VLAN Trunking Protocol (VTP) reduces administration by automatically distributing VLAN configurations throughout a domain of switches. VTP operates in server, client, transparent, or off modes. VTP servers can create and modify VLANs, while clients and transparent switches can only forward VTP advertisements. VTP pruning helps reduce unnecessary broadcast traffic by pruning VLANs from trunks where no end stations exist. VTP version 3 supports extended VLAN ranges and private VLANs, while offering more secure authentication and compatibility with version 2.