diff --git a/docs/gift-wrap-architecture.md b/docs/gift-wrap-architecture.md
index 0331596..ec2b14d 100644
--- a/docs/gift-wrap-architecture.md
+++ b/docs/gift-wrap-architecture.md
@@ -124,14 +124,15 @@ Chat Component
 
 ### Receiving Messages (Inbox Flow)
 
-1. **Account Login** → `useAccountSync` calls `giftWrapService.init(pubkey, signer)`
-2. **Fetch Inbox Relays** → Load kind 10050 from user's outbox relays
-3. **Subscribe to Gift Wraps** → Open subscription to inbox relays for `kind 1059` with `#p` = user pubkey
-4. **Gift Wrap Arrival** → EventStore receives event → GiftWrapService detects new gift wrap
-5. **Decrypt** (if auto-decrypt enabled) → Call `unlockGiftWrap(event, signer)`
-6. **Extract Rumor** → Get kind 14 DM from gift wrap inner content
-7. **Group into Conversations** → Compute conversation ID from participants → Update `conversations$` observable
-8. **UI Update** → InboxViewer/ChatViewer re-renders with new messages
+1. **User Enables Inbox Sync** → User toggles "Enable Inbox Sync" in InboxViewer settings
+2. **Service Initialization** → `useAccountSync` detects enabled setting and calls `giftWrapService.init(pubkey, signer)`
+3. **Fetch Inbox Relays** → Load kind 10050 from user's outbox relays
+4. **Subscribe to Gift Wraps** → Open subscription to inbox relays for `kind 1059` with `#p` = user pubkey
+5. **Gift Wrap Arrival** → EventStore receives event → GiftWrapService detects new gift wrap
+6. **Decrypt** (if auto-decrypt enabled) → Call `unlockGiftWrap(event, signer)`
+7. **Extract Rumor** → Get kind 14 DM from gift wrap inner content
+8. **Group into Conversations** → Compute conversation ID from participants → Update `conversations$` observable
+9. **UI Update** → InboxViewer/ChatViewer re-renders with new messages
 
 ### Sending Messages (Outbox Flow)
 
@@ -161,18 +162,19 @@ Chat Component
 
 ### Lifecycle
 
-**Init** (on account login):
+**Init** (when user enables inbox sync):
 ```typescript
 giftWrapService.init(pubkey, signer)
-  1. Load persisted encrypted content IDs from Dexie
-  2. Wait for cache readiness (prevents race condition)
-  3. Subscribe to user's kind 10050 (inbox relays)
-  4. Load stored gift wraps from Dexie into EventStore
-  5. Subscribe to EventStore timeline for real-time updates
-  6. Open persistent relay subscription for new gift wraps
+  1. Check if enabled (early return if disabled for performance)
+  2. Load persisted encrypted content IDs from Dexie
+  3. Wait for cache readiness (prevents race condition)
+  4. Subscribe to user's kind 10050 (inbox relays)
+  5. Load stored gift wraps from Dexie into EventStore
+  6. Subscribe to EventStore timeline for real-time updates
+  7. Open persistent relay subscription for new gift wraps
 ```
 
-**Cleanup** (on account logout):
+**Cleanup** (on account logout or disable):
 ```typescript
 giftWrapService.cleanup()
   1. Unsubscribe from all observables
@@ -180,6 +182,8 @@ giftWrapService.cleanup()
   3. Clear in-memory state
 ```
 
+**Performance Note**: Init is only called when user explicitly enables inbox sync via InboxViewer toggle. This prevents automatic network requests and heavy I/O operations on login.
+
 ## Cache Strategy
 
 ### Encrypted Content Persistence
@@ -231,13 +235,16 @@ giftWrapService.cleanup()
 - Clear UI feedback about why sending is blocked
 - Relay lists can be fetched in background without blocking UI
 
-### Auto-Enable Inbox Sync
+### On-Demand Inbox Sync
 
-**Default**: Inbox sync is **auto-enabled** on first login to ensure users receive DMs.
+**Default**: Inbox sync is **disabled** on login for optimal performance.
 
-**Rationale**: Better UX to auto-enable with opt-out than require manual setup.
+**Rationale**: Prevents automatic network requests and heavy I/O operations on login. Users must explicitly enable inbox sync to receive DMs.
 
-**User Control**: Settings UI allows disabling inbox sync and auto-decrypt.
+**User Control**:
+- Enable/disable inbox sync via toggle in InboxViewer
+- Configure auto-decrypt behavior in settings
+- Service initializes only when explicitly enabled
 
 ### Relay List Privacy
 
diff --git a/src/components/InboxViewer.tsx b/src/components/InboxViewer.tsx
index c5a27c3..363bc55 100644
--- a/src/components/InboxViewer.tsx
+++ b/src/components/InboxViewer.tsx
@@ -51,8 +51,9 @@ function InboxViewer() {
 
   const [isDecryptingAll, setIsDecryptingAll] = useState(false);
 
-  // Note: Gift wrap service is now initialized globally in useAccountSync
-  // This ensures DM subscriptions are active even when inbox viewer isn't open
+  // Note: Gift wrap service initializes ON-DEMAND when user enables inbox sync
+  // This prevents automatic network requests and heavy I/O on login
+  // Toggle "Enable Inbox Sync" below to start receiving DMs
 
   // Update signer when it changes (in case user switches signers)
   useEffect(() => {
diff --git a/src/hooks/useAccountSync.ts b/src/hooks/useAccountSync.ts
index 6b9d86a..119c204 100644
--- a/src/hooks/useAccountSync.ts
+++ b/src/hooks/useAccountSync.ts
@@ -127,12 +127,10 @@ export function useAccountSync() {
     };
   }, [activeAccount?.pubkey, eventStore, setActiveAccountBlossomServers]);
 
-  // Initialize gift wrap service for NIP-17 DM subscriptions when account changes
+  // Initialize gift wrap service ONLY when user enables inbox sync
+  // This ensures no automatic network requests or heavy operations on login
   useEffect(() => {
     if (!activeAccount?.pubkey) {
-      console.log(
-        "[useAccountSync] No active account, cleaning up gift wrap service",
-      );
       giftWrapService.cleanup();
       return;
     }
@@ -140,28 +138,22 @@ export function useAccountSync() {
     const pubkey = activeAccount.pubkey;
     const signer = activeAccount.signer ?? null;
 
-    console.log(
-      `[useAccountSync] Initializing gift wrap service for user ${pubkey.slice(0, 8)}`,
-    );
-
-    // Initialize the service (loads inbox relays, sets up subscriptions)
-    giftWrapService.init(pubkey, signer);
-
-    // Auto-enable inbox sync if not already set
-    // This ensures users receive DMs without manually enabling inbox
-    const currentSettings = giftWrapService.settings$.value;
-    if (!currentSettings.enabled) {
-      console.log(
-        "[useAccountSync] Auto-enabling inbox sync for NIP-17 DM subscriptions",
-      );
-      giftWrapService.updateSettings({ enabled: true });
-    }
+    // Watch settings changes and init when enabled
+    const settingsSub = giftWrapService.settings$.subscribe((settings) => {
+      if (settings.enabled) {
+        // Only init if not already initialized for this account
+        if (giftWrapService.userPubkey !== pubkey) {
+          console.log(
+            `[useAccountSync] Initializing gift wrap service for user ${pubkey.slice(0, 8)}`,
+          );
+          giftWrapService.init(pubkey, signer);
+        }
+      }
+    });
 
     // Cleanup on account change or logout
     return () => {
-      console.log(
-        `[useAccountSync] Cleaning up gift wrap service for user ${pubkey.slice(0, 8)}`,
-      );
+      settingsSub.unsubscribe();
       giftWrapService.cleanup();
     };
   }, [activeAccount?.pubkey, activeAccount?.signer]);
diff --git a/src/services/gift-wrap.ts b/src/services/gift-wrap.ts
index dadfbb0..2d17a9a 100644
--- a/src/services/gift-wrap.ts
+++ b/src/services/gift-wrap.ts
@@ -81,8 +81,8 @@ function saveSettings(settings: InboxSettings) {
 }
 
 class GiftWrapService {
-  /** Current user's pubkey */
-  private userPubkey: string | null = null;
+  /** Current user pubkey (null if not initialized) */
+  userPubkey: string | null = null;
   /** Current signer for decryption */
   private signer: ISigner | null = null;
 
@@ -192,6 +192,15 @@ class GiftWrapService {
     this.decryptStates$.next(new Map());
     this.pendingCount$.next(0);
 
+    // Only perform expensive operations if inbox sync is enabled
+    // This prevents automatic network requests and heavy I/O on login
+    if (!this.settings$.value.enabled) {
+      dmDebug("GiftWrap", "Inbox sync disabled, skipping initialization");
+      return;
+    }
+
+    dmInfo("GiftWrap", `Initializing inbox sync for ${pubkey.slice(0, 8)}`);
+
     // Load persisted encrypted content IDs to know which gift wraps are already decrypted
     this.persistedIds = await getStoredEncryptedContentIds();
 
@@ -225,11 +234,9 @@ class GiftWrapService {
     });
     this.subscriptions.push(updateSub);
 
-    // If enabled, load stored gift wraps and start syncing
-    if (this.settings$.value.enabled) {
-      await this.loadStoredGiftWraps();
-      this.startSync();
-    }
+    // Load stored gift wraps and start syncing
+    await this.loadStoredGiftWraps();
+    this.startSync();
   }
 
   /** Load stored gift wraps from Dexie into EventStore */