diff --git a/Sources/Configuration/Documentation.docc/Proposals/Proposals.md b/Sources/Configuration/Documentation.docc/Proposals/Proposals.md
index c3c270a..dbf1d7a 100644
--- a/Sources/Configuration/Documentation.docc/Proposals/Proposals.md
+++ b/Sources/Configuration/Documentation.docc/Proposals/Proposals.md
@@ -37,3 +37,4 @@ If you have any questions, ask in an issue on GitHub.
 
 - <doc:SCO-NNNN>
 - <doc:SCO-0001>
+- <doc:SCO-0002>
diff --git a/Sources/Configuration/Documentation.docc/Proposals/SCO-0002.md b/Sources/Configuration/Documentation.docc/Proposals/SCO-0002.md
new file mode 100644
index 0000000..56387aa
--- /dev/null
+++ b/Sources/Configuration/Documentation.docc/Proposals/SCO-0002.md
@@ -0,0 +1,119 @@
+# SCO-0002: Remove custom key decoders
+
+Remove the custom key decoder feature to fix a flaw and simplify the project
+
+## Overview
+
+- Proposal: SCO-0002
+- Author(s): [Honza Dvorsky](https://github.com/czechboy0)
+- Status: **In Review**
+- Issue: [apple/swift-configuration#70](https://github.com/apple/swift-configuration/issues/70)
+- Implementation:
+    - [apple/swift-configuration#71](https://github.com/apple/swift-configuration/pull/71)
+
+### Introduction
+
+Remove the custom key decoder feature to fix a flaw and simplify the project.
+
+### Motivation
+
+The custom key decoder [feature](https://swiftpackageindex.com/apple/swift-configuration/0.2.0/documentation/configuration#Custom-key-syntax) allowed using custom syntax in multi-component keys.
+
+Let's consider a key with the components `["http", "client", "read", "timeout"]`, read by an HTTPClient library, used by the root App executable.
+
+#### Default key decoder
+
+When both targets use and assume the default key decoder is used, all is well, as both rely on a single period as the delimiter in string-based keys:
+
+```swift
+// App/main.swift
+import HTTPClient
+
+let config = ConfigReader(
+    provider: EnvironmentVariablesProvider()
+    // ✅ Uses the default dot-based key decoder.
+)
+
+// ✅ Uses scoping correctly
+let client = Client(config: config.scoped(to: "http.client"))
+
+```
+
+```swift
+// HTTPClient/Config.swift
+
+extension Client {
+    public init(config: ConfigReader) {
+        // ✅ reads ["http", "client", "read", "timeout"]
+        self.timeout = config.int(forKey: "read.timeout", default: 30)
+    }
+}
+```
+
+#### Caller-customized key decoder
+
+However, if the App target customizes the key decoder to use a colon as the delimiter, it breaks the library that receives the config reader and reads an incorrect key.
+
+```swift
+// App/main.swift
+import HTTPClient
+
+let config = ConfigReader(
+    provider: EnvironmentVariablesProvider()
+    // ⚠️ Customizes the key decoder
+    keyDecoder: SeparatorKeyDecoder(separator: ":")
+)
+
+// ✅ Uses scoping correctly with the custom delimiter
+let client = Client(config: config.scoped(to: "http:client"))
+
+```
+
+```swift
+// HTTPClient/Config.swift
+
+extension Client {
+    public init(config: ConfigReader) {
+        // ❌ incorrectly reads ["http", "client", "read.timeout"] (last component is incorrect)
+        self.timeout = config.int(forKey: "read.timeout", default: 30)
+    }
+}
+```
+
+### Proposed solution
+
+Remove the custom key decoder feature altogether and simplify the project.
+
+This is enabled by making `ConfigKey` and `AbsoluteConfigKey` conform to `ExpressibleByStringLiteral`, which is only possible now because we can hardcode the string splitting to use the dot delimiter. This allows us to remove the explicit method overloads that took `String` for the key parameter, and we only take `ConfigKey` now. However, since `ConfigKey` is `ExpressibleByStringLiteral` now, the user experience is mostly unchanged.
+
+Not only does this change address a major flaw, it also removes over 10k lines of code.
+
+### Detailed design
+
+- Make `ConfigKey` and `AbsoluteConfigKey` conform to `ExpressibleByStringLiteral` and always use a dot as the delimiter when splitting components.
+- Remove any public APIs related to key decoding, such as the `ConfigKeyDecoder` protocol and all concrete implementations.
+- Remove all public overloads that specialized for a String-based key.
+
+For details, check out the [draft PR](https://github.com/apple/swift-configuration/pull/71).
+
+### API stability
+
+Most adopters do not need to change any code.
+
+Only if you used a method that takes both a string key and a context parameter, you now need to construct a `ConfigKey` manually:
+
+```diff
+config.string(
+-    forKey: "server.timeout",
+-    context: ["upstream": "example.com]
++    forKey: ConfigKey("server.timeout", context: ["upstream": "example.com])
+)
+```
+
+### Future directions
+
+The feature might be added back in the future, if there's enough value in it and we can find a design that avoids the flaw.
+
+### Alternatives considered
+
+- Keep as API and document that config readers with customized key decoders must not be passed to other libraries: seemed like a suboptimal solution and would weaken the ability of the ecosystem to seamlessly integrate different libraries.