diff --git a/electrum b/electrum
index ca903e3a..e9dfe494 100755
--- a/electrum
+++ b/electrum
@@ -328,14 +328,8 @@ 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.start()
-            gui = init_gui(config, network, daemon, plugins)
+            daemon = Daemon(config)
+            gui = init_gui(config, daemon.network, daemon, plugins)
             daemon.gui = gui
             gui.main()
             sys.exit(0)
@@ -351,15 +345,12 @@ 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()
                     daemon.join()
                     sys.exit(0)
                 else:
diff --git a/lib/daemon.py b/lib/daemon.py
index 44c2ea28..df2d401f 100644
--- a/lib/daemon.py
+++ b/lib/daemon.py
@@ -26,7 +26,7 @@ from wallet import WalletStorage, Wallet
 from wizard import WizardBase
 from commands import known_commands, Commands
 from simple_config import SimpleConfig
-
+from network import Network
 
 def lockfile(config):
     return os.path.join(config.path, 'daemon')
@@ -62,10 +62,16 @@ 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 not config.get('offline'):
+            self.network = Network(config)
+            self.network.start()
+        else:
+            # FIXME: some of the daemon code assumes self.network is not None
+            # This is not something this change has introduced
+            self.network = None
         self.gui = None
         self.wallets = {}
         self.wallet = None
@@ -82,6 +88,7 @@ class Daemon(DaemonThread):
         self.server.register_function(self.ping, 'ping')
         self.server.register_function(self.run_daemon, 'daemon')
         self.server.register_function(self.run_gui, 'gui')
+        self.start()
 
     def ping(self):
         return True