diff --git a/src/components/ChatViewer.tsx b/src/components/ChatViewer.tsx
index af29920..df81198 100644
--- a/src/components/ChatViewer.tsx
+++ b/src/components/ChatViewer.tsx
@@ -26,6 +26,7 @@ import type {
 import { CHAT_KINDS } from "@/types/chat";
 // import { NipC7Adapter } from "@/lib/chat/adapters/nip-c7-adapter";  // Coming soon
 import { Nip10Adapter } from "@/lib/chat/adapters/nip-10-adapter";
+import { Nip17Adapter } from "@/lib/chat/adapters/nip-17-adapter";
 import { Nip29Adapter } from "@/lib/chat/adapters/nip-29-adapter";
 import { Nip53Adapter } from "@/lib/chat/adapters/nip-53-adapter";
 import type { ChatProtocolAdapter } from "@/lib/chat/adapters/base-adapter";
@@ -1138,21 +1139,24 @@ export function ChatViewer({
 
 /**
  * Get the appropriate adapter for a protocol
- * Currently NIP-10 (thread chat), NIP-29 (relay-based groups) and NIP-53 (live activity chat) are supported
- * Other protocols will be enabled in future phases
+ * Currently supported:
+ * - NIP-10 (thread chat)
+ * - NIP-17 (encrypted DMs with gift wrap)
+ * - NIP-29 (relay-based groups)
+ * - NIP-53 (live activity chat)
  */
 function getAdapter(protocol: ChatProtocol): ChatProtocolAdapter {
   switch (protocol) {
     case "nip-10":
       return new Nip10Adapter();
+    case "nip-17":
+      return new Nip17Adapter();
     // case "nip-c7":  // Phase 1 - Simple chat (coming soon)
     //   return new NipC7Adapter();
-    case "nip-29":
-      return new Nip29Adapter();
-    // case "nip-17":  // Phase 2 - Encrypted DMs (coming soon)
-    //   return new Nip17Adapter();
     // case "nip-28":  // Phase 3 - Public channels (coming soon)
     //   return new Nip28Adapter();
+    case "nip-29":
+      return new Nip29Adapter();
     case "nip-53":
       return new Nip53Adapter();
     default:
diff --git a/src/components/InboxViewer.tsx b/src/components/InboxViewer.tsx
index 91942e4..30e3a43 100644
--- a/src/components/InboxViewer.tsx
+++ b/src/components/InboxViewer.tsx
@@ -173,7 +173,7 @@ export function InboxViewer(_props: InboxViewerProps) {
   const handleLoadOlderGiftWraps = async () => {
     setIsLoadingOlder(true);
     try {
-      const count = await giftWrapManager.loadOlderGiftWraps();
+      const count = await giftWrapManager.loadOlderGiftWraps(autoDecrypt);
       if (count > 0) {
         toast.success(`Loaded ${count} older gift wraps`);
       } else {
@@ -542,28 +542,30 @@ function ConversationRow({
         day: "numeric",
       });
 
-  // Truncate content preview
-  const preview = latestMessage.content.slice(0, 50);
-  const truncated = latestMessage.content.length > 50;
+  // Truncate content preview - show more text
+  const preview = latestMessage.content.slice(0, 100);
+  const truncated = latestMessage.content.length > 100;
 
   return (
     <div
       onClick={onClick}
-      className="flex cursor-pointer items-center gap-1 border-b px-3 py-1.5 hover:bg-muted/30 last:border-b-0 font-mono text-xs"
+      className="flex cursor-pointer items-center gap-2 border-b px-3 py-1.5 hover:bg-muted/30 last:border-b-0 font-mono text-xs"
     >
       {/* Name */}
       <div className="w-28 shrink-0 truncate">
         <UserName pubkey={otherPubkey} className="text-xs font-medium" />
       </div>
 
-      {/* Message preview */}
-      <span className="min-w-0 flex-1 truncate text-muted-foreground/70">
+      {/* Message preview - no flex-1 to avoid big gap */}
+      <span className="truncate text-muted-foreground/70">
         {preview}
         {truncated && "..."}
       </span>
 
-      {/* Timestamp */}
-      <span className="shrink-0 text-muted-foreground/50">{timeStr}</span>
+      {/* Timestamp - push to end with ml-auto */}
+      <span className="shrink-0 ml-auto text-muted-foreground/50">
+        {timeStr}
+      </span>
     </div>
   );
 }
diff --git a/src/hooks/useAccountSync.ts b/src/hooks/useAccountSync.ts
index 47bda42..83278af 100644
--- a/src/hooks/useAccountSync.ts
+++ b/src/hooks/useAccountSync.ts
@@ -131,6 +131,7 @@ export function useAccountSync() {
   // Start gift wrap sync (NIP-17) when account changes
   useEffect(() => {
     const syncEnabled = grimoire.state.giftWrapSettings?.syncEnabled ?? false;
+    const autoDecrypt = grimoire.state.giftWrapSettings?.autoDecrypt ?? false;
 
     if (!activeAccount?.pubkey || !syncEnabled) {
       // Stop sync when no account is active or sync is disabled
@@ -139,7 +140,7 @@ export function useAccountSync() {
     }
 
     // Start syncing gift wraps for this account
-    giftWrapManager.startSync().catch((error) => {
+    giftWrapManager.startSync(autoDecrypt).catch((error) => {
       console.error("[useAccountSync] Failed to start gift wrap sync:", error);
     });
 
@@ -147,5 +148,9 @@ export function useAccountSync() {
     return () => {
       giftWrapManager.stopSync();
     };
-  }, [activeAccount?.pubkey, grimoire.state.giftWrapSettings?.syncEnabled]);
+  }, [
+    activeAccount?.pubkey,
+    grimoire.state.giftWrapSettings?.syncEnabled,
+    grimoire.state.giftWrapSettings?.autoDecrypt,
+  ]);
 }
diff --git a/src/services/gift-wrap.ts b/src/services/gift-wrap.ts
index 2cccbb7..f8bec68 100644
--- a/src/services/gift-wrap.ts
+++ b/src/services/gift-wrap.ts
@@ -62,14 +62,26 @@ class GiftWrapManager {
   private authenticated = new Set<string>(); // Track which relays are authenticated
   private isSyncing = false; // Prevent concurrent sync attempts
   private statsUpdateTimer: NodeJS.Timeout | null = null; // Debounce stats updates
+  private statsInitialized = false; // Track if stats have been loaded from DB
+
+  /**
+   * Initialize stats from database
+   * Called automatically when stats are first accessed
+   */
+  private async initializeStats(): Promise<void> {
+    if (this.statsInitialized) return;
+    this.statsInitialized = true;
+    await this.updateStats();
+  }
 
   /**
    * Start syncing gift wraps for the active account
    * 1. Gets DM relays
    * 2. Authenticates with dummy REQ (triggers NIP-42 AUTH)
    * 3. Subscribes to gift wraps with pagination
+   * @param autoDecrypt - If false, stores gift wraps without decrypting
    */
-  async startSync(): Promise<void> {
+  async startSync(autoDecrypt = true): Promise<void> {
     // Prevent concurrent sync attempts
     if (this.isSyncing) {
       console.log("[GiftWrap] Sync already in progress, skipping");
@@ -150,12 +162,14 @@ class GiftWrapManager {
                 `[GiftWrap] Received gift wrap: ${response.id.slice(0, 8)}...`,
               );
               // Process gift wrap asynchronously
-              this.processGiftWrap(response, pubkey).catch((error) => {
-                console.error(
-                  `[GiftWrap] Error processing ${response.id.slice(0, 8)}:`,
-                  error,
-                );
-              });
+              this.processGiftWrap(response, pubkey, autoDecrypt).catch(
+                (error) => {
+                  console.error(
+                    `[GiftWrap] Error processing ${response.id.slice(0, 8)}:`,
+                    error,
+                  );
+                },
+              );
             }
           },
           error: (error) => {
@@ -166,7 +180,7 @@ class GiftWrapManager {
       this.subscriptions.set(pubkey, subscription);
 
       // Process any existing gift wraps in the event store (from previous sessions)
-      await this.processExistingGiftWraps(pubkey);
+      await this.processExistingGiftWraps(pubkey, autoDecrypt);
 
       // Update stats
       await this.updateStats();
@@ -261,8 +275,9 @@ class GiftWrapManager {
   /**
    * Load older gift wraps for pagination
    * Fetches gift wraps before the oldest currently loaded
+   * @param autoDecrypt - If false, stores gift wraps without decrypting
    */
-  async loadOlderGiftWraps(): Promise<number> {
+  async loadOlderGiftWraps(autoDecrypt = true): Promise<number> {
     const account = accountManager.active$.value;
     if (!account) {
       console.log("[GiftWrap] No active account");
@@ -331,12 +346,14 @@ class GiftWrapManager {
               resolve();
             } else {
               count++;
-              this.processGiftWrap(response, pubkey).catch((error) => {
-                console.error(
-                  `[GiftWrap] Error processing ${response.id.slice(0, 8)}:`,
-                  error,
-                );
-              });
+              this.processGiftWrap(response, pubkey, autoDecrypt).catch(
+                (error) => {
+                  console.error(
+                    `[GiftWrap] Error processing ${response.id.slice(0, 8)}:`,
+                    error,
+                  );
+                },
+              );
             }
           },
           error: () => {
@@ -525,7 +542,10 @@ class GiftWrapManager {
   /**
    * Process existing gift wraps from event store
    */
-  private async processExistingGiftWraps(pubkey: string): Promise<void> {
+  private async processExistingGiftWraps(
+    pubkey: string,
+    autoDecrypt = true,
+  ): Promise<void> {
     console.log("[GiftWrap] Processing existing gift wraps...");
 
     // Get all kind 1059 events addressed to us
@@ -539,7 +559,7 @@ class GiftWrapManager {
     // Process each gift wrap
     for (const giftWrap of giftWraps) {
       try {
-        await this.processGiftWrap(giftWrap, pubkey);
+        await this.processGiftWrap(giftWrap, pubkey, autoDecrypt);
       } catch (error) {
         console.error(
           `[GiftWrap] Error processing ${giftWrap.id.slice(0, 8)}:`,
@@ -551,10 +571,12 @@ class GiftWrapManager {
 
   /**
    * Process a single gift wrap event
+   * @param autoDecrypt - If false, only stores gift wrap without attempting decryption
    */
   private async processGiftWrap(
     giftWrap: NostrEvent,
     recipientPubkey: string,
+    autoDecrypt = true,
   ): Promise<void> {
     const giftWrapId = giftWrap.id;
 
@@ -569,6 +591,24 @@ class GiftWrapManager {
         // Failed too many times, don't retry
         return;
       }
+      // If autoDecrypt is false and we have a pending record, don't retry
+      if (!autoDecrypt && existing.decryptionState === "pending") {
+        return;
+      }
+    }
+
+    // If autoDecrypt is false, just store as pending without attempting decryption
+    if (!autoDecrypt) {
+      const decryption: GiftWrapDecryption = {
+        giftWrapId,
+        recipientPubkey,
+        decryptionState: "pending",
+        lastAttempt: Math.floor(Date.now() / 1000),
+        attempts: existing?.attempts || 0,
+      };
+      await db.giftWrapDecryptions.put(decryption);
+      this.debouncedUpdateStats();
+      return;
     }
 
     // Create or update decryption record
@@ -800,8 +840,11 @@ class GiftWrapManager {
 
   /**
    * Get statistics observable
+   * Initializes stats from database on first call
    */
   getStats(): Observable<GiftWrapStats> {
+    // Initialize stats from database on first access
+    this.initializeStats();
     return this.stats$.asObservable();
   }