diff --git a/CHANGELOG.md b/CHANGELOG.md
index dee16c79..38b978ee 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,11 @@
 Change Log
 ==========
 
+Next version
+------------------------------------
+- Fix: Added ProGuard rules so that SDK clients can use R8 to shrink their apps
+- Updated dependencies
+
 Version 1.3.0-beta19 *(2021-11-22)*
 ------------------------------------
 - New: Updated checkpoints for Mainnet and Testnet
diff --git a/demo-app/build.gradle.kts b/demo-app/build.gradle.kts
index 01425019..b8aed5fb 100644
--- a/demo-app/build.gradle.kts
+++ b/demo-app/build.gradle.kts
@@ -36,7 +36,7 @@ android {
 
     buildTypes {
         getByName("release").apply {
-            isMinifyEnabled = project.property("IS_MINIFY_ENABLED").toString().toBoolean()
+            isMinifyEnabled = project.property("IS_MINIFY_APP_ENABLED").toString().toBoolean()
             proguardFiles.addAll(
                 listOf(
                     getDefaultProguardFile("proguard-android-optimize.txt"),
diff --git a/demo-app/proguard-project.txt b/demo-app/proguard-project.txt
new file mode 100644
index 00000000..d371ddc5
--- /dev/null
+++ b/demo-app/proguard-project.txt
@@ -0,0 +1,3 @@
+# Allow for debuggable stacktraces
+-keepattributes SourceFile,LineNumberTable
+-renamesourcefileattribute SourceFile
diff --git a/demo-app/proguard-rules.pro b/demo-app/proguard-rules.pro
deleted file mode 100644
index 2f9dc5a4..00000000
--- a/demo-app/proguard-rules.pro
+++ /dev/null
@@ -1,21 +0,0 @@
-# Add project specific ProGuard rules here.
-# You can control the set of applied configuration files using the
-# proguardFiles setting in build.gradle.kts.
-#
-# For more details, see
-#   http://developer.android.com/guide/developing/tools/proguard.html
-
-# If your project uses WebView with JS, uncomment the following
-# and specify the fully qualified class name to the JavaScript interface
-# class:
-#-keepclassmembers class fqcn.of.javascript.interface.for.webview {
-#   public *;
-#}
-
-# Uncomment this to preserve the line number information for
-# debugging stack traces.
-#-keepattributes SourceFile,LineNumberTable
-
-# If you keep the line number information, uncomment this to
-# hide the original source file name.
-#-renamesourcefileattribute SourceFile
diff --git a/gradle.properties b/gradle.properties
index 04d2791a..61070c14 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -41,7 +41,10 @@ IS_COVERAGE_ENABLED=false
 IS_USE_TEST_ORCHESTRATOR=false
 
 # Optionally configure minification
-IS_MINIFY_ENABLED=false
+# For now, don't minify the SDK but do minify the app. Minifying the app helps us test
+# the proguard-consumer rules in the SDK.
+IS_MINIFY_SDK_ENABLED=false
+IS_MINIFY_APP_ENABLED=true
 
 # Set keystore details to enable build signing.  Typically these
 # are overridden via ~/.gradle/gradle.properties to allow secure injection.
diff --git a/sdk-lib/build.gradle.kts b/sdk-lib/build.gradle.kts
index 187d332f..f9c7c599 100644
--- a/sdk-lib/build.gradle.kts
+++ b/sdk-lib/build.gradle.kts
@@ -38,6 +38,8 @@ android {
                 argument("room.schemaLocation", "$projectDir/schemas")
             }
         }
+
+        consumerProguardFiles("proguard-consumer.txt")
     }
 
     buildTypes {
@@ -45,20 +47,14 @@ android {
             // test builds exceed the dex limit because they pull in large test libraries
             multiDexEnabled = true
             isMinifyEnabled = false
-            proguardFiles.addAll(
-                listOf(
-                    getDefaultProguardFile("proguard-android-optimize.txt"),
-                    File("proguard-rules.pro")
-                )
-            )
         }
         getByName("release").apply {
             multiDexEnabled = false
-            isMinifyEnabled = project.property("IS_MINIFY_ENABLED").toString().toBoolean()
+            isMinifyEnabled = project.property("IS_MINIFY_SDK_ENABLED").toString().toBoolean()
             proguardFiles.addAll(
                 listOf(
                     getDefaultProguardFile("proguard-android-optimize.txt"),
-                    File("proguard-rules.pro")
+                    File("proguard-project.txt")
                 )
             )
         }
diff --git a/sdk-lib/proguard-consumer.txt b/sdk-lib/proguard-consumer.txt
new file mode 100644
index 00000000..5f747167
--- /dev/null
+++ b/sdk-lib/proguard-consumer.txt
@@ -0,0 +1,11 @@
+-keepclasseswithmembernames,includedescriptorclasses class * {
+    native <methods>;
+}
+
+# https://github.com/grpc/grpc-java/blob/master/android/proguard-rules.txt
+-keepclassmembers class io.grpc.okhttp.OkHttpChannelBuilder {
+  io.grpc.okhttp.OkHttpChannelBuilder forTarget(java.lang.String);
+  io.grpc.okhttp.OkHttpChannelBuilder scheduledExecutorService(java.util.concurrent.ScheduledExecutorService);
+  io.grpc.okhttp.OkHttpChannelBuilder sslSocketFactory(javax.net.ssl.SSLSocketFactory);
+  io.grpc.okhttp.OkHttpChannelBuilder transportExecutor(java.util.concurrent.Executor);
+}
\ No newline at end of file
diff --git a/sdk-lib/proguard-project.txt b/sdk-lib/proguard-project.txt
new file mode 100644
index 00000000..771dd1fc
--- /dev/null
+++ b/sdk-lib/proguard-project.txt
@@ -0,0 +1,24 @@
+# This improves obfuscation and moves non-public classes to their own namespace.
+-repackageclasses 'cash.z.ecc.android.sdk.internal'
+
+# This makes it easier to autocomplete methods in an IDE using this obfuscated library.
+-keepparameternames
+
+# The ProGuard manual recommends keeping these attributes for libraries.
+-keepattributes EnclosingMethod,InnerClasses,Signature,Exceptions,*Annotation*
+
+# Ensure that stacktraces are reversible.
+-renamesourcefileattribute SourceFile
+-keepattributes SourceFile,LineNumberTable
+
+# Keep the public interface of the library.
+# Some of these will need to be tuned in the future, as they shouldn't ALL be considered part of the
+# public API.  Much of this will be improved by further repackaging of the classes.
+-keep public class cash.z.ecc.android.sdk.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.block.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.db.entity.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.exception.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.ext.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.jni.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.tool.* { public protected *; }
+-keep public class cash.z.ecc.android.sdk.type.* { public protected *; }
\ No newline at end of file
diff --git a/sdk-lib/proguard-rules.pro b/sdk-lib/proguard-rules.pro
deleted file mode 100644
index 2f9dc5a4..00000000
--- a/sdk-lib/proguard-rules.pro
+++ /dev/null
@@ -1,21 +0,0 @@
-# Add project specific ProGuard rules here.
-# You can control the set of applied configuration files using the
-# proguardFiles setting in build.gradle.kts.
-#
-# For more details, see
-#   http://developer.android.com/guide/developing/tools/proguard.html
-
-# If your project uses WebView with JS, uncomment the following
-# and specify the fully qualified class name to the JavaScript interface
-# class:
-#-keepclassmembers class fqcn.of.javascript.interface.for.webview {
-#   public *;
-#}
-
-# Uncomment this to preserve the line number information for
-# debugging stack traces.
-#-keepattributes SourceFile,LineNumberTable
-
-# If you keep the line number information, uncomment this to
-# hide the original source file name.
-#-renamesourcefileattribute SourceFile