diff --git a/README.md b/README.md
index da6a4173..88443a46 100644
--- a/README.md
+++ b/README.md
@@ -126,7 +126,7 @@ Plotnik extends Tree-sitter's query syntax with:
 - **Named expressions** for composition and reuse
 - **Recursion** for arbitrarily nested structures
 - **Type annotations** for precise output shapes
-- **Tagged alternations** for discriminated unions
+- **Alternations**: untagged for simplicity, tagged for precision (discriminated unions)
 
 ## Use cases
 
@@ -161,12 +161,12 @@ This produces:
 
 ```typescript
 type Statement =
-  | { tag: "Assign"; target: string; value: Expression }
-  | { tag: "Call"; func: string; args: Expression[] };
+  | { $tag: "Assign"; $data: { target: string; value: Expression } }
+  | { $tag: "Call"; $data: { func: string; args: Expression[] } };
 
 type Expression =
-  | { tag: "Ident"; name: string }
-  | { tag: "Num"; value: string };
+  | { $tag: "Ident"; $data: { name: string } }
+  | { $tag: "Num"; $data: { value: string } };
 
 type TopDefinitions = {
   statements: [Statement, ...Statement[]];
@@ -177,12 +177,12 @@ Then process the results:
 
 ```typescript
 for (const stmt of result.statements) {
-  switch (stmt.tag) {
+  switch (stmt.$tag) {
     case "Assign":
-      console.log(`Assignment to ${stmt.target}`);
+      console.log(`Assignment to ${stmt.$data.target}`);
       break;
     case "Call":
-      console.log(`Call to ${stmt.func} with ${stmt.args.length} args`);
+      console.log(`Call to ${stmt.$data.func} with ${stmt.$data.args.length} args`);
       break;
   }
 }
diff --git a/docs/REFERENCE.md b/docs/REFERENCE.md
index da3c05a4..47ad6719 100644
--- a/docs/REFERENCE.md
+++ b/docs/REFERENCE.md
@@ -492,6 +492,9 @@ interface Section {
 
 Match one of several alternatives with `[...]`:
 
+- **Untagged** (no labels): Simpler output, fields merge. Use when you only need the captured data.
+- **Tagged** (with labels): Precise discriminated union. Use when you need to know which branch matched.
+
 ```
 [
   (identifier)
@@ -589,10 +592,12 @@ Labels create a discriminated union:
 ] @stmt :: Stmt
 ```
 
-Output type (discriminant is always `tag`):
+Output type (discriminant is always `$tag`, payload in `$data`):
 
 ```typescript
-type Stmt = { tag: "Assign"; left: Node } | { tag: "Call"; func: Node };
+type Stmt =
+  | { $tag: "Assign"; $data: { left: Node } }
+  | { $tag: "Call"; $data: { func: Node } };
 ```
 
 In Rust, tagged alternations become enums:
@@ -754,8 +759,8 @@ Output type:
 
 ```typescript
 type MemberChain =
-  | { tag: "Base"; name: Node }
-  | { tag: "Access"; object: MemberChain; property: Node };
+  | { $tag: "Base"; $data: { name: Node } }
+  | { $tag: "Access"; $data: { object: MemberChain; property: Node } };
 ```
 
 ---
@@ -787,14 +792,14 @@ Output types:
 
 ```typescript
 type Statement =
-  | { tag: "Assign"; target: string; value: Expression }
-  | { tag: "Call"; func: string; args: Expression[] }
-  | { tag: "Return"; value?: Expression };
+  | { $tag: "Assign"; $data: { target: string; value: Expression } }
+  | { $tag: "Call"; $data: { func: string; args: Expression[] } }
+  | { $tag: "Return"; $data: { value?: Expression } };
 
 type Expression =
-  | { tag: "Ident"; name: string }
-  | { tag: "Num"; value: string }
-  | { tag: "Str"; value: string };
+  | { $tag: "Ident"; $data: { name: string } }
+  | { $tag: "Num"; $data: { value: string } }
+  | { $tag: "Str"; $data: { value: string } };
 
 type Root = {
   statements: [Statement, ...Statement[]];
diff --git a/docs/adr/ADR-0003-query-intermediate-representation.md b/docs/adr/ADR-0003-query-intermediate-representation.md
index b21abda5..230c98c4 100644
--- a/docs/adr/ADR-0003-query-intermediate-representation.md
+++ b/docs/adr/ADR-0003-query-intermediate-representation.md
@@ -351,7 +351,19 @@ EndObject
 EndVariant
 ```
 
-The resulting `Value::Variant` preserves the tag distinct from the payload, preventing name collisions. When serialized to JSON, it flattens to match the documented data model: `{ tag: "A", ...payload }`.
+The resulting `Value::Variant` preserves the tag distinct from the payload, preventing name collisions.
+
+**JSON serialization** always uses `$data` wrapper for uniformity:
+
+```json
+{ "$tag": "A", "$data": { "x": 1, "y": 2 } }
+{ "$tag": "B", "$data": [1, 2, 3] }
+{ "$tag": "C", "$data": "foo" }
+```
+
+The `$tag` and `$data` keys avoid collisions with user-defined captures. Uniform structure simplifies parsing (always access `.$data`) and eliminates conditional flatten-vs-wrap logic.
+
+This mirrors Rust's serde adjacently-tagged representation and remains fully readable for LLMs. No query validation restriction—all payload types are valid.
 
 **Constraint: branches must produce objects.** Top-level quantifiers in tagged branches are disallowed:
 
@@ -430,7 +442,7 @@ struct Interpreter<'a> {
 
 After initial construction, epsilon transitions can be eliminated by computing epsilon closures. The `pre_effects`/`post_effects` split is essential for correctness here.
 
-**Why the split matters**: A match transition overwrites `current` with the matched node. Effects from *preceding* epsilon transitions (like `PushElement`) need the *previous* `current` value. Without the split, merging them into a single post-match list would use the wrong value.
+**Why the split matters**: A match transition overwrites `current` with the matched node. Effects from _preceding_ epsilon transitions (like `PushElement`) need the _previous_ `current` value. Without the split, merging them into a single post-match list would use the wrong value.
 
 ```
 Before (raw graph):
@@ -446,6 +458,7 @@ T3': Match(B) + [PushElement]                   // PushElement runs after Match(
 ```
 
 **Accumulation rules**:
+
 - Effects from incoming epsilon paths → accumulate into `pre_effects`
 - Effects from outgoing epsilon paths → accumulate into `post_effects`