diff --git a/.env.example b/.env.example
index f396361..d62e993 100644
--- a/.env.example
+++ b/.env.example
@@ -24,5 +24,6 @@ PAYSTACK_PUBLIC_KEY=
 # API Configuration
 API_VERSION=1.0.0
 ENABLE_API_VERSION_HEADER=true
+ENABLE_SCHEMA_VERSION_HEADER=true
 ENABLE_RESPONSE_TIMING=true
 ENABLE_REQUEST_LOGGING=true
diff --git a/README.md b/README.md
index 0ddf516..538fb13 100644
--- a/README.md
+++ b/README.md
@@ -15,7 +15,7 @@ The server is responsible for:
 - notifications, analytics, and moderation workflows
 - access checks for gated off-chain content
 
-See [Backend Domain Model and Endpoint Boundaries](./docs/architecture/domain-boundaries.md) for a technical overview.
+See [Backend Domain Model and Endpoint Boundaries](./docs/architecture/domain-boundaries.md) for a technical overview and [API Versioning](./docs/api-versioning.md) for details on schema versioning.
 
 ## Tech
 
diff --git a/docs/api-versioning.md b/docs/api-versioning.md
new file mode 100644
index 0000000..669ba3d
--- /dev/null
+++ b/docs/api-versioning.md
@@ -0,0 +1,24 @@
+# API and Schema Versioning
+
+The Access Layer Server uses versioning headers to inform clients about the current API version and the expected structure of request bodies.
+
+## Response Headers
+
+### `X-API-Version`
+Indicates the current overall version of the API. This is typically used for tracking feature sets and major API releases.
+
+### `X-Schema-Version`
+Indicates the active version of the request body schema. This version should be checked by consumers to ensure they are sending request bodies in the format expected by the server.
+
+## Versioning Strategy
+
+Both headers follow [Semantic Versioning (SemVer)](https://semver.org/):
+- **MAJOR** version: Breaking changes to the API or schema.
+- **MINOR** version: Backwards-compatible new features or additions.
+- **PATCH** version: Backwards-compatible bug fixes.
+
+## Expected Consumer Behavior
+
+1. **Check Headers**: Consumers should inspect the `X-Schema-Version` header in API responses.
+2. **Schema Alignment**: If the `X-Schema-Version` major version changes, consumers must update their request body structures to match the new schema requirements.
+3. **Warning Handling**: Consumers may choose to log warnings if they detect a version mismatch that they haven't yet updated to support.
diff --git a/docs/indexer/EVENT_PROCESSING.md b/docs/indexer/EVENT_PROCESSING.md
new file mode 100644
index 0000000..01b86c2
--- /dev/null
+++ b/docs/indexer/EVENT_PROCESSING.md
@@ -0,0 +1,33 @@
+# Chain Event Processing
+
+The indexer processes events from the blockchain to update the read models and activity feeds. To ensure data consistency and prevent duplicate processing, the following strategies are employed.
+
+## 1. Deduplication
+
+Before processing a batch of events, they should be deduped based on their unique identifier on the chain: `transactionHash` and `eventIndex`.
+
+The `dedupeChainEvents` helper in `src/utils/indexer-dedupe.utils.ts` provides this functionality.
+
+### Example Usage:
+
+```typescript
+import { dedupeChainEvents } from '../utils/indexer-dedupe.utils';
+
+const rawEvents = fetchEventsFromChain();
+const uniqueEvents = dedupeChainEvents(rawEvents);
+// Proceed with processing uniqueEvents
+```
+
+## 2. Idempotency
+
+Event handlers must be idempotent. This means that processing the same event multiple times should have the same effect as processing it once.
+
+### Strategies for Idempotency:
+
+- **Database Upserts**: Use Prisma's `upsert` or `update` with unique constraints where possible.
+- **State Check**: Before applying a change (like incrementing a balance), verify if the event has already been accounted for (e.g. by checking a `lastProcessedLedger` or a specific event log).
+- **Atomic Transactions**: Ensure that all changes related to an event are committed in a single database transaction.
+
+## 3. Error Handling
+
+If an event fails to process after multiple retries, it is moved to the [Dead-Letter Queue (DLQ)](./DLQ_WORKFLOW.md) for manual investigation.
diff --git a/src/app.ts b/src/app.ts
index 791481f..5bc8cb0 100644
--- a/src/app.ts
+++ b/src/app.ts
@@ -12,6 +12,7 @@ import { appRateLimit } from './middlewares/rate.middleware';
 import { requestIdMiddleware } from './middlewares/request-id.middleware';
 import { responseTimingMiddleware } from './middlewares/response-timing.middleware';
 import { apiVersionMiddleware } from './middlewares/api-version.middleware';
+import { schemaVersionMiddleware } from './middlewares/schema-version.middleware';
 import { requestLoggerMiddleware } from './middlewares/request-logger.middleware';
 import { envConfig } from './config';
 
@@ -21,6 +22,7 @@ const app: Express = express();
 app.set('trust proxy', 1);
 app.use(responseTimingMiddleware);
 app.use(apiVersionMiddleware);
+app.use(schemaVersionMiddleware);
 app.use(requestIdMiddleware);
 app.use(corsMiddleware());
 app.use(helmet());
diff --git a/src/config.ts b/src/config.ts
index 0baef39..1c5fc6a 100644
--- a/src/config.ts
+++ b/src/config.ts
@@ -52,6 +52,7 @@ export const envSchema = z.object({
    ENABLE_RESPONSE_TIMING: z.coerce.boolean().default(true),
    API_VERSION: z.string().default('1.0.0'),
    ENABLE_API_VERSION_HEADER: z.coerce.boolean().default(true),
+   ENABLE_SCHEMA_VERSION_HEADER: z.coerce.boolean().default(true),
    ENABLE_REQUEST_LOGGING: z.coerce.boolean().default(true),
    INDEXER_JITTER_FACTOR: z.coerce.number().min(0).max(1).default(0.1),
 });
diff --git a/src/constants/schema.constants.ts b/src/constants/schema.constants.ts
new file mode 100644
index 0000000..430cd15
--- /dev/null
+++ b/src/constants/schema.constants.ts
@@ -0,0 +1,12 @@
+// src/constants/schema.constants.ts
+
+/**
+ * Current version of the request body schema.
+ * This version should be bumped whenever there are breaking changes to the request body structure.
+ */
+export const REQUEST_SCHEMA_VERSION = '1.0.0';
+
+/**
+ * The response header key that carries the active request schema version.
+ */
+export const SCHEMA_VERSION_HEADER = 'X-Schema-Version';
diff --git a/src/middlewares/schema-version.middleware.test.ts b/src/middlewares/schema-version.middleware.test.ts
new file mode 100644
index 0000000..a036fea
--- /dev/null
+++ b/src/middlewares/schema-version.middleware.test.ts
@@ -0,0 +1,68 @@
+import { strict as assert } from 'assert';
+import { schemaVersionMiddleware } from './schema-version.middleware';
+import type { Request, Response, NextFunction } from 'express';
+import { REQUEST_SCHEMA_VERSION, SCHEMA_VERSION_HEADER } from '../constants/schema.constants';
+import { envConfig } from '../config';
+
+// Minimal mock helpers
+function mockRes() {
+   const headers: Record<string, string> = {};
+   return {
+      headers,
+      setHeader(name: string, value: string) {
+         headers[name] = value;
+      },
+   } as unknown as Response & { headers: Record<string, string> };
+}
+
+function mockReq() {
+   return {} as Request;
+}
+
+function run() {
+   // sets schema version header when enabled
+   {
+      const res = mockRes();
+      let called = false;
+      const next: NextFunction = () => {
+         called = true;
+      };
+      
+      // Ensure it's enabled for the test
+      const originalValue = envConfig.ENABLE_SCHEMA_VERSION_HEADER;
+      (envConfig as any).ENABLE_SCHEMA_VERSION_HEADER = true;
+      
+      schemaVersionMiddleware(mockReq(), res, next);
+      
+      assert.equal(res.headers[SCHEMA_VERSION_HEADER], REQUEST_SCHEMA_VERSION);
+      assert.ok(called, 'next() should be called');
+      
+      // Restore
+      (envConfig as any).ENABLE_SCHEMA_VERSION_HEADER = originalValue;
+   }
+
+   // does not set header when disabled
+   {
+      const res = mockRes();
+      let called = false;
+      const next: NextFunction = () => {
+         called = true;
+      };
+      
+      // Ensure it's disabled for the test
+      const originalValue = envConfig.ENABLE_SCHEMA_VERSION_HEADER;
+      (envConfig as any).ENABLE_SCHEMA_VERSION_HEADER = false;
+      
+      schemaVersionMiddleware(mockReq(), res, next);
+      
+      assert.ok(!(SCHEMA_VERSION_HEADER in res.headers), 'Header should not be set');
+      assert.ok(called, 'next() should be called');
+      
+      // Restore
+      (envConfig as any).ENABLE_SCHEMA_VERSION_HEADER = originalValue;
+   }
+
+   console.log('schema-version.middleware tests passed');
+}
+
+run();
diff --git a/src/middlewares/schema-version.middleware.ts b/src/middlewares/schema-version.middleware.ts
new file mode 100644
index 0000000..64b63f4
--- /dev/null
+++ b/src/middlewares/schema-version.middleware.ts
@@ -0,0 +1,22 @@
+// src/middlewares/schema-version.middleware.ts
+import { Request, Response, NextFunction } from 'express';
+import { envConfig } from '../config';
+import { REQUEST_SCHEMA_VERSION, SCHEMA_VERSION_HEADER } from '../constants/schema.constants';
+
+/**
+ * Middleware that adds a schema version header to the response.
+ *
+ * This header informs the client about the expected structure of request bodies.
+ *
+ * Can be enabled/disabled via the `ENABLE_SCHEMA_VERSION_HEADER` environment variable.
+ */
+export const schemaVersionMiddleware = (
+   _req: Request,
+   res: Response,
+   next: NextFunction
+): void => {
+   if (envConfig.ENABLE_SCHEMA_VERSION_HEADER) {
+      res.setHeader(SCHEMA_VERSION_HEADER, REQUEST_SCHEMA_VERSION);
+   }
+   next();
+};
diff --git a/src/utils/indexer-dedupe.utils.test.ts b/src/utils/indexer-dedupe.utils.test.ts
new file mode 100644
index 0000000..05ab689
--- /dev/null
+++ b/src/utils/indexer-dedupe.utils.test.ts
@@ -0,0 +1,51 @@
+import { strict as assert } from 'assert';
+import { dedupeChainEvents, ChainEvent } from './indexer-dedupe.utils';
+
+function run() {
+  console.log('Running indexer-dedupe.utils tests...');
+
+  // Case 1: Unique events are all kept
+  {
+    const events: ChainEvent[] = [
+      { txHash: '0x1', eventIndex: 0 },
+      { txHash: '0x1', eventIndex: 1 },
+      { txHash: '0x2', eventIndex: 0 },
+    ];
+    const deduped = dedupeChainEvents(events);
+    assert.equal(deduped.length, 3, 'Should keep all unique events');
+  }
+
+  // Case 2: Duplicate events are removed
+  {
+    const events: ChainEvent[] = [
+      { txHash: '0x1', eventIndex: 0 },
+      { txHash: '0x1', eventIndex: 0 }, // Duplicate
+      { txHash: '0x2', eventIndex: 0 },
+    ];
+    const deduped = dedupeChainEvents(events);
+    assert.equal(deduped.length, 2, 'Should remove duplicate events');
+    assert.equal(deduped[0].txHash, '0x1');
+    assert.equal(deduped[1].txHash, '0x2');
+  }
+
+  // Case 3: Empty list
+  {
+    const deduped = dedupeChainEvents([]);
+    assert.equal(deduped.length, 0, 'Should handle empty list');
+  }
+
+  // Case 4: Events with extra data are preserved
+  {
+    const events = [
+      { txHash: '0x1', eventIndex: 0, data: 'foo' },
+      { txHash: '0x1', eventIndex: 0, data: 'bar' }, // Duplicate txHash/index but different data
+    ];
+    const deduped = dedupeChainEvents(events);
+    assert.equal(deduped.length, 1, 'Should dedupe regardless of extra data');
+    assert.equal(deduped[0].data, 'foo', 'Should keep the first occurrence');
+  }
+
+  console.log('indexer-dedupe.utils tests passed');
+}
+
+run();
diff --git a/src/utils/indexer-dedupe.utils.ts b/src/utils/indexer-dedupe.utils.ts
new file mode 100644
index 0000000..d79df19
--- /dev/null
+++ b/src/utils/indexer-dedupe.utils.ts
@@ -0,0 +1,33 @@
+/**
+ * Interface representing a minimal chain event for deduplication.
+ */
+export interface ChainEvent {
+  /** Transaction hash (unique across the chain) */
+  txHash: string;
+  /** Index of the event within the transaction */
+  eventIndex: number;
+  /** Optional ledger/block number */
+  ledger?: number;
+  [key: string]: any;
+}
+
+/**
+ * Dedupes a list of chain events based on transaction hash and event index.
+ * 
+ * This ensures that if the same event is received multiple times in a batch
+ * (e.g. due to overlapping ingestion windows), it is only processed once.
+ * 
+ * @param events - The list of events to dedupe.
+ * @returns A new array containing only unique events.
+ */
+export function dedupeChainEvents<T extends ChainEvent>(events: T[]): T[] {
+  const seen = new Set<string>();
+  return events.filter((event) => {
+    const key = `${event.txHash}:${event.eventIndex}`;
+    if (seen.has(key)) {
+      return false;
+    }
+    seen.add(key);
+    return true;
+  });
+}