrings
     PartialTypeSignatures
     PatternSynonyms
+    StrictData
     TypeFamilies
     ViewPatterns
 
diff --git a/hydra-node/src/Hydra/Chain.hs b/hydra-node/src/Hydra/Chain.hs
index 21f63c9e792..7b79cffc7f5 100644
--- a/hydra-node/src/Hydra/Chain.hs
+++ b/hydra-node/src/Hydra/Chain.hs
@@ -47,7 +47,7 @@ import Test.QuickCheck.Instances.Time ()
 
 -- | Hardcoded limit for commit tx on mainnet
 maxMainnetLovelace :: Coin
-maxMainnetLovelace = Coin 100_000_000
+maxMainnetLovelace = Coin 1_000_000_000
 
 -- | Hardcoded limit for maximum number of parties in a head protocol The value
 -- is obtained from calculating the costs of running the scripts and on-chan
diff --git a/hydra-node/src/Hydra/HeadLogic.hs b/hydra-node/src/Hydra/HeadLogic.hs
index ab4c088c702..b879d438501 100644
--- a/hydra-node/src/Hydra/HeadLogic.hs
+++ b/hydra-node/src/Hydra/HeadLogic.hs
@@ -461,8 +461,16 @@ onOpenNetworkReqSn env ledger pendingDeposits currentSlot st otherParty sv sn re
                       , newCurrentDepositTxId = mDepositTxId
                       }
  where
+  -- Allow version-1 only if ReqSn has no IC/ID content (safe stale request)
+  -- This handles the race condition where ReqSn is sent before L1 tx confirms
+  -- but processed after the version bump.
+  allowStaleVersion =
+    sv == version - 1
+      && isNothing mDecommitTx
+      && isNothing mDepositTxId
+
   requireReqSn continue
-    | sv /= version =
+    | sv /= version && not allowStaleVersion =
         Error $ RequireFailed $ ReqSvNumberInvalid{requestedSv = sv, lastSeenSv = version}
     | sn /= seenSn + 1 =
         Error $ RequireFailed $ ReqSnNumberInvalid{requestedSn = sn, lastSeenSn = seenSn}
@@ -480,6 +488,8 @@ onOpenNetworkReqSn env ledger pendingDeposits currentSlot st otherParty sv sn re
   waitOnSnapshotVersion continue
     | version == sv =
         continue
+    | allowStaleVersion =
+        continue
     | otherwise =
         wait $ WaitOnSnapshotVersion sv
 
@@ -688,13 +698,32 @@ onOpenNetworkAckSn Environment{party} pendingDeposits openState otherParty snaps
           RequireFailed $
             InvalidMultisignature{multisig = show multisig, vkeys}
 
-  maybeRequestNextSnapshot previous outcome = do
+  maybeRequestNextSnapshot (previous :: Snapshot tx) outcome = do
     let nextSn = previous.number + 1
-    if isLeader parameters party nextSn && not (null localTxs)
+        -- Clear if just processed (prevents stale reference after IC/ID)
+        nextDepositTxId =
+          if isJust (previous.utxoToCommit :: Maybe (UTxOType tx))
+            then Nothing
+            else currentDepositTxId
+        nextDecommitTx =
+          if isJust (previous.utxoToDecommit :: Maybe (UTxOType tx))
+            then Nothing
+            else decommitTx
+        -- Pick active deposit if available
+        depositToInclude =
+          if isNothing nextDepositTxId && isNothing nextDecommitTx
+            then getNextActiveDeposit pendingDeposits
+            else nextDepositTxId
+        -- Trigger on ANY pending work (fixes P1, P2)
+        hasPendingWork =
+          not (null localTxs)
+            || isJust nextDecommitTx
+            || isJust depositToInclude
+    if isLeader parameters party nextSn && hasPendingWork
       then
         outcome
           <> newState SnapshotRequestDecided{snapshotNumber = nextSn}
-          <> cause (NetworkEffect $ ReqSn version nextSn (txId <$> localTxs) decommitTx currentDepositTxId)
+          <> cause (NetworkEffect $ ReqSn version nextSn (txId <$> localTxs) nextDecommitTx depositToInclude)
       else outcome
 
   maybePostIncrementTx snapshot@Snapshot{utxoToCommit} signatures outcome =
@@ -1080,6 +1109,15 @@ isLeader HeadParameters{parties} p sn =
     Just i -> ((fromIntegral sn - 1) `mod` length parties) == i
     _ -> False
 
+-- | Get the next active deposit to include in a snapshot request.
+-- Deposits are selected in arrival order (FIFO) based on creation time.
+getNextActiveDeposit :: (Eq (UTxOType tx), Monoid (UTxOType tx), Ord (TxIdType tx)) => PendingDeposits tx -> Maybe (TxIdType tx)
+getNextActiveDeposit deposits =
+  let isActive (_, Deposit{deposited, status}) = deposited /= mempty && status == Active
+   in case filter isActive (Map.toList deposits) of
+        [] -> Nothing
+        xs -> Just $ fst $ minimumBy (comparing (\(_, Deposit{created}) -> created)) xs
+
 -- ** Closing the Head
 
 -- | Client request to close the head. This leads to a close transaction on