diff --git a/Cargo.toml b/Cargo.toml
new file mode 100644
index 00000000..5d45b7ac
--- /dev/null
+++ b/Cargo.toml
@@ -0,0 +1,17 @@
+[package]
+name = "koii-token-dumping-contract"
+version = "0.1.0"
+edition = "2021"
+
+[dependencies]
+solana-program = "1.16.0"
+thiserror = "1.0"
+serde = { version = "1.0", features = ["derive"] }
+serde_json = "1.0"
+
+[dev-dependencies]
+solana-sdk = "1.16.0"
+solana-program-test = "1.16.0"
+
+[lib]
+crate-type = ["cdylib", "lib"]
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diff --git a/src/lib.rs b/src/lib.rs
new file mode 100644
index 00000000..0ca24d5f
--- /dev/null
+++ b/src/lib.rs
@@ -0,0 +1,117 @@
+use solana_program::{
+    account_info::AccountInfo,
+    entrypoint,
+    entrypoint::ProgramResult,
+    pubkey::Pubkey,
+    msg,
+};
+use thiserror::Error;
+
+/// Define custom program errors
+#[derive(Error, Debug, Copy, Clone)]
+pub enum TokenDumpingError {
+    #[error("Invalid token dumping criteria")]
+    InvalidDumpingCriteria,
+    
+    #[error("Insufficient dumping volume")]
+    InsufficientDumpingVolume,
+    
+    #[error("Token dumping not allowed")]
+    DumpingNotAllowed,
+}
+
+/// Token dumping event structure
+#[derive(Debug, Clone)]
+pub struct TokenDumpingEvent {
+    pub token_address: Pubkey,
+    pub dumper_address: Pubkey,
+    pub dumping_volume: u64,
+    pub timestamp: u64,
+}
+
+/// Token dumping contract state
+#[derive(Debug, Clone)]
+pub struct TokenDumpingContractState {
+    pub total_dumped_volume: u64,
+    pub dumping_events: Vec<TokenDumpingEvent>,
+    pub is_active: bool,
+}
+
+/// Entrypoint for the token dumping program
+entrypoint!(process_instruction);
+
+/// Main program entry point
+pub fn process_instruction(
+    program_id: &Pubkey,
+    accounts: &[AccountInfo],
+    instruction_data: &[u8],
+) -> ProgramResult {
+    msg!("Token Dumping Contract: Processing instruction");
+    
+    // Basic validation checks
+    if accounts.is_empty() {
+        return Err(TokenDumpingError::DumpingNotAllowed.into());
+    }
+    
+    // TODO: Implement actual instruction processing logic
+    // 1. Validate token dumping criteria
+    // 2. Record dumping event
+    // 3. Generate rewards if criteria met
+    
+    Ok(())
+}
+
+/// Validate token dumping criteria
+pub fn validate_dumping_criteria(event: &TokenDumpingEvent) -> Result<bool, TokenDumpingError> {
+    // Basic validation logic
+    if event.dumping_volume == 0 {
+        return Err(TokenDumpingError::InsufficientDumpingVolume);
+    }
+    
+    // Placeholder for more complex validation
+    Ok(true)
+}
+
+/// Calculate dumping rewards
+pub fn calculate_dumping_rewards(event: &TokenDumpingEvent) -> u64 {
+    // Simple reward calculation based on dumping volume
+    event.dumping_volume / 100 // 1% reward as an example
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_validate_dumping_criteria() {
+        let valid_event = TokenDumpingEvent {
+            token_address: Pubkey::new_unique(),
+            dumper_address: Pubkey::new_unique(),
+            dumping_volume: 1000,
+            timestamp: 123456,
+        };
+        
+        assert!(validate_dumping_criteria(&valid_event).is_ok());
+        
+        let invalid_event = TokenDumpingEvent {
+            token_address: Pubkey::new_unique(),
+            dumper_address: Pubkey::new_unique(),
+            dumping_volume: 0,
+            timestamp: 123456,
+        };
+        
+        assert!(validate_dumping_criteria(&invalid_event).is_err());
+    }
+    
+    #[test]
+    fn test_calculate_dumping_rewards() {
+        let event = TokenDumpingEvent {
+            token_address: Pubkey::new_unique(),
+            dumper_address: Pubkey::new_unique(),
+            dumping_volume: 10000,
+            timestamp: 123456,
+        };
+        
+        assert_eq!(calculate_dumping_rewards(&event), 100);
+    }
+}
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