Update README.md
diff --git a/README.md b/README.md
index aa95636..8217520 100644
--- a/README.md
+++ b/README.md
@@ -17,6 +17,8 @@
 
 ### Important Usage Notes
 
+Probably the most important concept to understand about Basis Universal before using it: The system supports **two** very different universal texture modes: The original "ETC1S" mode is low/medium quality, but the resulting file sizes are very small because the system has built-in compression for ETC1S texture format files. This is the command line encoding tool's default mode. ETC1S textures work best on images, photos, map data, or albedo/specular/etc. textures, but don't work as well on normal maps. Then there's the second "UASTC" mode, which is significantly higher quality (near-BC7 grade), and is usable on all texture types including complex normal maps. UASTC mode purposely does not have built-in file compression like ETC1S mode does, so the resulting files are quite large (8-bits/texel - same as BC7) compared to ETC1S mode. The UASTC encoder has an optional Rate Distortion Optimization (RDO) encoding mode (implemented as a post-process over the encoded UASTC texture data), which lowers the output data's entropy in a way that results in better compression when UASTC .basis files are compressed with Deflate/Zstd, etc. In UASTC mode, you must losslessly compress the file yourself.
+
 **The "-q X" option controls the output quality in ETC1S mode.** The default is quality level 128. "-q 255" will increase quality quite a bit. If you want even higher quality, try "-max_selectors 16128 -max_endpoints 16128" instead of -q. -q internally tries to set the codebook sizes (or the # of quantization intervals for endpoints/selectors) for you. You need to experiment with the quality level on your content.
 
 For tangent space normal maps, you should separate X into RGB and Y into Alpha, and provide the compressor with 32-bit/pixel input images. Or use the "-separate_rg_to_color_alpha" command line option which does this for you. The internal texture format that Basis Universal uses (ETC1S) doesn't handle tangent space normal maps encoded into RGB well. You need to separate the channels and recover Z in the pixel shader using z=sqrt(1-x^2-y^2).