Correct way of upgrading an addon?

So I used the release command on version 1000030 to prepare the zip file and uploaded it to the remote server and installed the addon.

Now if I want to work on additional things related to the said addon locally, what would be the recommended way of dealing with upgrades?

Approach #1

1. Bump the version to 1000130
2. Start making changes to code/templates
3. Once I'm done with the changes, use the release command to get the zip of the upgrade...

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