diff --git a/CHANGELOG.md b/CHANGELOG.md
index 200bf8916..4339314d0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,26 @@
+# 4.2.0
+
+SMP agent and server:
+
+- reduce sender traffic in cases when queue quota is exceeded:
+  - server sends quota exceeded message to the recipient when sender receives ERR QUOTA.
+  - recipient sends QCONT message to the send once the queue is drained (via reply queue).
+  - sender retry delays are increased, reducing traffic, but sender instantly resumes delivery where QCONT is received.
+
+SMP server:
+
+- increase internal queue sizes.
+
+SMP agent:
+
+- deduplicate connection IDs in connect/disconnect responses.
+- unit tests for Crypto.hs.
+- fix connection switch to another queue: correctly set primary send queue.
+
+Notification server (v1.3.0):
+
+- check token status when sending verification notificaiton.
+
 # 4.1.0
 
 SMP agent and server:
diff --git a/package.yaml b/package.yaml
index 449179375..1946a5005 100644
--- a/package.yaml
+++ b/package.yaml
@@ -1,5 +1,5 @@
 name: simplexmq
-version: 4.1.0
+version: 4.2.0
 synopsis: SimpleXMQ message broker
 description: |
   This package includes <./docs/Simplex-Messaging-Server.html server>,
diff --git a/simplexmq.cabal b/simplexmq.cabal
index e01dd0a15..a2c25d487 100644
--- a/simplexmq.cabal
+++ b/simplexmq.cabal
@@ -1,11 +1,11 @@
 cabal-version: 1.12
 
--- This file has been generated from package.yaml by hpack version 0.34.4.
+-- This file has been generated from package.yaml by hpack version 0.35.0.
 --
 -- see: https://github.com/sol/hpack
 
 name:           simplexmq
-version:        4.1.0
+version:        4.2.0
 synopsis:       SimpleXMQ message broker
 description:    This package includes <./docs/Simplex-Messaging-Server.html server>,
                 <./docs/Simplex-Messaging-Client.html client> and
@@ -152,9 +152,9 @@ library
     , x509 ==1.7.*
     , x509-store ==1.6.*
     , x509-validation ==1.6.*
+  default-language: Haskell2010
   if flag(swift)
     cpp-options: -DswiftJSON
-  default-language: Haskell2010
 
 executable ntf-server
   main-is: Main.hs
@@ -214,9 +214,9 @@ executable ntf-server
     , x509 ==1.7.*
     , x509-store ==1.6.*
     , x509-validation ==1.6.*
+  default-language: Haskell2010
   if flag(swift)
     cpp-options: -DswiftJSON
-  default-language: Haskell2010
 
 executable smp-agent
   main-is: Main.hs
@@ -276,9 +276,9 @@ executable smp-agent
     , x509 ==1.7.*
     , x509-store ==1.6.*
     , x509-validation ==1.6.*
+  default-language: Haskell2010
   if flag(swift)
     cpp-options: -DswiftJSON
-  default-language: Haskell2010
 
 executable smp-server
   main-is: Main.hs
@@ -338,9 +338,9 @@ executable smp-server
     , x509 ==1.7.*
     , x509-store ==1.6.*
     , x509-validation ==1.6.*
+  default-language: Haskell2010
   if flag(swift)
     cpp-options: -DswiftJSON
-  default-language: Haskell2010
 
 test-suite smp-server-test
   type: exitcode-stdio-1.0
@@ -425,6 +425,6 @@ test-suite smp-server-test
     , x509 ==1.7.*
     , x509-store ==1.6.*
     , x509-validation ==1.6.*
+  default-language: Haskell2010
   if flag(swift)
     cpp-options: -DswiftJSON
-  default-language: Haskell2010
diff --git a/src/Simplex/Messaging/Notifications/Server/Main.hs b/src/Simplex/Messaging/Notifications/Server/Main.hs
index 15139ec90..ee0f4e279 100644
--- a/src/Simplex/Messaging/Notifications/Server/Main.hs
+++ b/src/Simplex/Messaging/Notifications/Server/Main.hs
@@ -27,6 +27,9 @@ import System.FilePath (combine)
 import System.IO (BufferMode (..), hSetBuffering, stderr, stdout)
 import Text.Read (readMaybe)
 
+ntfServerVersion :: String
+ntfServerVersion = "1.3.0"
+
 ntfServerCLI :: FilePath -> FilePath -> IO ()
 ntfServerCLI cfgPath logPath =
   getCliCommand' (cliCommandP cfgPath logPath iniFile) serverVersion >>= \case
@@ -45,7 +48,7 @@ ntfServerCLI cfgPath logPath =
       putStrLn "Deleted configuration and log files"
   where
     iniFile = combine cfgPath "ntf-server.ini"
-    serverVersion = "SMP notifications server v1.2.0"
+    serverVersion = "SMP notifications server v" <> ntfServerVersion
     defaultServerPort = "443"
     executableName = "ntf-server"
     storeLogFilePath = combine logPath "ntf-server-store.log"
diff --git a/src/Simplex/Messaging/Transport.hs b/src/Simplex/Messaging/Transport.hs
index 826528d9f..8d67202b4 100644
--- a/src/Simplex/Messaging/Transport.hs
+++ b/src/Simplex/Messaging/Transport.hs
@@ -100,7 +100,7 @@ supportedSMPServerVRange :: VersionRange
 supportedSMPServerVRange = mkVersionRange 1 5
 
 simplexMQVersion :: String
-simplexMQVersion = "4.1.0"
+simplexMQVersion = "4.2.0"
 
 -- * Transport connection class
 
diff --git a/tests/CLITests.hs b/tests/CLITests.hs
index 6111a10fd..e18cf1963 100644
--- a/tests/CLITests.hs
+++ b/tests/CLITests.hs
@@ -6,6 +6,7 @@ import Data.Ini (lookupValue, readIniFile)
 import Data.List (isPrefixOf)
 import Simplex.Messaging.Notifications.Server.Main
 import Simplex.Messaging.Server.Main
+import Simplex.Messaging.Transport (simplexMQVersion)
 import Simplex.Messaging.Util (catchAll_)
 import System.Directory (doesFileExist)
 import System.Environment (withArgs)
@@ -51,7 +52,7 @@ smpServerTest storeLog basicAuth = do
   lookupValue "INACTIVE_CLIENTS" "disconnect" ini `shouldBe` Right "off"
   doesFileExist (cfgPath <> "/ca.key") `shouldReturn` True
   r <- lines <$> capture_ (withArgs ["start"] $ (100000 `timeout` smpServerCLI cfgPath logPath) `catchAll_` pure (Just ()))
-  r `shouldContain` ["SMP server v4.1.0"]
+  r `shouldContain` ["SMP server v" <> simplexMQVersion]
   r `shouldContain` (if storeLog then ["Store log: " <> logPath <> "/smp-server-store.log"] else ["Store log disabled."])
   r `shouldContain` ["Listening on port 5223 (TLS)..."]
   r `shouldContain` ["not expiring inactive clients"]
@@ -71,7 +72,7 @@ ntfServerTest storeLog = do
   lookupValue "TRANSPORT" "websockets" ini `shouldBe` Right "off"
   doesFileExist (ntfCfgPath <> "/ca.key") `shouldReturn` True
   r <- lines <$> capture_ (withArgs ["start"] $ (100000 `timeout` ntfServerCLI ntfCfgPath ntfLogPath) `catchAll_` pure (Just ()))
-  r `shouldContain` ["SMP notifications server v1.2.0"]
+  r `shouldContain` ["SMP notifications server v" <> ntfServerVersion]
   r `shouldContain` (if storeLog then ["Store log: " <> ntfLogPath <> "/ntf-server-store.log"] else ["Store log disabled."])
   r `shouldContain` ["Listening on port 443 (TLS)..."]
   capture_ (withStdin "Y" . withArgs ["delete"] $ ntfServerCLI ntfCfgPath ntfLogPath)