diff --git a/.github/scripts/run_consensus.sh b/.github/scripts/run_consensus.sh
index 738b9bfd82..a7c39c0b07 100755
--- a/.github/scripts/run_consensus.sh
+++ b/.github/scripts/run_consensus.sh
@@ -7,6 +7,9 @@ set -euo pipefail
 NODE_COUNT=5
 MIN_VALIDATOR_COUNT=4
 
+# default minimum validator count
+MIN_VALIDATOR_COUNT=4
+
 export NODE_IMAGE=aleph-node:latest
 
 mkdir -p docker/data/
diff --git a/bin/runtime/src/lib.rs b/bin/runtime/src/lib.rs
index 70b1c12455..84b55a9c34 100644
--- a/bin/runtime/src/lib.rs
+++ b/bin/runtime/src/lib.rs
@@ -35,7 +35,7 @@ use pallet_transaction_payment::{CurrencyAdapter, Multiplier, TargetedFeeAdjustm
 pub use primitives::Balance;
 use primitives::{
     staking::MAX_NOMINATORS_REWARDED_PER_VALIDATOR, wrap_methods, ApiError as AlephApiError,
-    AuthorityId as AlephId, SessionAuthorityData, ADDRESSES_ENCODING,
+    AuthorityId as AlephId, SessionAuthorityData, Version as FinalityVersion, ADDRESSES_ENCODING,
     DEFAULT_KICK_OUT_REASON_LENGTH, DEFAULT_SESSIONS_PER_ERA, DEFAULT_SESSION_PERIOD,
     MILLISECS_PER_BLOCK, TOKEN,
 };
@@ -108,10 +108,10 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
     spec_name: create_runtime_str!("aleph-node"),
     impl_name: create_runtime_str!("aleph-node"),
     authoring_version: 1,
-    spec_version: 35,
+    spec_version: 36,
     impl_version: 1,
     apis: RUNTIME_API_VERSIONS,
-    transaction_version: 10,
+    transaction_version: 11,
     state_version: 0,
 };
 
@@ -313,6 +313,8 @@ impl pallet_sudo::Config for Runtime {
 impl pallet_aleph::Config for Runtime {
     type AuthorityId = AlephId;
     type Event = Event;
+    type SessionInfoProvider = Session;
+    type SessionManager = Elections;
 }
 
 impl_opaque_keys! {
@@ -350,7 +352,7 @@ impl pallet_session::Config for Runtime {
     type ValidatorIdOf = pallet_staking::StashOf<Self>;
     type ShouldEndSession = pallet_session::PeriodicSessions<SessionPeriod, Offset>;
     type NextSessionRotation = pallet_session::PeriodicSessions<SessionPeriod, Offset>;
-    type SessionManager = Elections;
+    type SessionManager = Aleph;
     type SessionHandler = <SessionKeys as OpaqueKeys>::KeyTypeIdProviders;
     type Keys = SessionKeys;
     type WeightInfo = pallet_session::weights::SubstrateWeight<Runtime>;
@@ -898,6 +900,14 @@ impl_runtime_apis! {
                 Aleph::queued_emergency_finalizer(),
             ))
         }
+
+        fn finality_version() -> FinalityVersion {
+            Aleph::finality_version()
+        }
+
+        fn next_session_finality_version() -> FinalityVersion {
+            Aleph::next_session_finality_version()
+        }
     }
 
     impl pallet_contracts_rpc_runtime_api::ContractsApi<Block, AccountId, Balance, BlockNumber, Hash> for Runtime {
diff --git a/pallets/aleph/src/impls.rs b/pallets/aleph/src/impls.rs
new file mode 100644
index 0000000000..4a1cba814d
--- /dev/null
+++ b/pallets/aleph/src/impls.rs
@@ -0,0 +1,52 @@
+use primitives::SessionIndex;
+use sp_std::vec::Vec;
+
+use crate::{Config, Event, FinalityScheduledVersionChange, FinalityVersion, Pallet};
+
+impl<T> pallet_session::SessionManager<T::AccountId> for Pallet<T>
+where
+    T: Config,
+{
+    fn new_session(new_index: SessionIndex) -> Option<Vec<T::AccountId>> {
+        <T as Config>::SessionManager::new_session(new_index)
+    }
+
+    fn new_session_genesis(new_index: SessionIndex) -> Option<Vec<T::AccountId>> {
+        <T as Config>::SessionManager::new_session_genesis(new_index)
+    }
+
+    fn end_session(end_index: SessionIndex) {
+        <T as Config>::SessionManager::end_session(end_index);
+    }
+
+    fn start_session(start_index: SessionIndex) {
+        <T as Config>::SessionManager::start_session(start_index);
+        Self::update_version_change_history();
+    }
+}
+
+impl<T> Pallet<T>
+where
+    T: Config,
+{
+    // Check if a schedule version change has moved into the past. Update history, even if there is
+    // no change. Resets the scheduled version.
+    fn update_version_change_history() {
+        let current_session = Self::current_session();
+
+        if let Some(scheduled_version_change) = <FinalityScheduledVersionChange<T>>::get() {
+            let scheduled_session = scheduled_version_change.session;
+            let scheduled_version = scheduled_version_change.version_incoming;
+
+            // Record the scheduled version as the current version as it moves into the past.
+            if scheduled_session == current_session {
+                <FinalityVersion<T>>::put(scheduled_version);
+
+                // Reset the scheduled version.
+                <FinalityScheduledVersionChange<T>>::kill();
+
+                Self::deposit_event(Event::FinalityVersionChange(scheduled_version_change));
+            }
+        }
+    }
+}
diff --git a/pallets/aleph/src/lib.rs b/pallets/aleph/src/lib.rs
index 6f41fe00af..eed1fc3e6e 100644
--- a/pallets/aleph/src/lib.rs
+++ b/pallets/aleph/src/lib.rs
@@ -1,7 +1,18 @@
-//! This pallet is a runtime companion of Aleph finality gadget.
+//! This pallet is the runtime companion of the Aleph finality gadget.
 //!
 //! Currently, it only provides support for changing sessions but in the future
 //! it will allow reporting equivocation in AlephBFT.
+//!
+//! This pallet relies on an extension of the `AlephSessionApi` Runtime API to handle the finality
+//! version. The scheduled version change is persisted as `FinalityScheduledVersionChange`. This
+//! value stores the information about a scheduled finality version change, where `version_incoming`
+//! is the version to be set and `session` is the session on which the new version will be set.
+//! A `pallet_session::Session_Manager` checks whether a scheduled version change has moved into
+//! the past and, if so, records it as the current version represented as `FinalityVersion`,
+//! and clears `FinalityScheduledVersionChange`.
+//! It is always possible to reschedule a version change. In order to cancel a scheduled version
+//! change rather than reschedule it, a new version change should be scheduled with
+//! `version_incoming` set to the current value of `FinalityVersion`.
 
 #![cfg_attr(not(feature = "std"), no_std)]
 
@@ -10,7 +21,9 @@ mod mock;
 #[cfg(test)]
 mod tests;
 
+mod impls;
 mod migrations;
+mod traits;
 
 use frame_support::{
     log,
@@ -18,11 +31,14 @@ use frame_support::{
     traits::{OneSessionHandler, StorageVersion},
 };
 pub use pallet::*;
+use primitives::{SessionIndex, Version, VersionChange};
 use sp_std::prelude::*;
 
 /// The current storage version.
 const STORAGE_VERSION: StorageVersion = StorageVersion::new(2);
 
+const DEFAULT_FINALITY_VERSION: Version = 0;
+
 #[frame_support::pallet]
 pub mod pallet {
     use frame_support::{pallet_prelude::*, sp_runtime::RuntimeAppPublic};
@@ -30,20 +46,26 @@ pub mod pallet {
         ensure_root,
         pallet_prelude::{BlockNumberFor, OriginFor},
     };
+    use pallet_session::SessionManager;
     use pallets_support::StorageMigration;
 
     use super::*;
+    use crate::traits::SessionInfoProvider;
 
     #[pallet::config]
     pub trait Config: frame_system::Config {
         type AuthorityId: Member + Parameter + RuntimeAppPublic + MaybeSerializeDeserialize;
         type Event: From<Event<Self>> + IsType<<Self as frame_system::Config>::Event>;
+        type SessionInfoProvider: SessionInfoProvider<Self>;
+        type SessionManager: SessionManager<<Self as frame_system::Config>::AccountId>;
     }
 
     #[pallet::event]
     #[pallet::generate_deposit(pub(super) fn deposit_event)]
     pub enum Event<T: Config> {
         ChangeEmergencyFinalizer(T::AuthorityId),
+        ScheduleFinalityVersionChange(VersionChange),
+        FinalityVersionChange(VersionChange),
     }
 
     #[pallet::pallet]
@@ -77,6 +99,12 @@ pub mod pallet {
         }
     }
 
+    /// Default finality version. Relevant for sessions before the first version change occurs.
+    #[pallet::type_value]
+    pub(crate) fn DefaultFinalityVersion<T: Config>() -> Version {
+        DEFAULT_FINALITY_VERSION
+    }
+
     #[pallet::storage]
     #[pallet::getter(fn authorities)]
     pub(super) type Authorities<T: Config> = StorageValue<_, Vec<T::AuthorityId>, ValueQuery>;
@@ -93,6 +121,18 @@ pub mod pallet {
     #[pallet::storage]
     type NextEmergencyFinalizer<T: Config> = StorageValue<_, T::AuthorityId, OptionQuery>;
 
+    /// Current finality version.
+    #[pallet::storage]
+    #[pallet::getter(fn finality_version)]
+    pub(super) type FinalityVersion<T: Config> =
+        StorageValue<_, Version, ValueQuery, DefaultFinalityVersion<T>>;
+
+    /// Scheduled finality version change.
+    #[pallet::storage]
+    #[pallet::getter(fn finality_version_change)]
+    pub(super) type FinalityScheduledVersionChange<T: Config> =
+        StorageValue<_, VersionChange, OptionQuery>;
+
     impl<T: Config> Pallet<T> {
         pub(crate) fn initialize_authorities(authorities: &[T::AuthorityId]) {
             if !authorities.is_empty() {
@@ -121,6 +161,49 @@ pub mod pallet {
         pub(crate) fn set_next_emergency_finalizer(emergency_finalizer: T::AuthorityId) {
             <NextEmergencyFinalizer<T>>::put(emergency_finalizer);
         }
+
+        pub(crate) fn current_session() -> u32 {
+            T::SessionInfoProvider::current_session()
+        }
+
+        // If a scheduled future version change is rescheduled to a different session,
+        // it is possible to reschedule it with the same version as initially.
+        // To cancel a future version change, reschedule it with the current version.
+        // If a scheduled version change has moved into the past, `SessionManager` records it
+        // as the current version.
+        pub(crate) fn do_schedule_finality_version_change(
+            version_change: VersionChange,
+        ) -> Result<(), &'static str> {
+            let current_session = Self::current_session();
+
+            let session_to_schedule = version_change.session;
+
+            if session_to_schedule < current_session {
+                return Err("Cannot schedule finality version changes for sessions in the past!");
+            } else if session_to_schedule < current_session + 2 {
+                return Err(
+                    "Tried to schedule an finality version change less than 2 sessions in advance!",
+                );
+            }
+
+            // Update the scheduled version change with the supplied version change.
+            <FinalityScheduledVersionChange<T>>::put(version_change);
+
+            Ok(())
+        }
+
+        pub fn next_session_finality_version() -> Version {
+            let next_session = Self::current_session() + 1;
+            let scheduled_version_change = Self::finality_version_change();
+
+            if let Some(version_change) = scheduled_version_change {
+                if next_session == version_change.session {
+                    return version_change.version_incoming;
+                }
+            }
+
+            Self::finality_version()
+        }
     }
 
     #[pallet::call]
@@ -137,6 +220,33 @@ pub mod pallet {
             Self::deposit_event(Event::ChangeEmergencyFinalizer(emergency_finalizer));
             Ok(())
         }
+
+        /// Schedules a finality version change for a future session. If such a scheduled future
+        /// version is already set, it is replaced with the provided one.
+        /// Any rescheduling of a future version change needs to occur at least 2 sessions in
+        /// advance of the provided session of the version change.
+        /// In order to cancel a scheduled version change, a new version change should be scheduled
+        /// with the same version as the current one.
+        #[pallet::weight((T::BlockWeights::get().max_block, DispatchClass::Operational))]
+        pub fn schedule_finality_version_change(
+            origin: OriginFor<T>,
+            version_incoming: Version,
+            session: SessionIndex,
+        ) -> DispatchResult {
+            ensure_root(origin)?;
+
+            let version_change = VersionChange {
+                version_incoming,
+                session,
+            };
+
+            if let Err(e) = Self::do_schedule_finality_version_change(version_change.clone()) {
+                return Err(DispatchError::Other(e));
+            }
+
+            Self::deposit_event(Event::ScheduleFinalityVersionChange(version_change));
+            Ok(())
+        }
     }
 
     impl<T: Config> BoundToRuntimeAppPublic for Pallet<T> {
diff --git a/pallets/aleph/src/mock.rs b/pallets/aleph/src/mock.rs
index f4119d5c25..2fc82e96e4 100644
--- a/pallets/aleph/src/mock.rs
+++ b/pallets/aleph/src/mock.rs
@@ -105,7 +105,7 @@ impl pallet_session::Config for Test {
     type ValidatorIdOf = ConvertInto;
     type ShouldEndSession = pallet_session::PeriodicSessions<Period, Offset>;
     type NextSessionRotation = pallet_session::PeriodicSessions<Period, Offset>;
-    type SessionManager = ();
+    type SessionManager = Aleph;
     type SessionHandler = <TestSessionKeys as OpaqueKeys>::KeyTypeIdProviders;
     type Keys = TestSessionKeys;
     type WeightInfo = ();
@@ -133,6 +133,8 @@ impl pallet_timestamp::Config for Test {
 impl Config for Test {
     type AuthorityId = AuthorityId;
     type Event = Event;
+    type SessionInfoProvider = Session;
+    type SessionManager = ();
 }
 
 pub fn to_authority(id: &u64) -> AuthorityId {
diff --git a/pallets/aleph/src/tests.rs b/pallets/aleph/src/tests.rs
index 7db90914a3..74eb4b1aca 100644
--- a/pallets/aleph/src/tests.rs
+++ b/pallets/aleph/src/tests.rs
@@ -1,6 +1,7 @@
 #![cfg(test)]
 
 use frame_support::{storage_alias, traits::OneSessionHandler};
+use primitives::VersionChange;
 
 use crate::mock::*;
 
@@ -130,3 +131,40 @@ fn test_emergency_signer() {
         assert_eq!(Aleph::queued_emergency_finalizer(), Some(to_authority(&37)));
     })
 }
+
+#[test]
+fn test_finality_version_scheduling() {
+    new_test_ext(&[(1u64, 1u64), (2u64, 2u64)]).execute_with(|| {
+        initialize_session();
+
+        run_session(1);
+
+        let version_to_schedule = VersionChange {
+            version_incoming: 1,
+            session: 4,
+        };
+
+        let scheduling_result =
+            Aleph::do_schedule_finality_version_change(version_to_schedule.clone());
+        assert_eq!(scheduling_result, Ok(()));
+
+        let scheduled_version_change = Aleph::finality_version_change();
+        assert_eq!(scheduled_version_change, Some(version_to_schedule.clone()));
+
+        run_session(4);
+
+        let current_version = Aleph::finality_version();
+        assert_eq!(current_version, version_to_schedule.version_incoming);
+
+        let scheduled_version_change = Aleph::finality_version_change();
+        assert_eq!(scheduled_version_change, None);
+
+        let version_to_schedule = VersionChange {
+            version_incoming: 1,
+            session: 5,
+        };
+
+        let scheduling_result = Aleph::do_schedule_finality_version_change(version_to_schedule);
+        assert!(scheduling_result.is_err());
+    })
+}
diff --git a/pallets/aleph/src/traits.rs b/pallets/aleph/src/traits.rs
new file mode 100644
index 0000000000..92de3efd4b
--- /dev/null
+++ b/pallets/aleph/src/traits.rs
@@ -0,0 +1,15 @@
+use primitives::SessionIndex;
+
+/// Information provider from `pallet_session`. Loose pallet coupling via traits.
+pub trait SessionInfoProvider<T: frame_system::Config> {
+    fn current_session() -> SessionIndex;
+}
+
+impl<T> SessionInfoProvider<T> for pallet_session::Pallet<T>
+where
+    T: pallet_session::Config,
+{
+    fn current_session() -> SessionIndex {
+        pallet_session::CurrentIndex::<T>::get()
+    }
+}
diff --git a/primitives/src/lib.rs b/primitives/src/lib.rs
index 710dbc7d47..c21bd631d8 100644
--- a/primitives/src/lib.rs
+++ b/primitives/src/lib.rs
@@ -171,6 +171,14 @@ impl SessionAuthorityData {
     }
 }
 
+pub type Version = u32;
+
+#[derive(Clone, Debug, Decode, Encode, PartialEq, Eq, TypeInfo)]
+pub struct VersionChange {
+    pub version_incoming: Version,
+    pub session: SessionIndex,
+}
+
 sp_api::decl_runtime_apis! {
     pub trait AlephSessionApi
     {
@@ -180,6 +188,8 @@ sp_api::decl_runtime_apis! {
         fn authority_data() -> SessionAuthorityData;
         fn session_period() -> u32;
         fn millisecs_per_block() -> u64;
+        fn finality_version() -> Version;
+        fn next_session_finality_version() -> Version;
     }
 }