diff --git a/build_proton.sh b/build_proton.sh
index 8595774f..7ef5807f 100755
--- a/build_proton.sh
+++ b/build_proton.sh
@@ -6,16 +6,13 @@ set -e
 #./build/ <-- built files
 #./dist/ <-- proton build, ready to distribute
 
-mkdir -p dist/bin build/wine.win32 build/dist.win32 build/wine.win64
-
 TOP="$PWD"
 RUNTIME_PATH="$TOP/../../runtime/steam-runtime-both/"
-DST_DIR="$TOP/dist"
+DST_DIR="$TOP/build/dist"
 TOOLS_DIR64="$TOP/build/tools.win64"
 TOOLS_DIR32="$TOP/build/tools.win32"
 
-cp -a toolmanifest.vdf dist/
-cp -a proton dist/bin/
+mkdir -p dist "$DST_DIR"/bin build/wine.win32 build/dist.win32 build/wine.win64
 
 #build wine64
 cd "$TOP"/build/wine.win64
@@ -54,7 +51,7 @@ cd "$TOP"/build/lsteamclient.win64/
     -L"$TOOLS_DIR64"/lib64/wine/ \
     --dll .
 CXXFLAGS=-Wno-attributes PATH="$TOOLS_DIR64/bin:$PATH" "$RUNTIME_PATH/shell-amd64.sh" make
-cp -a lsteamclient.dll.so "$TOP"/dist/lib64/wine/
+cp -a lsteamclient.dll.so "$DST_DIR"/lib64/wine/
 
 #build 32-bit lsteamclient
 cd "$TOP"
@@ -71,7 +68,7 @@ cd "$TOP"/build/lsteamclient.win32/
     -L"$TOOLS_DIR32"/lib/wine/ \
     --dll .
 CXXFLAGS=-Wno-attributes PATH="$TOOLS_DIR32/bin:$PATH" "$RUNTIME_PATH/shell-i386.sh" make -j1
-cp -a lsteamclient.dll.so "$TOP"/dist/lib/wine/
+cp -a lsteamclient.dll.so "$DST_DIR"/lib/wine/
 
 #build 64-bit vrclient
 cd "$TOP"
@@ -88,8 +85,8 @@ cd "$TOP"/build/vrclient_x64/
     --dll .
 CXXFLAGS="-Wno-attributes -std=c++0x" PATH="$TOOLS_DIR64/bin:$PATH" "$RUNTIME_PATH/shell-amd64.sh" make
 PATH="$TOOLS_DIR64/bin:$PATH" "$RUNTIME_PATH/shell-amd64.sh" winebuild --dll --fake-module -E vrclient_x64.spec -o vrclient_x64.dll.fake
-cp -a vrclient_x64.dll.so "$TOP"/dist/lib64/wine/
-cp -a vrclient_x64.dll.fake "$TOP"/dist/lib64/wine/fakedlls/vrclient_x64.dll
+cp -a vrclient_x64.dll.so "$DST_DIR"/lib64/wine/
+cp -a vrclient_x64.dll.fake "$DST_DIR"/lib64/wine/fakedlls/vrclient_x64.dll
 
 #build 32-bit vrclient
 cd "$TOP"
@@ -107,7 +104,17 @@ mv vrclient_x64.spec vrclient.spec
     --dll .
 CXXFLAGS="-Wno-attributes -std=c++0x" PATH="$TOOLS_DIR32/bin:$PATH" "$RUNTIME_PATH/shell-i386.sh" make
 PATH="$TOOLS_DIR32/bin:$PATH" "$RUNTIME_PATH/shell-i386.sh" winebuild --dll --fake-module -E vrclient.spec -o vrclient.dll.fake
-cp -a vrclient.dll.so "$TOP"/dist/lib/wine/
-cp -a vrclient.dll.fake "$TOP"/dist/lib/wine/fakedlls/vrclient.dll
+cp -a vrclient.dll.so "$DST_DIR"/lib/wine/
+cp -a vrclient.dll.fake "$DST_DIR"/lib/wine/fakedlls/vrclient.dll
+
+echo "Packaging..."
+cd "$TOP"
+
+#the difference between -1 and -9 is about 20 MB, so prioritize quick startup over file size
+tar -C build/dist -c . | gzip -c -1 > dist/proton_dist.tar.gz
+
+cp -a toolmanifest.vdf dist/
+cp -a proton dist/
+date '+%s' > dist/version
 
 echo "Proton ready in dist/"
diff --git a/proton b/proton
index 6fe99795..4c8a07a3 100755
--- a/proton
+++ b/proton
@@ -2,11 +2,13 @@
 
 #script to launch Wine with the correct environment
 
+import filecmp
 import json
 import os
 import shutil
 import subprocess
 import sys
+import tarfile
 
 PFX="Proton: "
 
@@ -17,13 +19,23 @@ if not ("STEAM_COMPAT_DATA_PATH" in os.environ):
     log("No compat data path?")
     sys.exit(1)
 
-prefix = os.environ["STEAM_COMPAT_DATA_PATH"]
-
-bindir = os.path.dirname(sys.argv[0])
-basedir = os.path.dirname(bindir)
+basedir = os.path.dirname(sys.argv[0])
+bindir = basedir + "/dist/bin/"
+libdir = basedir + "/dist/lib64:" + basedir + "/dist/lib"
 wine_path = bindir + "/wine64"
 
-libdir = basedir + "/lib64:" + basedir + "/lib"
+#extract if needed
+if not os.path.exists(basedir + "/dist") or \
+        not os.path.exists(basedir + "/dist/version") or \
+        not filecmp.cmp(basedir + "/version", basedir + "/dist/version"):
+    if os.path.exists(basedir + "/dist"):
+        shutil.rmtree(basedir + "/dist")
+    tar = tarfile.open(basedir + "/proton_dist.tar.gz", mode="r:gz")
+    tar.extractall(path=basedir + "/dist")
+    tar.close()
+    shutil.copy(basedir + "/version", basedir + "/dist/")
+
+prefix = os.environ["STEAM_COMPAT_DATA_PATH"]
 
 env = dict(os.environ)
 
@@ -62,8 +74,8 @@ if not os.path.isdir(prefix + "/drive_c"):
     #copy openvr files into place
     dst = prefix + "/drive_c/vrclient/bin/"
     os.makedirs(dst)
-    shutil.copy(basedir + "/lib/wine/fakedlls/vrclient.dll", dst)
-    shutil.copy(basedir + "/lib64/wine/fakedlls/vrclient_x64.dll", dst)
+    shutil.copy(basedir + "/dist/lib/wine/fakedlls/vrclient.dll", dst)
+    shutil.copy(basedir + "/dist/lib64/wine/fakedlls/vrclient_x64.dll", dst)
     os.makedirs(prefix + "/drive_c/users/" + env["USER"] + "/Local Settings/Application Data/openvr")
 
 #parse linux openvr config and present it in win32 format to the app.
diff --git a/toolmanifest.vdf b/toolmanifest.vdf
index 149163c9..26ef1c28 100644
--- a/toolmanifest.vdf
+++ b/toolmanifest.vdf
@@ -1,4 +1,4 @@
 "manifest"
 {
-  "commandline" "/bin/proton"
+  "commandline" "/proton"
 }