docs: add reward mechanism

docs/contract-managment.md

@@ -377,6 +377,7 @@ babylond tx btcstkconsumer register-consumer \
   "$CONSUMER_ID" \
   "$CONSUMER_NAME" \
   "$CONSUMER_DESCRIPTION" \
+  "$BABYLON_REWARDS_COMMISSION" \
   "$ROLLUP_FINALITY_CONTRACT_ADDRESS"
 ```
 
@@ -386,6 +387,8 @@ Required metadata for BSN registration:
 * `consumer_name`: Human-readable name of your rollup BSN (e.g., `"DeFi Rollup 
 Chain"`)
 * `consumer_description`: Brief description of the rollup BSN's purpose
+* `babylon_rewards_commission`: Commission rate for Babylon Genesis protocol
+  revenue (between 0 and 1, e.g., `"0.05"` for 5%)
 * `rollup_finality_contract_address`: Babylon Genesis address of the deployed 
 Rollup BSN contract (`bbn1...` format)
 

docs/reward-distribution.md

@@ -0,0 +1,111 @@
+# Rollup BSN Reward Distribution
+
+## Table of Contents
+
+1. [Introduction](#1-introduction)
+2. [Reward Distribution Process](#2-reward-distribution-process)
+3. [Message Structure](#3-message-structure)
+
+## 1. Introduction
+
+Rollup BSNs must bridge rewards to the Babylon Genesis chain, where they are
+distributed to finality providers, their delegators, and protocol revenue.
+Tokens can be bridged from any supported source and are received through the
+`x/bank` module.
+
+> **📖 For detailed information about the reward mechanism and best practices,
+> see the 
+> [Babylon Rewards Distribution Guide](https://github.com/babylonlabs-io/babylon/blob/release/v3.x/x/btcstaking/docs/rewards-distribution.md).**
+
+Distribution is then handled by the 
+[x/incentive module](https://github.com/babylonlabs-io/babylon/tree/v3.0.0-rc.2/x/incentive),
+which manages the allocation of rewards to finality providers, delegators, and
+protocol revenue.
+
+> **Babylon Genesis** supports multiple bridging methods for transferring tokens
+> into the `x/bank` module, including: [Union](https://union.build/), 
+> [IBCEureka](https://cosmos.network/ibc-eureka/), and standard
+> [IBC](https://cosmos.network/ibc/) for Cosmos chains. For the reward
+> mechanism, the only requirement is that tokens ultimately arrive in `x/bank`.
+
+> **⚠️ Important**: CW-20 assets are *not* supported.
+
+> **Important**: The only requirement is that tokens must be present in a specific account within the `x/bank` module on Babylon Genesis before distribution can occur.
+
+## 2. Reward Distribution Process
+
+> **Note**: The reward interval is the time period between reward distributions.
+> This interval is not predefined by the protocol, each BSN is responsible for
+> controlling their own distribution frequency and interval length.
+
+The reward distribution process follows a four-step strategy:
+
+1. **Bridge tokens to x/bank** on Babylon Genesis
+2. **Calculate total rewards** for the current reward interval
+3. **Calculate distribution ratios** for finality providers (you can reference
+   voting tables from the [Rollup Finality Gadget](https://github.com/babylonlabs-io/rollup-finality-gadget) 
+   or use any distribution scheme you choose)
+4. **Submit MsgAddBsnRewards** message to Babylon Genesis to distribute rewards
+
+> **Note**: BSNs can choose to bridge tokens in bulk (maintaining a balance) or
+> just-in-time (before each distribution), depending on their operational
+> preferences.
+
+During [BSN registration](contract-management.md#5-rollup-bsn-registration), a
+fixed protocol commission rate is set. When distributing rewards via
+`MsgAddBsnRewards`, the BSN specifies the total reward amount and finality
+provider distribution ratios, while the protocol commission remains fixed at the
+registration rate.
+
+> **Note**: Rewards are distributed to delegators based on their active stakes
+> at the time the distribution message is submitted. Delegators who unbond
+> before distribution may miss rewards, so **frequent distributions minimize this risk**.
+
+## 3. Message Structure
+
+BSN rewards are distributed through the submission of a `MsgAddBsnRewards` message to the Babylon Genesis chain.
+
+**Message Format:**
+```go
+type MsgAddBsnRewards struct {
+	// Sender is the babylon address which will pay for the rewards
+	Sender string `protobuf:"bytes,1,opt,name=sender,proto3" json:"sender,omitempty"`
+	// BsnConsumerId is the ID of the BSN consumer
+	BsnConsumerId string `protobuf:"bytes,2,opt,name=bsn_consumer_id,json=bsnConsumerId,proto3" json:"bsn_consumer_id,omitempty"`
+	// TotalRewards is the total amount of rewards to be distributed
+	TotalRewards github_com_cosmos_cosmos_sdk_types.Coins `protobuf:"bytes,3,rep,name=total_rewards,json=totalRewards,proto3,castrepeated=github.com/cosmos/cosmos-sdk/types.Coins" json:"total_rewards"`
+	// FpRatios is a list of finality providers and their respective reward distribution ratios
+	FpRatios []FpRatio `protobuf:"bytes,4,rep,name=fp_ratios,json=fpRatios,proto3" json:"fp_ratios"`
+}
+```
+
+### Field Explanations
+
+- **`Sender`**: Babylon address (bbn...) that will pay for the rewards
+  - Must have sufficient balance to cover `TotalRewards`
+  - Account must be in the `x/bank` module
+
+- **`BsnConsumerId`**: Unique identifier for the BSN
+  - Must match the ID used during BSN registration
+  - Unregistered IDs will be rejected
+
+- **`TotalRewards`**: Total reward amount and denomination to be distributed
+  - Must be available in the `Sender` account
+  - Supports multiple coin types in a single distribution
+  - Protocol commission is automatically deducted based on registration rate
+
+- **`FpRatios`**: Finality provider distribution ratios
+  - Maps finality provider public keys to reward portions
+  - All portions must sum to `1.0`
+  - All finality providers must be registered and have active delegations
+
+> **Critical**: The `Sender` account must have sufficient coins to cover the
+> `TotalRewards` amount before submitting the message.
+
+> **Note**: BSNs are responsible for calculating finality provider distribution
+> ratios. You can reference voting tables from the 
+> [Rollup Finality Gadget](https://github.com/babylonlabs-io/rollup-finality-gadget) or use any
+> distribution method they choose.
+
+
+