update reward distribution description (#325)

Co-authored-by: Delvin Kennedy <delvinkennedy@D-K-Macbook-Air.local>

Author: delken-azuro

pages/knowledge-hub/how-azuro-works/components/reinforcement.mdx

@@ -1,8 +1,6 @@
 # Reinforcement
 
-Reinforcement is the initial liquidity amount that is distributed among outcomes of a [Condition](/knowledge-hub/how-azuro-works/components/conditions)
-in accordance with the betting odds. It is set at the time of Condition creation and cannot be changed later.
+Reinforcement is the initial liquidity amount that is distributed among outcomes of a [Condition](/knowledge-hub/how-azuro-works/components/conditions) in accordance with the betting odds. It is set at time of Condition creation and cannot be changed later.
 
 It is used to ensure potential payouts for bets where the funds received from other bets on the Condition are insufficient.
-Therefore, the reinforcement value also represents the maximum potential loss that the [Pool](/knowledge-hub/how-azuro-works/components/pools)
-can incur due to the Condition.
+Therefore, the Reinforcement amount also represents the maximum potential loss that the [Pool](/knowledge-hub/how-azuro-works/components/pools) can incur due to the Condition **at initial setup**.

pages/knowledge-hub/how-azuro-works/protocol-actors/bettors.mdx

@@ -12,6 +12,4 @@ Do note that apps connected to the protocol are distinct and separate entities f
 
 ---
 
-Bettors play an important role towards the functioning of Azuro prediction markets. Profit-motivated bettors seek out mispricings of sell-side odds (pushed by the [Data Provider](/knowledge-hub/how-azuro-works/protocol-actors/data-providers)) across Azuro prediction markets and place bets against it, adjusting onchain odds back to the free market equilibrium in the process.
-
-Betting volume is what drives accurate probabilities in the first place. No bettors, no volume, no functioning prediction markets.
+Bettors play an important role towards the functioning of Azuro prediction markets. Profit-motivated bettors seek out mispricings of sell-side odds (pushed by the [Data Provider](/knowledge-hub/how-azuro-works/protocol-actors/data-providers)) across Azuro prediction markets and place bets against it, adjusting onchain odds back to its free market equilibrium.

pages/knowledge-hub/how-azuro-works/reward-distribution.mdx

@@ -14,34 +14,52 @@ For LPs and Data Providers, after the completion of each [Condition](/knowledge-
 
 ## Apps (Frontends)
 
-Apps' reward is paid monthly, separately for each chain.
+<Callout type="info">
+Visit [this](https://dune.com/queries/4361346/7319176) Dune query to view the historical month-by-month of our apps' reward calculation.
+</Callout>
+
+Apps' reward is paid monthly, separately for each chain. Each app's final take-home reward will be the lower of its *NotionalReward* and the sum of its *SpreadRewardCap* for that month.
+
+### SpreadRewardCap
 
 <Formula>
 $$
 \begin{array}{c}
-\textit{AppReward} = 60\% \times \textit{AppRevenue} \\
-\textit{SpreadRewardCap} = 50\% \times \textit{Spread} \times \textit{BetSize} \\
+\textit{SRCb} = 50\% \times \textit{Spread} \times \textit{BetSize} \\
+\textit{SRCt} = \textit{SRCb1} + \textit{SRCb2} + ... + \textit{SRCbi} \\
+\\
+\\
+\text{where} \\
+\textit{SRC} \text{ denotes } \textit{SpreadRewardCap}, \\
+\textit{SRCb} \text{ represents the } \textit{SpreadRewardCap} \text{ for an individual bet}, \\
+\textit{SRCt} \text{ represents the sum of } \textit{SRCb} \text{ over a month's period}, \\
+\\
+\text{and} \\
+\textit{Spread} \text{ is the vig (aka margin) for an individual bet,} \\
+\textit{BetSize} \text{ is the amount (aka wager size) of an individual bet.}
 \end{array}
 $$
 </Formula>
 
+### NotionalRevenue
+
 <Formula>
 $$
 \begin{array}{c}
+\textit{NotionalReward} = 70\% \times \textit{AppRevenue} \\
+\\
+\\
 \text{where} \\
-\textit{AppReward} \text{ is not higher than } \textit{SpreadRewardCap}, \\
-\textit{Spread} \text{ is the vig (aka margin) for each particular bet,} \\
-\textit{BetSize} \text{ is the amount (aka wagered cryptocurrency) of each particular bet.}
+\textit{AppRevenue} \text{ is the protocol revenue that is attributed to a particular app}, \\
+\textit{NotionalReward} \text{ is the notional reward for a particular app before applying } \textit{SRC}.
 \end{array}
 $$
 </Formula>
 
-
 ## DAO
 
-The remaining rewards will be attributable to AzuroDAO, calculated by deducting all other rewards from the total monthly Pool Revenue.
+The remaining amount will be attributable to AzuroDAO, calculated by deducting all other rewards from the total monthly Pool Revenue.
 
 <Callout type="info">
-LPs’, Data Providers’, and the DAO’s rewards can happen to be negative. 
-Frontends’ rewards can be only positive or 0.
-</Callout>
+LP, Data Provider, and DAO rewards can happen to be negative in the event of Pool losses (caused by bettor outperformance). However, App rewards can be only positive or zero.
+</Callout>