diff --git a/.planning/STATE.md b/.planning/STATE.md
index 9916a13..04ad8f1 100644
--- a/.planning/STATE.md
+++ b/.planning/STATE.md
@@ -2,16 +2,16 @@
 gsd_state_version: 1.0
 milestone: v1.0
 milestone_name: milestone
-status: completed
+status: executing
 stopped_at: Phase 2 context gathered
-last_updated: "2026-04-09T13:33:57.973Z"
-last_activity: 2026-04-09 -- Phase 1 verified and complete
+last_updated: "2026-04-09T14:46:43.217Z"
+last_activity: 2026-04-09 -- Phase 02 planning complete
 progress:
   total_phases: 3
   completed_phases: 1
-  total_plans: 2
+  total_plans: 4
   completed_plans: 2
-  percent: 100
+  percent: 50
 ---
 
 # Project State
@@ -27,8 +27,8 @@ See: .planning/PROJECT.md (updated 2026-04-09)
 
 Phase: 1 of 3 (Minimal Viable Sandbox) -- COMPLETE
 Plan: 2 of 2 in phase 1
-Status: Phase 1 complete, ready for Phase 2
-Last activity: 2026-04-09 -- Phase 1 verified and complete
+Status: Ready to execute
+Last activity: 2026-04-09 -- Phase 02 planning complete
 
 Progress: [███░░░░░░░] 33%