diff --git a/.planning/PROJECT.md b/.planning/PROJECT.md
index ef59781c..edef09be 100644
--- a/.planning/PROJECT.md
+++ b/.planning/PROJECT.md
@@ -133,5 +133,16 @@ After every `/gsd:complete-milestone`, perform an upstream rebase before startin
 
 **Autonomous mode:** The autonomous workflow MUST check for this section and run the rebase after `complete-milestone` returns, before starting the next milestone.
 
+## Current Milestone: v1.4 Hermes Default Provider
+
+**Goal:** Make Hermes Agent the default local provider — Nexus works out of the box without any paid subscription or API key via Hermes + Ollama.
+
+**Target features:**
+- Hermes adapter integration (spawn, heartbeat, session persistence, skill sync, cost tracking)
+- Ollama detection, model listing, RAM/VRAM-based recommendations
+- Default provider logic (fallback to Hermes when no cloud provider detected)
+- Agent templates working with Hermes runtime
+- Dashboard showing Hermes-specific info
+
 ---
-*Last updated: 2026-04-02 after v1.3 milestone*
+*Last updated: 2026-04-02 — v1.4 milestone started*
diff --git a/.planning/STATE.md b/.planning/STATE.md
index 8b84941d..48632c4e 100644
--- a/.planning/STATE.md
+++ b/.planning/STATE.md
@@ -1,33 +1,33 @@
 ---
 gsd_state_version: 1.0
-milestone: v1.3
-milestone_name: milestone
-status: executing
-stopped_at: Completed 26-04-PLAN.md
-last_updated: "2026-04-02T10:49:24.152Z"
+milestone: v1.4
+milestone_name: Hermes Default Provider
+status: planning
+stopped_at: null
+last_updated: "2026-04-02T15:10:00.000Z"
 last_activity: 2026-04-02
 progress:
-  total_phases: 6
-  completed_phases: 6
-  total_plans: 35
-  completed_plans: 35
-  percent: 100
+  total_phases: 0
+  completed_phases: 0
+  total_plans: 0
+  completed_plans: 0
+  percent: 0
 ---
 
 # Project State
 
 ## Project Reference
 
-See: .planning/PROJECT.md (updated 2026-03-30)
+See: .planning/PROJECT.md (updated 2026-04-02)
 
-**Core value:** Fresh onboard asks for ONE thing (root directory), auto-creates PM + Engineer, drops you in dashboard — no corporate language anywhere.
-**Current focus:** Phase 26 — pwa-performance
+**Core value:** Nexus works out of the box without any paid subscription or API key.
+**Current focus:** Defining requirements for v1.4 Hermes Default Provider
 
 ## Current Position
 
-Phase: 26
-Plan: Not started
-Status: Ready to execute
+Phase: Not started (defining requirements)
+Plan: —
+Status: Defining requirements
 Last activity: 2026-04-02
 
 Progress: [██████████] 100%