For tiny, throwaway projects, a monolithic .md file is fine. A folder allows more complex projects to use "just enough hierarchy" to provide structure, with index.md as the entry point. Along with top-level universal guidance, it can include an organization guide (easily maintained with the help of LLMs).
In my experience, this works loads better than the "one giant file" method. It lets LLMs/agents add relevant context without wasting tokens on unrelated context, reduces noise/improves response accuracy, and is easier to maintain for both humans and LLMs alike.
¹ Ideally with a better name than ".agents", like ".codebots" or ".context".
For tiny, throwaway projects, a monolithic .md file is fine. A folder allows more complex projects to use "just enough hierarchy" to provide structure, with index.md as the entry point. Along with top-level universal guidance, it can include an organization guide (easily maintained with the help of LLMs).
In my experience, this works loads better than the "one giant file" method. It lets LLMs/agents add relevant context without wasting tokens on unrelated context, reduces noise/improves response accuracy, and is easier to maintain for both humans and LLMs alike.¹ Ideally with a better name than ".agents", like ".codebots" or ".context".