A Project Sandbox is a directory containing a manifest file. Almost every esy command operates within the context of a project sandbox.
The manifest is a JSON file containing the package name, version, dependency declarations, build/install commands, and metadata. While package.json is the standard, esy also supports esy.json. If both are present, esy.json takes precedence. Note that for packages published to the npm registry, esy relies on the registry API (populated by package.json) and cannot access esy.json.