diff --git a/docs/RELEASE-NOTES b/docs/RELEASE-NOTES
index 38d013d..303ef4c 100644
--- a/docs/RELEASE-NOTES
+++ b/docs/RELEASE-NOTES
@@ -1,3 +1,8 @@
+version 0.7.8
+-------------
+
+- hopefully fix failed assertion on reorgs, issue #44
+
 version 0.7.7
 -------------
 
diff --git a/server/version.py b/server/version.py
index 62a884c..a659742 100644
--- a/server/version.py
+++ b/server/version.py
@@ -1 +1 @@
-VERSION = "ElectrumX 0.7.7"
+VERSION = "ElectrumX 0.7.8"