diff --git a/src/Polkadot/Extrinsic.cpp b/src/Polkadot/Extrinsic.cpp
index ebfbe67d2b0..8ec0b509c6e 100644
--- a/src/Polkadot/Extrinsic.cpp
+++ b/src/Polkadot/Extrinsic.cpp
@@ -388,8 +388,15 @@ Data Extrinsic::encodeIdentityAddAuthorization(const Proto::Identity::AddAuthori
     return data;
 }
 
+static bool requires_new_spec_compatbility(uint32_t network, uint32_t specVersion) noexcept {
+    // version 1002005 introduces a breaking change for Polkadot and Kusama
+    return ((network == 0 || network == 2) && specVersion >= 1002005);
+}
+
 Data Extrinsic::encodePayload() const {
     Data data;
+    auto use_new_spec = requires_new_spec_compatbility(network, specVersion);
+
     // call
     append(data, call);
     // era / nonce / tip
@@ -398,6 +405,12 @@ Data Extrinsic::encodePayload() const {
     if (!feeAssetId.empty()) {
         append(data, feeAssetId);
     }
+
+    if (use_new_spec) {
+      // mode (currently always 0)
+      data.push_back(0x00);
+    }
+
     // specVersion
     encode32LE(specVersion, data);
     // transactionVersion
@@ -406,6 +419,11 @@ Data Extrinsic::encodePayload() const {
     append(data, genesisHash);
     // block hash
     append(data, blockHash);
+
+    if (use_new_spec) {
+      // empty metadata hash
+      data.push_back(0x00);
+    }
     return data;
 }
 
diff --git a/tests/chains/Polkadot/ExtrinsicTests.cpp b/tests/chains/Polkadot/ExtrinsicTests.cpp
index dd921a64343..4f5c969722a 100644
--- a/tests/chains/Polkadot/ExtrinsicTests.cpp
+++ b/tests/chains/Polkadot/ExtrinsicTests.cpp
@@ -159,4 +159,33 @@ TEST(PolkadotExtrinsic, Kusama_encodeAssetTransferNoCallIndices) {
     EXPECT_THROW(Polkadot::Extrinsic(input).encodeCall(input), std::invalid_argument);
 }
 
+TEST(PolkadotExtrinsic, Polkadot_EncodePayloadWithNewSpec) {
+    Polkadot::Proto::SigningInput input;
+    input.set_network(0);
+    input.set_multi_address(true);
+
+    auto* transfer = input.mutable_balance_call()->mutable_asset_transfer();
+    transfer->set_to_address("14ixj163bkk2UEKLEXsEWosuFNuijpqEWZbX5JzN4yMHbUVD");
+    auto* callIndices = transfer->mutable_call_indices()->mutable_custom();
+    callIndices->set_module_index(0x32);
+    callIndices->set_method_index(0x05);
+
+    auto value = store(999500000);
+    transfer->set_value(std::string(value.begin(), value.end()));
+    transfer->set_asset_id(1984);
+
+    input.set_spec_version(1002000);  // breaking change happens at version 1002005
+    auto result = Polkadot::Extrinsic(input).encodePayload();
+    EXPECT_EQ(hex(result), "3205011f00a4b558a0342ae6e379a7ed00d23ff505f1101646cb279844496ad608943eda0d82a34cee00000000104a0f0000000000");
+
+    input.set_spec_version(1002005);  // >= 1002005
+    result = Polkadot::Extrinsic(input).encodePayload();
+    EXPECT_EQ(hex(result), "3205011f00a4b558a0342ae6e379a7ed00d23ff505f1101646cb279844496ad608943eda0d82a34cee0000000000154a0f000000000000");
+
+    input.set_spec_version(1002006);  // >= 1002005
+    result = Polkadot::Extrinsic(input).encodePayload();
+    EXPECT_EQ(hex(result), "3205011f00a4b558a0342ae6e379a7ed00d23ff505f1101646cb279844496ad608943eda0d82a34cee0000000000164a0f000000000000");
+}
+
+
 } // namespace TW::Polkadot::tests
diff --git a/tools/install-sys-dependencies-linux b/tools/install-sys-dependencies-linux
index eec6524cd06..2f1e7db8e44 100755
--- a/tools/install-sys-dependencies-linux
+++ b/tools/install-sys-dependencies-linux
@@ -6,7 +6,7 @@ set -e
 if [[ "$1" == "ci" ]]; then
   LIBSTD_PACKAGE_VERSION="12.3.0-1ubuntu1~22.04"
   # Bump this version if the CI has been broken due to the packages update.
-  LIBC_PACKAGE_VERSION="2.35-0ubuntu3.7"
+  LIBC_PACKAGE_VERSION="2.35-0ubuntu3.8"
 
   echo "Remove GCC 13 from runner image - runner-images/8659 workaround"
   echo "NOTE: Bump $LIBC_PACKAGE_VERSION version if the CI has been broken due to the packages update"