diff --git a/README.md b/README.md
index d15e11ca1..a27bfa9b5 100644
--- a/README.md
+++ b/README.md
@@ -59,11 +59,6 @@ collaborate.
 Please join the [Google group](https://groups.google.com/g/ibc-community) to
 receive a calendar invitation to the monthly meetings.
 
-## Versioning
-
-We follow [Semantic Versioning][semver], though APIs are still under active
-development.
-
 ## Resources
 
 - [IBC Website][ibc-homepage]
@@ -144,5 +139,4 @@ specific language governing permissions and limitations under the License.
 [ibc-homepage]: https://cosmos.network/ibc
 [ibc-protocol]: https://ibcprotocol.dev
 [cosmos-link]: https://cosmos.network
-[semver]: https://semver.org/
 [cosmos-shield]: https://img.shields.io/static/v1?label=&labelColor=1B1E36&color=1B1E36&message=cosmos%20ecosystem&style=for-the-badge&logo=data:image/svg+xml;base64,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
diff --git a/RELEASES.md b/RELEASES.md
index a40866355..2913c16e2 100644
--- a/RELEASES.md
+++ b/RELEASES.md
@@ -86,8 +86,34 @@ Our release process is as follows:
 
 All done! 🎉
 
+## Versioning
+
+`ibc-rs` uses a modified form of [semantic versioning][semver] and adheres to
+the `vMAJOR.MINOR.PATCH` structure as follows:
+
+- _Major_ version bumps are reserved for protocol breaking changes that require
+  users to perform a coordinated upgrade to use the new version of `ibc-rs`.
+- _Minor_ version bumps are reserved for new features and/or substantial changes
+  that cause API and/or consensus breakage.
+- _Patch_ version bumps are reserved for bug/security fixes that are not API
+  breaking.
+
+```mermaid
+graph TD
+    A[Change] --> B{Protocol breaking?}
+    B -->|Yes| C[Increment major version]
+    B -->|No| D{API/Consensus breaking?}
+    D -->|Yes| E[Increment minor version]
+    D -->|No| F[Increment patch version]
+```
+
+Note that, this is slightly different from
+[`ibc-go`'s versioning policy][ibc-go-version-policy].
+
 [crates.io]: https://crates.io
 [release.yaml]: https://github.com/cosmos/ibc-rs/blob/main/.github/workflows/release.yaml
+[semver]: https://semver.org
+[ibc-go-version-policy]: https://github.com/cosmos/ibc-go/blob/main/RELEASES.md#releases
 [crates-io-rate-limit]: https://github.com/rust-lang/crates.io/pull/1596
 [cargo-release-rate-limit]: https://github.com/crate-ci/cargo-release/blob/54ad949/src/config.rs#L493-L498
 [publishing]: https://doc.rust-lang.org/cargo/reference/publishing.html