diff --git a/configure.ac b/configure.ac
index 7445545d5..a419b9249 100644
--- a/configure.ac
+++ b/configure.ac
@@ -2,8 +2,8 @@ dnl require autoconf 2.60 (AS_ECHO/AS_ECHO_N)
 AC_PREREQ([2.60])
 define(_CLIENT_VERSION_MAJOR, 0)
 define(_CLIENT_VERSION_MINOR, 12)
-define(_CLIENT_VERSION_REVISION, 2)
-define(_CLIENT_VERSION_BUILD, 0)
+define(_CLIENT_VERSION_REVISION, 1)
+define(_CLIENT_VERSION_BUILD, 2)
 define(_CLIENT_VERSION_IS_RELEASE, true)
 define(_COPYRIGHT_YEAR, 2016)
 define(_COPYRIGHT_HOLDERS,[The %s developers])
diff --git a/src/chainparams.cpp b/src/chainparams.cpp
index 2f7d71c1b..daddb9b72 100644
--- a/src/chainparams.cpp
+++ b/src/chainparams.cpp
@@ -31,7 +31,7 @@
 #define REGTEST_GENESIS_HASH "6e3fcf1299d4ec5d79c3a4c91d624a4acf9e2e173d95a1a0504f677669687556"
 #define REGTEST_GENESIS_NONCE 1
 
-bool CheckProofOfWork2(uint256 hash, unsigned int nBits, const Consensus::Params& params)
+bool CheckProofOfWork2(uint256 hash, unsigned int nBits)
 {
     bool fNegative;
     bool fOverflow;
@@ -50,7 +50,7 @@ bool CheckProofOfWork2(uint256 hash, unsigned int nBits, const Consensus::Params
     return true;
 }
 
-static CBlock CreateGenesisBlock(const char* pszTimestamp, const CScript& genesisOutputScript, uint32_t nTime, uint32_t nNonce, uint32_t nBits, int32_t nVersion, const CAmount& genesisReward, const Consensus::Params& consensus)
+static CBlock CreateGenesisBlock(const char* pszTimestamp, const CScript& genesisOutputScript, uint32_t nTime, uint32_t nNonce, uint32_t nBits, int32_t nVersion, const CAmount& genesisReward)
 {
     CMutableTransaction txNew;
     txNew.nVersion = 1;
@@ -77,7 +77,7 @@ static CBlock CreateGenesisBlock(const char* pszTimestamp, const CScript& genesi
     while (true)
     {
         genesis.nNonce += 1;
-        if (CheckProofOfWork2(genesis.GetPoWHash(), nBits, consensus))
+        if (CheckProofOfWork2(genesis.GetPoWHash(), nBits))
         {
             std::cout << "nonce: " << genesis.nNonce << std::endl;
             std::cout << "hex: " << genesis.GetHash().GetHex() << std::endl;
@@ -100,11 +100,11 @@ static CBlock CreateGenesisBlock(const char* pszTimestamp, const CScript& genesi
  *     CTxOut(nValue=50.00000000, scriptPubKey=0x5F1DF16B2B704C8A578D0B)
  *   vMerkleTree: 4a5e1e
  */
-static CBlock CreateGenesisBlock(uint32_t nTime, uint32_t nNonce, uint32_t nBits, int32_t nVersion, const CAmount& genesisReward, const Consensus::Params& consensus)
+static CBlock CreateGenesisBlock(uint32_t nTime, uint32_t nNonce, uint32_t nBits, int32_t nVersion, const CAmount& genesisReward)
 {
     const char* pszTimestamp = "insert timestamp string";//"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks";
     const CScript genesisOutputScript = CScript() << OP_DUP << OP_HASH160 << ParseHex("345991dbf57bfb014b87006acdfafbfc5fe8292f") << OP_EQUALVERIFY << OP_CHECKSIG;
-    return CreateGenesisBlock(pszTimestamp, genesisOutputScript, nTime, nNonce, nBits, nVersion, genesisReward, consensus);
+    return CreateGenesisBlock(pszTimestamp, genesisOutputScript, nTime, nNonce, nBits, nVersion, genesisReward);
 }
 
 /**
@@ -159,7 +159,7 @@ public:
         nDefaultPort = 9246;
         nPruneAfterHeight = 100000;
 
-        genesis = CreateGenesisBlock(1446058291, MAINNET_GENESIS_NONCE, 0x1f00ffff, 1, 400000000 * COIN, consensus);
+        genesis = CreateGenesisBlock(1446058291, MAINNET_GENESIS_NONCE, 0x1f00ffff, 1, 400000000 * COIN);
         consensus.hashGenesisBlock = genesis.GetHash();
 #ifdef FIND_GENESIS
         std::cout << "hex: " << consensus.hashGenesisBlock.GetHex() << std::endl;
@@ -241,7 +241,7 @@ public:
         nDefaultPort = 19246;
         nPruneAfterHeight = 1000;
 
-        genesis = CreateGenesisBlock(1446058291, TESTNET_GENESIS_NONCE, 0x1f00ffff, 1, 400000000 * COIN, consensus);
+        genesis = CreateGenesisBlock(1446058291, TESTNET_GENESIS_NONCE, 0x1f00ffff, 1, 400000000 * COIN);
         consensus.hashGenesisBlock = genesis.GetHash();
 #ifdef FIND_GENESIS
         std::cout << "testnet genesis hash: " << genesis.GetHash().GetHex() << std::endl;
@@ -319,7 +319,7 @@ public:
         nDefaultPort = 29246;
         nPruneAfterHeight = 1000;
 
-        genesis = CreateGenesisBlock(1446058291, REGTEST_GENESIS_NONCE, 0x207fffff, 1, 400000000 * COIN, consensus);
+        genesis = CreateGenesisBlock(1446058291, REGTEST_GENESIS_NONCE, 0x207fffff, 1, 400000000 * COIN);
         consensus.hashGenesisBlock = genesis.GetHash();
 #ifdef FIND_GENESIS
         std::cout << "regtest genensis hash: " << genesis.GetHash().GetHex() << std::endl;
diff --git a/src/clientversion.h b/src/clientversion.h
index e8e8417ca..2f0507d1b 100644
--- a/src/clientversion.h
+++ b/src/clientversion.h
@@ -16,8 +16,8 @@
 //! These need to be macros, as clientversion.cpp's and bitcoin*-res.rc's voodoo requires it
 #define CLIENT_VERSION_MAJOR 0
 #define CLIENT_VERSION_MINOR 12
-#define CLIENT_VERSION_REVISION 2
-#define CLIENT_VERSION_BUILD 0
+#define CLIENT_VERSION_REVISION 1
+#define CLIENT_VERSION_BUILD 2
 
 //! Set to true for release, false for prerelease or test build
 #define CLIENT_VERSION_IS_RELEASE true
diff --git a/src/pow.cpp b/src/pow.cpp
index 328c19f60..90d34b4fb 100644
--- a/src/pow.cpp
+++ b/src/pow.cpp
@@ -18,14 +18,13 @@ unsigned int GetNextWorkRequired(const CBlockIndex* pindexLast, const CBlockHead
     if (pindexLast == NULL)
         return nProofOfWorkLimit;
 
-    if (params.fPowAllowMinDifficultyBlocks && pindexLast->nHeight >= 277299)
+    if (params.fPowAllowMinDifficultyBlocks)
     {
         // Special difficulty rule for testnet:
         // If the new block's timestamp is twice the target block time
         // then allow mining of a min-difficulty block.
         // This is to prevent the testnet from gettig stuck when a large amount
         // of hashrate drops off the network.
-        // This rule was not implemented properly until testnet block 277299.
         if (pblock->GetBlockTime() > pindexLast->GetBlockTime() + params.nPowTargetSpacing*2){
             return nProofOfWorkLimit;
         }