Improve README with pruning strategies documentation

- Add Pruning Strategies section explaining deduplication vs AI analysis
- Simplify installation section with cleaner example
- Add info about version update notifications
- Improve config precedence documentation
- Remove redundant Version Pinning section

Author: Tarquinen

README.md

@@ -6,16 +6,27 @@ Automatically reduces token usage in OpenCode by removing obsolete tool outputs
 
 ![DCP in action](dcp-demo.png)
 
+## Pruning Strategies
+
+DCP implements two complementary strategies:
+
+**Deduplication** — Fast, zero-cost pruning that identifies repeated tool calls (e.g., reading the same file multiple times) and keeps only the most recent output. Runs instantly with no LLM calls.
+
+**AI Analysis** — Uses a language model to semantically analyze conversation context and identify tool outputs that are no longer relevant to the current task. More thorough but incurs LLM cost.
+
 ## Installation
 
-Add to your OpenCode config (`~/.config/opencode/opencode.json` or `.opencode/opencode.json`):
+Add to your OpenCode config:
 
-```json
+```jsonc
+// opencode.jsonc
 {
-  "plugin": ["@tarquinen/opencode-dcp"]
+  "plugins": ["@tarquinen/opencode-dcp@0.3.16"]
 }
 ```
 
+When a new version is available, DCP will show a toast notification. Update by changing the version number in your config.
+
 Restart OpenCode. The plugin will automatically start optimizing your sessions.
 
 > **Note:** Project `plugin` arrays override global completely—include all desired plugins in project config if using both.
@@ -55,13 +66,11 @@ DCP uses its own config file (`~/.config/opencode/dcp.jsonc` or `.opencode/dcp.j
 }
 ```
 
-Settings merge: **Defaults** → **Global** → **Project**. Restart OpenCode after changes.
+### Config Precedence
 
-### Version Pinning
+Settings are merged in order: **Defaults** → **Global** (`~/.config/opencode/dcp.jsonc`) → **Project** (`.opencode/dcp.jsonc`). Each level overrides the previous, so project settings take priority over global, which takes priority over defaults.
 
-```json
-{ "plugin": ["@tarquinen/[email protected]"] }
-```
+Restart OpenCode after making config changes.
 
 ## License