diff --git a/FEDERATION.md b/FEDERATION.md
index c8d8863..934d844 100644
--- a/FEDERATION.md
+++ b/FEDERATION.md
@@ -194,6 +194,83 @@ all.
 
 #### (3) Server-scope actor key
 
+Allows to have actor keys that can be used to sign (and verify) activities of
+any actor on the server, not limited to any specific actor. That allows to have
+some small constant number of keys on the server, which is very easy to manage
+and makes key rotations very cheap. It also saves storage of many local and
+remote actor keys.
+
+In the common Fediverse situation, there's a separate key for each actor, but
+all of these actor keys are managed by a single entity, the server. The
+signatures aren't made on users' devices using private keys they keep to
+themselves. They're made by the server, using private keys the server
+generates.
+
+Server-scope keys are made by the server too. The server makes the signatures,
+using a private key it generates and maintains. The server is the owner of the
+key, and a part of the signed message is the ID of the actor on whose behalf
+the message is being sent. Since the actor isn't specified by the key, the
+actor ID is instead placed in a HTTP header. And the actor still has to list
+the key under `publicKey` as usual.
+
+`GET /key1`
+
+```json
+{ "@context":
+    [ "https://w3id.org/security/v1"
+    , { "isShared": "https://peers.community/as2-ext#isShared"
+      }
+    ]
+, "@id":          "https://example.dev/key1"
+, "@type":        "Key"
+, "owner":        "https://example.dev"
+, "isShared":     true
+, "publicKeyPem": "-----BEGIN PUBLIC KEY----- ..."
+}
+```
+
+`GET /users/aviva`
+
+```json
+{ "@context":
+    [ "https://www.w3.org/ns/activitystreams"
+    , "https://w3id.org/security/v1"
+    ]
+, "id":                "https://example.dev/users/aviva"
+, "type":              "Person"
+, "preferredUsername": "aviva"
+, "name":              "Aviva"
+, "inbox":             "https://example.dev/users/aviva/inbox"
+, "outbox":            "https://example.dev/users/aviva/outbox"
+, "publicKey":
+    [ { "id":           "https://example.dev/users/aviva#main-key"
+      , "type":         "Key"
+      , "owner":        "https://example.dev/users/aviva"
+      , "publicKeyPem": "-----BEGIN PUBLIC KEY----- ..."
+      }
+    , "https://example.dev/users/aviva/extra-keys/extra-key1"
+    , "https://example.dev/users/aviva/extra-keys/extra-key2"
+    , "https://example.dev/key1"
+    ]
+}
+```
+
+Requirements for a server-scope key:
+
+- Its `owner` is the top-level URI of the server, of the form `https://HOST`
+- The `isShared` property is `true`
+- The key is in its own document, not embedded in an actor
+
+Requirements for authentication using a server-scope key:
+
+- The actor ID is specified in the `ActivityPub-Actor` HTTP header
+- The actor and key are on the same server
+- That header is included in the HTTP Signature in the `Signature` header
+- That actor lists the key (as one of the keys) under `publicKey`
+- In the payload, i.e. the activity in the request body, the activity's actor
+  is the same one specified in the `ActivityPub-Actor` (unless the activity is
+  forwarded, see proposal B.2 about inbox forwarding)
+
 #### (4) Actor key expiration and revocation
 
 #### (5) Ed25519 actor keys