Update README with environment variable configuration and bot command details; enhance event and tool handler initialization

README.md

@@ -33,7 +33,32 @@ uv pip install -r requirements.txt
 
 ## Configuration
 
-All configuration is done through environment variables. Create a `.env` file:
+### Environment Variables
+
+Create a `.env` file with required configuration:
+
+### System Prompt & Personality
+
+The bot's personality and behavior are configured through `system_prompt.yaml`. This defines:
+- Core personality traits and behavior
+- Response patterns and style
+- Tool usage guidelines
+- Context handling rules
+
+Example system_prompt.yaml structure:
+```yaml
+sections:
+  - title: "Personality"
+    content: "Define the bot's character and tone"
+  - title: "Tools"
+    content: "Define how the bot uses available tools"
+  - title: "Context"
+    content: "Define how the bot handles conversation context"
+```
+
+The system prompt works in conjunction with the available tools to create natural, contextual interactions. When using `!reset_memory`, the bot reloads this configuration while preserving user data and preferences.
+
+### Environment Variables
 
 ```env
 # Required Environment Variables
@@ -191,10 +216,76 @@ The bot includes comprehensive monitoring:
    - System state
 
 3. Performance Metrics
-   - Response times
-   - Queue latency
-   - API latency
-   - Database performance
+    - Response times
+    - Queue latency
+    - API latency
+    - Database performance
+
+4. Tool Usage Monitoring
+    - Detection of tool invocations
+    - Tool execution tracking
+    - Success/failure logging
+    - Comprehensive logging for:
+        - User mentions
+        - Thread creation
+        - Emoji reactions
+        - Emoticon conversions
+    - Tool usage summaries per message
+
+## Bot Commands
+
+### Owner Commands
+- `!reset_memory` - Reset the bot's memory back to initial system prompt
+  - Tracks number of resets per user
+  - Preserves user interaction history and preferences
+  - Shows reset count in response
+
+## Bot Tools & Capabilities
+
+The bot uses a natural language tool system that allows it to perform actions based on conversation context:
+
+### Available Tools
+
+1. **User Mentions** (@username)
+   - Naturally mention users in conversation
+   - Example: "Hey @john, what do you think?"
+   - Automatically resolves nicknames and usernames
+
+2. **Emoji Reactions**
+   - Add emoji reactions to messages
+   - Supports Unicode emojis, custom emojis, and standard Discord emojis
+   - Example: "That's awesome! 👍" (will add thumbs up reaction)
+   - Can convert emoticons like :) to proper emojis
+
+3. **Rich Embeds**
+   - Create formatted embed messages
+   - Supports titles, descriptions, and custom colors
+   - Example:
+     ```
+     [Embed]
+     Poll Results
+     First place: X
+     Second place: Y
+     [/Embed]
+     ```
+
+4. **Threading**
+   - Automatically creates discussion threads
+   - Supports various conversation patterns:
+     * Comparisons: "X vs Y"
+     * Reviews: "This coaster is overrated"
+     * Topics: "Safety discussion" or "Maintenance review"
+   - Automatically formats thread names for consistency
+
+### Tool Usage
+
+The bot uses these tools naturally in conversation without requiring explicit commands. It can:
+- Recognize when to mention users based on context
+- Add appropriate emoji reactions to messages
+- Create organized threads for discussions
+- Format information in embeds for better readability
+
+All tools are used through natural language processing, making interactions feel more conversational and intuitive.
 
 ## Running the Bot