diff --git a/CHANGELOG.md b/CHANGELOG.md
index 867ead718..ba07218c5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,9 +1,23 @@
-## [1.2.0-dev.1] - 2024-07-31
+## [1.2.0-dev.2] - 2024-08-05
+
+### Bug Fixes
+
+- Build of dev releases fails due to invalid tags (#859)
+
+### Build
+
+- E2e tests fail due to lack of docker-compose command (#860)
+
+## [1.2.0-dev.1] - 2024-08-05
 
 ### Bug Fixes
 
 - Proposal not generated after waiting for last block time to pass (#849)
 
+### Miscellaneous Tasks
+
+- Update changelog and version to 1.2.0-dev.1 (#858)
+
 ### Build
 
 - Add signed binaries to releases (#854)
diff --git a/version/version.go b/version/version.go
index 7b9410e1c..8ee61dcb0 100644
--- a/version/version.go
+++ b/version/version.go
@@ -9,7 +9,7 @@ var (
 const (
 	// TMVersionDefault is the used as the fallback version for Tenderdash
 	// when not using git describe. It is formatted with semantic versioning.
-	TMVersionDefault = "1.2.0-dev.1"
+	TMVersionDefault = "1.2.0-dev.2"
 	// ABCISemVer is the semantic version of the ABCI library
 	ABCISemVer = "1.1.0"