catworkx Version Management for Jira supports two distribution modes:
Versions are managed by issues in the versioned project. That means that version workflows synchronize against real versions in the versioned project.
Versions are managed by issues in a central version management project. The affected projects that are synchronized by versions are managed by a distribution scheme.
The kind of version distribution is configured by the "Version Scheme Select" custom field. If this is not set, versions are managed inside the versioned project.