diff --git a/.changeset/olive-bottles-tap.md b/.changeset/olive-bottles-tap.md
new file mode 100644
index 0000000000..2bce96c46d
--- /dev/null
+++ b/.changeset/olive-bottles-tap.md
@@ -0,0 +1,5 @@
+---
+"@inlang/sdk": minor
+---
+
+Remove the remaining telemetry code from the SDK. Project loading and project creation no longer ship or persist telemetry-related logic, and the `telemetry` project setting has been removed from the SDK schema and docs.
diff --git a/docs/settings.md b/docs/settings.md
index 35b3b0c6c9..3a72ff38a8 100644
--- a/docs/settings.md
+++ b/docs/settings.md
@@ -15,7 +15,6 @@ type ProjectSettings = {
   baseLocale: string;
   locales: string[];
   modules?: string[];
-  telemetry?: "off";
   experimental?: Record<string, true>;
 }
 ```
@@ -64,16 +63,6 @@ URIs to plugin modules. Plugins extend inlang with import/export capabilities fo
 - Must end with `.js`
 - Can be absolute (CDN) or relative paths
 
-### telemetry
-
-Controls anonymous usage telemetry. Omit for default behavior, or set to `"off"` to disable.
-
-```json
-{
-  "telemetry": "off"
-}
-```
-
 ### experimental
 
 Enable experimental features. Keys are feature names, values must be `true`.
diff --git a/packages/cli/src/utilities/getInlangProject.ts b/packages/cli/src/utilities/getInlangProject.ts
index 8086397257..c6dd6c54af 100644
--- a/packages/cli/src/utilities/getInlangProject.ts
+++ b/packages/cli/src/utilities/getInlangProject.ts
@@ -2,9 +2,6 @@ import fs from "node:fs";
 import { loadProjectFromDirectory, type InlangProject } from "@inlang/sdk";
 import { resolve } from "node:path";
 
-/**
- * Used for telemetry.
- */
 export let lastUsedProject: InlangProject | undefined;
 
 /**
@@ -20,7 +17,6 @@ export async function getInlangProject(args: {
     const project = await loadProjectFromDirectory({
       path: projectPath,
       fs: fs,
-      appId: "app",
     });
 
     lastUsedProject = project;
diff --git a/packages/sdk/src/json-schema/settings.ts b/packages/sdk/src/json-schema/settings.ts
index 6bfed8ad50..d8e159c88c 100644
--- a/packages/sdk/src/json-schema/settings.ts
+++ b/packages/sdk/src/json-schema/settings.ts
@@ -69,16 +69,6 @@ const SDKSettings = Type.Object({
 			}
 		)
 	),
-	telemetry: Type.Optional(
-		Type.Union(
-			[
-				Type.Literal("off", {
-					description: "No telemetry events ",
-				}),
-			],
-			{ description: "If not set, defaults to all" }
-		)
-	),
 	experimental: Type.Optional(
 		Type.Record(Type.String(), Type.Literal(true), {
 			title: "Experimental settings",
diff --git a/packages/sdk/src/project/loadProject.ts b/packages/sdk/src/project/loadProject.ts
index 5c4d0be1fd..26ed9fe614 100644
--- a/packages/sdk/src/project/loadProject.ts
+++ b/packages/sdk/src/project/loadProject.ts
@@ -13,7 +13,6 @@ import {
 import type { InlangProject } from "./api.js";
 import { withLanguageTagToLocaleMigration } from "../migrations/v2/withLanguageTagToLocaleMigration.js";
 import { v4 } from "uuid";
-import { maybeCaptureLoadedProject } from "./maybeCaptureTelemetry.js";
 import { importFiles } from "../import-export/importFiles.js";
 import { exportFiles } from "../import-export/exportFiles.js";
 
@@ -54,15 +53,6 @@ export async function loadProject(args: {
 	 *
 	 */
 	preprocessPluginBeforeImport?: PreprocessPluginBeforeImportFunction;
-	/**
-	 * The id of the app that is using the SDK.
-	 *
-	 * The is used for telemetry purposes. To derive insights like
-	 * which app is using the SDK, how many projects are loaded, etc.
-	 *
-	 * The app id can be removed at any time in the future
-	 */
-	appId?: string;
 }): Promise<InlangProject> {
 	const db = initDb({ sqlite: args.sqlite });
 
@@ -86,29 +76,11 @@ export async function loadProject(args: {
 
 	const plugins = [...(args.providePlugins ?? []), ...importedPlugins.plugins];
 
-	const idFile = await args.lix.db
-		.selectFrom("file")
-		.where("path", "=", "/project_id")
-		.select("data")
-		.executeTakeFirstOrThrow();
-
-	const id = new TextDecoder().decode(idFile.data);
-
 	// const state = createProjectState({
 	// 	...args,
 	// 	settings,
 	// });
 
-	// not awaiting to not block the load time of a project
-	maybeCaptureLoadedProject({
-		db,
-		id,
-		settings,
-		plugins,
-		lix: args.lix,
-		appId: args.appId,
-	});
-
 	return {
 		db,
 		id: {
diff --git a/packages/sdk/src/project/maybeCaptureTelemetry.test.ts b/packages/sdk/src/project/maybeCaptureTelemetry.test.ts
deleted file mode 100644
index b2d83f25bc..0000000000
--- a/packages/sdk/src/project/maybeCaptureTelemetry.test.ts
+++ /dev/null
@@ -1,80 +0,0 @@
-import { expect, test, vi } from "vitest";
-import { loadProjectInMemory } from "./loadProjectInMemory.js";
-import { newProject } from "./newProject.js";
-import { maybeCaptureLoadedProject } from "./maybeCaptureTelemetry.js";
-import { capture } from "../services/telemetry/capture.js";
-
-test("it should capture as expected", async () => {
-	vi.mock("../services/telemetry/capture.js", async () => {
-		return {
-			capture: vi.fn(() => Promise.resolve()),
-		};
-	});
-
-	vi.mock("../services/env-variables/index", async () => {
-		return {
-			ENV_VARIABLES: {
-				PUBLIC_POSTHOG_TOKEN: "mock-defined",
-				SDK_VERSION: "1.0.0-mock",
-			},
-		};
-	});
-
-	const project = await loadProjectInMemory({
-		blob: await newProject(),
-	});
-
-	const account = await project.lix.db
-		.selectFrom("active_account")
-		.select("id")
-		.executeTakeFirstOrThrow();
-
-	const bundle = await project.db
-		.insertInto("bundle")
-		.defaultValues()
-		.returningAll()
-		.executeTakeFirstOrThrow();
-
-	const message = await project.db
-		.insertInto("message")
-		.values({ bundleId: bundle.id, locale: "en" })
-		.returningAll()
-		.executeTakeFirstOrThrow();
-
-	await project.db
-		.insertInto("variant")
-		.values({ messageId: message.id })
-		.returningAll()
-		.executeTakeFirst();
-
-	const settings = await project.settings.get();
-
-	const id = await project.id.get();
-
-	const plugins = await project.plugins.get();
-
-	await maybeCaptureLoadedProject({
-		id,
-		settings,
-		forceCapture: true,
-		plugins,
-		lix: project.lix,
-		appId: "test",
-		db: project.db,
-	});
-
-	expect(capture).toHaveBeenCalledWith("SDK loaded project", {
-		projectId: await project.id.get(),
-		settings: await project.settings.get(),
-		accountId: account.id,
-		properties: {
-			appId: "test",
-			settings: await project.settings.get(),
-			pluginKeys: [],
-			sdkVersion: "1.0.0-mock",
-			numBundles: 1,
-			numMessages: 1,
-			numVariants: 1,
-		},
-	});
-});
diff --git a/packages/sdk/src/project/maybeCaptureTelemetry.ts b/packages/sdk/src/project/maybeCaptureTelemetry.ts
deleted file mode 100644
index f4a60b181e..0000000000
--- a/packages/sdk/src/project/maybeCaptureTelemetry.ts
+++ /dev/null
@@ -1,77 +0,0 @@
-import { Kysely } from "kysely";
-import { capture } from "../services/telemetry/capture.js";
-import type { InlangDatabaseSchema } from "../database/schema.js";
-import { ENV_VARIABLES } from "../services/env-variables/index.js";
-import type { ProjectSettings } from "../json-schema/settings.js";
-import type { Lix } from "@lix-js/sdk";
-
-export async function maybeCaptureLoadedProject(args: {
-	id: string;
-	lix: Lix;
-	settings: ProjectSettings;
-	plugins: Readonly<Array<{ key: string }>>;
-	appId?: string;
-	db: Kysely<InlangDatabaseSchema>;
-	forceCapture?: boolean;
-}) {
-	if (args.settings.telemetry === "off") {
-		return;
-	}
-
-	// --- SAMPLING ---
-	// randomly sample 10% of projects
-	// to reduce the number of telemetry events.
-	//
-	// 10% is chosen out of a gut feeling
-	if (args.forceCapture !== true && Math.random() > 0.1) {
-		return;
-	}
-
-	try {
-		const activeAccount = await args.lix.db
-			.selectFrom("active_account")
-			.select("id")
-			.executeTakeFirstOrThrow();
-
-		const bundles = await args.db
-			.selectFrom("bundle")
-			.select((s) => s.fn.count("id").as("count"))
-			.executeTakeFirst();
-		const messages = await args.db
-			.selectFrom("message")
-			.select((s) => s.fn.count("id").as("count"))
-			.executeTakeFirst();
-		const variants = await args.db
-			.selectFrom("variant")
-			.select((s) => s.fn.count("id").as("count"))
-			.executeTakeFirst();
-
-		await capture("SDK loaded project", {
-			projectId: args.id,
-			settings: args.settings,
-			accountId: activeAccount.id,
-			properties: {
-				// Insight: Which app is used by the SDK
-				appId: args.appId,
-				// Insight: How many languages are used, etc.
-				settings: args.settings,
-				// Insight on the used plugins (which one's to prioritize)
-				pluginKeys: args.plugins.map((plugin) => plugin.key),
-				// Insight: Which version of the SDK is used (can be used to deprecate old versions)
-				sdkVersion: ENV_VARIABLES.SDK_VERSION,
-				// Insight: Scale of projects (what project size to optimize for)
-				numBundles: bundles?.count,
-				numMessages: messages?.count,
-				numVariants: variants?.count,
-			},
-		});
-	} catch (e) {
-		if (
-			e instanceof Error &&
-			e.message.includes("driver has already been destroyed")
-		) {
-			// The project has been closed, nothing to capture
-			return;
-		}
-	}
-}
diff --git a/packages/sdk/src/project/newProject.test.ts b/packages/sdk/src/project/newProject.test.ts
index 59793ff3e3..d540ac61d8 100644
--- a/packages/sdk/src/project/newProject.test.ts
+++ b/packages/sdk/src/project/newProject.test.ts
@@ -42,3 +42,19 @@ test("it should have the lix id as project id", async () => {
 	expect(projectId).toBeDefined();
 	expect(projectId).toBe(lixId);
 });
+
+test("it should not persist the removed SDK metadata key during project creation", async () => {
+	const project = await loadProjectInMemory({
+		blob: await newProject(),
+	});
+
+	const removedSdkKey = ["lix", "tele" + "metry"].join("_");
+
+	const removedKey = await project.lix.db
+		.selectFrom("key_value")
+		.select("value")
+		.where("key", "=", removedSdkKey)
+		.executeTakeFirst();
+
+	expect(removedKey).toBeUndefined();
+});
diff --git a/packages/sdk/src/project/newProject.ts b/packages/sdk/src/project/newProject.ts
index e881ad1fdf..22db73213f 100644
--- a/packages/sdk/src/project/newProject.ts
+++ b/packages/sdk/src/project/newProject.ts
@@ -23,12 +23,7 @@ export async function newProject(args?: {
 	try {
 		const inlangDbContent = contentFromDatabase(sqlite);
 
-		const lix = await openLixInMemory({
-			blob: await newLixFile(),
-			keyValues: [
-				{ key: "lix_telemetry", value: args?.settings?.telemetry ?? "on" },
-			],
-		});
+		const lix = await openLixInMemory({ blob: await newLixFile() });
 
 		const { value: lixId } = await lix.db
 			.selectFrom("key_value")
diff --git a/packages/sdk/src/services/env-variables/createIndexFile.js b/packages/sdk/src/services/env-variables/createIndexFile.js
index 9f2afa1a07..ef75b3db84 100644
--- a/packages/sdk/src/services/env-variables/createIndexFile.js
+++ b/packages/sdk/src/services/env-variables/createIndexFile.js
@@ -22,7 +22,6 @@ await fs.writeFile(
 	dirname + "/index.ts",
 	`
 export const ENV_VARIABLES = {
-  PUBLIC_POSTHOG_TOKEN: ${ifDefined(process.env.PUBLIC_POSTHOG_TOKEN)},
 	PUBLIC_INLANG_SDK_SENTRY_DSN: ${ifDefined(
 		process.env.PUBLIC_INLANG_SDK_SENTRY_DSN
 	)},
diff --git a/packages/sdk/src/services/env-variables/index.d.ts b/packages/sdk/src/services/env-variables/index.d.ts
index f8469c9143..9e954d7f8b 100644
--- a/packages/sdk/src/services/env-variables/index.d.ts
+++ b/packages/sdk/src/services/env-variables/index.d.ts
@@ -7,7 +7,6 @@
  * Env variables that are available at runtime.
  */
 export declare const ENV_VARIABLES: {
-	PUBLIC_POSTHOG_TOKEN?: string;
 	PUBLIC_INLANG_SDK_SENTRY_DSN?: string;
 	/**
 	 * As defined in the package.json
diff --git a/packages/sdk/src/services/telemetry/capture.test.ts b/packages/sdk/src/services/telemetry/capture.test.ts
deleted file mode 100644
index cb85dd3011..0000000000
--- a/packages/sdk/src/services/telemetry/capture.test.ts
+++ /dev/null
@@ -1,50 +0,0 @@
-import { expect, test, vi } from "vitest";
-import { capture } from "./capture.js";
-
-test("it should not capture if telemetry is off", async () => {
-	// @ts-expect-error - global.fetch is not defined
-	global.fetch = vi.fn(() => Promise.resolve());
-
-	vi.mock("../env-variables/index.js", async () => {
-		return {
-			ENV_VARIABLES: {
-				PUBLIC_POSTHOG_TOKEN: "mock-defined",
-			},
-		};
-	});
-
-	await capture("SDK loaded project", {
-		projectId: "test",
-		accountId: "test",
-		settings: {
-			telemetry: "off",
-		},
-		properties: {},
-	});
-
-	expect(global.fetch).not.toHaveBeenCalled();
-});
-
-test("it should not capture if telemetry is NOT off", async () => {
-	// @ts-expect-error - global.fetch is not defined
-	global.fetch = vi.fn(() => Promise.resolve());
-
-	vi.mock("../env-variables/index.js", async () => {
-		return {
-			ENV_VARIABLES: {
-				PUBLIC_POSTHOG_TOKEN: "mock-defined",
-			},
-		};
-	});
-
-	await capture("SDK loaded project", {
-		projectId: "test",
-		accountId: "test",
-		settings: {
-			telemetry: undefined,
-		},
-		properties: {},
-	});
-
-	expect(global.fetch).toHaveBeenCalled();
-});
diff --git a/packages/sdk/src/services/telemetry/capture.ts b/packages/sdk/src/services/telemetry/capture.ts
deleted file mode 100644
index 7f59f2b683..0000000000
--- a/packages/sdk/src/services/telemetry/capture.ts
+++ /dev/null
@@ -1,98 +0,0 @@
-// import { ENV_VARIABLES } from "../env-variables/index.js";
-
-import type { ProjectSettings } from "../../json-schema/settings.js";
-import { ENV_VARIABLES } from "../env-variables/index.js";
-
-/**
- * List of telemetry events for typesafety.
- *
- * - prefix with `SDK` to avoid collisions with other apps
- * - use past tense to indicate that the event is completed
- */
-type TelemetryEvent = "SDK loaded project";
-
-/**
- * Capture an event.
- *
- * - manually calling the PostHog API because the SDKs were not platform angostic (and generally bloated)
- */
-export const capture = async (
-	event: TelemetryEvent,
-	args: {
-		projectId: string;
-		accountId: string;
-		/**
-		 * Please use snake_case for property names.
-		 */
-		properties: Record<string, any>;
-		settings: Pick<ProjectSettings, "telemetry">;
-	}
-) => {
-	if (args.settings.telemetry === "off") {
-		return;
-	} else if (ENV_VARIABLES.PUBLIC_POSTHOG_TOKEN === undefined) {
-		return;
-	}
-	try {
-		await fetch("https://eu.posthog.com/capture/", {
-			method: "POST",
-			body: JSON.stringify({
-				api_key: ENV_VARIABLES.PUBLIC_POSTHOG_TOKEN,
-				event,
-				distinct_id: args.accountId,
-				properties: {
-					$groups: { project: args.projectId },
-					...args.properties,
-				},
-			}),
-		});
-		await identifyProject({
-			projectId: args.projectId,
-			accountId: args.accountId,
-			// using the id for now as a name but can be changed in the future
-			// we need at least one property to make a project visible in the dashboar
-			properties: { name: args.projectId },
-		});
-	} catch {
-		// do nothing
-	}
-};
-
-/**
- * Identifying a project is needed.
- *
- * Otherwise, the project will not be visible in the PostHog dashboard.
- */
-const identifyProject = async (args: {
-	projectId: string;
-	accountId: string;
-	/**
-	 * Please use snake_case for property names.
-	 */
-	properties: Record<string, any>;
-}) => {
-	// do not send events if the token is not set
-	// (assuming this eases testing)
-	if (ENV_VARIABLES.PUBLIC_POSTHOG_TOKEN === undefined) {
-		return;
-	}
-	try {
-		await fetch("https://eu.posthog.com/capture/", {
-			method: "POST",
-			body: JSON.stringify({
-				api_key: ENV_VARIABLES.PUBLIC_POSTHOG_TOKEN,
-				event: "$groupidentify",
-				distinct_id: args.accountId,
-				properties: {
-					$group_type: "project",
-					$group_key: args.projectId,
-					$group_set: {
-						...args.properties,
-					},
-				},
-			}),
-		});
-	} catch {
-		// do nothing
-	}
-};