The tree element that contains the folders and conversations is what I call the conversation list wrapper.
My suggestion would be to add a favorite's wrapper as well and place it on top of the conversation list wrapper.
The little new toggle bar could then be used to show and hide the respective wrapper in the sidebar instead of toggling.
And as a small finishing touch, when both wrappers are not active, a (otherwise invisible) wrapper appears that contains nothing more than a small image with arrows pointing to the icons in the toggle bar above it, telling you what they are (conversations, favorites), and indicating that you can click on them to display their contents in the sidebar.
Thoughts about the future, but I don't see a reason to create an additional post:
History could become a new wrapper element later (as soon as it gets requested) (in short, it is just a 1-level tree-element sorting by date and shows maybe the last date time).
If MindMac remains popular in V2 or V3, the effort to make moveable wrappers and to change their position or order could become a thing.
Suggested by
Sascha