diff --git a/LICENSE b/LICENSE
index c81a53e..c92664c 100644
--- a/LICENSE
+++ b/LICENSE
@@ -15,7 +15,7 @@ derives, entirely or substantially, from the functionality of the Software. Any
 license notice or attribution required by the License must also include this
 Commons Clause License Condition notice.
 
-Software: Hermes Phone
+Software: Dialtone
 License: MIT
 Licensor: JAN Labs
 
diff --git a/README.md b/README.md
index d2b8ffc..6181bb9 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,8 @@
 
 Dialtone is a framework-agnostic VoIP/IVR service that connects any AI agent to a real phone number via Twilio. Your agent handles incoming calls, makes outbound calls, manages voicemails, and more — with pluggable STT, TTS, and LLM backends. Works on macOS, Linux, and Windows/WSL2.
 
+> **Offline by default** — a fresh install runs a local LLM (Ollama, auto-sized to your Mac's RAM) plus local voice (mlx-whisper STT + Kokoro TTS on Apple Silicon), so you need **no API keys except Twilio**. Point `AGENT_PROVIDER` at Hermes Gateway or any cloud provider whenever you like.
+
 ---
 
 ## Built on Hermes Agent
@@ -29,7 +31,7 @@ HERMES_GATEWAY_TOKEN=your-hermes-key
 HERMES_MODEL_OVERRIDE=               # empty = use agent's default model
 ```
 
-When `AGENT_PROVIDER` is set to `hermes-gateway` or left on `auto`, Dialtone automatically detects and connects to a running Hermes Gateway instance.
+Set `AGENT_PROVIDER=hermes-gateway` (or `auto`, which tries Hermes first) and Dialtone detects and connects to a running Hermes Gateway instance.
 
 **Not a Hermes user?** No problem — Dialtone works with any framework. Read on.
 
@@ -75,7 +77,7 @@ Dialtone is framework-agnostic. Plug in any AI agent or LLM:
 | **Xiaomi MiMo** | `xiaomi` | MiMo 2.5 reasoning model, free tier available |
 | **Any OpenAI-compat** | `openai-compat` | Set base URL + API key + model name |
 
-**Auto-detection:** When `AGENT_PROVIDER=auto` (default), Dialtone tries Hermes Gateway first, then falls back to direct LLM calls, then a no-op fallback.
+**Auto-detection:** When `AGENT_PROVIDER=auto`, Dialtone tries Hermes Gateway first, then falls back to direct LLM calls, then a no-op fallback. (The out-of-the-box default is `ollama` — fully offline, no API key.)
 
 **How it works:** Each backend implements the same `AgentBackend` interface:
 - `health_check()` — is the backend reachable?
@@ -144,10 +146,10 @@ Adding a new backend? Create a file in `agents/` and register it in the factory.
 - Export: ZIP (audio + metadata + transcripts) or plain text
 
 **Web Dashboard (port 5051)**
-- Dark theme, mobile-friendly design
+- Light & dark theme, mobile-friendly design
 - Stats overview (total voicemails, recent activity)
 - Voicemail manager with playback and transcription
-- Outbound call form
+- Phone dialpad for outbound calls
 - Full settings panel — all `.env` options configurable via UI
 - Provider discovery: browse and install STT/TTS/LLM providers
 - Model discovery: fetch available models from Hermes, Ollama, LM Studio, OpenRouter
@@ -205,13 +207,13 @@ Install under WSL2 using the Linux instructions above. Access the web dashboard
 
 ## Configuration
 
-All settings live in `~/.hermes/phone-agent/.env` and can be changed via the web dashboard (`/settings.html`) or the macOS native settings panel.
+All settings live in `~/.hermes-phone/.env` and can be changed via the web dashboard (`/settings.html`) or the macOS native settings panel.
 
 ### Agent Backend
 
 ```bash
-# Choose your backend (default: auto-detect)
-AGENT_PROVIDER=auto              # auto | hermes-gateway | openai | openrouter | ollama | lmstudio | xiaomi | openai-compat
+# Choose your backend (default: ollama — fully offline, no API key)
+AGENT_PROVIDER=ollama            # ollama | hermes-gateway | openai | openrouter | lmstudio | xiaomi | openai-compat | auto
 
 # Hermes Gateway
 HERMES_GATEWAY_URL=http://127.0.0.1:8642
diff --git a/menubar.py b/menubar.py
index 9ebf169..5526d77 100644
--- a/menubar.py
+++ b/menubar.py
@@ -1,5 +1,5 @@
 """
-Hermes Phone — macOS Menu Bar App
+Dialtone — macOS Menu Bar App
 
 Single phone icon that changes color:
   🟢 = server running
@@ -95,7 +95,7 @@ class PhoneMenuBar(rumps.App):
     def __init__(self):
         # Start with red icon (not running)
         icon = ICON_RED if Path(ICON_RED).exists() else None
-        super().__init__(name="Hermes Phone", title="", icon=icon, quit_button=None)
+        super().__init__(name="Dialtone", title="", icon=icon, quit_button=None)
         self.running = False
         self.voicemails = []
         self.health_data = {}
@@ -174,7 +174,7 @@ def start_server(self, _):
         try:
             r = requests.get(HEALTH_URL, timeout=2)
             if r.status_code == 200:
-                rumps.notification("Hermes Phone", "", "Server already running")
+                rumps.notification("Dialtone", "", "Server already running")
                 return
         except:
             pass
@@ -188,11 +188,11 @@ def start_server(self, _):
                 stdout=log,
                 stderr=log,
             )
-        rumps.notification("Hermes Phone", "", "Server starting...")
+        rumps.notification("Dialtone", "", "Server starting...")
 
     def stop_server(self, _):
         subprocess.run(["pkill", "-f", "server.py"], capture_output=True)
-        rumps.notification("Hermes Phone", "", "Server stopped")
+        rumps.notification("Dialtone", "", "Server stopped")
 
     def restart_server(self, _):
         self.stop_server(_)
@@ -213,11 +213,11 @@ def make_call(self, _):
             try:
                 r = requests.post(CALL_URL, json={"to": response.text}, headers=api_headers(), timeout=10)
                 if r.status_code == 200:
-                    rumps.notification("Hermes Phone", "", f"Calling {response.text}...")
+                    rumps.notification("Dialtone", "", f"Calling {response.text}...")
                 else:
-                    rumps.notification("Hermes Phone", "", f"Call failed: {r.json().get('error', 'unknown')}")
+                    rumps.notification("Dialtone", "", f"Call failed: {r.json().get('error', 'unknown')}")
             except Exception as e:
-                rumps.notification("Hermes Phone", "", f"Call failed: {e}")
+                rumps.notification("Dialtone", "", f"Call failed: {e}")
 
     def open_settings(self, _):
         """Open native macOS settings window."""
diff --git a/server.py b/server.py
index c530d35..b1d83e6 100644
--- a/server.py
+++ b/server.py
@@ -1,5 +1,5 @@
 """
-Hermes Phone — AI-powered VoIP server for macOS.
+Dialtone — AI-powered VoIP server for macOS.
 
 Architecture:
   Twilio (audio) → WebSocket → Deepgram (STT) → Hermes Agent (LLM + tools + memory) → TTS → Twilio
@@ -267,7 +267,7 @@ def get_auth_headers():
 LOGIN_HTML = """<!DOCTYPE html>
 <html lang="en"><head>
 <meta charset="UTF-8"><meta name="viewport" content="width=device-width,initial-scale=1">
-<title>📞 Hermes Phone — Login</title>
+<title>📞 Dialtone — Login</title>
 <style>
 *{margin:0;padding:0;box-sizing:border-box}
 body{font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',sans-serif;background:#0a0a0a;color:#e0e0e0;min-height:100vh;display:flex;align-items:center;justify-content:center}
@@ -284,7 +284,7 @@ def get_auth_headers():
 .hint{text-align:center;color:#555;font-size:12px;margin-top:16px}
 </style></head><body>
 <div class="login-card">
-<h1>📞 Hermes Phone</h1>
+<h1>📞 Dialtone</h1>
 <div class="sub">Enter your dashboard token</div>
 <div class="error" id="error">Invalid token</div>
 <form onsubmit="return doLogin(event)">
@@ -1207,7 +1207,7 @@ def export_zip():
 @dashboard_app.route("/export/transcripts", methods=["GET"])
 def export_transcripts():
     voicemails = load_voicemails()
-    lines = [f"Hermes Phone — Voicemail Transcripts", f"Exported: {datetime.now().isoformat()}", "=" * 50, ""]
+    lines = [f"Dialtone — Voicemail Transcripts", f"Exported: {datetime.now().isoformat()}", "=" * 50, ""]
     for vm in voicemails:
         caller = vm.get("from", "unknown").replace("+", "")
         lines.append(f"From: {caller}")