diff --git a/electrum b/electrum
index 44b899ed..1fff873b 100755
--- a/electrum
+++ b/electrum
@@ -328,12 +328,7 @@ if __name__ == '__main__':
         if server is not None:
             result = server.gui(config_options)
         else:
-            if not config.get('offline'):
-                network = Network(config)
-                network.start()
-            else:
-                network = None
-            daemon = Daemon(config, network)
+            daemon = Daemon(config)
             daemon.start()
             gui = init_gui(config, daemon, plugins)
             daemon.gui = gui
@@ -351,12 +346,10 @@ if __name__ == '__main__':
             elif subcommand == 'start':
                 p = os.fork()
                 if p == 0:
-                    network = Network(config)
-                    network.start()
-                    daemon = Daemon(config, network)
+                    daemon = Daemon(config)
                     if config.get('websocket_server'):
                         from electrum import websockets
-                        websockets.WebSocketServer(config, network).start()
+                        websockets.WebSocketServer(config, daemon.network).start()
                     if config.get('requests_dir'):
                         util.check_www_dir(config.get('requests_dir'))
                     daemon.start()
diff --git a/lib/daemon.py b/lib/daemon.py
index 44c2ea28..c9ab5033 100644
--- a/lib/daemon.py
+++ b/lib/daemon.py
@@ -21,6 +21,7 @@ import ast, os
 import jsonrpclib
 from jsonrpclib.SimpleJSONRPCServer import SimpleJSONRPCServer, SimpleJSONRPCRequestHandler
 
+from network import Network
 from util import json_decode, DaemonThread
 from wallet import WalletStorage, Wallet
 from wizard import WizardBase
@@ -62,10 +63,14 @@ class RequestHandler(SimpleJSONRPCRequestHandler):
 
 class Daemon(DaemonThread):
 
-    def __init__(self, config, network):
+    def __init__(self, config):
         DaemonThread.__init__(self)
         self.config = config
-        self.network = network
+        if config.get('offline'):
+            self.network = None
+        else:
+            self.network = Network(config)
+            self.network.start()
         self.gui = None
         self.wallets = {}
         self.wallet = None