docs: update documentation for independent package versioning

- Add Package Versioning section explaining new approach
- Document breaking changes and migration requirements
- Update publishing instructions for independent versioning
- Add benefits and dependency management guidance

Co-Authored-By: anson@litprotocol.com <anson@litprotocol.com>

README.md

@@ -214,23 +214,44 @@ Having done this setup, this is what the development cycle looks like moving for
 
 If changes are made to `packages/wasm` see [here](./packages/wasm/README.md) for info on building from source.
 
+## Package Versioning
+
+Starting from version 7.x.x, this monorepo uses independent versioning for packages. This means:
+- Each package maintains its own version number
+- Only modified packages have their versions incremented during releases
+- Internal package dependencies use semver ranges (e.g., ^1.2.3) instead of exact versions
+- Package versions are no longer synchronized across all packages
+
+This change improves developer experience by:
+- Avoiding unnecessary version bumps for unchanged packages
+- Making package version history more meaningful
+- Allowing packages to evolve at their own pace
+- Providing clearer dependency relationships between packages
+
+### Breaking Changes
+If you're upgrading from a previous version, note that this is a breaking change in how versions are managed. You may need to update your dependency management practices to:
+- Use appropriate semver ranges for internal dependencies
+- Track individual package versions instead of a single SDK version
+- Handle potentially different versions of related packages
+
 ## Publishing
 
 You must have at least nodejs v18 to do this.
 
 1. Install the latest packages with `yarn install`
 
-2. Run `yarn bump` to bump the version
-
-3. Build all the packages with `yarn build`
+2. Build all the packages with `yarn build`
 
-4. Run the unit tests with `yarn test:unit` & e2e node tests `yarn test:local` locally & ensure that they pass
+3. Run the unit tests with `yarn test:unit` & e2e node tests `yarn test:local` locally & ensure that they pass
 
-5. Update the docs with `yarn gen:docs --push`
+4. Update the docs with `yarn gen:docs --push`
 
-6. Finally, publish with `yarn publish:packages`
+5. Publish packages with `yarn publish:packages`. This will:
+   - Prompt for version increments for modified packages
+   - Update internal dependencies automatically
+   - Publish only the packages that have changed
 
-7. Commit these changes "Published version X.X.X"
+6. Commit these changes with a message describing the published updates
 
 ## Testing