diff --git a/Makefile b/Makefile
index 3029eb0372ec..ebb9150aba20 100644
--- a/Makefile
+++ b/Makefile
@@ -1,7 +1,7 @@
 VERSION = 2
 PATCHLEVEL = 6
 SUBLEVEL = 16
-EXTRAVERSION = .37
+EXTRAVERSION = .38-rc1
 NAME=Stable Penguin
 
 # *DOCUMENTATION*