diff --git a/Cargo.lock b/Cargo.lock
index eec5991..1d64d00 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1845,7 +1845,7 @@ checksum = "c08c74e62047bb2de4ff487b251e4a92e24f48745648451635cec7d591162d9f"
 
 [[package]]
 name = "restate-operator"
-version = "0.9.0"
+version = "1.0.0"
 dependencies = [
  "actix-web",
  "anyhow",
diff --git a/Cargo.toml b/Cargo.toml
index f491796..09af1a4 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "restate-operator"
-version = "0.9.0"
+version = "1.0.0"
 authors = ["restate.dev"]
 edition = "2021"
 rust-version = "1.75"
diff --git a/charts/restate-operator-helm/Chart.yaml b/charts/restate-operator-helm/Chart.yaml
index 64d9e94..4ecbfd5 100644
--- a/charts/restate-operator-helm/Chart.yaml
+++ b/charts/restate-operator-helm/Chart.yaml
@@ -2,4 +2,4 @@ apiVersion: v2
 name: restate-operator-helm
 description: An operator for Restate clusters
 type: application
-version: "0.9.0"
+version: "1.0.0"
diff --git a/src/reconcilers/compute.rs b/src/reconcilers/compute.rs
index 2195e78..6a3f1a2 100644
--- a/src/reconcilers/compute.rs
+++ b/src/reconcilers/compute.rs
@@ -153,10 +153,9 @@ fn restate_service(
 
 fn env(cluster_name: &str, custom: Option<&[EnvVar]>) -> Vec<EnvVar> {
     let defaults = [
-        ("RESTATE_OBSERVABILITY__LOG__FORMAT", "Json"), // todo: old env var can be removed soon
         ("RESTATE_LOG_FORMAT", "json"),
         ("RESTATE_CLUSTER_NAME", cluster_name),
-        ("RESTATE_BASE_DIR", "/target"),
+        ("RESTATE_BASE_DIR", "/restate-data"),
         ("RUST_BACKTRACE", "1"),
         ("RUST_LIB_BACKTRACE", "0"),
         ("RESTATE_CONFIG", "/config/config.toml"),
@@ -206,7 +205,7 @@ fn restate_statefulset(
     let mut volume_mounts = vec![
         VolumeMount {
             name: "storage".into(),
-            mount_path: "/target".into(),
+            mount_path: "/restate-data".into(),
             ..Default::default()
         },
         VolumeMount {