FSM1 · FSM1 · Jan 21, 2026 · Jan 21, 2026 · Jan 21, 2026 · Jan 21, 2026
diff --git a/.planning/REQUIREMENTS.md b/.planning/REQUIREMENTS.md
@@ -31,27 +31,27 @@ Requirements for initial release. Each maps to roadmap phases.
 - [x] **FILE-01**: User can upload files up to 100MB
 - [x] **FILE-02**: User can download and decrypt files
 - [x] **FILE-03**: User can delete files (with IPFS unpin)
-- [ ] **FILE-04**: User can rename files
-- [ ] **FILE-05**: User can move files between folders
+- [x] **FILE-04**: User can rename files
+- [x] **FILE-05**: User can move files between folders
 - [x] **FILE-06**: User can select multiple files for bulk upload
 - [x] **FILE-07**: User can select multiple files for bulk delete
 
 ### Folder Operations
 
-- [ ] **FOLD-01**: User can create folders
-- [ ] **FOLD-02**: User can delete folders (recursive)
-- [ ] **FOLD-03**: User can nest folders up to 20 levels deep
-- [ ] **FOLD-04**: User can rename folders
-- [ ] **FOLD-05**: User can move folders between parent folders
-- [ ] **FOLD-06**: Each folder has its own IPNS keypair for metadata
+- [x] **FOLD-01**: User can create folders
+- [x] **FOLD-02**: User can delete folders (recursive)
+- [x] **FOLD-03**: User can nest folders up to 20 levels deep
+- [x] **FOLD-04**: User can rename folders
+- [x] **FOLD-05**: User can move folders between parent folders
+- [x] **FOLD-06**: Each folder has its own IPNS keypair for metadata
 
 ### Backend API
 
 - [x] **API-01**: Backend verifies Web3Auth JWT via JWKS endpoint
 - [x] **API-02**: Backend issues and rotates access/refresh tokens
 - [x] **API-03**: Backend relays encrypted blobs to Pinata (POST /ipfs/add)
 - [x] **API-04**: Backend relays unpin requests to Pinata (POST /vault/unpin)
-- [ ] **API-05**: Backend relays pre-signed IPNS records (POST /ipns/publish)
+- [x] **API-05**: Backend relays pre-signed IPNS records (POST /ipns/publish)
 - [x] **API-06**: Backend stores encrypted vault keys (rootFolderKey, ipnsPrivateKey)
 - [x] **API-07**: Backend enforces 500 MiB storage quota per user
 - [ ] **API-08**: Backend returns TEE public keys on login
@@ -176,21 +176,21 @@ Which phases cover which requirements. Updated during roadmap creation.
 | FILE-01     | Phase 4  | Complete |
 | FILE-02     | Phase 4  | Complete |
 | FILE-03     | Phase 4  | Complete |
-| FILE-04     | Phase 5  | Pending  |
-| FILE-05     | Phase 5  | Pending  |
+| FILE-04     | Phase 5  | Complete |
+| FILE-05     | Phase 5  | Complete |
 | FILE-06     | Phase 4  | Complete |
 | FILE-07     | Phase 4  | Complete |
-| FOLD-01     | Phase 5  | Pending  |
-| FOLD-02     | Phase 5  | Pending  |
-| FOLD-03     | Phase 5  | Pending  |
-| FOLD-04     | Phase 5  | Pending  |
-| FOLD-05     | Phase 5  | Pending  |
-| FOLD-06     | Phase 5  | Pending  |
+| FOLD-01     | Phase 5  | Complete |
+| FOLD-02     | Phase 5  | Complete |
+| FOLD-03     | Phase 5  | Complete |
+| FOLD-04     | Phase 5  | Complete |
+| FOLD-05     | Phase 5  | Complete |
+| FOLD-06     | Phase 5  | Complete |
 | API-01      | Phase 2  | Complete |
 | API-02      | Phase 2  | Complete |
 | API-03      | Phase 4  | Complete |
 | API-04      | Phase 4  | Complete |
-| API-05      | Phase 5  | Pending  |
+| API-05      | Phase 5  | Complete |
 | API-06      | Phase 4  | Complete |
 | API-07      | Phase 4  | Complete |
 | API-08      | Phase 8  | Pending  |

diff --git a/.planning/ROADMAP.md b/.planning/ROADMAP.md
@@ -19,7 +19,7 @@ Decimal phases appear between their surrounding integers in numeric order.
 - [x] **Phase 4: File Storage** - Upload/download encrypted files via IPFS relay
 - [x] **Phase 4.1: API Service Testing** - Unit tests for backend services per TESTING.md (INSERTED)
 - [ ] **Phase 4.2: Local IPFS Testing Infrastructure** - Add local IPFS node to Docker for offline testing (INSERTED)
-- [ ] **Phase 5: Folder System** - IPNS metadata, folder hierarchy, and operations
+- [x] **Phase 5: Folder System** - IPNS metadata, folder hierarchy, and operations
 - [ ] **Phase 6: File Browser UI** - Web interface for file management
 - [ ] **Phase 7: Multi-Device Sync** - IPNS polling and sync state management
 - [ ] **Phase 8: TEE Integration** - Auto-republishing via Phala Cloud
@@ -155,7 +155,7 @@ Plans:
 
 ### Phase 5: Folder System
 
-**Goal**: Users can organize files in encrypted folder hierarchy
+**Goal**: Users can organize files in encrypted folder hierarchy with IPNS metadata
 **Depends on**: Phase 4.1
 **Requirements**: FOLD-01, FOLD-02, FOLD-03, FOLD-04, FOLD-05, FOLD-06, FILE-04, FILE-05, API-05
 **Success Criteria** (what must be TRUE):
@@ -166,14 +166,14 @@ Plans:
 4. User can rename files and folders
 5. User can move files and folders between parent folders
 6. Each folder has its own IPNS keypair for metadata
-   **Plans**: TBD
+   **Plans**: 4 plans
 
 Plans:
 
-- [ ] 05-01: IPNS relay endpoints and metadata structure
-- [ ] 05-02: Folder CRUD operations with encrypted metadata
-- [ ] 05-03: File rename and move operations
-- [ ] 05-04: Folder tree traversal and hierarchy management
+- [x] 05-01-PLAN.md — Backend IPNS relay endpoints and FolderIpns entity
+- [x] 05-02-PLAN.md — Crypto module IPNS record creation and folder metadata types
+- [x] 05-03-PLAN.md — Frontend vault/folder stores and IPNS publishing service
+- [x] 05-04-PLAN.md — Frontend folder CRUD operations (create, rename, delete, move)
 
 ### Phase 6: File Browser UI
 
@@ -312,8 +312,8 @@ Decimal phases (if any) execute between their surrounding integers.
 | 3. Core Encryption      | 3/3            | Complete    | 2026-01-20 |
 | 4. File Storage         | 4/4            | Complete    | 2026-01-20 |
 | 4.1 API Service Testing | 3/3            | Complete    | 2026-01-21 |
-| 4.2 Local IPFS Testing  | 0/2            | Not started | -          |
-| 5. Folder System        | 0/4            | Not started | -          |
+| 4.2 Local IPFS Testing  | 0/TBD          | Not started | -          |
+| 5. Folder System        | 4/4            | Complete    | 2026-01-21 |
 | 6. File Browser UI      | 0/4            | Not started | -          |
 | 7. Multi-Device Sync    | 0/3            | Not started | -          |
 | 8. TEE Integration      | 0/4            | Not started | -          |
@@ -334,5 +334,6 @@ _Phase 4 planned: 2026-01-20_
 _Phase 4 complete: 2026-01-20_
 _Phase 4.1 planned: 2026-01-20_
 _Phase 4.1 complete: 2026-01-21_
-_Phase 4.2 planned: 2026-01-21_
-_Total phases: 11 | Total plans: 43 | Depth: Comprehensive_
+_Phase 5 planned: 2026-01-21_
+_Phase 5 complete: 2026-01-21_
+_Total phases: 11 | Total plans: 45 | Depth: Comprehensive_
diff --git a/.planning/STATE.md b/.planning/STATE.md
@@ -5,24 +5,24 @@
 See: .planning/PROJECT.md (updated 2026-01-20)
 
 **Core value:** Zero-knowledge privacy - files encrypted client-side, server never sees plaintext
-**Current focus:** Phase 4.2 Local IPFS Testing Infrastructure - COMPLETE
+**Current focus:** Phase 5 Folder System - COMPLETE
 
 ## Current Position
 
-Phase: 4.2 of 11 (Local IPFS Testing) - COMPLETE
-Plan: 2 of 2 in Phase 4.2 complete
-Status: Phase 4.2 complete - Local IPFS testing infrastructure ready
-Last activity: 2026-01-21 - Completed 04.2-02-PLAN.md (CI service containers + tests)
+Phase: 5 of 11 (Folder System) - COMPLETE
+Plan: 4 of 4 in Phase 5 complete
+Status: Phase 5 complete - folder system infrastructure ready
+Last activity: 2026-01-21 - Phase 5 verified and complete
 
-Progress: [####......] 42% (19 of 45 plans)
+Progress: [#####.....] 51% (23 of 45 plans)
 
 ## Performance Metrics
 
 **Velocity:**
 
-- Total plans completed: 19
-- Average duration: 4.6 min
-- Total execution time: 1.5 hours
+- Total plans completed: 23
+- Average duration: 4.4 min
+- Total execution time: 1.7 hours
 
 **By Phase:**
 
@@ -34,10 +34,11 @@ Progress: [####......] 42% (19 of 45 plans)
 | 04-file-storage          | 4/4   | 17 min | 4.3 min  |
 | 04.1-api-service-testing | 3/3   | 11 min | 3.7 min  |
 | 04.2-local-ipfs-testing  | 2/2   | 14 min | 7 min    |
+| 05-folder-system         | 4/4   | 18 min | 4.5 min  |
 
 **Recent Trend:**
 
-- Last 5 plans: 5m, 3m, 3m, 8m, 6m
+- Last 5 plans: 6m, 4m, 6m, 4m, 4m
 - Trend: Consistent
 
 _Updated after each plan completion_
@@ -111,6 +112,23 @@ Recent decisions affecting current work:
 | Kubo API POST for all operations                     | 04.2-01 | Kubo RPC uses POST (not REST), even for cat and unpin                     |
 | IPFS_PROVIDER env var for backend selection          | 04.2-01 | 'local' or 'pinata' switches provider implementation                      |
 | Kubo API port localhost-only                         | 04.2-01 | 5001 bound to 127.0.0.1 for security (admin-level access)                 |
+| Unique (userId, ipnsName) constraint                 | 05-01   | Ensures each folder tracked uniquely per user                             |
+| sequenceNumber as bigint string                      | 05-01   | TypeORM returns bigint as string; service uses BigInt() for increment     |
+| encryptedIpnsPrivateKey only on first publish        | 05-01   | Reduces payload; key stored once for TEE republishing                     |
+| Exponential backoff for delegated routing            | 05-01   | Max 3 retries with increasing delay for rate limits                       |
+| ipns npm package for record creation                 | 05-02   | Handles CBOR/protobuf/signatures correctly - don't hand-roll              |
+| Ed25519 64-byte libp2p format                        | 05-02   | concat(privateKey, publicKey) for libp2p compatibility                    |
+| V1+V2 compatible IPNS signatures                     | 05-02   | v1Compatible: true for maximum network compatibility                      |
+| IPNS names base32 (bafzaa...)                        | 05-02   | libp2p default; both base32 and base36 (k51...) are valid                 |
+| FolderMetadata JSON serialization                    | 05-02   | Simple, debuggable; size overhead acceptable for metadata                 |
+| VaultStore memory-only keys                          | 05-03   | Security - never persist sensitive keys to storage                        |
+| FolderNode includes decrypted keys                   | 05-03   | Enable folder operations without re-deriving                              |
+| Local IPNS signing with backend relay                | 05-03   | Server never sees IPNS private keys                                       |
+| MAX_FOLDER_DEPTH=20 in createFolder                  | 05-03   | Enforces FOLD-03 depth limit                                              |
+| deleteFileFromFolder renamed                         | 05-04   | Avoid export conflict with delete.service.ts                              |
+| add-before-remove pattern for moves                  | 05-04   | Prevents data loss - add to dest first, then remove from source           |
+| Fire-and-forget unpin on delete                      | 05-04   | Don't block user on IPFS cleanup                                          |
+| isDescendantOf prevents circular moves               | 05-04   | Prevents moving folder into itself or descendants                         |
 
 ### Pending Todos
 
@@ -136,10 +154,10 @@ None yet.
 ## Session Continuity
 
 Last session: 2026-01-21
-Stopped at: Completed Phase 4.2 (Local IPFS Testing Infrastructure)
+Stopped at: Completed Phase 5 (Folder System)
 Resume file: None
 
 ---
 
 _State initialized: 2026-01-20_
-_Last updated: 2026-01-21 after 04.2-02 completion_
+_Last updated: 2026-01-21 after Phase 5 completion_