diff --git a/cmd/bd/formula.go b/cmd/bd/formula.go
index 35bad954..f26d45a5 100644
--- a/cmd/bd/formula.go
+++ b/cmd/bd/formula.go
@@ -18,8 +18,8 @@ var formulaCmd = &cobra.Command{
 	Short: "Manage workflow formulas",
 	Long: `Manage workflow formulas - the source layer for molecule templates.
 
-Formulas are YAML/JSON files that define workflows with composition rules.
-They are "cooked" into proto beads which can then be poured or wisped.
+Formulas are JSON files (.formula.json) that define workflows with composition rules.
+They are "cooked" into ephemeral protos which can then be poured or wisped.
 
 The Rig → Cook → Run lifecycle:
   - Rig: Compose formulas (extends, compose)
diff --git a/docs/MOLECULES.md b/docs/MOLECULES.md
index 4dba4cec..5e3f62b1 100644
--- a/docs/MOLECULES.md
+++ b/docs/MOLECULES.md
@@ -238,18 +238,49 @@ bd wisp gc             # Garbage collect old wisps
 For reference, here's how the layers stack:
 
 ```
-Formulas (JSON compile-time macros)      ← optional, for complex composition
-    ↓
-Protos (template issues)                  ← optional, for reusable patterns
-    ↓
-Molecules (bond, squash, burn)            ← workflow operations
+Formulas (.formula.json)                  ← SOURCE: shareable workflow definitions
+    ↓ cook (ephemeral)
+[Protos]                                  ← TRANSIENT: compiled templates (auto-deleted)
+    ↓ pour/wisp
+Molecules (bond, squash, burn)            ← EXECUTION: workflow operations
     ↓
 Epics (parent-child, dependencies)        ← DATA PLANE (the core)
     ↓
 Issues (JSONL, git-backed)                ← STORAGE
 ```
 
-**Most users only need the bottom two layers.** Protos and formulas are for reusable patterns and complex composition.
+**Protos are ephemeral**: When you `bd pour formula-name` or `bd wisp create formula-name`, the formula is cooked into a temporary proto, used to spawn the mol/wisp, then automatically deleted. Protos are an implementation detail, not something users manage directly.
+
+**Most users only need the bottom two layers.** Formulas are for sharing reusable patterns.
+
+## Distillation: Extracting Patterns
+
+The lifecycle is circular - you can extract formulas from completed work:
+
+```
+Formulas ──cook──→ Mols/Wisps ──distill──→ Formulas
+```
+
+**Use cases for distillation:**
+- **Emergent patterns**: Manually structured an epic that worked well
+- **Modified execution**: Poured a formula but added custom steps
+- **Learning from success**: Extract what made a complex mol succeed
+
+```bash
+bd distill <mol-id> -o my-workflow.formula.json   # Extract formula from mol
+```
+
+## Sharing: The Mol Mall
+
+All workflow sharing happens via formulas:
+
+```bash
+bd mol publish my-workflow.formula.json            # Share to GitHub repo
+bd mol install github.com/org/mol-code-review      # Install from GitHub
+bd pour mol-code-review --var repo=myproject       # Use installed formula
+```
+
+Formulas are clean source code: composable, versioned, parameterized. Mols contain execution-specific context and aren't shared directly.
 
 ## Commands Quick Reference
 
diff --git a/internal/formula/types.go b/internal/formula/types.go
index d7821595..ef90c445 100644
--- a/internal/formula/types.go
+++ b/internal/formula/types.go
@@ -249,16 +249,20 @@ type LoopSpec struct {
 // OnCompleteSpec defines actions triggered when a step completes (gt-8tmz.8).
 // Used for runtime expansion over step output (the for-each construct).
 //
-// Example YAML:
+// Example JSON:
 //
-//	step: survey-workers
-//	on_complete:
-//	  for_each: output.polecats
-//	  bond: mol-polecat-arm
-//	  vars:
-//	    polecat_name: "{item.name}"
-//	    rig: "{item.rig}"
-//	  parallel: true
+//	{
+//	  "id": "survey-workers",
+//	  "on_complete": {
+//	    "for_each": "output.polecats",
+//	    "bond": "mol-polecat-arm",
+//	    "vars": {
+//	      "polecat_name": "{item.name}",
+//	      "rig": "{item.rig}"
+//	    },
+//	    "parallel": true
+//	  }
+//	}
 type OnCompleteSpec struct {
 	// ForEach is the path to the iterable collection in step output.
 	// Format: "output.<field>" or "output.<field>.<nested>"