diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 2ea5d56..36b1f98 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -1,12 +1,15 @@
 # Contributing to WaveFlow
 
-WaveFlow automates bounty escrow on Stellar/Soroban with GitHub merge-triggered payouts.
+WaveFlow automates bounty escrow on Stellar/Soroban with GitHub merge-triggered payouts. Keep contributions small, auditable, and tied to the production readiness path in the PRD and roadmap.
 
 ## Before you start
 
-1. Read [docs/PRD.md](docs/PRD.md) for product scope.
-2. Read [docs/ROADMAP.md](docs/ROADMAP.md) for phase plan.
-3. Walk through [docs/core-loop.md](docs/core-loop.md) for the merge-to-payout path.
+- Read [docs/PRD.md](docs/PRD.md) for product scope.
+- Read [docs/ROADMAP.md](docs/ROADMAP.md) for phase plan.
+- Walk through [docs/core-loop.md](docs/core-loop.md) for the merge-to-payout path.
+- Pick an open issue whose scope matches the code or docs you plan to change.
+- Check for an existing assignee, active pull request, or maintainer comment before starting.
+- Prefer one issue per pull request. Split unrelated contract, gateway, API, and docs work.
 
 ## Development setup
 
@@ -19,6 +22,8 @@ cargo build --workspace
 cargo test --workspace
 ```
 
+Run the focused command for your change when possible, then run the wider workspace check before review if you touched shared behavior.
+
 ## Workspace layout
 
 | Crate / path | Role |
@@ -27,14 +32,65 @@ cargo test --workspace
 | `crates/gateway` | GitHub webhooks and chain attestation |
 | `crates/api` | REST API for programs and payouts |
 | `crates/shared` | Config, types, errors |
+| `docs/` | PRD, roadmap, runbooks, and walkthroughs |
+
+## Issue labels and title prefixes
+
+Use issue title prefixes to make the affected area clear:
+
+| Prefix | Area |
+|--------|------|
+| `[contract]` | Soroban escrow code in `contracts/waveflow-escrow` |
+| `[gateway]` | GitHub webhook ingestion, HMAC checks, attestation, metrics, and chain submission in `crates/gateway` |
+| `[api]` | REST routes, admin auth, health/readiness, and read models in `crates/api` |
+| `[shared]` | Shared errors, types, config, and idempotency keys in `crates/shared` |
+| `[infra]` | Docker, Render, migrations, deployment scripts, and environment templates |
+| `[docs]` | README, PRD, roadmap, runbooks, agent notes, and walkthroughs |
+| `[tests]` | Focused test-only changes or test coverage for an existing feature |
+| `[security]` | Auth, replay protection, secret handling, rate limits, and fail-closed behavior |
+
+Maintainers may also add status labels such as `documentation`, `good first issue`, or `help wanted` when a task is ready for contributors.
+
+## Wave bounty label workflow
+
+WaveFlow follows Drips Wave-style contributor mechanics, but the product remains Stellar-native. PRD NG6 keeps WaveFlow focused on its own Stellar/Soroban escrow and payout loop; the gateway should not depend on a Drips API for payout execution. Treat Drips Wave as the program model, not as a runtime dependency.
+
+For Wave-aligned issues:
+
+1. Maintainers mark the issue with the Wave program label, such as `Drips Wave` or `Stellar Wave`.
+2. Maintainers add one complexity label, such as `complexity:low`, `complexity:medium`, or `complexity:high`.
+3. Gateway-related issues should reference the label-to-points mapping issue or PR when points affect payout calculation.
+4. If no mapping issue is linked yet, include the proposed mapping in the PR description and keep the implementation configurable rather than hardcoded.
+5. A merged PR should include enough context for the gateway to map repo, PR number, contributor, complexity tier, and points without relying on off-chain manual memory.
 
 ## Pull requests
 
 - Branch from `main`, open PRs against `main`.
-- Run `cargo fmt`, `cargo clippy`, and `cargo test --workspace` before pushing.
-- Use issue prefixes: `[contracts]`, `[backend]`, `[documentation]`, `[infra]`.
-- Label Drips Wave issues with `Drips Wave` and `complexity:*`.
+- Use a branch name that includes the issue number, for example `feature/38-contributing-guide`.
+- Put `Closes #<issue>` or `Refs #<issue>` in the PR body.
+- Keep the PR description focused on what changed, how it was validated, and any follow-up work.
+- For code changes, run `cargo fmt`, `cargo clippy`, and `cargo test --workspace` before pushing.
+- For documentation-only changes, mention that no Rust build was required.
+
+## Quality bar
+
+Contributions should preserve the PRD production target:
+
+- fail closed on auth, signature, idempotency, and insufficient escrow failures;
+- avoid placeholder production paths, simulated transaction hashes, and secret logging;
+- update docs when behavior, environment variables, APIs, or operational steps change;
+- include tests for changed contract, gateway, API, and shared logic where practical.
 
 ## Security
 
 Never commit real webhook secrets or Stellar secret keys. See [docs/security-checklist.md](docs/security-checklist.md).
+
+Do not introduce secrets, private data, paid services, or destructive actions into tests or examples.
+
+## Useful references
+
+- [README](README.md)
+- [Product Requirements](docs/PRD.md)
+- [Implementation Roadmap](docs/ROADMAP.md)
+- [Core loop walkthrough](docs/core-loop.md)
+- [Agent guidance](AGENTS.md)
diff --git a/README.md b/README.md
index 351345e..9b9816a 100644
--- a/README.md
+++ b/README.md
@@ -55,6 +55,7 @@ cargo run -p waveflow-api
 - [Product Requirements](docs/PRD.md)
 - [Implementation Roadmap](docs/ROADMAP.md)
 - [Core loop walkthrough](docs/core-loop.md)
+- [Contributing guide](CONTRIBUTING.md)
 
 ## License