diff --git a/electrum b/electrum
index 1506c625b..248cd9ada 100755
--- a/electrum
+++ b/electrum
@@ -46,6 +46,7 @@ if is_local:
 from electrum import util
 from electrum import SimpleConfig, Network, Wallet, WalletStorage, NetworkProxy, Commands, known_commands, pick_random_server
 from electrum.util import print_msg, print_stderr, print_json, set_verbosity
+from electrum.daemon import get_daemon
 
 # get password routine
 def prompt_password(prompt, confirm=True):
@@ -105,13 +106,11 @@ def print_help_cb(self, opt, value, parser):
     sys.exit(1)
 
 
-
-
 def run_command(cmd, password=None, args=None):
     if args is None:
         args = []  # Do not use mutables as default values!
     if cmd.requires_network and not options.offline:
-        s = daemon_socket()
+        s = get_daemon(config, True)
         network = NetworkProxy(s, config)
         network.start()
         while network.is_connecting():
@@ -147,32 +146,6 @@ def run_command(cmd, password=None, args=None):
         print_json(result)
 
 
-def do_start_daemon():
-    import subprocess
-    logfile = open(os.path.join(config.path, 'daemon.log'),'w')
-    p = subprocess.Popen([__file__,"daemon"], stderr=logfile, stdout=logfile, close_fds=True)
-    print_stderr("starting daemon (PID %d)"%p.pid)
-
-
-def daemon_socket(start_daemon=True):
-    import socket
-    from electrum.daemon import DAEMON_PORT
-    s = socket.socket(socket.AF_INET, socket.SOCK_STREAM)
-    daemon_port = config.get('daemon_port', DAEMON_PORT)
-    daemon_started = False
-    while True:
-        try:
-            s.connect(('', daemon_port))
-            return s
-        except socket.error:
-            if not start_daemon:
-                return False
-            elif not daemon_started:
-                do_start_daemon()
-                daemon_started = True
-            else:
-                time.sleep(0.1)
-
 
 if __name__ == '__main__':
 
@@ -222,7 +195,7 @@ if __name__ == '__main__':
 
         # network interface
         if not options.offline:
-            s = daemon_socket(start_daemon=options.daemon)
+            s = get_daemon(config, start_daemon=options.daemon)
             network = NetworkProxy(s, config)
             network.start()
         else:
@@ -236,30 +209,20 @@ if __name__ == '__main__':
 
         # we use daemon threads, their termination is enforced.
         # this sleep command gives them time to terminate cleanly.
-        time.sleep(0.1)
+        time.sleep(0.2)
         sys.exit(0)
 
     if cmd == 'daemon':
-        if len(args) == 1:
-            from electrum import daemon, util
-            util.set_verbosity(True)
-            print_stderr( "Starting daemon [%s]"%config.get('server'))
-            server = daemon.NetworkServer(config)
-            try:
-                server.main_loop()
-            except KeyboardInterrupt:
-                print_msg("Ctrl C - Stopping server")
-            sys.exit(0)
-        arg = args[1]
+        arg = args[1] if len(args)>1 else None
         if arg not in ['start', 'stop', 'status']:
             print_msg("syntax: electrum daemon <start|status|stop>")
             sys.exit(1)
-        s = daemon_socket(start_daemon=False)
+        s = get_daemon(config, False)
         if arg == 'start':
             if s:
                 print_msg("Daemon already running")
                 sys.exit(1) 
-            do_start_daemon()
+            get_daemon(config, True)
             sys.exit(0)
         elif arg in ['status','stop']:
             if not s:
diff --git a/lib/daemon.py b/lib/daemon.py
index ffe32c63b..9c479ad54 100644
--- a/lib/daemon.py
+++ b/lib/daemon.py
@@ -30,11 +30,34 @@ from network import Network
 from util import print_error, print_stderr, parse_json
 from simple_config import SimpleConfig
 
-
-
 DAEMON_PORT=8001
 
 
+def do_start_daemon(config):
+    import subprocess
+    logfile = open(os.path.join(config.path, 'daemon.log'),'w')
+    p = subprocess.Popen(["python",__file__], stderr=logfile, stdout=logfile, close_fds=True)
+    print_stderr("starting daemon (PID %d)"%p.pid)
+
+
+def get_daemon(config, start_daemon=True):
+    import socket
+    s = socket.socket(socket.AF_INET, socket.SOCK_STREAM)
+    daemon_port = config.get('daemon_port', DAEMON_PORT)
+    daemon_started = False
+    while True:
+        try:
+            s.connect(('', daemon_port))
+            return s
+        except socket.error:
+            if not start_daemon:
+                return False
+            elif not daemon_started:
+                do_start_daemon(config)
+                daemon_started = True
+            else:
+                time.sleep(0.1)
+
 
 class ClientThread(threading.Thread):
 
diff --git a/scripts/block_headers b/scripts/block_headers
index bce19957f..d2217f45d 100755
--- a/scripts/block_headers
+++ b/scripts/block_headers
@@ -5,7 +5,10 @@
 import time, electrum
 
 # start network
-network = electrum.NetworkProxy(False)
+
+c = electrum.SimpleConfig()
+s = electrum.daemon.get_daemon(c,True)
+network = electrum.NetworkProxy(s,c)
 network.start()
 
 # wait until connected