diff --git a/core/cmd/init/BUILD.bazel b/core/cmd/init/BUILD.bazel
index afe4a39..e8e55dc 100644
--- a/core/cmd/init/BUILD.bazel
+++ b/core/cmd/init/BUILD.bazel
@@ -8,6 +8,7 @@
     deps = [
         "//core/internal/network:go_default_library",
         "//core/internal/node:go_default_library",
+        "//core/internal/storage:go_default_library",
         "//core/pkg/tpm:go_default_library",
         "@org_golang_x_sys//unix:go_default_library",
         "@org_uber_go_zap//:go_default_library",
diff --git a/core/cmd/init/main.go b/core/cmd/init/main.go
index 2219a35..82ba033 100644
--- a/core/cmd/init/main.go
+++ b/core/cmd/init/main.go
@@ -17,6 +17,7 @@
 package main
 
 import (
+	"context"
 	"fmt"
 	"os"
 	"os/signal"
@@ -24,6 +25,7 @@
 
 	"git.monogon.dev/source/nexantic.git/core/internal/network"
 	"git.monogon.dev/source/nexantic.git/core/internal/node"
+	"git.monogon.dev/source/nexantic.git/core/internal/storage"
 	"git.monogon.dev/source/nexantic.git/core/pkg/tpm"
 
 	"go.uber.org/zap"
@@ -36,6 +38,7 @@
 )
 
 func main() {
+	ctx := context.Background()
 	defer func() {
 		if r := recover(); r != nil {
 			fmt.Println("Init panicked:", r)
@@ -76,6 +79,11 @@
 		logger.Panic("Failed to initialize TPM 2.0", zap.Error(err))
 	}
 
+	storageManager, err := storage.Initialize(logger.With(zap.String("component", "storage")))
+	if err != nil {
+		panic(err)
+	}
+
 	networkSvc, err := network.NewNetworkService(network.Config{}, logger.With(zap.String("component", "network")))
 	if err != nil {
 		panic(err)
@@ -85,12 +93,12 @@
 		logger.Panic("Failed to start network service", zap.Error(err))
 	}
 
-	nodeInstance, err := node.NewSmalltownNode(logger)
+	nodeInstance, err := node.NewSmalltownNode(logger, networkSvc, storageManager)
 	if err != nil {
 		panic(err)
 	}
 
-	err = nodeInstance.Start()
+	err = nodeInstance.Start(ctx)
 	if err != nil {
 		panic(err)
 	}
diff --git a/core/internal/common/service/service.go b/core/internal/common/service/service.go
index e093ff6..1cbedbe 100644
--- a/core/internal/common/service/service.go
+++ b/core/internal/common/service/service.go
@@ -17,9 +17,11 @@
 package service
 
 import (
+	"context"
 	"errors"
-	"go.uber.org/zap"
 	"sync"
+
+	"go.uber.org/zap"
 )
 
 var (
@@ -43,6 +45,16 @@
 
 		mutex   sync.Mutex
 		running bool
+
+		// A context that represents the lifecycle of a service.
+		// It is created right before impl.OnStart, and canceled
+		// right after impl.OnStop is.
+		// This is a transition mechanism from moving from OnStart/OnStop
+		// based lifecycle management of services to a context-based supervision
+		// tree.
+		// Service implementations should access this via .Context()
+		ctx  *context.Context
+		ctxC *context.CancelFunc
 	}
 )
 
@@ -51,6 +63,8 @@
 		Logger: logger,
 		name:   name,
 		impl:   impl,
+		ctx:    nil,
+		ctxC:   nil,
 	}
 }
 
@@ -63,6 +77,10 @@
 		return ErrAlreadyRunning
 	}
 
+	ctx, ctxC := context.WithCancel(context.Background())
+	b.ctx = &ctx
+	b.ctxC = &ctxC
+
 	err := b.impl.OnStart()
 	if err != nil {
 		b.Logger.Error("Failed to start service", zap.String("service", b.name), zap.Error(err))
@@ -83,7 +101,7 @@
 		return ErrNotRunning
 	}
 
-	err := b.impl.OnStart()
+	err := b.impl.OnStop()
 	if err != nil {
 		b.Logger.Error("Failed to stop service", zap.String("service", b.name), zap.Error(err))
 
@@ -91,6 +109,12 @@
 	}
 
 	b.running = false
+
+	// Kill context
+	(*b.ctxC)()
+	b.ctx = nil
+	b.ctxC = nil
+
 	b.Logger.Info("Stopped service", zap.String("service", b.name))
 	return nil
 }
@@ -102,3 +126,12 @@
 
 	return b.running
 }
+
+// Context returns a context that can be used within OnStart() to create new
+// lightweight subservices that use a context for lifecycle management.
+// This is a transition measure before the Service library is rewritten to use
+// a more advanced context-and-returned-error supervision tree.
+// This context can also be used for blocking operations like IO, etc.
+func (b *BaseService) Context() context.Context {
+	return *b.ctx
+}
diff --git a/core/internal/network/BUILD.bazel b/core/internal/network/BUILD.bazel
index 3208ea8..78e4885 100644
--- a/core/internal/network/BUILD.bazel
+++ b/core/internal/network/BUILD.bazel
@@ -2,7 +2,10 @@
 
 go_library(
     name = "go_default_library",
-    srcs = ["main.go"],
+    srcs = [
+        "dhcp.go",
+        "main.go",
+    ],
     importpath = "git.monogon.dev/source/nexantic.git/core/internal/network",
     visibility = ["//:__subpackages__"],
     deps = [
diff --git a/core/internal/network/dhcp.go b/core/internal/network/dhcp.go
new file mode 100644
index 0000000..f3f25aa
--- /dev/null
+++ b/core/internal/network/dhcp.go
@@ -0,0 +1,116 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package network
+
+import (
+	"context"
+
+	"github.com/insomniacslk/dhcp/dhcpv4"
+	"github.com/insomniacslk/dhcp/dhcpv4/nclient4"
+	"github.com/vishvananda/netlink"
+	"go.uber.org/zap"
+)
+
+type dhcpClient struct {
+	reqC   chan *dhcpStatusReq
+	logger *zap.Logger
+}
+
+func newDHCPClient(logger *zap.Logger) *dhcpClient {
+	return &dhcpClient{
+		logger: logger,
+		reqC:   make(chan *dhcpStatusReq),
+	}
+}
+
+type dhcpStatusReq struct {
+	resC chan *dhcpv4.DHCPv4
+	wait bool
+}
+
+func (r *dhcpStatusReq) fulfill(p *dhcpv4.DHCPv4) {
+	go func() {
+		r.resC <- p
+	}()
+}
+
+func (c *dhcpClient) run(ctx context.Context, iface netlink.Link) {
+	// Channel updated with address once one gets assigned/updated
+	newC := make(chan *dhcpv4.DHCPv4)
+	// Status requests waiting for configuration
+	waiters := []*dhcpStatusReq{}
+
+	// Start lease acquisition
+	// TODO(q3k): actually maintain the lease instead of hoping we never get
+	// kicked off.
+	client, err := nclient4.New(iface.Attrs().Name)
+	if err != nil {
+		panic(err)
+	}
+	go func() {
+		_, ack, err := client.Request(ctx)
+		if err != nil {
+			c.logger.Error("DHCP lease request failed", zap.Error(err))
+			// TODO(q3k): implement retry logic with full state machine
+		}
+		newC <- ack
+	}()
+
+	// State machine
+	// Two implicit states: WAITING -> ASSIGNED
+	// We start at WAITING, once we get a current config we move to ASSIGNED
+	// Once this becomes more complex (ie. has to handle link state changes)
+	// this should grow into a real state machine.
+	var current *dhcpv4.DHCPv4
+	c.logger.Info("DHCP client WAITING")
+	for {
+		select {
+		case <-ctx.Done():
+			// TODO(q3k): don't leave waiters hanging
+			return
+
+		case cfg := <-newC:
+			current = cfg
+			c.logger.Info("DHCP client ASSIGNED", zap.String("ip", current.String()))
+			for _, w := range waiters {
+				w.fulfill(current)
+			}
+			waiters = []*dhcpStatusReq{}
+
+		case r := <-c.reqC:
+			if current != nil || !r.wait {
+				r.fulfill(current)
+			} else {
+				waiters = append(waiters, r)
+			}
+		}
+	}
+}
+
+func (c *dhcpClient) status(ctx context.Context, wait bool) (*dhcpv4.DHCPv4, error) {
+	resC := make(chan *dhcpv4.DHCPv4)
+	c.reqC <- &dhcpStatusReq{
+		resC: resC,
+		wait: wait,
+	}
+	select {
+	case <-ctx.Done():
+		return nil, ctx.Err()
+	case r := <-resC:
+		return r, nil
+	}
+}
diff --git a/core/internal/network/main.go b/core/internal/network/main.go
index 04ab159..7c22249 100644
--- a/core/internal/network/main.go
+++ b/core/internal/network/main.go
@@ -21,13 +21,9 @@
 	"fmt"
 	"net"
 	"os"
-	"sync"
-	"time"
 
 	"git.monogon.dev/source/nexantic.git/core/internal/common/service"
 
-	"github.com/insomniacslk/dhcp/dhcpv4"
-	"github.com/insomniacslk/dhcp/dhcpv4/nclient4"
 	"github.com/vishvananda/netlink"
 	"go.uber.org/zap"
 	"golang.org/x/sys/unix"
@@ -40,11 +36,9 @@
 
 type Service struct {
 	*service.BaseService
-	config      Config
-	dhcp4Client *nclient4.Client
-	ip          *net.IP
-	ipNotify    chan struct{}
-	lock        sync.Mutex
+	config Config
+
+	dhcp *dhcpClient
 }
 
 type Config struct {
@@ -52,8 +46,8 @@
 
 func NewNetworkService(config Config, logger *zap.Logger) (*Service, error) {
 	s := &Service{
-		config:   config,
-		ipNotify: make(chan struct{}),
+		config: config,
+		dhcp:   newDHCPClient(logger),
 	}
 	s.BaseService = service.NewBaseService("network", logger, s)
 	return s, nil
@@ -91,79 +85,36 @@
 		Gw:    gw,
 		Scope: netlink.SCOPE_UNIVERSE,
 	}); err != nil {
-		return fmt.Errorf("Failed to add default route: %w", err)
+		return fmt.Errorf("failed to add default route: %w", err)
 	}
 	return nil
 }
 
-const (
-	stateInitialize = 1
-	stateSelect     = 2
-	stateBound      = 3
-	stateRenew      = 4
-	stateRebind     = 5
-)
+func (s *Service) useInterface(iface netlink.Link) error {
+	go s.dhcp.run(s.Context(), iface)
 
-var dhcpBroadcastAddr = &net.UDPAddr{IP: net.IP{255, 255, 255, 255}, Port: 67}
-
-// TODO(lorenz): This is a super terrible DHCP client, but it works for QEMU slirp
-func (s *Service) dhcpClient(iface netlink.Link) error {
-	client, err := nclient4.New(iface.Attrs().Name)
+	status, err := s.dhcp.status(s.Context(), true)
 	if err != nil {
-		panic(err)
-	}
-	var ack *dhcpv4.DHCPv4
-	for {
-		dhcpCtx, dhcpCtxCancel := context.WithTimeout(context.Background(), 10*time.Second)
-		defer dhcpCtxCancel()
-		_, ack, err = client.Request(dhcpCtx)
-		if err == nil {
-			break
-		}
-		s.Logger.Info("DHCP request failed", zap.Error(err))
-	}
-	s.Logger.Info("Network service got IP", zap.String("ip", ack.YourIPAddr.String()))
-	if err := setResolvconf(ack.DNS(), []string{}); err != nil {
-		s.Logger.Warn("Failed to set resolvconf", zap.Error(err))
+		return fmt.Errorf("could not get DHCP status: %v", err)
 	}
 
-	s.lock.Lock()
-	s.ip = &ack.YourIPAddr
-	s.lock.Unlock()
-loop:
-	for {
-		select {
-		case s.ipNotify <- struct{}{}:
-		default:
-			break loop
-		}
+	if err := setResolvconf(status.DNS(), []string{}); err != nil {
+		s.Logger.Warn("failed to set resolvconf", zap.Error(err))
 	}
 
-	if err := addNetworkRoutes(iface, net.IPNet{IP: ack.YourIPAddr, Mask: ack.SubnetMask()}, ack.GatewayIPAddr); err != nil {
-		s.Logger.Warn("Failed to add routes", zap.Error(err))
+	if err := addNetworkRoutes(iface, net.IPNet{IP: status.YourIPAddr, Mask: status.SubnetMask()}, status.GatewayIPAddr); err != nil {
+		s.Logger.Warn("failed to add routes", zap.Error(err))
 	}
 	return nil
 }
 
 // GetIP returns the current IP (and optionally waits for one to be assigned)
-func (s *Service) GetIP(wait bool) *net.IP {
-	s.lock.Lock()
-	if !wait {
-		ip := s.ip
-		s.lock.Unlock()
-		return ip
+func (s *Service) GetIP(ctx context.Context, wait bool) (*net.IP, error) {
+	status, err := s.dhcp.status(ctx, wait)
+	if err != nil {
+		return nil, err
 	}
-
-	for {
-		if s.ip != nil {
-			ip := s.ip
-			s.lock.Unlock()
-			return ip
-		}
-		s.lock.Unlock()
-		<-s.ipNotify
-		s.lock.Lock()
-	}
+	return &status.YourIPAddr, nil
 }
 
 func (s *Service) OnStart() error {
@@ -190,13 +141,14 @@
 			}
 		}
 	}
-	if len(ethernetLinks) == 1 {
-		link := ethernetLinks[0]
-		go s.dhcpClient(link)
-
-	} else {
-		s.Logger.Warn("Network service cannot yet handle more than one interface :(")
+	if len(ethernetLinks) != 1 {
+		s.Logger.Warn("Network service needs exactly one link, bailing")
+		return nil
 	}
+
+	link := ethernetLinks[0]
+	go s.useInterface(link)
+
 	return nil
 }
 
diff --git a/core/internal/node/main.go b/core/internal/node/main.go
index b1d74d6..b0674d2 100644
--- a/core/internal/node/main.go
+++ b/core/internal/node/main.go
@@ -18,6 +18,7 @@
 
 import (
 	"bytes"
+	"context"
 	"crypto/ed25519"
 	"crypto/rand"
 	"crypto/sha512"
@@ -31,9 +32,8 @@
 	"io/ioutil"
 	"math/big"
 	"net"
-	"time"
-
 	"os"
+	"time"
 
 	apipb "git.monogon.dev/source/nexantic.git/core/generated/api"
 	"git.monogon.dev/source/nexantic.git/core/internal/api"
@@ -43,12 +43,12 @@
 	"git.monogon.dev/source/nexantic.git/core/internal/kubernetes"
 	"git.monogon.dev/source/nexantic.git/core/internal/network"
 	"git.monogon.dev/source/nexantic.git/core/internal/storage"
-	"github.com/cenkalti/backoff/v4"
-	"google.golang.org/grpc"
-	"google.golang.org/grpc/credentials"
 
+	"github.com/cenkalti/backoff/v4"
 	"github.com/gogo/protobuf/proto"
 	"go.uber.org/zap"
+	"google.golang.org/grpc"
+	"google.golang.org/grpc/credentials"
 )
 
 var (
@@ -71,32 +71,22 @@
 	}
 )
 
-func NewSmalltownNode(logger *zap.Logger) (*SmalltownNode, error) {
+func NewSmalltownNode(logger *zap.Logger, ntwk *network.Service, strg *storage.Manager) (*SmalltownNode, error) {
 	flag.Parse()
 	logger.Info("Creating Smalltown node")
+	ctx := context.Background()
 
 	hostname, err := os.Hostname()
 	if err != nil {
 		panic(err)
 	}
 
-	networkService, err := network.NewNetworkService(network.Config{}, logger.With(zap.String("component", "network")))
+	// Wait for IP adddress...
+	ctxT, ctxTC := context.WithTimeout(ctx, time.Second*10)
+	defer ctxTC()
+	externalIP, err := ntwk.GetIP(ctxT, true)
 	if err != nil {
-		panic(err)
-	}
-
-	if err := networkService.Start(); err != nil {
-		logger.Panic("Failed to start network service", zap.Error(err))
-	}
-
-	storageManager, err := storage.Initialize(logger.With(zap.String("component", "storage")))
-	if err != nil {
-		logger.Error("Failed to initialize storage manager", zap.Error(err))
-		return nil, err
-	}
-	externalIP := networkService.GetIP(true)
-	if externalIP == nil {
-		logger.Panic("Waited for IP but didn't get one")
+		logger.Panic("Could not get IP address", zap.Error(err))
 	}
 
 	// Important to know if the GetIP above hangs
@@ -113,8 +103,8 @@
 
 	s := &SmalltownNode{
 		Consensus: consensusService,
-		Storage:   storageManager,
-		Network:   networkService,
+		Storage:   strg,
+		Network:   ntwk,
 		logger:    logger,
 		hostname:  hostname,
 	}
@@ -133,7 +123,7 @@
 	return s, nil
 }
 
-func (s *SmalltownNode) Start() error {
+func (s *SmalltownNode) Start(ctx context.Context) error {
 	s.logger.Info("Starting Smalltown node")
 
 	// TODO(lorenz): Abstracting enrolment sounds like a good idea, but ends up being painful
@@ -156,22 +146,22 @@
 		if len(enrolmentConfig.EnrolmentSecret) == 0 {
 			return s.startFull()
 		}
-		return s.startEnrolling()
+		return s.startEnrolling(ctx)
 	} else if os.IsNotExist(err) {
 		// This is ok like this, once a new cluster has been set up the initial node also generates
 		// its own enrolment config
-		return s.startForSetup()
+		return s.startForSetup(ctx)
 	}
 	// Unknown error reading enrolment config (disk issues/invalid configuration format/...)
 	s.logger.Panic("Invalid enrolment configuration provided", zap.Error(err))
 	panic("Unreachable")
 }
 
-func (s *SmalltownNode) startEnrolling() error {
+func (s *SmalltownNode) startEnrolling(ctx context.Context) error {
 	s.logger.Info("Initializing subsystems for enrolment")
 	s.state = common.StateEnrollMode
 
-	nodeInfo, nodeID, err := s.InitializeNode()
+	nodeInfo, nodeID, err := s.InitializeNode(ctx)
 	if err != nil {
 		return err
 	}
@@ -211,9 +201,9 @@
 	return nil
 }
 
-func (s *SmalltownNode) startForSetup() error {
+func (s *SmalltownNode) startForSetup(ctx context.Context) error {
 	s.logger.Info("Setting up a new cluster")
-	initData, nodeID, err := s.InitializeNode()
+	initData, nodeID, err := s.InitializeNode(ctx)
 	if err != nil {
 		return err
 	}
@@ -276,10 +266,14 @@
 		return err
 	}
 
+	ip, err := s.Network.GetIP(ctx, true)
+	if err != nil {
+		return fmt.Errorf("could not get node IP: %v", err)
+	}
 	enrolmentConfig := &apipb.EnrolmentConfig{
 		EnrolmentSecret: []byte{}, // First node is always already enrolled
 		MastersCert:     masterCert,
-		MasterIps:       [][]byte{[]byte(*s.Network.GetIP(true))},
+		MasterIps:       [][]byte{[]byte(*ip)},
 		NodeId:          nodeID,
 	}
 	enrolmentConfigRaw, err := proto.Marshal(enrolmentConfig)
diff --git a/core/internal/node/setup.go b/core/internal/node/setup.go
index 23eb24c..cbbfd4d 100644
--- a/core/internal/node/setup.go
+++ b/core/internal/node/setup.go
@@ -18,15 +18,15 @@
 
 import (
 	"context"
+	"errors"
+	"fmt"
 
-	"git.monogon.dev/source/nexantic.git/core/generated/api"
-	"git.monogon.dev/source/nexantic.git/core/internal/common"
+	"go.uber.org/zap"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/status"
 
-	"errors"
-
-	"go.uber.org/zap"
+	"git.monogon.dev/source/nexantic.git/core/generated/api"
+	"git.monogon.dev/source/nexantic.git/core/internal/common"
 )
 
 var (
@@ -43,13 +43,16 @@
 
 // InitializeNode contains functionality that needs to be executed regardless of what the node does
 // later on
-func (s *SmalltownNode) InitializeNode() (*api.NewNodeInfo, string, error) {
+func (s *SmalltownNode) InitializeNode(ctx context.Context) (*api.NewNodeInfo, string, error) {
 	globalUnlockKey, err := s.Storage.InitializeData()
 	if err != nil {
 		return nil, "", err
 	}
 
-	nodeIP := s.Network.GetIP(true)
+	nodeIP, err := s.Network.GetIP(ctx, true)
+	if err != nil {
+		return nil, "", fmt.Errorf("could not get IP: %v", err)
+	}
 
 	nodeCert, nodeID, err := s.generateNodeID()
 	if err != nil {
diff --git a/core/scripts/test_boot.sh b/core/scripts/test_boot.sh
index 3b4b57d..03cf8c4 100755
--- a/core/scripts/test_boot.sh
+++ b/core/scripts/test_boot.sh
@@ -17,7 +17,7 @@
 
 spawn core/scripts/launch.sh
 
-expect "Network service got IP" {} default {
+expect "DHCP client ASSIGNED" {} default {
   print_stderr "Failed while waiting for IP address\n"
   exit 1
 }