diff --git a/content/proposals.md b/content/proposals.md
index fcb8ace3..467ee99a 100644
--- a/content/proposals.md
+++ b/content/proposals.md
@@ -508,7 +508,9 @@ a placeholder MSC is required, it may be opened as such.
 
 There are a few expectations attached to placeholder MSCs:
 
-* They are tagged as WIP drafts ahead of receiving real content.
+* They have a title which marks them WIP, and are in the "draft" state.
+* They have the following labels: `[proposal-placeholder, action-required, needs-implementation]`.
+  * Notably, *not* `proposal`.
 * They are relatively short-lived (ideally less than 6-12 months in placeholder).
 * They propose solutions which are reasonably likely to be accepted. If a placeholder
   needs to be closed because the idea won't work, isn't needed, etc, then the MSC's
@@ -516,8 +518,10 @@ There are a few expectations attached to placeholder MSCs:
 * When they are updated to receive real content, the following happens:
   1. The Spec Core Team or the author leaves a comment to cause a notification
      that the MSC has been replaced with real content.
-  2. The `proposal` label (or its equivalent) is removed and re-applied to trigger
-     chat notifications in the public Matrix rooms.
+  2. The `proposal` label (or its equivalent) is added to trigger chat notifications
+     in the public Matrix rooms. The `proposal-placeholder` and `action-required`
+     labels should be removed at this stage as well. Other labels are removed/applied
+     per normal process.
 * The Spec Core Team is aware of the intended MSC's title and purpose. This is
   especially important if the Security Team approved the use of a placeholder MSC.