diff --git a/config.js b/config.js
index 1a06dbc..07a8148 100644
--- a/config.js
+++ b/config.js
@@ -9,4 +9,5 @@ module.exports = {
   COMP: '0xc00e94Cb662C3520282E6f5717214004A7f26888',
   TORN: '0x77777FeDdddFfC19Ff86DB637967013e6C6A116C',
   tornWhale: '0xF977814e90dA44bFA03b6295A0616a897441aceC',
+  creationFee: '200000000000000000000', // 200 TORN
 }
diff --git a/contracts/AddInstanceProposal.sol b/contracts/AddInstanceProposal.sol
index fdae4e7..acfb386 100644
--- a/contracts/AddInstanceProposal.sol
+++ b/contracts/AddInstanceProposal.sol
@@ -70,19 +70,25 @@ contract AddInstanceProposal {
   }
 
   function denominationByIndex(uint256 _index) public view returns (uint256) {
-    if (_index == 0) { return denomination0; }
-    else if (_index == 1) { return denomination1; }
-    else if (_index == 2) { return denomination2; }
-    else {
+    if (_index == 0) {
+      return denomination0;
+    } else if (_index == 1) {
+      return denomination1;
+    } else if (_index == 2) {
+      return denomination2;
+    } else {
       revert("Invalid instance index");
     }
   }
 
   function protocolFeeByIndex(uint256 _index) public view returns (uint32) {
-    if (_index == 0) { return protocolFee0; }
-    else if (_index == 1) { return protocolFee1; }
-    else if (_index == 2) { return protocolFee2; }
-    else {
+    if (_index == 0) {
+      return protocolFee0;
+    } else if (_index == 1) {
+      return protocolFee1;
+    } else if (_index == 2) {
+      return protocolFee2;
+    } else {
       revert("Invalid instance index");
     }
   }
diff --git a/contracts/ERC20TornadoCloneable.sol b/contracts/ERC20TornadoCloneable.sol
index d2f8f1e..45fde4d 100644
--- a/contracts/ERC20TornadoCloneable.sol
+++ b/contracts/ERC20TornadoCloneable.sol
@@ -14,7 +14,7 @@ contract ERC20TornadoCloneable is ERC20Tornado {
     address _token
   ) external {
     require(denomination == 0 && levels == 0, "already initialized");
-    
+
     token = IERC20(_token);
     require(_denomination > 0, "denomination should be greater than 0");
     denomination = _denomination;
diff --git a/contracts/InstanceFactory.sol b/contracts/InstanceFactory.sol
index 322c801..c7d9d66 100644
--- a/contracts/InstanceFactory.sol
+++ b/contracts/InstanceFactory.sol
@@ -9,22 +9,26 @@ import "@openzeppelin/contracts/proxy/Clones.sol";
 import "./ERC20TornadoCloneable.sol";
 import "./AddInstanceProposal.sol";
 import "./interfaces/IGovernance.sol";
-
+import { IERC20 } from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+import { IERC20Permit } from "@openzeppelin/contracts/drafts/IERC20Permit.sol";
 
 contract InstanceFactory is Ownable {
   using Clones for address;
   using Address for address;
 
   address public immutable governance;
+  address public immutable torn;
   address public immutable instanceRegistry;
   address public implementation;
   address public verifier;
   address public hasher;
   uint32 public merkleTreeHeight;
+  uint256 public creationFee;
 
   event NewVerifierSet(address indexed newVerifier);
   event NewHasherSet(address indexed newHasher);
   event NewTreeHeightSet(uint32 indexed newTreeHeight);
+  event NewCreationFeeSet(uint256 indexed newCreationFee);
   event NewImplementationSet(address indexed newImplemenentation);
   event NewInstanceCloneCreated(address indexed clone);
   event NewGovernanceProposalCreated(address indexed proposal);
@@ -34,13 +38,17 @@ contract InstanceFactory is Ownable {
     address _hasher,
     uint32 _merkleTreeHeight,
     address _governance,
-    address _instanceRegistry
+    address _instanceRegistry,
+    address _torn,
+    uint256 _creationFee
   ) {
     verifier = _verifier;
     hasher = _hasher;
     merkleTreeHeight = _merkleTreeHeight;
     governance = _governance;
     instanceRegistry = _instanceRegistry;
+    torn = _torn;
+    creationFee = _creationFee;
 
     ERC20TornadoCloneable implContract = new ERC20TornadoCloneable(_verifier, _hasher);
     implementation = address(implContract);
@@ -65,25 +73,46 @@ contract InstanceFactory is Ownable {
     return implementation.predictDeterministicAddress(salt);
   }
 
-  function createNewProposal(
+  function createProposalApprove(
     address _token,
     uint24 _uniswapPoolSwappingFee,
     uint256[] memory _denominations,
     uint32[] memory _protocolFees
   ) external returns (address) {
+    require(IERC20(torn).transferFrom(msg.sender, governance, creationFee));
+    return _createProposal(_token, _uniswapPoolSwappingFee, _denominations, _protocolFees);
+  }
+
+  function createProposalPermit(
+    address _token,
+    uint24 _uniswapPoolSwappingFee,
+    uint256[] memory _denominations,
+    uint32[] memory _protocolFees,
+    address creater,
+    uint256 deadline,
+    uint8 v,
+    bytes32 r,
+    bytes32 s
+  ) external returns (address) {
+    IERC20Permit(torn).permit(creater, address(this), creationFee, deadline, v, r, s);
+    require(IERC20(torn).transferFrom(creater, governance, creationFee));
+    return _createProposal(_token, _uniswapPoolSwappingFee, _denominations, _protocolFees);
+  }
+
+  function _createProposal(
+    address _token,
+    uint24 _uniswapPoolSwappingFee,
+    uint256[] memory _denominations,
+    uint32[] memory _protocolFees
+  ) internal returns (address) {
     require(_token.isContract(), "Token is not contract"); // TODO should we check that such instance already exist?
     require(_uniswapPoolSwappingFee > 0, "uniswapPoolSwappingFee is zero"); // TODO should we check > 0 ?
     require(_denominations.length > 0, "Empty denominations");
     require(_denominations.length == _protocolFees.length, "Incorrect denominations/fees length");
 
-    address proposal = address(new AddInstanceProposal(
-      address(this),
-      instanceRegistry,
-      _token,
-      _uniswapPoolSwappingFee,
-      _denominations,
-      _protocolFees
-    ));
+    address proposal = address(
+      new AddInstanceProposal(address(this), instanceRegistry, _token, _uniswapPoolSwappingFee, _denominations, _protocolFees)
+    );
     emit NewGovernanceProposalCreated(proposal);
 
     return proposal;
@@ -104,6 +133,11 @@ contract InstanceFactory is Ownable {
     emit NewTreeHeightSet(merkleTreeHeight);
   }
 
+  function setCreationFee(uint256 _creationFee) external onlyOwner {
+    creationFee = _creationFee;
+    emit NewCreationFeeSet(_creationFee);
+  }
+
   function setImplementation(address _newImplementation) external onlyOwner {
     implementation = _newImplementation;
     emit NewImplementationSet(implementation);
diff --git a/contracts/interfaces/IInstanceRegistry.sol b/contracts/interfaces/IInstanceRegistry.sol
index 657e340..e5d37df 100644
--- a/contracts/interfaces/IInstanceRegistry.sol
+++ b/contracts/interfaces/IInstanceRegistry.sol
@@ -6,8 +6,10 @@ pragma abicoder v2;
 import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
 
 interface IInstanceRegistry {
-
-  enum InstanceState { DISABLED, ENABLED}
+  enum InstanceState {
+    DISABLED,
+    ENABLED
+  }
 
   struct Instance {
     bool isERC20;
diff --git a/contracts/mock/CompileDummy.sol b/contracts/mock/CompileDummy.sol
index 0bad471..b69bca4 100644
--- a/contracts/mock/CompileDummy.sol
+++ b/contracts/mock/CompileDummy.sol
@@ -1,6 +1,6 @@
 // SPDX-License-Identifier: MIT
 
-pragma solidity 0.6.12 || 0.7.6;
+pragma solidity 0.6.12||0.7.6;
 
 import { Governance } from "tornado-governance/contracts/v1/Governance.sol";
 import { InstanceRegistry } from "tornado-relayer-registry/contracts/tornado-proxy/InstanceRegistry.sol";
diff --git a/scripts/permit.js b/scripts/permit.js
new file mode 100644
index 0000000..36ce381
--- /dev/null
+++ b/scripts/permit.js
@@ -0,0 +1,44 @@
+const { EIP712Signer } = require('@ticket721/e712')
+
+const Permit = [
+  { name: 'owner', type: 'address' },
+  { name: 'spender', type: 'address' },
+  { name: 'value', type: 'uint256' },
+  { name: 'nonce', type: 'uint256' },
+  { name: 'deadline', type: 'uint256' },
+]
+
+class PermitSigner extends EIP712Signer {
+  constructor(_domain, _permitArgs) {
+    super(_domain, ['Permit', Permit])
+    this.permitArgs = _permitArgs
+  }
+
+  // Permit(address owner,address spender,uint256 value,uint256 nonce,uint256 deadline)
+  setPermitInfo(_permitArgs) {
+    this.permitArgs = _permitArgs
+  }
+
+  getPayload() {
+    return this.generatePayload(this.permitArgs, 'Permit')
+  }
+
+  async getSignature(privateKey) {
+    let payload = this.getPayload()
+    payload.message.owner = payload.message.owner.address
+    const { hex, v, r, s } = await this.sign(privateKey, payload)
+    return {
+      hex,
+      v,
+      r: '0x' + r,
+      s: '0x' + s,
+    }
+  }
+
+  getSignerAddress(permitArgs, signature) {
+    const original_payload = this.generatePayload(permitArgs, 'Permit')
+    return this.verify(original_payload, signature)
+  }
+}
+
+module.exports = { PermitSigner }
diff --git a/test/instance.factory.test.js b/test/instance.factory.test.js
index ccef3bb..327c7e2 100644
--- a/test/instance.factory.test.js
+++ b/test/instance.factory.test.js
@@ -7,7 +7,7 @@ const { rbigint, createDeposit, toHex, generateProof, initialize } = require('to
 const MixerContractABI = require('tornado-cli/build/contracts/Mixer.abi.json')
 const config = require('../config')
 const { getSignerFromAddress, minewait } = require('./utils')
-
+const { PermitSigner } = require('../scripts/permit.js')
 
 describe('Instance Factory Tests', () => {
   const ProposalState = {
@@ -26,14 +26,11 @@ describe('Instance Factory Tests', () => {
     const [sender, deployer, multisig] = await ethers.getSigners()
 
     const tornWhale = await getSignerFromAddress(config.tornWhale)
-    
-    const gov = await ethers.getContractAt(
-      'Governance',
-      config.governance,
-    )
+
+    const gov = await ethers.getContractAt('Governance', config.governance)
 
     const tornToken = await ethers.getContractAt(
-      '@openzeppelin/contracts/token/ERC20/IERC20.sol:IERC20',
+      '@openzeppelin/contracts/token/ERC20/ERC20.sol:ERC20',
       config.TORN,
     )
 
@@ -43,7 +40,7 @@ describe('Instance Factory Tests', () => {
     )
 
     instanceRegistry = await ethers.getContractAt(
-      'tornado-relayer-registry/contracts/tornado-proxy/InstanceRegistry.sol:InstanceRegistry', 
+      'tornado-relayer-registry/contracts/tornado-proxy/InstanceRegistry.sol:InstanceRegistry',
       config.instanceRegistry,
     )
 
@@ -54,11 +51,23 @@ describe('Instance Factory Tests', () => {
       config.hasher,
       config.merkleTreeHeight,
       config.governance,
-      config.instanceRegistry
+      config.instanceRegistry,
+      config.TORN,
+      config.creationFee,
     )
     await instanceFactory.deployed()
 
-    return { sender, deployer, multisig, tornWhale, gov, tornToken, compToken, instanceRegistry, instanceFactory }
+    return {
+      sender,
+      deployer,
+      multisig,
+      tornWhale,
+      gov,
+      tornToken,
+      compToken,
+      instanceRegistry,
+      instanceFactory,
+    }
   }
 
   it('Should have initialized all successfully', async function () {
@@ -73,11 +82,13 @@ describe('Instance Factory Tests', () => {
   it('Should set correct params for factory', async function () {
     const { instanceFactory } = await loadFixture(fixture)
 
-    expect( await instanceFactory.governance()).to.be.equal(config.governance)
-    expect( await instanceFactory.verifier()).to.be.equal(config.verifier)
-    expect( await instanceFactory.hasher()).to.be.equal(config.hasher)
-    expect( await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
+    expect(await instanceFactory.governance()).to.be.equal(config.governance)
+    expect(await instanceFactory.verifier()).to.be.equal(config.verifier)
+    expect(await instanceFactory.hasher()).to.be.equal(config.hasher)
+    expect(await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
     expect(await instanceFactory.implementation()).to.exist
+    expect(await instanceFactory.creationFee()).to.be.equal(config.creationFee)
+    expect(await instanceFactory.torn()).to.be.equal(config.TORN)
   })
 
   it('Governance should be able to set factory params', async function () {
@@ -87,48 +98,58 @@ describe('Instance Factory Tests', () => {
 
     const govSigner = await getSignerFromAddress(gov.address)
     instanceFactory = await instanceFactory.connect(govSigner)
-    
+
     await instanceFactory.setVerifier(addressZero)
     await instanceFactory.setHasher(addressZero)
     await instanceFactory.setMerkleTreeHeight(1)
+    await instanceFactory.setCreationFee(0)
 
-    expect( await instanceFactory.verifier()).to.be.equal(addressZero)
-    expect( await instanceFactory.hasher()).to.be.equal(addressZero)
-    expect( await instanceFactory.merkleTreeHeight()).to.be.equal(1)
+    expect(await instanceFactory.verifier()).to.be.equal(addressZero)
+    expect(await instanceFactory.hasher()).to.be.equal(addressZero)
+    expect(await instanceFactory.merkleTreeHeight()).to.be.equal(1)
+    expect(await instanceFactory.creationFee()).to.be.equal(0)
 
     await instanceFactory.setVerifier(config.verifier)
     await instanceFactory.setHasher(config.hasher)
     await instanceFactory.setMerkleTreeHeight(config.merkleTreeHeight)
+    await instanceFactory.setCreationFee(config.creationFee)
 
-    expect( await instanceFactory.verifier()).to.be.equal(config.verifier)
-    expect( await instanceFactory.hasher()).to.be.equal(config.hasher)
-    expect( await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
+    expect(await instanceFactory.verifier()).to.be.equal(config.verifier)
+    expect(await instanceFactory.hasher()).to.be.equal(config.hasher)
+    expect(await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
+    expect(await instanceFactory.creationFee()).to.be.equal(config.creationFee)
   })
 
   it('Should successfully deploy/propose/execute proposal - add instance', async function () {
-    let { instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+    let { sender, instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
 
     // deploy proposal ----------------------------------------------
-    let tx = await instanceFactory.createNewProposal(
-      config.COMP,
-      3000,
-      [ethers.utils.parseEther('100')],
-      [30]
-    )
-    let receipt = await tx.wait()
+    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
+    await tornToken.approve(instanceFactory.address, config.creationFee)
 
-    const proposal = await ethers.getContractAt(
-      'AddInstanceProposal', 
-      receipt.events[0].args[0],
+    await expect(() =>
+      instanceFactory
+        .connect(sender)
+        .createProposalApprove(config.COMP, 3000, [ethers.utils.parseEther('100')], [30]),
+    ).to.changeTokenBalances(
+      tornToken,
+      [sender, gov],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
     )
-    
-    expect( await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
-    expect( await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
-    expect( await proposal.token()).to.be.equal(config.COMP)
-    expect( await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
-    expect( await proposal.numInstances()).to.be.equal(1)
-    expect( await proposal.protocolFeeByIndex(0)).to.be.equal(30)
-    expect( await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
+
+    let logs = await ethers.provider.getLogs(instanceFactory.filters.NewGovernanceProposalCreated())
+    const proposal = await ethers.getContractAt(
+      'AddInstanceProposal',
+      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(26)),
+    )
+
+    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
+    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
+    expect(await proposal.token()).to.be.equal(config.COMP)
+    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
+    expect(await proposal.numInstances()).to.be.equal(1)
+    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
+    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
 
     // propose proposal ---------------------------------------------
     let response, id, state
@@ -147,7 +168,7 @@ describe('Instance Factory Tests', () => {
     expect(args.target).to.be.equal(proposal.address)
     expect(args.description).to.be.equal('COMP token instance proposal')
     expect(state).to.be.equal(ProposalState.Pending)
-    
+
     // execute proposal ---------------------------------------------
     await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
     await expect(gov.castVote(id, true)).to.not.be.reverted
@@ -161,7 +182,7 @@ describe('Instance Factory Tests', () => {
         .toNumber(),
     )
     expect(await gov.state(id)).to.be.equal(ProposalState.AwaitingExecution)
-    
+
     tx = await gov.execute(id)
 
     expect(await gov.state(id)).to.be.equal(ProposalState.Executed)
@@ -169,25 +190,92 @@ describe('Instance Factory Tests', () => {
     // check instance initialization --------------------------------
     receipt = await tx.wait()
     const instanceAddr = '0x' + receipt.events[0].topics[1].toString().slice(-40)
-    const instance = await ethers.getContractAt(
-      'ERC20TornadoCloneable', 
-      instanceAddr,
-    )
+    const instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
 
-    expect( await instance.token()).to.be.equal(config.COMP)
-    expect( await instance.verifier()).to.be.equal(config.verifier)
-    expect( await instance.hasher()).to.be.equal(config.hasher)
-    expect( await instance.levels()).to.be.equal(config.merkleTreeHeight)
-    expect( await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
+    expect(await instance.token()).to.be.equal(config.COMP)
+    expect(await instance.verifier()).to.be.equal(config.verifier)
+    expect(await instance.hasher()).to.be.equal(config.hasher)
+    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
+    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
 
-    const instanceData =  await instanceRegistry.instances(instance.address)
+    const instanceData = await instanceRegistry.instances(instance.address)
     expect(instanceData.isERC20).to.be.equal(true)
     expect(instanceData.token).to.be.equal(config.COMP)
     expect(instanceData.state).to.be.equal(1)
     expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
     expect(instanceData.protocolFeePercentage).to.be.equal(30)
   })
-  
+
+  it('Should successfully deploy proposal with permit', async function () {
+    let { instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+
+    const privateKey = '0xc87509a1c067bbde78beb793e6fa76530b6382a4c0241e5e4a9ec0a0f44dc0d3'
+    const publicKey = '0x' + ethers.utils.computeAddress(Buffer.from(privateKey.slice(2), 'hex'))
+    const sender = await ethers.getSigner(publicKey.slice(2))
+
+    await expect(() =>
+      tornToken.connect(tornWhale).transfer(sender.address, config.creationFee),
+    ).to.changeTokenBalances(
+      tornToken,
+      [tornWhale, sender],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    // prepare permit data
+    const domain = {
+      name: await tornToken.name(),
+      version: '1',
+      chainId: 1,
+      verifyingContract: tornToken.address,
+    }
+
+    const curTimestamp = Math.trunc(new Date().getTime() / 1000)
+    const args = {
+      owner: sender,
+      spender: instanceFactory.address,
+      value: config.creationFee,
+      nonce: 0,
+      deadline: curTimestamp + 1000,
+    }
+
+    const permitSigner = new PermitSigner(domain, args)
+    const signature = await permitSigner.getSignature(privateKey)
+    const signer = await permitSigner.getSignerAddress(args, signature.hex)
+    expect(signer).to.equal(sender.address)
+
+    await expect(() =>
+      instanceFactory.createProposalPermit(
+        config.COMP,
+        3000,
+        [ethers.utils.parseEther('100')],
+        [30],
+        sender.address,
+        args.deadline.toString(),
+        signature.v,
+        signature.r,
+        signature.s,
+      ),
+    ).to.changeTokenBalances(
+      tornToken,
+      [sender, gov],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    let logs = await ethers.provider.getLogs(instanceFactory.filters.NewGovernanceProposalCreated())
+    const proposal = await ethers.getContractAt(
+      'AddInstanceProposal',
+      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(26)),
+    )
+
+    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
+    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
+    expect(await proposal.token()).to.be.equal(config.COMP)
+    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
+    expect(await proposal.numInstances()).to.be.equal(1)
+    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
+    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
+  })
+
   // it('Should prepare data for instance deposit/withdraw tests', async () => {
   //   const RAITokenAddress = '0x03ab458634910AaD20eF5f1C8ee96F1D6ac54919'
   //   await sendr('hardhat_impersonateAccount', ['0x46a0B4Fa58141ABa23185e79f7047A7dFd0FF100'])