diff --git a/Makefile.am b/Makefile.am
index 11072bc357..f87852974f 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -88,7 +88,7 @@ endif
 libsecp256k1_la_SOURCES = src/secp256k1.c
 libsecp256k1_la_CPPFLAGS = -I$(top_srcdir)/include -I$(top_srcdir)/src $(SECP_INCLUDES)
 libsecp256k1_la_LIBADD = $(SECP_LIBS) $(COMMON_LIB) $(PRECOMPUTED_LIB)
-libsecp256k1_la_LDFLAGS = -no-undefined
+libsecp256k1_la_LDFLAGS = -no-undefined -version-info $(LIB_VERSION_CURRENT):$(LIB_VERSION_REVISION):$(LIB_VERSION_AGE)
 
 if VALGRIND_ENABLED
 libsecp256k1_la_CPPFLAGS += -DVALGRIND
diff --git a/configure.ac b/configure.ac
index f7e9e3d938..92e497df8b 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,5 +1,24 @@
 AC_PREREQ([2.60])
-AC_INIT([libsecp256k1],[0.1])
+
+# The package (a.k.a. release) version is based on semantic versioning 2.0.0 of
+# the API. All changes in experimental modules are treated as
+# backwards-compatible and therefore at most increase the minor version.
+define(_PKG_VERSION_MAJOR, 0)
+define(_PKG_VERSION_MINOR, 1)
+define(_PKG_VERSION_BUILD, 0)
+define(_PKG_VERSION_IS_RELEASE, false)
+
+# The library version is based on libtool versioning of the ABI. The set of
+# rules for updating the version can be found here:
+# https://www.gnu.org/software/libtool/manual/html_node/Updating-version-info.html
+# All changes in experimental modules are treated as if they don't affect the
+# interface and therefore only increase the revision.
+define(_LIB_VERSION_CURRENT, 0)
+define(_LIB_VERSION_REVISION, 0)
+define(_LIB_VERSION_AGE, 0)
+
+AC_INIT([libsecp256k1],m4_join([.], _PKG_VERSION_MAJOR, _PKG_VERSION_MINOR, _PKG_VERSION_BUILD)m4_if(_PKG_VERSION_IS_RELEASE, [true], [], [-pre]),[https://github.com/bitcoin-core/secp256k1/issues],[libsecp256k1],[https://github.com/bitcoin-core/secp256k1])
+
 AC_CONFIG_AUX_DIR([build-aux])
 AC_CONFIG_MACRO_DIR([build-aux/m4])
 AC_CANONICAL_HOST
@@ -381,6 +400,9 @@ AM_CONDITIONAL([ENABLE_MODULE_EXTRAKEYS], [test x"$enable_module_extrakeys" = x"
 AM_CONDITIONAL([ENABLE_MODULE_SCHNORRSIG], [test x"$enable_module_schnorrsig" = x"yes"])
 AM_CONDITIONAL([USE_EXTERNAL_ASM], [test x"$use_external_asm" = x"yes"])
 AM_CONDITIONAL([USE_ASM_ARM], [test x"$set_asm" = x"arm"])
+AC_SUBST(LIB_VERSION_CURRENT, _LIB_VERSION_CURRENT)
+AC_SUBST(LIB_VERSION_REVISION, _LIB_VERSION_REVISION)
+AC_SUBST(LIB_VERSION_AGE, _LIB_VERSION_AGE)
 
 # Make sure nothing new is exported so that we don't break the cache.
 PKGCONFIG_PATH_TEMP="$PKG_CONFIG_PATH"
diff --git a/doc/CHANGELOG.md b/doc/CHANGELOG.md
new file mode 100644
index 0000000000..3c4c2e4583
--- /dev/null
+++ b/doc/CHANGELOG.md
@@ -0,0 +1,12 @@
+# Changelog
+
+This file is currently only a template for future use.
+
+Each change falls into one of the following categories: Added, Changed, Deprecated, Removed, Fixed or Security.
+
+## [Unreleased]
+
+## [MAJOR.MINOR.PATCH] - YYYY-MM-DD
+
+### Added/Changed/Deprecated/Removed/Fixed/Security
+- [Title with link to Pull Request](https://link-to-pr)
diff --git a/doc/release-process.md b/doc/release-process.md
new file mode 100644
index 0000000000..a35b8a9db3
--- /dev/null
+++ b/doc/release-process.md
@@ -0,0 +1,14 @@
+# Release Process
+
+1. Open PR to master that
+   1. adds release notes to `doc/CHANGELOG.md` and
+   2. if this is **not** a patch release, updates `_PKG_VERSION_{MAJOR,MINOR}` and `_LIB_VERSIONS_*` in `configure.ac`
+2. After the PR is merged,
+   * if this is **not** a patch release, create a release branch with name `MAJOR.MINOR`.
+     Make sure that the branch contains the right commits.
+     Create commit on the release branch that sets `_PKG_VERSION_IS_RELEASE` in `configure.ac` to `true`.
+   * if this **is** a patch release, open a pull request with the bugfixes to the `MAJOR.MINOR` branch.
+     Also include the release note commit bump `_PKG_VERSION_BUILD` and `_LIB_VERSIONS_*` in `configure.ac`.
+4. Tag the commit with `git tag -s vMAJOR.MINOR.PATCH`.
+5. Push branch and tag with `git push origin --tags`.
+6. Create a new GitHub release with a link to the corresponding entry in `doc/CHANGELOG.md`.