diff --git a/lbrynet/conf.py b/lbrynet/conf.py
index 2005d7784..bd9808e12 100644
--- a/lbrynet/conf.py
+++ b/lbrynet/conf.py
@@ -14,7 +14,7 @@ MAX_BLOB_INFOS_TO_REQUEST = 20
 BLOBFILES_DIR = ".blobfiles"
 BLOB_SIZE = 2**21
 
-MIN_BLOB_DATA_PAYMENT_RATE = .005  # points/megabyte
+MIN_BLOB_DATA_PAYMENT_RATE = .001  # points/megabyte
 MIN_BLOB_INFO_PAYMENT_RATE = .02  # points/1000 infos
 MIN_VALUABLE_BLOB_INFO_PAYMENT_RATE = .05  # points/1000 infos
 MIN_VALUABLE_BLOB_HASH_PAYMENT_RATE = .05  # points/1000 infos
diff --git a/lbrynet/core/BlobPrice.py b/lbrynet/core/BlobAvailability.py
similarity index 60%
rename from lbrynet/core/BlobPrice.py
rename to lbrynet/core/BlobAvailability.py
index 18417c5cc..6a17f3eed 100644
--- a/lbrynet/core/BlobPrice.py
+++ b/lbrynet/core/BlobAvailability.py
@@ -2,53 +2,21 @@ import logging
 
 from twisted.internet import defer
 from twisted.internet.task import LoopingCall
-from lbrynet.conf import MIN_BLOB_DATA_PAYMENT_RATE as min_price
 
 log = logging.getLogger(__name__)
 
-base_price = min_price * 10
 
-# how heavily to value blobs towards the front of the stream
-alpha = 1.0
-
-
-def frontload(index):
+class BlobAvailabilityTracker(object):
     """
-    Get frontload multipler
-
-    @param index: blob position in stream
-    @return: frontload multipler
-    """
-
-    return 2.0 - (alpha**index)
-
-
-def calculate_price(mean_availability, availability, index_position=0):
-    """
-    Calculate mean-blob-availability and stream-position weighted price for a blob
-
-    @param mean_availability: sum of blob availabilities over the number of known blobs
-    @param availability: number of known peers for blob
-    @param index_position: blob index position in stream
-    @return: price
-    """
-
-    price = max(min_price, base_price * (mean_availability/max(1, availability)) * frontload(index_position))
-    return price
-
-
-class BlobPriceAndAvailabilityTracker(object):
-    """
-    Class to track peer counts for known blobs and update price targets
+    Class to track peer counts for known blobs, and to discover new popular blobs
 
     Attributes:
-        prices (dict): dictionary of blob prices
         availability (dict): dictionary of peers for known blobs
     """
 
     def __init__(self, blob_manager, peer_finder, dht_node):
         self.availability = {}
-        self.prices = {}
+        self.last_mean_availability = 0.0
         self._blob_manager = blob_manager
         self._peer_finder = peer_finder
         self._dht_node = dht_node
@@ -70,9 +38,6 @@ class BlobPriceAndAvailabilityTracker(object):
         def _save_peer_info(blob_hash, peers):
             v = {blob_hash: peers}
             self.availability.update(v)
-
-            new_price = self._get_price(blob)
-            self.prices.update({blob: new_price})
             return v
 
         d = self._peer_finder.find_peers_for_blob(blob)
@@ -88,6 +53,7 @@ class BlobPriceAndAvailabilityTracker(object):
                 dl.append(self._update_peers_for_blob(encoded))
             return defer.DeferredList(dl)
         d = _get_most_popular()
+        d.addCallback(lambda _: self._get_mean_peers())
 
     def _update_mine(self):
         def _get_peers(blobs):
@@ -97,14 +63,9 @@ class BlobPriceAndAvailabilityTracker(object):
             return defer.DeferredList(dl)
         d = self._blob_manager.get_all_verified_blobs()
         d.addCallback(_get_peers)
+        d.addCallback(lambda _: self._get_mean_peers())
 
     def _get_mean_peers(self):
         num_peers = [len(self.availability[blob]) for blob in self.availability]
         mean = float(sum(num_peers)) / float(max(1, len(num_peers)))
-        return mean
-
-    def _get_price(self, blob):
-        mean_available = self._get_mean_peers()
-        blob_availability = len(self.availability.get(blob, []))
-        price = calculate_price(mean_available, blob_availability)
-        return price
\ No newline at end of file
+        self.last_mean_availability = mean
\ No newline at end of file
diff --git a/lbrynet/core/BlobHistory.py b/lbrynet/core/BlobHistory.py
deleted file mode 100644
index eebafd8bc..000000000
--- a/lbrynet/core/BlobHistory.py
+++ /dev/null
@@ -1,52 +0,0 @@
-import os
-from twisted.enterprise import adbapi
-import time
-
-
-class BlobHistoryManager(object):
-    """
-    Class to archive historical blob upload and download information
-
-    This class creates two tables in lbry data folder/blob_history.db, 'download' and 'upload'
-    The tables store information about what blob was uploaded or downloaded, to or from which peer,
-    at what price, and when.
-    """
-
-    def __init__(self, db_dir):
-        self.db = None
-        self.db_dir = db_dir
-
-    def _open_db(self):
-        self.db = adbapi.ConnectionPool('sqlite3', os.path.join(self.db_dir, "blob_history.db"),
-                                        check_same_thread=False)
-
-        def create_tables(transaction):
-            transaction.execute("create table if not exists download (" +
-                                "    id integer primary key autoincrement, " +
-                                "    blob text, " +
-                                "    host text, " +
-                                "    rate float, " +
-                                "    ts integer)")
-
-            transaction.execute("create table if not exists upload (" +
-                                "    id integer primary key autoincrement, " +
-                                "    blob text, " +
-                                "    host text, " +
-                                "    rate float, " +
-                                "    ts integer)")
-
-        return self.db.runInteraction(create_tables)
-
-    def add_transaction(self, blob_hash, host, rate, upload=False):
-        ts = int(time.time())
-        if upload:
-            d = self.db.runQuery("insert into upload values (null, ?, ?, ?, ?) ", (blob_hash, str(host), float(rate), ts))
-        else:
-            d = self.db.runQuery("insert into download values (null, ?, ?, ?, ?) ", (blob_hash, str(host), float(rate), ts))
-        return d
-
-    def start(self):
-        d = self._open_db()
-        return d
-
-
diff --git a/lbrynet/core/BlobManager.py b/lbrynet/core/BlobManager.py
index 1e362b943..5ae593fcb 100644
--- a/lbrynet/core/BlobManager.py
+++ b/lbrynet/core/BlobManager.py
@@ -2,6 +2,7 @@ import logging
 import os
 import time
 import sqlite3
+
 from twisted.internet import threads, defer
 from twisted.python.failure import Failure
 from twisted.enterprise import adbapi
@@ -11,8 +12,6 @@ from lbrynet.core.utils import is_valid_blobhash
 from lbrynet.core.cryptoutils import get_lbry_hash_obj
 from lbrynet.core.Error import NoSuchBlobError
 from lbrynet.core.sqlite_helpers import rerun_if_locked
-from lbrynet.core.BlobHistory import BlobHistoryManager
-
 
 log = logging.getLogger(__name__)
 
@@ -71,6 +70,12 @@ class BlobManager(DHTHashSupplier):
     def get_all_verified_blobs(self):
         pass
 
+    def add_blob_to_download_history(self, blob_hash, host, rate):
+        pass
+
+    def add_blob_to_upload_history(self, blob_hash, host, rate):
+        pass
+
 
 class DiskBlobManager(BlobManager):
     """This class stores blobs on the hard disk"""
@@ -84,13 +89,11 @@ class DiskBlobManager(BlobManager):
         self.blobs = {}
         self.blob_hashes_to_delete = {} # {blob_hash: being_deleted (True/False)}
         self._next_manage_call = None
-        self.blob_history_manager = BlobHistoryManager(db_dir)
 
     def setup(self):
         log.info("Setting up the DiskBlobManager. blob_dir: %s, db_file: %s", str(self.blob_dir),
                  str(self.db_file))
         d = self._open_db()
-        d.addCallback(lambda _: self.blob_history_manager.start())
         d.addCallback(lambda _: self._manage())
         return d
 
@@ -188,6 +191,14 @@ class DiskBlobManager(BlobManager):
         d.addCallback(self.completed_blobs)
         return d
 
+    def add_blob_to_download_history(self, blob_hash, host, rate):
+        d = self._add_blob_to_download_history(blob_hash, host, rate)
+        return d
+
+    def add_blob_to_upload_history(self, blob_hash, host, rate):
+        d = self._add_blob_to_upload_history(blob_hash, host, rate)
+        return d
+
     def _manage(self):
         from twisted.internet import reactor
 
@@ -246,12 +257,29 @@ class DiskBlobManager(BlobManager):
         # one that opened it. The individual connections in the pool are not used in multiple
         # threads.
         self.db_conn = adbapi.ConnectionPool('sqlite3', self.db_file, check_same_thread=False)
-        return self.db_conn.runQuery("create table if not exists blobs (" +
-                                     "    blob_hash text primary key, " +
-                                     "    blob_length integer, " +
-                                     "    last_verified_time real, " +
-                                     "    next_announce_time real"
-                                     ")")
+
+        def create_tables(transaction):
+            transaction.execute("create table if not exists blobs (" +
+                                "    blob_hash text primary key, " +
+                                "    blob_length integer, " +
+                                "    last_verified_time real, " +
+                                "    next_announce_time real)")
+
+            transaction.execute("create table if not exists download (" +
+                                "    id integer primary key autoincrement, " +
+                                "    blob text, " +
+                                "    host text, " +
+                                "    rate float, " +
+                                "    ts integer)")
+
+            transaction.execute("create table if not exists upload (" +
+                                "    id integer primary key autoincrement, " +
+                                "    blob text, " +
+                                "    host text, " +
+                                "    rate float, " +
+                                "    ts integer)")
+
+        return self.db_conn.runInteraction(create_tables)
 
     @rerun_if_locked
     def _add_completed_blob(self, blob_hash, length, timestamp, next_announce_time=None):
@@ -429,6 +457,18 @@ class DiskBlobManager(BlobManager):
         d.addCallback(lambda blobs: threads.deferToThread(get_verified_blobs, blobs))
         return d
 
+    @rerun_if_locked
+    def _add_blob_to_download_history(self, blob_hash, host, rate):
+        ts = int(time.time())
+        d = self.db_conn.runQuery("insert into download values (null, ?, ?, ?, ?) ", (blob_hash, str(host), float(rate), ts))
+        return d
+
+    @rerun_if_locked
+    def _add_blob_to_upload_history(self, blob_hash, host, rate):
+        ts = int(time.time())
+        d = self.db_conn.runQuery("insert into upload values (null, ?, ?, ?, ?) ", (blob_hash, str(host), float(rate), ts))
+        return d
+
 
 class TempBlobManager(BlobManager):
     """This class stores blobs in memory"""
@@ -529,7 +569,6 @@ class TempBlobManager(BlobManager):
         d.addCallback(lambda _: set_next_manage_call())
 
     def _delete_blobs_marked_for_deletion(self):
-
         def remove_from_list(b_h):
             del self.blob_hashes_to_delete[b_h]
             log.info("Deleted blob %s", blob_hash)
@@ -558,4 +597,4 @@ class TempBlobManager(BlobManager):
                     d = defer.fail(Failure(NoSuchBlobError(blob_hash)))
                     log.warning("Blob %s cannot be deleted because it is unknown")
                     ds.append(d)
-        return defer.DeferredList(ds)
\ No newline at end of file
+        return defer.DeferredList(ds)
diff --git a/lbrynet/core/Error.py b/lbrynet/core/Error.py
index 8146dc169..dfc9bfe98 100644
--- a/lbrynet/core/Error.py
+++ b/lbrynet/core/Error.py
@@ -87,4 +87,8 @@ class NoSuchStreamHashError(Exception):
 
 
 class InvalidBlobHashError(Exception):
+    pass
+
+
+class NegotiationError(Exception):
     pass
\ No newline at end of file
diff --git a/lbrynet/core/Offer.py b/lbrynet/core/Offer.py
new file mode 100644
index 000000000..ea8884f88
--- /dev/null
+++ b/lbrynet/core/Offer.py
@@ -0,0 +1,70 @@
+from lbrynet.core.Error import NegotiationError
+
+
+class Offer(object):
+    """
+    A rate offer to download blobs from a host
+    """
+
+    def __init__(self, offer):
+        self._state = None
+        self.rate = None
+        if isinstance(offer, float):
+            self.rate = round(offer, 5)
+        elif offer == Negotiate.RATE_ACCEPTED:
+            self.accept()
+        elif offer == Negotiate.RATE_TOO_LOW:
+            self.reject()
+
+    @property
+    def accepted(self):
+        return self._state is Negotiate.RATE_ACCEPTED
+
+    @property
+    def too_low(self):
+        return self._state is Negotiate.RATE_TOO_LOW
+
+    @property
+    def message(self):
+        if self.accepted:
+            return Negotiate.RATE_ACCEPTED
+        elif self.too_low:
+            return Negotiate.RATE_TOO_LOW
+        elif self.rate is None:
+            return Negotiate.RATE_UNSET
+
+    def accept(self):
+        if self._state is None:
+            self._state = Negotiate.RATE_ACCEPTED
+
+    def reject(self):
+        if self._state is None:
+            self._state = Negotiate.RATE_TOO_LOW
+
+
+class Negotiate(object):
+    """
+    Helper class for converting to and from Offers
+    """
+
+    RATE_ACCEPTED = "RATE_ACCEPTED"
+    RATE_TOO_LOW = "RATE_TOO_LOW"
+    RATE_UNSET = "RATE_UNSET"
+
+    PAYMENT_RATE = "blob_data_payment_rate"
+    ERROR = "error"
+
+    @staticmethod
+    def get_offer_from_request(request_dict):
+        error = request_dict.get(Negotiate.ERROR, False)
+        if error:
+            raise NegotiationError()
+        return Offer(request_dict.get(Negotiate.PAYMENT_RATE))
+
+    @staticmethod
+    def make_dict_from_offer(offer):
+        if offer.message:
+            request_dict = {Negotiate.PAYMENT_RATE: offer.message}
+        else:
+            request_dict = {Negotiate.PAYMENT_RATE: offer.rate}
+        return request_dict
diff --git a/lbrynet/core/PaymentRateManager.py b/lbrynet/core/PaymentRateManager.py
index a18882ac0..319f1e0d0 100644
--- a/lbrynet/core/PaymentRateManager.py
+++ b/lbrynet/core/PaymentRateManager.py
@@ -1,3 +1,5 @@
+from lbrynet.core.Strategy import get_default_strategy
+
 class BasePaymentRateManager(object):
     def __init__(self, rate):
         self.min_blob_data_payment_rate = rate
@@ -26,4 +28,30 @@ class PaymentRateManager(object):
         return self.min_blob_data_payment_rate
 
     def record_points_paid(self, amount):
-        self.points_paid += amount
\ No newline at end of file
+        self.points_paid += amount
+
+
+class NegotiatedPaymentRateManager(object):
+    def __init__(self, base, availability_tracker):
+        """
+        @param base: a BasePaymentRateManager
+        @param availability_tracker: a BlobAvailabilityTracker
+        @param rate: the min blob data payment rate
+        """
+
+        self.base = base
+        self.min_blob_data_payment_rate = self.base.min_blob_data_payment_rate
+        self.points_paid = 0.0
+        self.blob_tracker = availability_tracker
+        self.strategy = get_default_strategy(self.blob_tracker)
+
+    def get_rate_blob_data(self, peer, blobs):
+        response = self.strategy.make_offer(peer, blobs)
+        return response.rate
+
+    def accept_rate_blob_data(self, peer, blobs, offer):
+        response = self.strategy.respond_to_offer(offer, peer, blobs)
+        return response.accepted
+
+    def record_points_paid(self, amount):
+        self.points_paid += amount
diff --git a/lbrynet/core/Peer.py b/lbrynet/core/Peer.py
index c3b4a76ec..06138abd8 100644
--- a/lbrynet/core/Peer.py
+++ b/lbrynet/core/Peer.py
@@ -12,8 +12,7 @@ class Peer(object):
         self.stats = defaultdict(float)  # {string stat_type, float count}
 
     def is_available(self):
-        if (self.attempt_connection_at is None or
-            datetime.datetime.today() > self.attempt_connection_at):
+        if self.attempt_connection_at is None or datetime.datetime.today() > self.attempt_connection_at:
             return True
         return False
 
@@ -33,4 +32,4 @@ class Peer(object):
         self.stats[stat_type] += count
 
     def __str__(self):
-        return self.host + ":" + str(self.port)
\ No newline at end of file
+        return self.host + ":" + str(self.port)
diff --git a/lbrynet/core/PriceModel.py b/lbrynet/core/PriceModel.py
new file mode 100644
index 000000000..c0bbaf09f
--- /dev/null
+++ b/lbrynet/core/PriceModel.py
@@ -0,0 +1,37 @@
+from lbrynet.conf import MIN_BLOB_DATA_PAYMENT_RATE
+
+
+class MeanAvailabilityWeightedPrice(object):
+    """
+    Calculate mean-blob-availability and stream-position weighted price for a blob
+
+    Attributes:
+        min_price (float): minimum accepted price
+        base_price (float): base price to shift from
+        alpha (float): constant used to more highly value blobs at the beginning of a stream
+                        alpha defaults to 1.0, which has a null effect
+        blob_tracker (BlobAvailabilityTracker): blob availability tracker
+    """
+
+    def __init__(self, tracker, min_price=MIN_BLOB_DATA_PAYMENT_RATE, base_price=None, alpha=1.0):
+        self.blob_tracker = tracker
+        self.min_price = min_price
+        self.base_price = base_price if base_price is not None else min_price * 10
+        self.alpha = alpha
+
+    def calculate_price(self, blob):
+        mean_availability = self.blob_tracker.last_mean_availability
+        availability = self.blob_tracker.availability.get(blob, [])
+        index = 0 # blob.index
+        price = self.base_price * (mean_availability / max(1, len(availability))) * self._frontload(index)
+        return round(max(self.min_price, price), 5)
+
+    def _frontload(self, index):
+        """
+        Get frontload multipler
+
+        @param index: blob position in stream
+        @return: frontload multipler
+        """
+
+        return 2.0 - (self.alpha ** index)
\ No newline at end of file
diff --git a/lbrynet/core/Session.py b/lbrynet/core/Session.py
index 82ca8028a..30f68d400 100644
--- a/lbrynet/core/Session.py
+++ b/lbrynet/core/Session.py
@@ -9,8 +9,8 @@ from lbrynet.core.client.DHTPeerFinder import DHTPeerFinder
 from lbrynet.core.HashAnnouncer import DummyHashAnnouncer
 from lbrynet.core.server.DHTHashAnnouncer import DHTHashAnnouncer
 from lbrynet.core.utils import generate_id
-from lbrynet.core.PaymentRateManager import BasePaymentRateManager
-from lbrynet.core.BlobPrice import BlobPriceAndAvailabilityTracker
+from lbrynet.core.PaymentRateManager import BasePaymentRateManager, NegotiatedPaymentRateManager
+from lbrynet.core.BlobAvailability import BlobAvailabilityTracker
 from twisted.internet import threads, defer
 
 
@@ -29,7 +29,7 @@ class LBRYSession(object):
     def __init__(self, blob_data_payment_rate, db_dir=None, lbryid=None, peer_manager=None, dht_node_port=None,
                  known_dht_nodes=None, peer_finder=None, hash_announcer=None,
                  blob_dir=None, blob_manager=None, peer_port=None, use_upnp=True,
-                 rate_limiter=None, wallet=None, dht_node_class=node.Node):
+                 rate_limiter=None, wallet=None, dht_node_class=node.Node, blob_tracker=None):
         """
         @param blob_data_payment_rate: The default payment rate for blob data
 
@@ -88,6 +88,7 @@ class LBRYSession(object):
 
         self.blob_dir = blob_dir
         self.blob_manager = blob_manager
+        self.blob_tracker = blob_tracker
 
         self.peer_port = peer_port
 
@@ -104,7 +105,7 @@ class LBRYSession(object):
         self.dht_node = None
 
         self.base_payment_rate_manager = BasePaymentRateManager(blob_data_payment_rate)
-        self.blob_tracker = None
+        self.payment_rate_manager = None
 
     def setup(self):
         """Create the blob directory and database if necessary, start all desired services"""
@@ -260,7 +261,9 @@ class LBRYSession(object):
                 self.blob_manager = DiskBlobManager(self.hash_announcer, self.blob_dir, self.db_dir)
 
         if self.blob_tracker is None:
-            self.blob_tracker = BlobPriceAndAvailabilityTracker(self.blob_manager, self.peer_finder, self.dht_node)
+            self.blob_tracker = BlobAvailabilityTracker(self.blob_manager, self.peer_finder, self.dht_node)
+        if self.payment_rate_manager is None:
+            self.payment_rate_manager = NegotiatedPaymentRateManager(self.base_payment_rate_manager, self.blob_tracker)
 
         self.rate_limiter.start()
         d1 = self.blob_manager.setup()
diff --git a/lbrynet/core/Strategy.py b/lbrynet/core/Strategy.py
new file mode 100644
index 000000000..b4d52fc20
--- /dev/null
+++ b/lbrynet/core/Strategy.py
@@ -0,0 +1,78 @@
+import logging
+
+from lbrynet.core.Offer import Offer
+from lbrynet.core.PriceModel import MeanAvailabilityWeightedPrice
+
+log = logging.getLogger(__name__)
+
+
+def get_default_strategy(blob_tracker, **kwargs):
+    return BasicAvailabilityWeightedStrategy(blob_tracker, **kwargs)
+
+
+class BasicAvailabilityWeightedStrategy(object):
+    """
+    Basic strategy to target blob prices based on supply relative to mean supply
+
+    Discount price target with each incoming request, and raise it with each outgoing from the modeled price
+    until the rate is accepted or a threshold is reached
+    """
+
+    def __init__(self, blob_tracker, acceleration=1.25, deceleration=0.9, max_rate=0.005):
+        self._acceleration = acceleration # rate of how quickly to ramp offer
+        self._deceleration = deceleration
+        self._max_rate = max_rate
+        self._count_up = {}
+        self._count_down = {}
+        self._requested = {}
+        self._offers_to_peers = {}
+        self.model = MeanAvailabilityWeightedPrice(blob_tracker)
+
+    def respond_to_offer(self, offer, peer, blobs):
+        request_count = self._count_up.get(peer, 0)
+        rates = [self._calculate_price(blob) for blob in blobs]
+        rate = self._discount(sum(rates) / max(len(blobs), 1), request_count)
+        log.info("Target rate: %s", rate)
+
+        self._inc_up_count(peer)
+        if offer.accepted:
+            return offer
+        elif offer.rate >= rate:
+            log.info("Accept: %f", offer.rate)
+            offer.accept()
+            return offer
+        else:
+            log.info("Reject: %f", offer.rate)
+            offer.reject()
+            return offer
+
+    def make_offer(self, peer, blobs):
+        # use mean turn-discounted price for all the blobs requested
+        request_count = self._count_down.get(peer, 0)
+        self._inc_down_count(peer)
+        if request_count == 0:
+            # Try asking for it for free
+            offer = Offer(0.0)
+        else:
+            rates = [self._calculate_price(blob) for blob in blobs]
+            mean_rate = sum(rates) / max(len(blobs), 1)
+            with_premium = self._premium(mean_rate, request_count)
+            offer = Offer(with_premium)
+        return offer
+
+    def _inc_up_count(self, peer):
+        turn = self._count_up.get(peer, 0) + 1
+        self._count_up.update({peer: turn})
+
+    def _inc_down_count(self, peer):
+        turn = self._count_down.get(peer, 0) + 1
+        self._count_down.update({peer: turn})
+
+    def _calculate_price(self, blob):
+        return self.model.calculate_price(blob)
+
+    def _premium(self, rate, turn):
+        return min(rate * (self._acceleration ** turn), self._max_rate)
+
+    def _discount(self, rate, turn):
+        return min(rate * (self._deceleration ** turn), self._max_rate)
\ No newline at end of file
diff --git a/lbrynet/core/client/BlobRequester.py b/lbrynet/core/client/BlobRequester.py
index e257cbde1..7e956b452 100644
--- a/lbrynet/core/client/BlobRequester.py
+++ b/lbrynet/core/client/BlobRequester.py
@@ -1,14 +1,16 @@
-from collections import defaultdict
 import logging
+from collections import defaultdict
+
 from twisted.internet import defer
 from twisted.python.failure import Failure
 from zope.interface import implements
-from lbrynet.core.Error import PriceDisagreementError, DownloadCanceledError, InsufficientFundsError
-from lbrynet.core.Error import InvalidResponseError, RequestCanceledError, NoResponseError
+
 from lbrynet.core.Error import ConnectionClosedBeforeResponseError
+from lbrynet.core.Error import InvalidResponseError, RequestCanceledError, NoResponseError
+from lbrynet.core.Error import PriceDisagreementError, DownloadCanceledError, InsufficientFundsError
 from lbrynet.core.client.ClientRequest import ClientRequest, ClientBlobRequest
 from lbrynet.interfaces import IRequestCreator
-
+from lbrynet.core.Offer import Negotiate, Offer
 
 log = logging.getLogger(__name__)
 
@@ -27,6 +29,7 @@ class BlobRequester(object):
         self._unavailable_blobs = defaultdict(list)  # {Peer: [blob_hash]}}
         self._protocol_prices = {}  # {ClientProtocol: price}
         self._price_disagreements = []  # [Peer]
+        self._protocol_tries = {}
         self._incompatible_peers = []
 
     ######## IRequestCreator #########
@@ -46,7 +49,8 @@ class BlobRequester(object):
                 d1.addCallback(self._handle_availability, peer, a_r)
                 d1.addErrback(self._request_failed, "availability request", peer)
                 sent_request = True
-            if d_r is not None:
+
+            if d_r is not None and protocol in self._protocol_prices:
                 reserved_points = self._reserve_points(peer, protocol, d_r.max_pay_units)
                 if reserved_points is not None:
                     # Note: The following three callbacks will be called when the blob has been
@@ -68,17 +72,18 @@ class BlobRequester(object):
                     # downloaded.
                     d2.addCallback(self._handle_incoming_blob, peer, d_r)
                     d2.addErrback(self._request_failed, "download request", peer)
-
                     sent_request = True
                 else:
                     d_r.cancel(InsufficientFundsError())
                     d_r.finished_deferred.addErrback(lambda _: True)
                     return defer.fail(InsufficientFundsError())
+
             if sent_request is True:
                 if p_r is not None:
                     d3 = protocol.add_request(p_r)
                     d3.addCallback(self._handle_price_response, peer, p_r, protocol)
                     d3.addErrback(self._request_failed, "price request", peer)
+
         return defer.succeed(sent_request)
 
     def get_new_peers(self):
@@ -88,6 +93,56 @@ class BlobRequester(object):
 
     ######### internal calls #########
 
+    def _blobs_to_download(self):
+        needed_blobs = self.download_manager.needed_blobs()
+        return sorted(needed_blobs, key=lambda b: b.is_downloading())
+
+    def _get_blobs_to_request_from_peer(self, peer):
+        all_needed = [b.blob_hash for b in self._blobs_to_download() if not b.blob_hash in self._available_blobs[peer]]
+        # sort them so that the peer will be asked first for blobs it hasn't said it doesn't have
+        to_request = sorted(all_needed, key=lambda b: b in self._unavailable_blobs[peer])[:20]
+        return to_request
+
+    def _price_settled(self, protocol):
+        if protocol in self._protocol_prices:
+            return True
+        return False
+
+    def _get_price_request(self, peer, protocol):
+        request = None
+        response_identifier = Negotiate.PAYMENT_RATE
+        if protocol not in self._protocol_prices:
+            blobs_to_request = self._available_blobs[peer]
+            if blobs_to_request:
+                rate = self.payment_rate_manager.get_rate_blob_data(peer, blobs_to_request)
+                self._protocol_prices[protocol] = rate
+                offer = Offer(rate)
+                request = ClientRequest(Negotiate.make_dict_from_offer(offer), response_identifier)
+                log.debug("Offer rate %s to %s for %i blobs",  str(rate), str(peer), len(blobs_to_request))
+            else:
+                log.debug("No blobs to request from %s", str(peer))
+        return request
+
+    def _handle_price_response(self, response_dict, peer, request, protocol):
+        if not request.response_identifier in response_dict:
+            return InvalidResponseError("response identifier not in response")
+        assert protocol in self._protocol_prices
+        offer = Negotiate.get_offer_from_request(response_dict)
+        rate = self._protocol_prices[protocol]
+        if offer.accepted:
+            log.info("Offered rate %f/mb accepted by %s", rate, str(peer.host))
+            return True
+        elif offer.too_low:
+            log.info("Offered rate %f/mb rejected by %s", rate, str(peer.host))
+            del self._protocol_prices[protocol]
+            return True
+        else:
+            log.warning("Price disagreement")
+            log.warning(offer.rate)
+            del self._protocol_prices[protocol]
+            self._price_disagreements.append(peer)
+            return False
+
     def _download_succeeded(self, arg, peer, blob):
         log.info("Blob %s has been successfully downloaded from %s", str(blob), str(peer))
         self._update_local_score(peer, 5.0)
@@ -101,13 +156,13 @@ class BlobRequester(object):
             self._update_local_score(peer, -10.0)
         return reason
 
-    def _record_blob_aquired(self, blob, host, rate):
-        self.blob_manager.blob_history_manager.add_transaction(blob, host, rate, upload=False)
+    def _record_blob_acquired(self, blob, host, rate):
+        d = self.blob_manager.add_blob_to_download_history(blob, host, rate)
 
     def _pay_or_cancel_payment(self, arg, protocol, reserved_points, blob):
         if blob.length != 0 and (not isinstance(arg, Failure) or arg.check(DownloadCanceledError)):
             self._pay_peer(protocol, blob.length, reserved_points)
-            self._record_blob_aquired(str(blob), protocol.peer.host, reserved_points.amount)
+            self._record_blob_acquired(str(blob), protocol.peer.host, reserved_points.amount)
         else:
             self._cancel_points(reserved_points)
 
@@ -178,17 +233,11 @@ class BlobRequester(object):
             return True
         return False
 
-    def _blobs_to_download(self):
-        needed_blobs = self.download_manager.needed_blobs()
-        return sorted(needed_blobs, key=lambda b: b.is_downloading())
-
     def _blobs_without_sources(self):
         return [b for b in self.download_manager.needed_blobs() if not self._hash_available(b.blob_hash)]
 
     def _get_availability_request(self, peer):
-        all_needed = [b.blob_hash for b in self._blobs_to_download() if not b.blob_hash in self._available_blobs[peer]]
-        # sort them so that the peer will be asked first for blobs it hasn't said it doesn't have
-        to_request = sorted(all_needed, key=lambda b: b in self._unavailable_blobs[peer])[:20]
+        to_request = self._get_blobs_to_request_from_peer(peer)
         if to_request:
             r_dict = {'requested_blobs': to_request}
             response_identifier = 'available_blobs'
@@ -217,36 +266,24 @@ class BlobRequester(object):
                     request = ClientBlobRequest(request_dict, response_identifier, counting_write_func, d,
                                                 cancel_func, blob_to_download)
 
-                    log.info("Requesting blob %s from %s", str(blob_to_download), str(peer))
-        return request
-
-    def _price_settled(self, protocol):
-        if protocol in self._protocol_prices:
-            return True
-        return False
-
-    def _get_price_request(self, peer, protocol):
-        request = None
-        if not protocol in self._protocol_prices:
-            self._protocol_prices[protocol] = self.payment_rate_manager.get_rate_blob_data(peer)
-            request_dict = {'blob_data_payment_rate': self._protocol_prices[protocol]}
-            request = ClientRequest(request_dict, 'blob_data_payment_rate')
+                    # log.info("Requesting blob %s from %s", str(blob_to_download), str(peer))
         return request
 
     def _update_local_score(self, peer, amount):
             self._peers[peer] += amount
 
     def _reserve_points(self, peer, protocol, max_bytes):
-        assert protocol in self._protocol_prices
-        points_to_reserve = 1.0 * max_bytes * self._protocol_prices[protocol] / 2**20
-        return self.wallet.reserve_points(peer, points_to_reserve)
+        if protocol in self._protocol_prices:
+            points_to_reserve = 1.0 * max_bytes * self._protocol_prices[protocol] / 2 ** 20
+            return self.wallet.reserve_points(peer, points_to_reserve)
+        return None
 
     def _pay_peer(self, protocol, num_bytes, reserved_points):
-        assert num_bytes != 0
-        assert protocol in self._protocol_prices
-        point_amount = 1.0 * num_bytes * self._protocol_prices[protocol] / 2**20
-        self.wallet.send_points(reserved_points, point_amount)
-        self.payment_rate_manager.record_points_paid(point_amount)
+        if num_bytes != 0 and protocol in self._protocol_prices:
+            point_amount = 1.0 * num_bytes * self._protocol_prices[protocol] / 2**20
+            self.wallet.send_points(reserved_points, point_amount)
+            self.payment_rate_manager.record_points_paid(point_amount)
+            log.debug("Pay peer %s", str(point_amount))
 
     def _cancel_points(self, reserved_points):
         self.wallet.cancel_point_reservation(reserved_points)
@@ -268,6 +305,7 @@ class BlobRequester(object):
         return True
 
     def _handle_incoming_blob(self, response_dict, peer, request):
+        log.debug("Handling incoming blob: %s", str(response_dict))
         if not request.response_identifier in response_dict:
             return InvalidResponseError("response identifier not in response")
         if not type(response_dict[request.response_identifier]) == dict:
@@ -295,18 +333,6 @@ class BlobRequester(object):
                 return InvalidResponseError("Could not set the length of the blob")
         return True
 
-    def _handle_price_response(self, response_dict, peer, request, protocol):
-        if not request.response_identifier in response_dict:
-            return InvalidResponseError("response identifier not in response")
-        assert protocol in self._protocol_prices
-        response = response_dict[request.response_identifier]
-        if response == "RATE_ACCEPTED":
-            return True
-        else:
-            del self._protocol_prices[protocol]
-            self._price_disagreements.append(peer)
-        return True
-
     def _request_failed(self, reason, request_type, peer):
         if reason.check(RequestCanceledError):
             return
diff --git a/lbrynet/core/client/ClientProtocol.py b/lbrynet/core/client/ClientProtocol.py
index aad0dcdf7..121f86099 100644
--- a/lbrynet/core/client/ClientProtocol.py
+++ b/lbrynet/core/client/ClientProtocol.py
@@ -191,7 +191,9 @@ class ClientProtocol(Protocol):
             for success, result in results:
                 if success is False:
                     failed = True
-                    log.info("The connection is closing due to an error: %s", str(result.getTraceback()))
+                    if not isinstance(result.value, DownloadCanceledError):
+                        log.info(result.value)
+                        log.info("The connection is closing due to an error: %s", str(result.getTraceback()))
             if failed is False:
                 log.debug("Asking for another request.")
                 from twisted.internet import reactor
@@ -215,7 +217,7 @@ class ClientProtocol(Protocol):
             # TODO: always be this way. it's done this way now because the client has no other way
             # TODO: of telling the server it wants the download to stop. It would be great if the
             # TODO: protocol had such a mechanism.
-            log.info("Closing the connection to %s because the download of blob %s was canceled",
+            log.debug("Closing the connection to %s because the download of blob %s was canceled",
                      str(self.peer), str(self._blob_download_request.blob))
             #self.transport.loseConnection()
             #return True
diff --git a/lbrynet/core/log_support.py b/lbrynet/core/log_support.py
index 517a1406f..3b7fe23c4 100644
--- a/lbrynet/core/log_support.py
+++ b/lbrynet/core/log_support.py
@@ -78,8 +78,7 @@ def disable_third_party_loggers():
 def disable_noisy_loggers():
     logging.getLogger('BitcoinRPC').setLevel(logging.INFO)
     logging.getLogger('lbrynet.analytics.api').setLevel(logging.INFO)
-    logging.getLogger('lbrynet.core.client').setLevel(logging.INFO)
-    logging.getLogger('lbrynet.core.server').setLevel(logging.INFO)
+    logging.getLogger('lbrynet.core').setLevel(logging.INFO)
     logging.getLogger('lbrynet.dht').setLevel(logging.INFO)
     logging.getLogger('lbrynet.lbrynet_daemon').setLevel(logging.INFO)
     logging.getLogger('lbrynet.core.LBRYWallet').setLevel(logging.INFO)
diff --git a/lbrynet/core/server/BlobAvailabilityHandler.py b/lbrynet/core/server/BlobAvailabilityHandler.py
index a5d550bdf..dbd373a36 100644
--- a/lbrynet/core/server/BlobAvailabilityHandler.py
+++ b/lbrynet/core/server/BlobAvailabilityHandler.py
@@ -40,7 +40,7 @@ class BlobAvailabilityHandler(object):
 
     def handle_queries(self, queries):
         if self.query_identifiers[0] in queries:
-            log.debug("Received the client's list of requested blobs")
+            log.info("Received the client's list of requested blobs")
             d = self._get_available_blobs(queries[self.query_identifiers[0]])
 
             def set_field(available_blobs):
diff --git a/lbrynet/core/server/BlobRequestHandler.py b/lbrynet/core/server/BlobRequestHandler.py
index 69686c5aa..a594b9c42 100644
--- a/lbrynet/core/server/BlobRequestHandler.py
+++ b/lbrynet/core/server/BlobRequestHandler.py
@@ -1,8 +1,12 @@
 import logging
+
 from twisted.internet import defer
 from twisted.protocols.basic import FileSender
 from twisted.python.failure import Failure
 from zope.interface import implements
+
+from lbrynet.core.Offer import Offer, Negotiate
+from lbrynet.core.Strategy import get_default_strategy
 from lbrynet.interfaces import IQueryHandlerFactory, IQueryHandler, IBlobSender
 
 
@@ -12,7 +16,8 @@ log = logging.getLogger(__name__)
 class BlobRequestHandlerFactory(object):
     implements(IQueryHandlerFactory)
 
-    def __init__(self, blob_manager, wallet, payment_rate_manager):
+    def __init__(self, blob_manager, blob_tracker, wallet, payment_rate_manager):
+        self.blob_tracker = blob_tracker
         self.blob_manager = blob_manager
         self.wallet = wallet
         self.payment_rate_manager = payment_rate_manager
@@ -20,7 +25,7 @@ class BlobRequestHandlerFactory(object):
     ######### IQueryHandlerFactory #########
 
     def build_query_handler(self):
-        q_h = BlobRequestHandler(self.blob_manager, self.wallet, self.payment_rate_manager)
+        q_h = BlobRequestHandler(self.blob_manager, self.blob_tracker, self.wallet, self.payment_rate_manager)
         return q_h
 
     def get_primary_query_identifier(self):
@@ -33,17 +38,20 @@ class BlobRequestHandlerFactory(object):
 class BlobRequestHandler(object):
     implements(IQueryHandler, IBlobSender)
 
-    def __init__(self, blob_manager, wallet, payment_rate_manager):
+    def __init__(self, blob_manager, blob_tracker, wallet, payment_rate_manager):
         self.blob_manager = blob_manager
+        self.blob_tracker = blob_tracker
         self.payment_rate_manager = payment_rate_manager
         self.wallet = wallet
-        self.query_identifiers = ['blob_data_payment_rate', 'requested_blob']
+        self.query_identifiers = ['blob_data_payment_rate', 'requested_blob', 'requested_blobs']
         self.peer = None
         self.blob_data_payment_rate = None
         self.read_handle = None
         self.currently_uploading = None
         self.file_sender = None
         self.blob_bytes_uploaded = 0
+        self.strategy = get_default_strategy(self.blob_tracker)
+        self._blobs_requested = []
 
     ######### IQueryHandler #########
 
@@ -53,52 +61,22 @@ class BlobRequestHandler(object):
         request_handler.register_blob_sender(self)
 
     def handle_queries(self, queries):
-        response = {}
+        response = defer.succeed({})
+
+        if self.query_identifiers[2] in queries:
+            self._blobs_requested = queries[self.query_identifiers[2]]
+            response.addCallback(lambda r: self._reply_to_availability(r, self._blobs_requested))
+
         if self.query_identifiers[0] in queries:
-            requested_rate = queries[self.query_identifiers[0]]
-            if not self.handle_blob_data_payment_rate(requested_rate):
-                    response['blob_data_payment_rate'] = "RATE_TOO_LOW"
-            else:
-                response['blob_data_payment_rate'] = 'RATE_ACCEPTED'
-            log.debug(response['blob_data_payment_rate'])
+            offer = Offer(queries[self.query_identifiers[0]])
+            response.addCallback(lambda r: self.reply_to_offer(offer, r))
 
         if self.query_identifiers[1] in queries:
-            log.debug("Received the client's request to send a blob")
-            response_fields = {}
-            response['incoming_blob'] = response_fields
+            incoming = queries[self.query_identifiers[1]]
+            log.info("Request download: %s", str(incoming))
+            response.addCallback(lambda r: self._reply_to_send_request({}, incoming))
 
-            if self.blob_data_payment_rate is None:
-                response_fields['error'] = "RATE_UNSET"
-                return defer.succeed(response)
-            else:
-
-                d = self.blob_manager.get_blob(queries[self.query_identifiers[1]], True)
-
-                def open_blob_for_reading(blob):
-                    if blob.is_validated():
-                        read_handle = blob.open_for_reading()
-                        if read_handle is not None:
-                            self.currently_uploading = blob
-                            self.read_handle = read_handle
-                            log.info("Sending %s to client", str(blob))
-                            response_fields['blob_hash'] = blob.blob_hash
-                            response_fields['length'] = blob.length
-                            return response
-                    log.warning("We can not send %s", str(blob))
-                    response_fields['error'] = "BLOB_UNAVAILABLE"
-                    return response, blob
-
-                def record_transaction(response, blob, rate):
-                    d = self.blob_manager.blob_history_manager.add_transaction(str(blob), self.peer.host, rate, upload=True)
-                    d.addCallback(lambda _: response)
-                    return d
-
-                d.addCallback(open_blob_for_reading)
-                d.addCallback(lambda (response, blob): record_transaction(response, blob, queries[self.query_identifiers[0]]))
-
-                return d
-        else:
-            return defer.succeed(response)
+        return response
 
     ######### IBlobSender #########
 
@@ -116,12 +94,72 @@ class BlobRequestHandler(object):
 
     ######### internal #########
 
-    def handle_blob_data_payment_rate(self, requested_payment_rate):
-        if not self.payment_rate_manager.accept_rate_blob_data(self.peer, requested_payment_rate):
-            return False
+    def _add_to_response(self, response, to_add):
+
+        return response
+
+    def _reply_to_availability(self, request, blobs):
+        d = self._get_available_blobs(blobs)
+
+        def set_available(available_blobs):
+            log.debug("available blobs: %s", str(available_blobs))
+            request.update({'available_blobs': available_blobs})
+            return request
+
+        d.addCallback(set_available)
+        return d
+
+    def open_blob_for_reading(self, blob, response):
+        response_fields = {}
+        if blob.is_validated():
+            read_handle = blob.open_for_reading()
+            if read_handle is not None:
+                self.currently_uploading = blob
+                self.read_handle = read_handle
+                log.info("Sending %s to client", str(blob))
+                response_fields['blob_hash'] = blob.blob_hash
+                response_fields['length'] = blob.length
+                response['incoming_blob'] = response_fields
+                log.info(response)
+                return response, blob
+        log.warning("We can not send %s", str(blob))
+        response['error'] = "BLOB_UNAVAILABLE"
+        return response, blob
+
+    def record_transaction(self, response, blob, rate):
+        d = self.blob_manager.add_blob_to_upload_history(str(blob), self.peer.host, rate)
+        d.addCallback(lambda _: response)
+        log.info(response)
+        return d
+
+    def _reply_to_send_request(self, response, incoming):
+        response_fields = {}
+        response['incoming_blob'] = response_fields
+        rate = self.blob_data_payment_rate
+
+        if self.blob_data_payment_rate is None:
+            log.warning("Rate not set yet")
+            response['error'] = "RATE_UNSET"
+            return defer.succeed(response)
         else:
-            self.blob_data_payment_rate = requested_payment_rate
-            return True
+            d = self.blob_manager.get_blob(incoming, True)
+            d.addCallback(lambda blob: self.open_blob_for_reading(blob, response))
+            d.addCallback(lambda (r, blob): self.record_transaction(r, blob, rate))
+            return d
+
+    def reply_to_offer(self, offer, request):
+        blobs = request.get("available_blobs", [])
+        log.info("Offered rate %f/mb for %i blobs", offer.rate, len(blobs))
+        reply = self.strategy.respond_to_offer(offer, self.peer, blobs)
+        if reply.accepted:
+            self.blob_data_payment_rate = reply.rate
+        r = Negotiate.make_dict_from_offer(reply)
+        request.update(r)
+        return request
+
+    def _get_available_blobs(self, requested_blobs):
+        d = self.blob_manager.completed_blobs(requested_blobs)
+        return d
 
     def send_file(self, consumer):
 
@@ -140,7 +178,7 @@ class BlobRequestHandler(object):
 
         def start_transfer():
             self.file_sender = FileSender()
-            log.debug("Starting the file upload")
+            log.info("Starting the file upload")
             assert self.read_handle is not None, "self.read_handle was None when trying to start the transfer"
             d = self.file_sender.beginFileTransfer(self.read_handle, consumer, count_bytes)
             return d
diff --git a/lbrynet/cryptstream/client/CryptStreamDownloader.py b/lbrynet/cryptstream/client/CryptStreamDownloader.py
index e0091598f..031a3f8aa 100644
--- a/lbrynet/cryptstream/client/CryptStreamDownloader.py
+++ b/lbrynet/cryptstream/client/CryptStreamDownloader.py
@@ -48,7 +48,7 @@ class CryptStreamDownloader(object):
 
         @param blob_manager: A BlobManager object
 
-        @param payment_rate_manager: A PaymentRateManager object
+        @param payment_rate_manager: A NegotiatedPaymentRateManager object
 
         @param wallet: An object which implements the ILBRYWallet interface
 
diff --git a/lbrynet/lbryfilemanager/LBRYFileManager.py b/lbrynet/lbryfilemanager/LBRYFileManager.py
index afde816ea..338e5cefe 100644
--- a/lbrynet/lbryfilemanager/LBRYFileManager.py
+++ b/lbrynet/lbryfilemanager/LBRYFileManager.py
@@ -12,7 +12,7 @@ from twisted.python.failure import Failure
 from lbrynet.lbryfilemanager.LBRYFileDownloader import ManagedLBRYFileDownloader
 from lbrynet.lbryfilemanager.LBRYFileDownloader import ManagedLBRYFileDownloaderFactory
 from lbrynet.lbryfile.StreamDescriptor import LBRYFileStreamType
-from lbrynet.core.PaymentRateManager import PaymentRateManager
+from lbrynet.core.PaymentRateManager import NegotiatedPaymentRateManager
 from lbrynet.cryptstream.client.CryptStreamDownloader import AlreadyStoppedError, CurrentlyStoppingError
 from lbrynet.core.sqlite_helpers import rerun_if_locked
 
@@ -74,7 +74,8 @@ class LBRYFileManager(object):
     def _start_lbry_files(self):
 
         def set_options_and_restore(rowid, stream_hash, options):
-            payment_rate_manager = PaymentRateManager(self.session.base_payment_rate_manager)
+            payment_rate_manager = NegotiatedPaymentRateManager(self.session.base_payment_rate_manager,
+                                                                self.session.blob_tracker)
             d = self.start_lbry_file(rowid, stream_hash, payment_rate_manager,
                                      blob_data_rate=options)
             d.addCallback(lambda downloader: downloader.restore())
diff --git a/lbrynet/lbrynet_console/ControlHandlers.py b/lbrynet/lbrynet_console/ControlHandlers.py
index 42e9e2476..309d654db 100644
--- a/lbrynet/lbrynet_console/ControlHandlers.py
+++ b/lbrynet/lbrynet_console/ControlHandlers.py
@@ -644,7 +644,7 @@ class AddStream(CommandHandler):
         for option, option_value in zip(self.download_options, self.options_chosen):
             if option.short_description == "data payment rate":
                 if option_value == None:
-                    rate = self.payment_rate_manager.get_effective_min_blob_data_payment_rate()
+                    rate = 0.0
                 else:
                     rate = option_value
                 stream_size = None
diff --git a/lbrynet/lbrynet_daemon/LBRYDaemon.py b/lbrynet/lbrynet_daemon/LBRYDaemon.py
index b258d914d..e0d64b783 100644
--- a/lbrynet/lbrynet_daemon/LBRYDaemon.py
+++ b/lbrynet/lbrynet_daemon/LBRYDaemon.py
@@ -27,8 +27,7 @@ from txjsonrpc.web.jsonrpc import Handler
 from lbrynet import __version__ as lbrynet_version
 from lbryum.version import LBRYUM_VERSION as lbryum_version
 from lbrynet import analytics
-from lbrynet.core.PaymentRateManager import PaymentRateManager
-from lbrynet.core.server.BlobAvailabilityHandler import BlobAvailabilityHandlerFactory
+from lbrynet.core.PaymentRateManager import NegotiatedPaymentRateManager
 from lbrynet.core.server.BlobRequestHandler import BlobRequestHandlerFactory
 from lbrynet.core.server.ServerProtocol import ServerProtocolFactory
 from lbrynet.core.Error import UnknownNameError, InsufficientFundsError, InvalidNameError
@@ -545,7 +544,6 @@ class LBRYDaemon(jsonrpc.JSONRPC):
         d.addCallback(lambda _: add_lbry_file_to_sd_identifier(self.sd_identifier))
         d.addCallback(lambda _: self._setup_stream_identifier())
         d.addCallback(lambda _: self._setup_lbry_file_manager())
-        d.addCallback(lambda _: self._setup_lbry_file_opener())
         d.addCallback(lambda _: self._setup_query_handlers())
         d.addCallback(lambda _: self._setup_server())
         d.addCallback(lambda _: _log_starting_vals())
@@ -776,17 +774,15 @@ class LBRYDaemon(jsonrpc.JSONRPC):
         handlers = [
             # CryptBlobInfoQueryHandlerFactory(self.lbry_file_metadata_manager, self.session.wallet,
             #                                 self._server_payment_rate_manager),
-            BlobAvailabilityHandlerFactory(self.session.blob_manager),
-            # BlobRequestHandlerFactory(self.session.blob_manager, self.session.wallet,
-            #                          self._server_payment_rate_manager),
+            # BlobAvailabilityHandlerFactory(self.session.blob_manager),
+            BlobRequestHandlerFactory(self.session.blob_manager, self.session.blob_tracker, self.session.wallet,
+                                     self.session.payment_rate_manager),
             self.session.wallet.get_wallet_info_query_handler_factory(),
         ]
 
         def get_blob_request_handler_factory(rate):
-            self.blob_request_payment_rate_manager = PaymentRateManager(
-                self.session.base_payment_rate_manager, rate
-            )
-            handlers.append(BlobRequestHandlerFactory(self.session.blob_manager, self.session.wallet,
+            self.blob_request_payment_rate_manager = self.session.payment_rate_manager
+            handlers.append(BlobRequestHandlerFactory(self.session.blob_manager, self.session.blob_tracker, self.session.wallet,
                                                       self.blob_request_payment_rate_manager))
 
         d1 = self.settings.get_server_data_payment_rate()
@@ -1097,14 +1093,6 @@ class LBRYDaemon(jsonrpc.JSONRPC):
         self.sd_identifier.add_stream_downloader_factory(LBRYFileStreamType, file_opener_factory)
         return defer.succeed(None)
 
-    def _setup_lbry_file_opener(self):
-
-        downloader_factory = LBRYFileOpenerFactory(self.session.peer_finder, self.session.rate_limiter,
-                                                   self.session.blob_manager, self.stream_info_manager,
-                                                   self.session.wallet)
-        self.sd_identifier.add_stream_downloader_factory(LBRYFileStreamType, downloader_factory)
-        return defer.succeed(True)
-
     def _download_sd_blob(self, sd_hash, timeout=DEFAULT_SD_DOWNLOAD_TIMEOUT):
         def cb(result):
             if not r.called:
@@ -1116,7 +1104,7 @@ class LBRYDaemon(jsonrpc.JSONRPC):
 
         r = defer.Deferred(None)
         reactor.callLater(timeout, eb)
-        d = download_sd_blob(self.session, sd_hash, PaymentRateManager(self.session.base_payment_rate_manager))
+        d = download_sd_blob(self.session, sd_hash, self.session.payment_rate_manager)
         d.addCallback(BlobStreamDescriptorReader)
         d.addCallback(lambda blob: blob.get_info())
         d.addCallback(cb)
@@ -2565,6 +2553,20 @@ class LBRYDaemon(jsonrpc.JSONRPC):
         return d
 
 
+    def jsonrpc_get_mean_availability(self):
+        """
+        Get mean blob availability
+
+        Args:
+            None
+        Returns:
+            Mean peers for a blob
+        """
+
+        d = self._render_response(self.session.blob_tracker.last_mean_availability, OK_CODE)
+        return d
+
+
 def get_lbrynet_version_from_github():
     """Return the latest released version from github."""
     response = requests.get('https://api.github.com/repos/lbryio/lbry/releases/latest')
diff --git a/lbrynet/lbrynet_daemon/LBRYDownloader.py b/lbrynet/lbrynet_daemon/LBRYDownloader.py
index cf7289354..7553ff4f0 100644
--- a/lbrynet/lbrynet_daemon/LBRYDownloader.py
+++ b/lbrynet/lbrynet_daemon/LBRYDownloader.py
@@ -9,7 +9,6 @@ from twisted.internet import defer
 from twisted.internet.task import LoopingCall
 
 from lbrynet.core.Error import InsufficientFundsError, KeyFeeAboveMaxAllowed
-from lbrynet.core.PaymentRateManager import PaymentRateManager
 from lbrynet.core.StreamDescriptor import download_sd_blob
 from lbrynet.metadata.LBRYFee import LBRYFeeValidator
 from lbrynet.lbryfilemanager.LBRYFileDownloader import ManagedLBRYFileDownloaderFactory
@@ -52,7 +51,7 @@ class GetStream(object):
         self.file_name = file_name
         self.session = session
         self.exchange_rate_manager = exchange_rate_manager
-        self.payment_rate_manager = PaymentRateManager(self.session.base_payment_rate_manager)
+        self.payment_rate_manager = self.session.payment_rate_manager
         self.lbry_file_manager = lbry_file_manager
         self.sd_identifier = sd_identifier
         self.stream_hash = None
diff --git a/lbrynet/lbrynet_daemon/LBRYPublisher.py b/lbrynet/lbrynet_daemon/LBRYPublisher.py
index f162ca24c..622625bd1 100644
--- a/lbrynet/lbrynet_daemon/LBRYPublisher.py
+++ b/lbrynet/lbrynet_daemon/LBRYPublisher.py
@@ -9,7 +9,6 @@ from appdirs import user_data_dir
 from lbrynet.core.Error import InsufficientFundsError
 from lbrynet.lbryfilemanager.LBRYFileCreator import create_lbry_file
 from lbrynet.lbryfile.StreamDescriptor import publish_sd_blob
-from lbrynet.core.PaymentRateManager import PaymentRateManager
 from lbrynet.metadata.LBRYMetadata import Metadata
 from lbrynet.lbryfilemanager.LBRYFileDownloader import ManagedLBRYFileDownloader
 from lbrynet import reflector
@@ -102,7 +101,7 @@ class Publisher(object):
 
     def add_to_lbry_files(self, stream_hash):
         self.stream_hash = stream_hash
-        prm = PaymentRateManager(self.session.base_payment_rate_manager)
+        prm = self.session.payment_rate_manager
         d = self.lbry_file_manager.add_lbry_file(stream_hash, prm)
         d.addCallback(self.set_lbry_file)
         return d