diff --git a/STANDARDS_VERSION b/STANDARDS_VERSION
new file mode 100644
index 0000000..81c871d
--- /dev/null
+++ b/STANDARDS_VERSION
@@ -0,0 +1 @@
+1.10.0
diff --git a/VERSION b/VERSION
index 169f19b..0eed1a2 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-1.11.0
\ No newline at end of file
+1.12.0
diff --git a/scaffold/create-tool.py b/scaffold/create-tool.py
index ae7cc36..1b41d8b 100644
--- a/scaffold/create-tool.py
+++ b/scaffold/create-tool.py
@@ -20,7 +20,7 @@
 
 
 TEMPLATES_DIR = Path(__file__).parent / "templates"
-VERSION_FILE = Path(__file__).parent.parent / "VERSION"
+STANDARDS_VERSION_FILE = Path(__file__).parent.parent / "STANDARDS_VERSION"
 
 LICENSE_FILES = {
     "cc-by-nc-nd-4.0": "CC-BY-NC-ND-4.0",
@@ -42,23 +42,23 @@ def slugify(name: str) -> str:
 
 
 def read_standards_version() -> str:
-    """Read the meta-repo VERSION at generation time.
+    """Read the meta-repo STANDARDS_VERSION at generation time.
 
     New tool repos are pre-aligned with the current standards version, so the
-    value here is not a runtime decision. If VERSION is missing or unreadable,
-    fail loudly rather than silently substituting a default - a wrong version
-    would defeat the drift-checker invariant.
+    value here is not a runtime decision. If STANDARDS_VERSION is missing or
+    unreadable, fail loudly rather than silently substituting a default - a
+    wrong version would defeat the drift-checker invariant.
     """
     try:
-        raw = VERSION_FILE.read_text(encoding="utf-8").strip()
+        raw = STANDARDS_VERSION_FILE.read_text(encoding="utf-8").strip()
     except FileNotFoundError:
         print(
-            f"Error: VERSION file not found at {VERSION_FILE}. "
+            f"Error: STANDARDS_VERSION file not found at {STANDARDS_VERSION_FILE}. "
             "The scaffold must run from a working copy of Developer-Tools-Directory."
         )
         sys.exit(1)
     except OSError as e:
-        print(f"Error: could not read {VERSION_FILE}: {e}")
+        print(f"Error: could not read {STANDARDS_VERSION_FILE}: {e}")
         sys.exit(1)
     if not re.fullmatch(r"\d+\.\d+\.\d+", raw):
         print(
diff --git a/scripts/drift_check/cli.py b/scripts/drift_check/cli.py
index 898553e..237a74f 100644
--- a/scripts/drift_check/cli.py
+++ b/scripts/drift_check/cli.py
@@ -86,19 +86,19 @@
 
 
 def _find_repo_root() -> Path:
-    """Walk up from this file to the repo that contains ``VERSION``."""
+    """Walk up from this file to the repo that contains ``STANDARDS_VERSION``."""
     here = Path(__file__).resolve()
     for candidate in (here.parent, *here.parents):
-        if (candidate / "VERSION").is_file():
+        if (candidate / "STANDARDS_VERSION").is_file():
             return candidate
     return here.parents[2]
 
 
 def _read_meta_version(repo_root: Path) -> Version:
-    raw = (repo_root / "VERSION").read_text(encoding="utf-8").strip()
+    raw = (repo_root / "STANDARDS_VERSION").read_text(encoding="utf-8").strip()
     v = parse_version(raw)
     if v is None:
-        raise SystemExit(f"meta-repo VERSION is not a valid semver: {raw!r}")
+        raise SystemExit(f"meta-repo STANDARDS_VERSION is not a valid semver: {raw!r}")
     return v
 
 
@@ -199,7 +199,7 @@ def build_parser() -> argparse.ArgumentParser:
         default=None,
         help=(
             "path to the meta-repo root for resolving standards/*.md references "
-            "(defaults to the repo that contains VERSION)"
+            "(defaults to the repo that contains STANDARDS_VERSION)"
         ),
     )
     p.add_argument(
@@ -355,7 +355,7 @@ def main(argv: Optional[Sequence[str]] = None) -> int:
     except SystemExit:
         raise
     except Exception as exc:  # pragma: no cover - defensive
-        print(f"error: cannot read VERSION: {exc}", file=sys.stderr)
+        print(f"error: cannot read STANDARDS_VERSION: {exc}", file=sys.stderr)
         return 2
 
     try:
diff --git a/standards/versioning.md b/standards/versioning.md
index 5743c5a..2a009b8 100644
--- a/standards/versioning.md
+++ b/standards/versioning.md
@@ -72,12 +72,24 @@ The release workflow auto-generates release notes grouped by commit type:
 
 `CHANGELOG.md` is maintained manually for curated, human-readable release history. It is not auto-generated.
 
-## What a MINOR bump means for ecosystem standards
+## Two version files in the meta-repo
 
-The meta-repo's `VERSION` file carries the ecosystem-wide standards version. It follows the same SemVer rules, but each component has a second, standards-specific meaning for tool repos that embed a `standards-version` signal in their agent files.
+The meta-repo root contains two separate version files that serve distinct purposes and move independently.
 
-- **MAJOR** (e.g., `1.x.y` → `2.0.0`) — an incompatible change to the standards themselves. New required elements, removed fields, or restructured file conventions that existing tool repos will fail to validate against without re-alignment.
-- **MINOR** (e.g., `1.6.x` → `1.7.0`) — ecosystem standards changed in a way that tool repos need to re-align with. Typical triggers: new required elements in agent files, changed frontmatter schemas, new required standards references, restructured validation rules, or new checks in the drift checker that introduce findings for existing tool-repo content. A mechanical rollout session across the tool repos is typically scheduled after a MINOR bump.
-- **PATCH** (e.g., `1.7.0` → `1.7.1`) — bug fixes, clarifications, or additions that do not change the standards surface. Tool repos with a PATCH-behind signal are reported as `info` by the drift checker — visible in verbose runs but not blocking CI.
+### `VERSION` - meta-repo release version
 
-The drift checker enforces this mapping via the `same-major-minor` signal policy (see `standards/drift-checker.config.json`). Tool repos whose `standards-version` differs from the meta-repo's `VERSION` in MAJOR or MINOR are reported as `error`; PATCH differences are `info`; tool values ahead of meta are `warn` (either an in-flight rollout or a missed meta-repo bump, both worth surfacing).
+Tracks the release history of the meta-repo itself (registry additions, scaffold changes, doc updates, new CI workflows). Bumped by `release.yml` on every qualifying push to `main` using the same conventional-commit rules as tool repos. Registry additions (`feat:`) force a MINOR bump here. This number appears in GitHub Releases and the release changelog but has no direct meaning to tool repos.
+
+### `STANDARDS_VERSION` - ecosystem standards surface version
+
+Tracks the version of the standards that tool repos are expected to comply with. Tool repos embed this value in their `<!-- standards-version: X.Y.Z -->` markers in CLAUDE.md, AGENTS.md, and ROADMAP.md. The drift checker compares each tool repo's embedded marker against this file, not against `VERSION`.
+
+`STANDARDS_VERSION` moves **only** when the standards surface actually changes in a way that requires tool repos to update:
+
+- **MAJOR** (e.g., `1.x.y` to `2.0.0`) - an incompatible change to the standards themselves. New required elements, removed fields, or restructured file conventions that existing tool repos will fail to validate against without re-alignment.
+- **MINOR** (e.g., `1.6.x` to `1.7.0`) - standards changed in a way that tool repos need to re-align with. Typical triggers: new required elements in agent files, changed frontmatter schemas, new required standards references, restructured validation rules, or new checks in the drift checker that introduce findings for existing tool-repo content. A fleet-wide re-stamp session is typically scheduled after a MINOR bump.
+- **PATCH** (e.g., `1.7.0` to `1.7.1`) - clarifications or additions that do not change the standards surface. Tool repos with a PATCH-behind marker are reported as `info` by the drift checker - visible in verbose runs but not blocking CI.
+
+Registry-only changes, scaffold improvements, docs additions, and other meta-repo work that does not change what tool repos are required to contain **do not** bump `STANDARDS_VERSION`, even if they bump `VERSION`.
+
+The drift checker enforces this mapping via the `same-major-minor` signal policy (see `standards/drift-checker.config.json`). Tool repos whose `standards-version` marker differs from `STANDARDS_VERSION` in MAJOR or MINOR are reported as `error`; PATCH differences are `info`; tool values ahead of meta are `warn`.
diff --git a/tests/test_cli.py b/tests/test_cli.py
index a8d58ad..2e61965 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -9,11 +9,11 @@
 
 @pytest.fixture
 def meta_repo(tmp_path: Path) -> Path:
-    """Isolated meta-repo for CLI tests. Pins meta VERSION to 1.6.3 so that
+    """Isolated meta-repo for CLI tests. Pins STANDARDS_VERSION to 1.6.3 so that
     the on-disk fixtures (which still carry 1.6.3 signals) read as clean."""
     root = tmp_path / "meta"
     root.mkdir()
-    (root / "VERSION").write_text("1.6.3", encoding="utf-8")
+    (root / "STANDARDS_VERSION").write_text("1.6.3", encoding="utf-8")
     (root / "standards").mkdir()
     (root / "standards" / "required-refs.json").write_text(
         '{"version": 1, "requirements": {"cursor-plugin": {}, "mcp-server": {}}}',
diff --git a/tests/test_cli_remote_flags.py b/tests/test_cli_remote_flags.py
index c1834a6..26325ad 100644
--- a/tests/test_cli_remote_flags.py
+++ b/tests/test_cli_remote_flags.py
@@ -16,7 +16,7 @@
 def meta_repo(tmp_path: Path) -> Path:
     root = tmp_path / "meta"
     root.mkdir()
-    (root / "VERSION").write_text("1.6.3", encoding="utf-8")
+    (root / "STANDARDS_VERSION").write_text("1.6.3", encoding="utf-8")
     (root / "standards").mkdir()
     (root / "standards" / "required-refs.json").write_text(
         '{"version": 1, "requirements": {"cursor-plugin": {}, "mcp-server": {}}}',
@@ -48,7 +48,7 @@ def test_remote_without_token_errors(capsys, meta_repo: Path, monkeypatch):
 def test_all_without_registry_errors(capsys, tmp_path: Path):
     bare = tmp_path / "bare-meta"
     bare.mkdir()
-    (bare / "VERSION").write_text("1.6.3", encoding="utf-8")
+    (bare / "STANDARDS_VERSION").write_text("1.6.3", encoding="utf-8")
     rc = cli.main([
         "--all",
         "--meta-repo", str(bare),