diff --git a/README.md b/README.md
index 724af08d9b1296e46adc3eeb3d38b88f9b7ded9b..dc4c232a76184a8811e1b6391034870c33af4483 100644
--- a/README.md
+++ b/README.md
@@ -2,7 +2,16 @@
 
 ## Introduction
 
-The operator observes changes and triggeres the correct action within a namespace.
+The operator observes a namespace for services which are annotated with a special xfsc tag. This tag contains information about the plugin name, its id etc. The annotation must be in the service deployment like this: 
+
+```
+xfsc.kubernetes.io/configuration: | 
+              {"version":"v1","route":"/plugin-template", "name":"Plugin template", "serviceguid":"19bafa36-8415-44e9-a2de-32852fefa6ef","routeguid":"30959362-e35b-4eb4-afe5-e8fdd6a3fecd"}
+
+```
+
+When the operator finds such a annotation, he will start to add it into the kong services list, which is later on discovered by the plugin discovery. 
+
 
 ## Dependencies
 
@@ -10,7 +19,7 @@ The operator observes changes and triggeres the correct action within a namespac
 
 [Kubernetes](https://kubernetes.io/) - The container orchestration system used to deploy the microservices. Used for plugin detection and synchronization
 
-## Plugin Synchronization
+## Plugin Synchronization Annotation
 
 If a micro service is deployed by using