The star token on Yunbi a decade ago has now entered bankruptcy court. On July 26, Storj Labs filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of West Virginia, case number 5:26-bk-00512. According to Storj’s official announcement, the network and services continue to operate normally, and the restructuring targets legacy debt. Chapter 11 allows a company to continue operations under court supervision while formulating a restructuring plan—it does not equate to immediate liquidation. Storj’s proposed “token holder equity participation” is more accurately described as follows: Storj intends to include a mechanism in its restructuring plan that would allow STORJ holders to participate in the equity of the new company. Eligibility, allocation ratios, valuation, and terms have not been disclosed, and any such plan must comply with creditor priority rules and receive court approval. To call this “token-for-equity” right now is premature—several legal steps remain. I originally intended to say the decentralized storage sector is gone. But upon closer look, Filecoin this year has shifted its focus from scaling to paid storage and network profitability. What’s truly receding is the old narrative: first subsidize supply with tokens, then wait for demand to emerge organically. Hard drives are still here—but the story no longer fits.