To upgrade your version of POM without a manual update, you can take a look at the Maven Release plugin (although I wrote a little script to do a POM update, since I find that the Release plugin does not match this good in my workflow)
Then it will come to the version number. This is more of a release issue. Usually, a planned release is indicated by incrementing a Major or Minor version in the version number. The SNAPSHOT version means that a specific release is in progress. For example, I would rather do something similar for your case:
Suppose I plan to release the first iteration as 0.1, then I will make my head trunk in SCM (e.g. trunk in SVN) with version 0.1-SNAPSHOT as version. This means that all developments actually contribute to the release of version 0.1. Upon completion, I upgrade the POM version from 0.1-SNAPSHOT to 0.1, run the actual version 0.1 (including branching releases, tagging, deploying the artifact), and then change the POM version to SNAPSHOT of the next scheduled release (for example, 0.2-SNAPSHOT).
Similarly, after the release of 1.0 (or 1.0-RELEASE in your example), the POM version in the head trunk should then be updated to a snapshot of your next version version, such as 1.1-SNAPSHOT.
Just keep in mind that there should no longer be SNAPSHOTs of a specific version if this version is indeed released.
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