It's important to understand the difference between an instance and a workspace, especially when considering the architecture of your project and diagnosing performance issues.

An Instance is essentially your Xano server. Everybody has an instance, and most users will only have one. Your instance (on a paid plan) has dedicated server resources that are your own, and these resources are spread across all of your workspaces.

A workspace is a container inside of your instance. Think of your workspaces as separate projects. Typically, each application you develop will have its own workspace, to ensure efficiency during development and for organizational purposes.

Should you have separate instances for each project?

It depends. Because each workspace in an instance all share server resources, if you have multiple projects that all see active usage, you may find that performance degrades between those projects if they are active at the same time. In this case, you would benefit from adding a new instance, so each project can have their own resources.