diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 1bfaeed..1e192d8 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -186,6 +186,18 @@ This must produce zero warnings.
 - No `unsafe` code is permitted in any contract.
 - No external crate dependencies beyond `soroban-sdk` are permitted without prior discussion with maintainers.
 
+### Storage Type Selection
+
+Soroban provides three storage tiers. When adding a new `DataKey` variant to any contract, pick the right one:
+
+| Storage type | Use when… |
+| :--- | :--- |
+| `instance()` | Small scalars (counters, config) that are read on almost every call and can share the contract instance TTL |
+| `persistent()` | Per-user or per-entity data (streams, vesting configs, proposals) that must survive beyond the instance TTL |
+| `temporary()` | Short-lived data that can expire without consequence (e.g. nonces, rate-limit windows) |
+
+Always add a comment above the variant in the `DataKey` enum documenting which storage type it uses and why. See `contracts/forge-stream/src/lib.rs` for an example.
+
 ---
 
 ## Pre-Commit Hook (Optional but Recommended)
diff --git a/contracts/forge-stream/README.md b/contracts/forge-stream/README.md
index 382a292..6777977 100644
--- a/contracts/forge-stream/README.md
+++ b/contracts/forge-stream/README.md
@@ -1,5 +1,28 @@
 # Forge Stream
 
+## Storage Strategy
+
+`forge-stream` uses two Soroban storage tiers. The rule of thumb: use
+**persistent** for data that must survive beyond a single transaction or
+contract instance TTL; use **instance** for small, frequently-accessed
+scalars that are always read together with the contract instance.
+
+| `DataKey` variant | Storage type | Rationale |
+| :--- | :--- | :--- |
+| `Stream(u64)` | `persistent` | Stream data must outlive the instance TTL while tokens remain unclaimed |
+| `NextId` | `instance` | Small scalar always read on `create_stream`; co-located with instance for efficiency |
+| `ActiveStreamsCount` | `instance` | Updated on every create/cancel/finish; always accessed with other instance data |
+| `SenderStreams(Address)` | `persistent` | Grows with each stream; must survive beyond instance TTL for historical lookups |
+| `RecipientStreams(Address)` | `persistent` | Same rationale as `SenderStreams` |
+
+When adding a new `DataKey` variant, choose the storage type using this
+checklist:
+- Does the data need to survive after the contract instance TTL expires? → **persistent**
+- Is it a small scalar read on almost every call? → **instance**
+- Is it keyed per-user or per-stream (unbounded growth)? → **persistent**
+
+---
+
 ## Resource Usage
 
 > **Note:** Resource usage estimates are approximate and may vary based on contract state and input sizes. Run `stellar contract invoke` with `--cost` flag to measure actual usage for your specific use case.
diff --git a/contracts/forge-stream/src/lib.rs b/contracts/forge-stream/src/lib.rs
index 4b03d2e..b289ac5 100644
--- a/contracts/forge-stream/src/lib.rs
+++ b/contracts/forge-stream/src/lib.rs
@@ -16,10 +16,24 @@ use soroban_sdk::{
 
 #[contracttype]
 pub enum DataKey {
+    /// Per-stream data (token, sender, recipient, rate, timestamps, state).
+    /// Uses **persistent** storage — must outlive the contract instance TTL
+    /// for as long as the stream has unclaimed tokens.
     Stream(u64),
+    /// Monotonically increasing counter used to assign the next stream ID.
+    /// Uses **instance** storage — small scalar that is always read on
+    /// `create_stream`, so co-locating it with the instance is efficient.
     NextId,
+    /// Count of streams that are currently active (not cancelled/finished).
+    /// Uses **instance** storage — updated on every create/cancel/finish,
+    /// always accessed together with other instance data.
     ActiveStreamsCount,
+    /// List of stream IDs created by a given sender address.
+    /// Uses **persistent** storage — the list grows with each stream and
+    /// must survive beyond the instance TTL for historical lookups.
     SenderStreams(Address),
+    /// List of stream IDs where a given address is the recipient.
+    /// Uses **persistent** storage — same rationale as `SenderStreams`.
     RecipientStreams(Address),
 }