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Minor updates are free. A minor update is anything that comes after the major version number, e.g. 1.x
That means for version 1 - anything following the 1 is a minor update and will be free to all users who purchased version 1. Whether it's 1.1 or 1.562, as long as it starts with 1. It will be provided free to all users who own version 1.
Once you purchase a major version, you get a lifetime license for it. You never have to upgrade to a new major version if you do not wish. You may skip major versions as well. If you purchased version 1 and want to buy version 3, you can upgrade directly to version 3 without purchasing version 2.
Users wishing to upgrade to a new version will have to purchase it (at a discounted rate) with the exception of new customers (see below). Major version upgrades are the first number. An upgrade from version 1.x to 2.x would require users to purchase the new version if they want it.
Upgrades are free to users who purchased a previous version within the last year. For example, version 2 would be available for free to users who purchased version 1 within the last 365 days.