docs: Update reward-distribution.md (#994)

* Update reward-distribution.md

* docs: add instructions for registering denoms

* Update docs/docs/features/reward-distribution.md

Co-authored-by: Marius Poke <marius.poke@posteo.de>

* Update reward-distribution.md

* Update docs/docs/features/reward-distribution.md

Co-authored-by: Shawn <44221603+smarshall-spitzbart@users.noreply.github.com>

---------

Co-authored-by: MSalopek <matija.salopek994@gmail.com>
Co-authored-by: Marius Poke <marius.poke@posteo.de>

docs/docs/features/reward-distribution.md

@@ -12,6 +12,21 @@ The distributed reward tokens are IBC tokens and therefore cannot be staked on t
 
 Sending and distributing rewards from consumer chains to provider chain is handled by the `Reward Distribution` sub-protocol.
 
+## Note
+The ICS distribution system works by allowing consumer chains to send rewards to a module address on the provider called the `ConsumerRewardsPool`.
+There is a new transaction type called `RegisterConsumerRewardDenom`. This transaction allows consumer chains to register denoms to be used as consumer chain rewards on the provider.
+The cost to register a denom is configurable (`ConsumerRewardDenomRegistrationFee` chain param) and the full amount of this fee is transferred to the community pool of the provider chain. Only denoms registered through this transaction are then transferred from the `ConsumerRewardsPool` to the `FeePoolAddress`, to be distributed out to delegators and validators.
+
+### Instructions for adding a denom
+The transaction must be carried out on the provider chain. Please use the `ibc/*` denom trace format.
+
+:::tip
+```
+# reward denoms must be registered on the provider chain (gaia in this example)
+gaiad tx provider register-consumer-reward-denom ibc/3C3D7B3BE4ECC85A0E5B52A3AEC3B7DFC2AA9CA47C37821E57020D6807043BE9 --from mykey
+```
+:::
+
 ## Parameters
 :::tip
 The following chain parameters dictate consumer chain distribution amount and frequency.
@@ -21,12 +36,12 @@ They are set at consumer genesis and `blocks_per_distribution_transmission`, `co
 
 
 ### `consumer_redistribution_fraction`
-The fraction of tokens sent from consumer to provider during distribution events. The fraction is a string representing a decimal number. For example "0.75" would represent 75%.
+The fraction of tokens allocated to the consumer redistribution address during distribution events. The fraction is a string representing a decimal number. For example "0.75" would represent 75%.
 
 :::tip
 Example:
 
-With `consumer_redistribution_fraction` set to `0.75` the consumer chain would send 75% of its block rewards and accumulated fees to the consumer chain and the remaining 25% to the provider chain every `n` blocks where `n == blocks_per_distribution_transmission`.
+With `consumer_redistribution_fraction` set to `0.75` the consumer chain would send 75% of its block rewards and accumulated fees to the consumer redistribution address, and the remaining 25% to the provider chain every `n` blocks where `n == blocks_per_distribution_transmission`.
 :::
 
 ### `blocks_per_distribution_transmission`