1 files changed, 8 insertions, 4 deletions

diff --git a/TODO.md b/TODO.md
index 2c6a6be..c92175c 100644
--- a/TODO.md
+++ b/TODO.md
@@ -54,16 +54,20 @@ This allows custom routes (NIP-05, LNURL, rewrites, etc.) while still letting sh
 ### ship host init doesn't create local state.json
 **Problem:** After `ship host init`, the local `~/.config/ship/state.json` isn't created with the base_domain. Deploys fail with "HOST_NOT_CONFIGURED".
 
-**Workaround:** Manually create `~/.config/ship/state.json`:
+**Design:** v2 uses remote state (`/etc/ship/ports/` on server) for port allocation and app tracking. Local state only needs:
+- `default_host` — which host to use when `--host` isn't specified
+- `base_domain` — for generating URLs
+
+**Fix:** `ship host init` should create minimal local state:
 ```json
 {
   "default_host": "alaskav6",
   "hosts": {
     "alaskav6": {
-      "next_port": 8001,
-      "base_domain": "northwest.io",
-      "apps": {}
+      "base_domain": "northwest.io"
     }
   }
 }
 ```
+
+**Also:** Clean up `internal/state/state.go` — remove `next_port`, `apps`, `AllocatePort()`, and other v1 cruft. Keep it minimal.