diff --git a/.env.example b/.env.example
index 8039a6b..43bc130 100644
--- a/.env.example
+++ b/.env.example
@@ -43,7 +43,8 @@ SMTP_FROM=noreply@example.com
 # TRUST_PROXY=loopback
 
 # Federation (inter-instance meeting invitations)
-# Set both values to enable federation between Redlight instances
+# Set FEDERATION_DOMAIN to enable federation between Redlight instances
 # FEDERATION_DOMAIN=redlight.example.com
-# RSA Private Key for signing outbound invitations (automatically generated if missing on startup)
-# FEDERATION_PRIVATE_KEY="-----BEGIN PRIVATE KEY-----\nMIIEvQIBADANBgk...\n-----END PRIVATE KEY-----"
+# The Ed25519 key pair is auto-generated on first start and stored at ./keys/federation_key.pem
+# Override the path with FEDERATION_KEY_PATH if needed
+# FEDERATION_KEY_PATH=/app/keys/federation_key.pem