diff --git a/README.md b/README.md
index 9309355..a0196e5 100644
--- a/README.md
+++ b/README.md
@@ -164,7 +164,7 @@ The keyword heuristic in `model-selector.ts` serves as a **fallback only**, used
 
 ## State management
 
-All project state lives in a single `memory/projects.json` file in the orchestrator's workspace, keyed by Telegram group ID:
+All project state lives in a single `projects/projects.json` file in the orchestrator's workspace, keyed by Telegram group ID:
 
 ```json
 {
@@ -235,7 +235,7 @@ Pick up a task from the issue queue for a DEV or QA worker.
 2. Validates no active worker for this role
 3. Fetches issue from issue tracker, verifies correct label state
 4. Assigns tier (LLM-chosen via `model` param, keyword heuristic fallback)
-5. Loads role instructions from `roles/<project>/<role>.md` (fallback: `roles/default/<role>.md`)
+5. Loads prompt instructions from `projects/prompts/<project>/<role>.md`
 6. Looks up existing session for assigned tier (session-per-tier)
 7. Transitions label (e.g. `To Do` → `Doing`)
 8. Creates session via Gateway RPC if new (`sessions.patch`)
@@ -357,13 +357,13 @@ Register a new project with DevClaw. Creates all required issue tracker labels (
 2. Resolves repo path, auto-detects GitHub/GitLab, and verifies access
 3. Creates all 8 state labels (idempotent — safe to run on existing projects)
 4. Adds project entry to `projects.json` with empty worker state and `autoChain: false`
-5. Scaffolds role instruction files: `roles/<project>/dev.md` and `roles/<project>/qa.md` (copied from `roles/default/`)
+5. Scaffolds prompt instruction files: `projects/prompts/<project>/dev.md` and `projects/prompts/<project>/qa.md`
 6. Writes audit log entry
 7. Returns announcement text
 
 ## Audit logging
 
-Every tool call automatically appends an NDJSON entry to `memory/audit.log`. No manual logging required from the orchestrator agent.
+Every tool call automatically appends an NDJSON entry to `log/audit.log`. No manual logging required from the orchestrator agent.
 
 ```jsonl
 {"ts":"2026-02-08T10:30:00Z","event":"task_pickup","project":"my-webapp","issue":42,"role":"dev","tier":"medior","sessionAction":"send"}
@@ -438,25 +438,26 @@ Restrict tools to your orchestrator agent only:
 
 > DevClaw uses an `IssueProvider` interface to abstract issue tracker operations. GitLab (via `glab` CLI) and GitHub (via `gh` CLI) are supported — the provider is auto-detected from the git remote URL. Jira is planned.
 
-## Role instructions
+## Prompt instructions
 
 Workers receive role-specific instructions appended to their task message. `project_register` scaffolds editable files:
 
 ```
 workspace/
-├── roles/
-│   ├── default/          ← sensible defaults (created once)
-│   │   ├── dev.md
-│   │   └── qa.md
-│   ├── my-webapp/        ← per-project overrides (edit to customize)
-│   │   ├── dev.md
-│   │   └── qa.md
-│   └── another-project/
-│       ├── dev.md
-│       └── qa.md
+├── projects/
+│   ├── projects.json     ← project state
+│   └── prompts/
+│       ├── my-webapp/    ← per-project prompts (edit to customize)
+│       │   ├── dev.md
+│       │   └── qa.md
+│       └── another-project/
+│           ├── dev.md
+│           └── qa.md
+├── log/
+│   └── audit.log         ← NDJSON event log
 ```
 
-`task_pickup` loads `roles/<project>/<role>.md` with fallback to `roles/default/<role>.md`. Edit the per-project files to customize worker behavior — for example, adding project-specific deployment steps or test commands.
+`task_pickup` loads `projects/prompts/<project>/<role>.md`. Edit these files to customize worker behavior per project — for example, adding project-specific deployment steps or test commands.
 
 ## Requirements
 
diff --git a/docs/ARCHITECTURE.md b/docs/ARCHITECTURE.md
index 45a4908..fa102a2 100644
--- a/docs/ARCHITECTURE.md
+++ b/docs/ARCHITECTURE.md
@@ -473,11 +473,11 @@ Every piece of data and where it lives:
 │  task_create    → create issue in tracker                      │
 │  queue_status   → read labels + read state                     │
 │  session_health → check sessions + fix zombies                 │
-│  project_register → labels + roles + state init (one-time)     │
+│  project_register → labels + prompts + state init (one-time)   │
 └─────────────────────────────────────────────────────────────────┘
         ↕ atomic file I/O          ↕ OpenClaw CLI (plugin shells out)
 ┌────────────────────────────────┐ ┌──────────────────────────────┐
-│ memory/projects.json           │ │ OpenClaw Gateway + CLI       │
+│ projects/projects.json         │ │ OpenClaw Gateway + CLI       │
 │                                │ │ (called by plugin, not agent)│
 │  Per project:                  │ │                              │
 │    dev:                        │ │  openclaw gateway call       │
@@ -493,7 +493,7 @@ Every piece of data and where it lives:
 └────────────────────────────────┘ └──────────────────────────────┘
         ↕ append-only
 ┌─────────────────────────────────────────────────────────────────┐
-│ memory/audit.log (observability)                                │
+│ log/audit.log (observability)                                   │
 │                                                                 │
 │  NDJSON, one line per event:                                    │
 │  task_pickup, task_complete, model_selection,                   │
@@ -607,7 +607,7 @@ Provider selection is handled by `createProvider()` in `lib/providers/index.ts`.
 | Plugin source | `~/.openclaw/extensions/devclaw/` | Plugin code |
 | Plugin manifest | `~/.openclaw/extensions/devclaw/openclaw.plugin.json` | Plugin registration |
 | Agent config | `~/.openclaw/openclaw.json` | Agent definition + tool permissions + tier config |
-| Worker state | `~/.openclaw/workspace-<agent>/memory/projects.json` | Per-project DEV/QA state |
-| Audit log | `~/.openclaw/workspace-<agent>/memory/audit.log` | NDJSON event log |
+| Worker state | `~/.openclaw/workspace-<agent>/projects/projects.json` | Per-project DEV/QA state |
+| Audit log | `~/.openclaw/workspace-<agent>/log/audit.log` | NDJSON event log |
 | Session transcripts | `~/.openclaw/agents/<agent>/sessions/<uuid>.jsonl` | Conversation history per session |
 | Git repos | `~/git/<project>/` | Project source code |
diff --git a/docs/ONBOARDING.md b/docs/ONBOARDING.md
index c25c005..acc0a45 100644
--- a/docs/ONBOARDING.md
+++ b/docs/ONBOARDING.md
@@ -147,7 +147,7 @@ Tell the orchestrator agent to register a new project:
 The agent calls `project_register`, which atomically:
 - Validates the repo and auto-detects GitHub/GitLab from remote
 - Creates all 8 state labels (idempotent)
-- Scaffolds role instruction files (`roles/<project>/dev.md` and `qa.md`)
+- Scaffolds prompt instruction files (`projects/prompts/<project>/dev.md` and `qa.md`)
 - Adds the project entry to `projects.json` with `autoChain: false`
 - Logs the registration event
 
@@ -251,7 +251,7 @@ Change which model powers each tier in `openclaw.json`:
 | Channel binding analysis | Plugin (`analyze_channel_bindings`) | Detects channel conflicts, validates channel configuration |
 | Channel binding migration | Plugin (`devclaw_setup` with `migrateFrom`) | Automatically moves channel-wide bindings between agents |
 | Label setup | Plugin (`project_register`) | 8 labels, created idempotently via `IssueProvider` |
-| Role file scaffolding | Plugin (`project_register`) | Creates `roles/<project>/dev.md` and `qa.md` from defaults |
+| Prompt file scaffolding | Plugin (`project_register`) | Creates `projects/prompts/<project>/dev.md` and `qa.md` |
 | Project registration | Plugin (`project_register`) | Entry in `projects.json` with empty worker state |
 | Telegram group setup | You (once per project) | Add bot to group |
 | Issue creation | Plugin (`task_create`) | Orchestrator or workers create issues from chat |
@@ -260,7 +260,7 @@ Change which model powers each tier in `openclaw.json`:
 | State management | Plugin | Atomic read/write to `projects.json` |
 | Session management | Plugin | Creates, reuses, and dispatches to sessions via CLI. Agent never touches session tools. |
 | Task completion | Plugin (`task_complete`) | Workers self-report. Auto-chains if enabled. |
-| Role instructions | Plugin (`task_pickup`) | Loaded from `roles/<project>/<role>.md`, appended to task message |
+| Prompt instructions | Plugin (`task_pickup`) | Loaded from `projects/prompts/<project>/<role>.md`, appended to task message |
 | Audit logging | Plugin | Automatic NDJSON append per tool call |
 | Zombie detection | Plugin | `session_health` checks active vs alive |
 | Queue scanning | Plugin | `queue_status` queries issue tracker per project |
diff --git a/docs/QA_WORKFLOW.md b/docs/QA_WORKFLOW.md
index 5f12ba4..d0abfe9 100644
--- a/docs/QA_WORKFLOW.md
+++ b/docs/QA_WORKFLOW.md
@@ -95,9 +95,8 @@ As of [current date], QA workers are instructed via role templates to:
 - Include specific details about what was tested
 - Document results, environment, and any notes
 
-Role templates affected:
-- `roles/default/qa.md`
-- `roles/devclaw/qa.md`
+Prompt templates affected:
+- `projects/prompts/<project>/qa.md`
 - All project-specific QA templates should follow this pattern
 
 ## Best Practices
diff --git a/docs/ROADMAP.md b/docs/ROADMAP.md
index 14513ae..bebb933 100644
--- a/docs/ROADMAP.md
+++ b/docs/ROADMAP.md
@@ -35,7 +35,7 @@ The pipeline definition replaces the hardcoded `Doing → To Test → Testing 
 ### Open questions
 
 - How do custom labels map? Generate from role names, or let users define?
-- Should roles have their own instruction files (`roles/<project>/<role>.md`) — yes, this already works
+- Should roles have their own instruction files (`projects/prompts/<project>/<role>.md`) — yes, this already works
 - How to handle parallel roles (e.g. frontend + backend DEV in parallel before QA)?
 
 ---
diff --git a/docs/TESTING.md b/docs/TESTING.md
index 7d393bf..35a2837 100644
--- a/docs/TESTING.md
+++ b/docs/TESTING.md
@@ -29,7 +29,7 @@ npm run test:ui
 **What's tested:**
 - First-time agent creation with default models
 - Channel binding creation (telegram/whatsapp)
-- Workspace file generation (AGENTS.md, HEARTBEAT.md, roles/, memory/)
+- Workspace file generation (AGENTS.md, HEARTBEAT.md, projects/, log/)
 - Plugin configuration initialization
 - Error handling: channel not configured
 - Error handling: channel disabled
diff --git a/lib/audit.ts b/lib/audit.ts
index 3741c36..4aaea20 100644
--- a/lib/audit.ts
+++ b/lib/audit.ts
@@ -10,7 +10,7 @@ export async function log(
   event: string,
   data: Record<string, unknown>,
 ): Promise<void> {
-  const filePath = join(workspaceDir, "memory", "audit.log");
+  const filePath = join(workspaceDir, "log", "audit.log");
   const entry = JSON.stringify({
     ts: new Date().toISOString(),
     event,
diff --git a/lib/context-guard.ts b/lib/context-guard.ts
index c4d3118..e2671f5 100644
--- a/lib/context-guard.ts
+++ b/lib/context-guard.ts
@@ -140,7 +140,7 @@ You're in a **Telegram/WhatsApp group** bound to ${context.projectName ? `projec
 }
 
 /**
- * Find project name by matching groupId in memory/projects.json.
+ * Find project name by matching groupId in projects/projects.json.
  * The groupId (Telegram or WhatsApp) is the KEY in the projects Record.
  */
 async function findProjectByGroupId(
@@ -150,7 +150,7 @@ async function findProjectByGroupId(
   if (!workspaceDir) return undefined;
 
   try {
-    const projectsPath = path.join(workspaceDir, "memory", "projects.json");
+    const projectsPath = path.join(workspaceDir, "projects", "projects.json");
     const raw = await fs.readFile(projectsPath, "utf-8");
     const data = JSON.parse(raw) as {
       projects: Record<string, { name: string }>;
diff --git a/lib/dispatch.ts b/lib/dispatch.ts
index e881794..90678b7 100644
--- a/lib/dispatch.ts
+++ b/lib/dispatch.ts
@@ -53,8 +53,7 @@ export type DispatchResult = {
 
 /**
  * Build the task message sent to a worker session.
- * Reads role-specific instructions from workspace/roles/<project>/<role>.md
- * with fallback to workspace/roles/default/<role>.md.
+ * Reads role-specific instructions from workspace/projects/prompts/<project>/<role>.md.
  */
 export async function buildTaskMessage(opts: {
   workspaceDir: string;
@@ -196,10 +195,8 @@ export async function dispatchTask(
 async function loadRoleInstructions(
   workspaceDir: string, projectName: string, role: "dev" | "qa",
 ): Promise<string> {
-  const projectFile = path.join(workspaceDir, "roles", projectName, `${role}.md`);
-  const defaultFile = path.join(workspaceDir, "roles", "default", `${role}.md`);
-  try { return await fs.readFile(projectFile, "utf-8"); } catch { /* fallback */ }
-  try { return await fs.readFile(defaultFile, "utf-8"); } catch { /* none */ }
+  const projectFile = path.join(workspaceDir, "projects", "prompts", projectName, `${role}.md`);
+  try { return await fs.readFile(projectFile, "utf-8"); } catch { /* none */ }
   return "";
 }
 
diff --git a/lib/projects.ts b/lib/projects.ts
index ff77f5c..eb5d51b 100644
--- a/lib/projects.ts
+++ b/lib/projects.ts
@@ -72,7 +72,7 @@ export function getSessionForTier(
 }
 
 function projectsPath(workspaceDir: string): string {
-  return path.join(workspaceDir, "memory", "projects.json");
+  return path.join(workspaceDir, "projects", "projects.json");
 }
 
 export async function readProjects(workspaceDir: string): Promise<ProjectsData> {
diff --git a/lib/setup/workspace.ts b/lib/setup/workspace.ts
index 36582c4..650112e 100644
--- a/lib/setup/workspace.ts
+++ b/lib/setup/workspace.ts
@@ -8,8 +8,6 @@ import path from "node:path";
 import {
   AGENTS_MD_TEMPLATE,
   HEARTBEAT_MD_TEMPLATE,
-  DEFAULT_DEV_INSTRUCTIONS,
-  DEFAULT_QA_INSTRUCTIONS,
 } from "../templates.js";
 
 /**
@@ -27,31 +25,19 @@ export async function scaffoldWorkspace(workspacePath: string): Promise<string[]
   await backupAndWrite(path.join(workspacePath, "HEARTBEAT.md"), HEARTBEAT_MD_TEMPLATE);
   filesWritten.push("HEARTBEAT.md");
 
-  // roles/default/dev.md and qa.md
-  const rolesDir = path.join(workspacePath, "roles", "default");
-  await fs.mkdir(rolesDir, { recursive: true });
-
-  const devRolePath = path.join(rolesDir, "dev.md");
-  if (!await fileExists(devRolePath)) {
-    await fs.writeFile(devRolePath, DEFAULT_DEV_INSTRUCTIONS, "utf-8");
-    filesWritten.push("roles/default/dev.md");
-  }
-
-  const qaRolePath = path.join(rolesDir, "qa.md");
-  if (!await fileExists(qaRolePath)) {
-    await fs.writeFile(qaRolePath, DEFAULT_QA_INSTRUCTIONS, "utf-8");
-    filesWritten.push("roles/default/qa.md");
-  }
-
-  // memory/projects.json
-  const memoryDir = path.join(workspacePath, "memory");
-  await fs.mkdir(memoryDir, { recursive: true });
-  const projectsJsonPath = path.join(memoryDir, "projects.json");
+  // projects/projects.json
+  const projectsDir = path.join(workspacePath, "projects");
+  await fs.mkdir(projectsDir, { recursive: true });
+  const projectsJsonPath = path.join(projectsDir, "projects.json");
   if (!await fileExists(projectsJsonPath)) {
     await fs.writeFile(projectsJsonPath, JSON.stringify({ projects: {} }, null, 2) + "\n", "utf-8");
-    filesWritten.push("memory/projects.json");
+    filesWritten.push("projects/projects.json");
   }
 
+  // log/ directory (audit.log created on first write)
+  const logDir = path.join(workspacePath, "log");
+  await fs.mkdir(logDir, { recursive: true });
+
   return filesWritten;
 }
 
diff --git a/lib/templates.ts b/lib/templates.ts
index f37eac4..d7d63f5 100644
--- a/lib/templates.ts
+++ b/lib/templates.ts
@@ -144,9 +144,9 @@ Workers call \`work_finish\` themselves — the label transition, state update,
 
 The response includes \`tickPickups\` showing any tasks that were auto-dispatched. Post announcements from the tool response to Telegram.
 
-### Role Instructions
+### Prompt Instructions
 
-Workers receive role-specific instructions appended to their task message. These are loaded from \`roles/<project-name>/<role>.md\` in the workspace (with fallback to \`roles/default/<role>.md\`). \`project_register\` scaffolds these files automatically — edit them to customize worker behavior per project.
+Workers receive role-specific instructions appended to their task message. These are loaded from \`projects/prompts/<project-name>/<role>.md\` in the workspace. \`project_register\` scaffolds these files automatically — edit them to customize worker behavior per project.
 
 ### Heartbeats
 
diff --git a/lib/tools/project-register.ts b/lib/tools/project-register.ts
index e304905..832972b 100644
--- a/lib/tools/project-register.ts
+++ b/lib/tools/project-register.ts
@@ -20,32 +20,11 @@ import { DEFAULT_DEV_INSTRUCTIONS, DEFAULT_QA_INSTRUCTIONS } from "../templates.
 import { detectContext, generateGuardrails } from "../context-guard.js";
 
 /**
- * Ensure default role files exist, then copy them into the project's role directory.
+ * Scaffold project-specific prompt files.
  * Returns true if files were created, false if they already existed.
  */
-async function scaffoldRoleFiles(workspaceDir: string, projectName: string): Promise<boolean> {
-  const defaultDir = path.join(workspaceDir, "roles", "default");
-  const projectDir = path.join(workspaceDir, "roles", projectName);
-
-  // Ensure default role files exist
-  await fs.mkdir(defaultDir, { recursive: true });
-
-  const defaultDev = path.join(defaultDir, "dev.md");
-  const defaultQa = path.join(defaultDir, "qa.md");
-
-  try {
-    await fs.access(defaultDev);
-  } catch {
-    await fs.writeFile(defaultDev, DEFAULT_DEV_INSTRUCTIONS, "utf-8");
-  }
-
-  try {
-    await fs.access(defaultQa);
-  } catch {
-    await fs.writeFile(defaultQa, DEFAULT_QA_INSTRUCTIONS, "utf-8");
-  }
-
-  // Create project-specific role files (copy from default if not exist)
+async function scaffoldPromptFiles(workspaceDir: string, projectName: string): Promise<boolean> {
+  const projectDir = path.join(workspaceDir, "projects", "prompts", projectName);
   await fs.mkdir(projectDir, { recursive: true });
 
   const projectDev = path.join(projectDir, "dev.md");
@@ -55,14 +34,14 @@ async function scaffoldRoleFiles(workspaceDir: string, projectName: string): Pro
   try {
     await fs.access(projectDev);
   } catch {
-    await fs.copyFile(defaultDev, projectDev);
+    await fs.writeFile(projectDev, DEFAULT_DEV_INSTRUCTIONS, "utf-8");
     created = true;
   }
 
   try {
     await fs.access(projectQa);
   } catch {
-    await fs.copyFile(defaultQa, projectQa);
+    await fs.writeFile(projectQa, DEFAULT_QA_INSTRUCTIONS, "utf-8");
     created = true;
   }
 
@@ -212,8 +191,8 @@ export function createProjectRegisterTool(api: OpenClawPluginApi) {
 
       await writeProjects(workspaceDir, data);
 
-      // 6. Scaffold role files
-      const rolesCreated = await scaffoldRoleFiles(workspaceDir, name);
+      // 6. Scaffold prompt files
+      const promptsCreated = await scaffoldPromptFiles(workspaceDir, name);
 
       // 7. Audit log
       await auditLog(workspaceDir, "project_register", {
@@ -226,8 +205,8 @@ export function createProjectRegisterTool(api: OpenClawPluginApi) {
       });
 
       // 8. Return announcement
-      const rolesNote = rolesCreated ? " Role files scaffolded." : "";
-      const announcement = `📋 Project "${name}" registered for group ${groupName}. Labels created.${rolesNote} Ready for tasks.`;
+      const promptsNote = promptsCreated ? " Prompt files scaffolded." : "";
+      const announcement = `📋 Project "${name}" registered for group ${groupName}. Labels created.${promptsNote} Ready for tasks.`;
 
       return jsonResult({
         success: true,
@@ -237,7 +216,7 @@ export function createProjectRegisterTool(api: OpenClawPluginApi) {
         baseBranch,
         deployBranch,
         labelsCreated: 8,
-        rolesScaffolded: rolesCreated,
+        promptsScaffolded: promptsCreated,
         announcement,
         ...(contextInfo && { contextInfo }),
         contextGuidance: generateGuardrails(context),
diff --git a/lib/tools/setup.ts b/lib/tools/setup.ts
index 8dba277..eab0d4d 100644
--- a/lib/tools/setup.ts
+++ b/lib/tools/setup.ts
@@ -14,7 +14,7 @@ export function createSetupTool(api: OpenClawPluginApi) {
   return (ctx: ToolContext) => ({
     name: "setup",
     label: "Setup",
-    description: `Execute DevClaw setup. Creates AGENTS.md, HEARTBEAT.md, roles, memory/projects.json, and model tier config. Optionally creates a new agent with channel binding. Called after onboard collects configuration.`,
+    description: `Execute DevClaw setup. Creates AGENTS.md, HEARTBEAT.md, projects/projects.json, and model tier config. Optionally creates a new agent with channel binding. Called after onboard collects configuration.`,
     parameters: {
       type: "object",
       properties: {