diff --git a/lbrynet/__init__.py b/lbrynet/__init__.py
index 2e3dc48ab..54e6303bd 100644
--- a/lbrynet/__init__.py
+++ b/lbrynet/__init__.py
@@ -1,6 +1,6 @@
 import logging
 
-__version__ = "0.16.0"
+__version__ = "0.16.1rc1"
 version = tuple(__version__.split('.'))
 
 logging.getLogger(__name__).addHandler(logging.NullHandler())
diff --git a/requirements.txt b/requirements.txt
index d84091788..33bef51ad 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -14,7 +14,7 @@ jsonrpc==1.2
 jsonrpclib==0.1.7
 jsonschema==2.5.1
 git+https://github.com/lbryio/lbryschema.git@v0.0.11#egg=lbryschema
-git+https://github.com/lbryio/lbryum.git@v3.1.7#egg=lbryum
+git+https://github.com/lbryio/lbryum.git@v3.1.8rc1#egg=lbryum
 miniupnpc==1.9
 pbkdf2==1.3
 pycrypto==2.6.1
diff --git a/setup.py b/setup.py
index 54f705996..5eb75f0b1 100644
--- a/setup.py
+++ b/setup.py
@@ -21,7 +21,7 @@ requires = [
     'envparse',
     'jsonrpc',
     'jsonschema',
-    'lbryum==3.1.7',
+    'lbryum==3.1.8rc1',
     'lbryschema==0.0.11',
     'miniupnpc',
     'pycrypto',