diff --git a/lbrynet/conf.py b/lbrynet/conf.py
index 1f840e1b4..c3c1910bb 100644
--- a/lbrynet/conf.py
+++ b/lbrynet/conf.py
@@ -45,11 +45,11 @@ else:
 class Settings(object):
     """A collection of configuration settings"""
     __fixed = []
-    __excluded = ['get_dict', 'update']
+    _excluded = ['get_dict', 'update']
 
     def __iter__(self):
         for k in self.__dict__.iterkeys():
-            if k.startswith('_') or k in self.__excluded:
+            if k.startswith('_') or k in self._excluded:
                 continue
             yield k
 
@@ -67,8 +67,8 @@ class Settings(object):
     def get_dict(self):
         return {k: self[k] for k in self}
 
-    def update(self, other):
-        for k, v in other.iteritems():
+    def update(self, updated_settings):
+        for k, v in updated_settings.iteritems():
             try:
                 self.__setitem__(k, v)
             except (KeyError, AssertionError):
@@ -180,9 +180,15 @@ ENVIRONMENT = Env(
 
 
 class AdjustableSettings(Settings):
+    _excluded = ['get_dict', 'update', 'environ']
+
     """Settings that are allowed to be overriden by the user"""
     def __init__(self, environ=None):
         self.environ = environ or ENVIRONMENT
+
+        for opt in self.environ.original_schema:
+            self.__dict__[opt] = self.environ(opt)
+
         Settings.__init__(self)
 
     def __getattr__(self, attr):
@@ -190,13 +196,6 @@ class AdjustableSettings(Settings):
             return self.environ(attr)
         raise AttributeError
 
-    def get_dict(self):
-        return {
-            name: self.environ(name)
-            for name in self.environ.original_schema
-        }
-
-
 class ApplicationSettings(Settings):
     """Settings that are constants and shouldn't be overriden"""
     def __init__(self):
@@ -268,6 +267,12 @@ class Config(DefaultSettings):
     def UI_ADDRESS(self):
         return "http://%s:%i" % (DEFAULT_SETTINGS.API_INTERFACE, self.api_port)
 
+    def get_dict(self):
+        return {k: self[k] for k in self}
+
+    def get_adjustable_settings_dict(self):
+        return {opt: val for opt, val in self.get_dict().iteritems() if opt in self.environ.original_schema}
+
     def ensure_data_dir(self):
         # although there is a risk of a race condition here we don't
         # expect there to be multiple processes accessing this
@@ -335,7 +340,8 @@ def load_settings(path):
 # or command line flag we don't want to persist it for future settings.
 def save_settings(path=None):
     path = path or settings.get_conf_filename()
-    to_save = {k: v for k, v in settings.__dict__.iteritems() if k in ADJUSTABLE_SETTINGS}
+    to_save = settings.get_adjustable_settings_dict()
+
     ext = os.path.splitext(path)[1]
     encoder = settings_encoders.get(ext, False)
     assert encoder is not False, "Unknown settings format .%s" % ext
diff --git a/lbrynet/lbrynet_daemon/Daemon.py b/lbrynet/lbrynet_daemon/Daemon.py
index b3109c771..4bd20222f 100644
--- a/lbrynet/lbrynet_daemon/Daemon.py
+++ b/lbrynet/lbrynet_daemon/Daemon.py
@@ -665,6 +665,7 @@ class Daemon(AuthJSONRPCServer):
                     except Exception as err:
                         log.warning(err.message)
                         log.warning("error converting setting '%s' to type %s", key, setting_type)
+        conf.save_settings()
 
         self.run_on_startup = conf.settings.run_on_startup
         self.data_rate = conf.settings.data_rate
@@ -1234,7 +1235,7 @@ class Daemon(AuthJSONRPCServer):
         """
 
         log.info("Get daemon settings")
-        return self._render_response(conf.settings.__dict__, OK_CODE)
+        return self._render_response(conf.settings.get_dict(), OK_CODE)
 
     @AuthJSONRPCServer.auth_required
     def jsonrpc_set_settings(self, p):
@@ -1255,12 +1256,12 @@ class Daemon(AuthJSONRPCServer):
         """
 
         def _log_settings_change():
-            log.info("Set daemon settings to " + json.dumps(conf.settings.configurable_settings))
+            log.info("Set daemon settings to " + json.dumps(conf.settings.get_adjustable_settings_dict()))
 
         d = self._update_settings(p)
         d.addErrback(lambda err: log.info(err.getTraceback()))
         d.addCallback(lambda _: _log_settings_change())
-        d.addCallback(lambda _: self._render_response(conf.settings.configurable_settings, OK_CODE))
+        d.addCallback(lambda _: self._render_response(conf.settings.get_adjustable_settings_dict(), OK_CODE))
 
         return d
 
diff --git a/tests/unit/test_conf.py b/tests/unit/test_conf.py
new file mode 100644
index 000000000..1cd9a2e7f
--- /dev/null
+++ b/tests/unit/test_conf.py
@@ -0,0 +1,36 @@
+import os
+
+from twisted.trial import unittest
+
+from lbrynet import conf
+
+
+class SettingsTest(unittest.TestCase):
+    def setUp(self):
+        os.environ['LBRY_TEST'] = 'test_string'
+
+    def tearDown(self):
+        del os.environ['LBRY_TEST']
+
+    def test_envvar_is_read(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        self.assertEqual('test_string', settings.test)
+
+    def test_setting_can_be_overriden(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        settings.test = 'my_override'
+        self.assertEqual('my_override', settings.test)
+
+    def test_setting_can_be_updated(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        settings.update({'test': 'my_update'})
+        self.assertEqual('my_update', settings.test)
+
+    def test_setting_is_in_dict(self):
+        env = conf.Env(test=(str, ''))
+        settings = conf.AdjustableSettings(env)
+        setting_dict = settings.get_dict()
+        self.assertEqual({'test': 'test_string'}, setting_dict)