diff --git a/config/default_config.yaml b/config/default_config.yaml
index c4e8f81..8d5b119 100644
--- a/config/default_config.yaml
+++ b/config/default_config.yaml
@@ -42,7 +42,7 @@ transcription:
 
 server_sync:
   enabled: false
-  url: "http://localhost:3000/api/send"
+  url: ""
   room: "default"
   passphrase: ""
   # Font settings are now in the display section (shared for local and server sync)
@@ -69,7 +69,7 @@ web_server:
   host: "127.0.0.1"
 
 remote:
-  mode: local  # local | managed | byok
+  mode: byok  # local | managed | byok
   server_url: ""  # Proxy server URL for managed mode (e.g., wss://your-proxy.com)
   auth_token: ""  # JWT stored after login (managed mode)
   byok_api_key: ""  # Deepgram API key for BYOK mode
diff --git a/server/nodejs/server.js b/server/nodejs/server.js
index 0b56431..2ba5a64 100644
--- a/server/nodejs/server.js
+++ b/server/nodejs/server.js
@@ -703,6 +703,36 @@ app.post('/api/send', async (req, res) => {
     }
 });
 
+// Create room explicitly (no transcription needed)
+app.post('/api/create-room', async (req, res) => {
+    try {
+        const { room, passphrase } = req.body;
+
+        if (!room || !passphrase) {
+            return res.status(400).json({ error: 'Missing room or passphrase' });
+        }
+
+        // Check if room already exists
+        const existing = await loadRoom(room);
+        if (existing) {
+            const valid = await verifyPassphrase(room, passphrase);
+            if (!valid) {
+                return res.status(401).json({ error: 'Room exists with different passphrase' });
+            }
+            return res.json({ status: 'ok', room, created: false, message: 'Room already exists' });
+        }
+
+        // Create the room (verifyPassphrase creates it if it doesn't exist)
+        await verifyPassphrase(room, passphrase);
+
+        console.log(`[Room] Created room "${room}"`);
+        res.json({ status: 'ok', room, created: true });
+    } catch (err) {
+        console.error('Error in /api/create-room:', err);
+        res.status(500).json({ error: err.message });
+    }
+});
+
 // List transcriptions
 app.get('/api/list', async (req, res) => {
     try {
diff --git a/src-tauri/Cargo.lock b/src-tauri/Cargo.lock
index d096ba7..388fdaf 100644
--- a/src-tauri/Cargo.lock
+++ b/src-tauri/Cargo.lock
@@ -1881,7 +1881,7 @@ checksum = "92daf443525c4cce67b150400bc2316076100ce0b3686209eb8cf3c31612e6f0"
 
 [[package]]
 name = "local-transcription"
-version = "2.0.8"
+version = "2.0.12"
 dependencies = [
  "bytes",
  "chrono",
diff --git a/src/lib/components/Controls.svelte b/src/lib/components/Controls.svelte
index 296f465..fec78ba 100644
--- a/src/lib/components/Controls.svelte
+++ b/src/lib/components/Controls.svelte
@@ -1,5 +1,6 @@
 <script lang="ts">
   import { backendStore } from "$lib/stores/backend";
+  import { configStore } from "$lib/stores/config";
   import { transcriptionStore } from "$lib/stores/transcriptions";
 
   let isTranscribing = $derived(backendStore.appState === "transcribing");
@@ -8,6 +9,16 @@
   );
   let isLoading = $state(false);
 
+  let remoteMode = $derived(configStore.config.remote.mode);
+  let byokApiKey = $derived(configStore.config.remote.byok_api_key);
+  let authToken = $derived(configStore.config.remote.auth_token);
+
+  let cloudConfigured = $derived(
+    remoteMode === "local" ||
+    (remoteMode === "byok" && byokApiKey.trim() !== "") ||
+    (remoteMode === "managed" && authToken.trim() !== "")
+  );
+
   let errorMessage = $state("");
 
   async function toggleTranscription() {
@@ -94,7 +105,7 @@
   <button
     class={isTranscribing ? "danger" : "primary"}
     onclick={toggleTranscription}
-    disabled={!isReady || isLoading}
+    disabled={!isReady || isLoading || !cloudConfigured}
   >
     {#if isLoading}
       ...
@@ -116,6 +127,18 @@
   {#if errorMessage}
     <span class="error-msg">{errorMessage}</span>
   {/if}
+
+  {#if !cloudConfigured && isReady}
+    <div class="cloud-warning">
+      {#if remoteMode === "byok"}
+        <span>API key required. Get one at
+          <a href="https://console.deepgram.com" target="_blank" rel="noopener">console.deepgram.com</a>,
+          then enter it in Settings.</span>
+      {:else if remoteMode === "managed"}
+        <span>Login required. Open Settings to log in.</span>
+      {/if}
+    </div>
+  {/if}
 </div>
 
 <style>
@@ -125,6 +148,18 @@
     margin-left: 8px;
   }
 
+  .cloud-warning {
+    font-size: 12px;
+    color: #ff9800;
+    margin-left: 8px;
+    flex: 1;
+  }
+
+  .cloud-warning a {
+    color: #4fc3f7;
+    text-decoration: underline;
+  }
+
   .controls {
     display: flex;
     align-items: center;
diff --git a/src/lib/components/Settings.svelte b/src/lib/components/Settings.svelte
index 61ef45f..b40d679 100644
--- a/src/lib/components/Settings.svelte
+++ b/src/lib/components/Settings.svelte
@@ -46,6 +46,14 @@
   let managedPassword = $state("");
   let autoCheckUpdates = $state(true);
 
+  let isCloudMode = $derived(remoteMode === "managed" || remoteMode === "byok");
+
+  // Room creation / join state
+  let shareCode = $state("");
+  let joinCode = $state("");
+  let roomCreating = $state(false);
+  let roomCreateMessage = $state("");
+
   let saving = $state(false);
   let saveMessage = $state("");
 
@@ -266,6 +274,99 @@
     }
   }
 
+  const CAPTION_SERVER = "https://caption.shadowdao.com";
+
+  function generateRandomName(): string {
+    const adjectives = ['swift', 'bright', 'cosmic', 'electric', 'turbo', 'mega', 'ultra', 'super', 'hyper', 'alpha'];
+    const nouns = ['phoenix', 'dragon', 'tiger', 'falcon', 'comet', 'storm', 'blaze', 'thunder', 'frost', 'nebula'];
+    const num = Math.floor(Math.random() * 10000);
+    return `${adjectives[Math.floor(Math.random() * adjectives.length)]}-${nouns[Math.floor(Math.random() * nouns.length)]}-${num}`;
+  }
+
+  function generateRandomPassphrase(): string {
+    const chars = 'abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ0123456789';
+    let result = '';
+    for (let i = 0; i < 16; i++) {
+      result += chars.charAt(Math.floor(Math.random() * chars.length));
+    }
+    return result;
+  }
+
+  function encodeShareCode(url: string, room: string, passphrase: string): string {
+    return btoa(JSON.stringify({ url, room, passphrase }));
+  }
+
+  function decodeShareCode(code: string): { url: string; room: string; passphrase: string } | null {
+    try {
+      const json = JSON.parse(atob(code.trim()));
+      if (json.url && json.room && json.passphrase) {
+        return json;
+      }
+      return null;
+    } catch {
+      return null;
+    }
+  }
+
+  async function handleCreateRoom() {
+    roomCreating = true;
+    roomCreateMessage = "";
+    shareCode = "";
+
+    const room = generateRandomName();
+    const passphrase = generateRandomPassphrase();
+    const serverSendUrl = `${CAPTION_SERVER}/api/send`;
+
+    try {
+      const resp = await fetch(`${CAPTION_SERVER}/api/create-room`, {
+        method: "POST",
+        headers: { "Content-Type": "application/json" },
+        body: JSON.stringify({ room, passphrase }),
+      });
+
+      if (!resp.ok) {
+        const err = await resp.json().catch(() => ({ error: "Request failed" }));
+        roomCreateMessage = `Error: ${err.error || resp.statusText}`;
+        return;
+      }
+
+      syncUrl = serverSendUrl;
+      syncRoom = room;
+      syncPassphrase = passphrase;
+      syncEnabled = true;
+
+      shareCode = encodeShareCode(serverSendUrl, room, passphrase);
+      roomCreateMessage = "Room created! Share the code below with others.";
+    } catch (err) {
+      roomCreateMessage = `Error: ${err instanceof Error ? err.message : String(err)}`;
+    } finally {
+      roomCreating = false;
+    }
+  }
+
+  function handleJoinRoom() {
+    const decoded = decodeShareCode(joinCode);
+    if (!decoded) {
+      roomCreateMessage = "Invalid share code. Please check and try again.";
+      return;
+    }
+    syncUrl = decoded.url;
+    syncRoom = decoded.room;
+    syncPassphrase = decoded.passphrase;
+    syncEnabled = true;
+    joinCode = "";
+    roomCreateMessage = "Room joined! Fields have been auto-filled.";
+  }
+
+  async function copyShareCode() {
+    try {
+      await navigator.clipboard.writeText(shareCode);
+      roomCreateMessage = "Share code copied to clipboard!";
+    } catch {
+      roomCreateMessage = "Failed to copy. Please select and copy manually.";
+    }
+  }
+
   function handleOverlayClick(e: MouseEvent) {
     if ((e.target as HTMLElement).classList.contains("settings-overlay")) {
       handleCancel();
@@ -327,7 +428,90 @@
         </div>
       </section>
 
-      <!-- Transcription Settings -->
+      <!-- Remote Transcription (moved up for cloud-first UX) -->
+      <section class="settings-section">
+        <h3>Transcription Mode</h3>
+        <div class="radio-group">
+          <label>
+            <input
+              type="radio"
+              name="remote-mode"
+              value="byok"
+              bind:group={remoteMode}
+            />
+            Cloud (Deepgram)
+          </label>
+          <label>
+            <input
+              type="radio"
+              name="remote-mode"
+              value="managed"
+              bind:group={remoteMode}
+            />
+            Managed Service
+          </label>
+          <label>
+            <input
+              type="radio"
+              name="remote-mode"
+              value="local"
+              bind:group={remoteMode}
+            />
+            Local (Whisper)
+          </label>
+        </div>
+        {#if remoteMode === "byok"}
+          <div class="field">
+            <label for="byok-key">Deepgram API Key</label>
+            <input
+              id="byok-key"
+              type="password"
+              bind:value={byokApiKey}
+              placeholder="Enter your Deepgram API key"
+            />
+            <p style="font-size: 11px; color: var(--text-muted); margin-top: 4px;">
+              Get a key at <a href="https://console.deepgram.com" target="_blank" rel="noopener" style="color: var(--accent-blue);">console.deepgram.com</a>
+            </p>
+          </div>
+        {/if}
+        {#if remoteMode === "managed"}
+          <div class="field">
+            <label for="remote-url">Server URL</label>
+            <input
+              id="remote-url"
+              type="url"
+              bind:value={remoteServerUrl}
+              placeholder="wss://your-proxy.com"
+            />
+          </div>
+          <div class="managed-auth">
+            <div class="field">
+              <label for="managed-email">Email</label>
+              <input
+                id="managed-email"
+                type="email"
+                bind:value={managedEmail}
+                placeholder="email@example.com"
+              />
+            </div>
+            <div class="field">
+              <label for="managed-password">Password</label>
+              <input
+                id="managed-password"
+                type="password"
+                bind:value={managedPassword}
+              />
+            </div>
+            <div class="auth-buttons">
+              <button onclick={handleManagedLogin}>Login</button>
+              <button onclick={handleManagedRegister}>Register</button>
+            </div>
+          </div>
+        {/if}
+      </section>
+
+      {#if !isCloudMode}
+      <!-- Transcription Settings (local Whisper only) -->
       <section class="settings-section">
         <h3>Transcription Settings</h3>
         <div class="field">
@@ -473,6 +657,7 @@
           />
         </div>
       </section>
+      {/if}
 
       <!-- Display Settings -->
       <section class="settings-section">
@@ -628,11 +813,11 @@
         </div>
       </section>
 
-      <!-- Server Sync -->
+      <!-- Server Sync (Shared Captions) -->
       <section class="settings-section">
-        <h3>Server Sync</h3>
+        <h3>Shared Captions</h3>
         <div class="field-row">
-          <label for="sync-enabled">Enable Server Sync</label>
+          <label for="sync-enabled">Enable Shared Captions</label>
           <input
             id="sync-enabled"
             type="checkbox"
@@ -640,13 +825,48 @@
           />
         </div>
         {#if syncEnabled}
+          <div class="room-actions">
+            <button
+              onclick={handleCreateRoom}
+              disabled={roomCreating}
+              class="secondary"
+            >
+              {roomCreating ? "Creating..." : "Create Room"}
+            </button>
+            <div class="join-row">
+              <input
+                type="text"
+                bind:value={joinCode}
+                placeholder="Paste share code to join"
+                class="join-input"
+              />
+              <button onclick={handleJoinRoom} disabled={!joinCode.trim()} class="secondary">
+                Join
+              </button>
+            </div>
+          </div>
+
+          {#if roomCreateMessage}
+            <p class="room-message" class:error={roomCreateMessage.startsWith("Error")}>{roomCreateMessage}</p>
+          {/if}
+
+          {#if shareCode}
+            <div class="share-code-box">
+              <label>Share Code</label>
+              <div class="share-code-row">
+                <input type="text" value={shareCode} readonly class="share-code-input" />
+                <button onclick={copyShareCode} class="secondary">Copy</button>
+              </div>
+            </div>
+          {/if}
+
           <div class="field">
             <label for="sync-url">Server URL</label>
             <input
               id="sync-url"
               type="url"
               bind:value={syncUrl}
-              placeholder="http://localhost:3000/api/send"
+              placeholder="https://caption.shadowdao.com/api/send"
             />
           </div>
           <div class="field">
@@ -664,90 +884,6 @@
         {/if}
       </section>
 
-      <!-- Remote Transcription -->
-      <section class="settings-section">
-        <h3>Remote Transcription</h3>
-        <div class="radio-group">
-          <label>
-            <input
-              type="radio"
-              name="remote-mode"
-              value="local"
-              bind:group={remoteMode}
-            />
-            Local
-          </label>
-          <label>
-            <input
-              type="radio"
-              name="remote-mode"
-              value="managed"
-              bind:group={remoteMode}
-            />
-            Managed
-          </label>
-          <label>
-            <input
-              type="radio"
-              name="remote-mode"
-              value="byok"
-              bind:group={remoteMode}
-            />
-            BYOK (Bring Your Own Key)
-          </label>
-        </div>
-        {#if remoteMode === "managed"}
-          <div class="field">
-            <label for="remote-url">Server URL</label>
-            <input
-              id="remote-url"
-              type="url"
-              bind:value={remoteServerUrl}
-              placeholder="wss://your-proxy.com"
-            />
-          </div>
-        {/if}
-        {#if remoteMode === "byok"}
-          <div class="field">
-            <label for="byok-key">Deepgram API Key</label>
-            <input
-              id="byok-key"
-              type="password"
-              bind:value={byokApiKey}
-              placeholder="Enter your Deepgram API key"
-            />
-            <p style="font-size: 11px; color: var(--text-muted); margin-top: 4px;">
-              Get a key at <a href="https://console.deepgram.com" target="_blank" rel="noopener" style="color: var(--accent-blue);">console.deepgram.com</a>
-            </p>
-          </div>
-        {/if}
-        {#if remoteMode === "managed"}
-          <div class="managed-auth">
-            <div class="field">
-              <label for="managed-email">Email</label>
-              <input
-                id="managed-email"
-                type="email"
-                bind:value={managedEmail}
-                placeholder="email@example.com"
-              />
-            </div>
-            <div class="field">
-              <label for="managed-password">Password</label>
-              <input
-                id="managed-password"
-                type="password"
-                bind:value={managedPassword}
-              />
-            </div>
-            <div class="auth-buttons">
-              <button onclick={handleManagedLogin}>Login</button>
-              <button onclick={handleManagedRegister}>Register</button>
-            </div>
-          </div>
-        {/if}
-      </section>
-
       <!-- Updates -->
       <section class="settings-section">
         <h3>Updates</h3>
@@ -943,6 +1079,73 @@
     color: #f44336;
   }
 
+  .room-actions {
+    display: flex;
+    flex-direction: column;
+    gap: 8px;
+    margin-bottom: 12px;
+  }
+
+  .join-row {
+    display: flex;
+    gap: 8px;
+  }
+
+  .join-input {
+    flex: 1;
+  }
+
+  .room-message {
+    font-size: 12px;
+    color: #4CAF50;
+    margin-bottom: 8px;
+  }
+
+  .room-message.error {
+    color: #f44336;
+  }
+
+  .share-code-box {
+    margin-bottom: 12px;
+  }
+
+  .share-code-box label {
+    display: block;
+    margin-bottom: 4px;
+    font-size: 12px;
+    color: var(--text-secondary);
+  }
+
+  .share-code-row {
+    display: flex;
+    gap: 8px;
+  }
+
+  .share-code-input {
+    flex: 1;
+    font-size: 11px;
+    font-family: monospace;
+  }
+
+  .secondary {
+    background: transparent;
+    border: 1px solid var(--border-color);
+    color: var(--text-primary);
+    padding: 6px 12px;
+    border-radius: 6px;
+    cursor: pointer;
+    font-size: 13px;
+  }
+
+  .secondary:hover {
+    background: var(--bg-tertiary);
+  }
+
+  .secondary:disabled {
+    opacity: 0.5;
+    cursor: not-allowed;
+  }
+
   .danger-btn {
     background: transparent;
     border: 1px solid var(--accent-red, #f44336);
diff --git a/src/lib/stores/config.svelte.ts b/src/lib/stores/config.svelte.ts
index 9312bba..0f70229 100644
--- a/src/lib/stores/config.svelte.ts
+++ b/src/lib/stores/config.svelte.ts
@@ -107,7 +107,7 @@ function getDefaultConfig(): AppConfig {
     },
     server_sync: {
       enabled: false,
-      url: "http://localhost:3000/api/send",
+      url: "",
       room: "default",
       passphrase: "",
     },
@@ -128,7 +128,7 @@ function getDefaultConfig(): AppConfig {
     },
     web_server: { port: 8080, host: "127.0.0.1" },
     remote: {
-      mode: "local",
+      mode: "byok",
       server_url: "",
       auth_token: "",
       byok_api_key: "",