diff --git a/src/@context/Orbis.tsx b/src/@context/Orbis.tsx
index 6a8d28de6..cfaf75da3 100644
--- a/src/@context/Orbis.tsx
+++ b/src/@context/Orbis.tsx
@@ -21,16 +21,21 @@ interface INewConversation {
   recipients: string[]
 }
 
+export interface IConversationWithNotifsCount extends IOrbisConversation {
+  notifications_count: number
+}
+
 type IOrbisProvider = {
   orbis: IOrbis
   account: IOrbisProfile
   hasLit: boolean
   openConversations: boolean
   conversationId: string
-  conversations: IOrbisConversation[]
-  notifications: Record<string, string[]>
+  conversations: IConversationWithNotifsCount[]
   activeConversationTitle: string
   newConversation: INewConversation
+  notifsLastRead: Record<string, Record<string, number>>
+  totalNotifications: number
   connectOrbis: (options: {
     address: string
     lit?: boolean
@@ -52,9 +57,9 @@ type IOrbisProvider = {
   setConversationId: (conversationId: string) => void
   getConversationByDid: (userDid: string) => Promise<IOrbisConversation>
   createConversation: (recipients: string[]) => Promise<IOrbisConversation>
-  clearMessageNotifs: (conversationId: string) => void
   getConversationTitle: (conversationId: string) => Promise<string>
   getDid: (address: string) => Promise<string>
+  clearConversationNotifs: (conversationId: string) => void
 }
 
 const OrbisContext = createContext({} as IOrbisProvider)
@@ -72,15 +77,17 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     'ocean-ceramic-sessions',
     []
   )
-  const [usersNotifications, setUsersNotifications] = useLocalStorage<
-    Record<string, Record<string, string[]>>
-  >('ocean-convo-notifs', {})
+  const [notifsLastRead, setNotifsLastRead] = useLocalStorage<
+    Record<string, Record<string, number>>
+  >('ocean-notifs-last-read', {})
 
   const [account, setAccount] = useState<IOrbisProfile | null>(null)
   const [hasLit, setHasLit] = useState(false)
   const [openConversations, setOpenConversations] = useState(false)
   const [conversationId, setConversationId] = useState(null)
-  const [conversations, setConversations] = useState<IOrbisConversation[]>([])
+  const [conversations, setConversations] = useState<
+    IConversationWithNotifsCount[]
+  >([])
   const [activeConversationTitle, setActiveConversationTitle] = useState(null)
   const [newConversation, setNewConversation] =
     useState<INewConversation | null>(null)
@@ -211,69 +218,78 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     return _did
   }
 
-  const getMessageNotifs = async () => {
+  const getConversationNotifications: (
+    conversations: IConversationWithNotifsCount[]
+  ) => Promise<void> = async (conversations) => {
+    if (!conversations.length || !orbis) return
+
     let did = account?.did
 
     if (!did && accountId) {
       did = await getDid(accountId)
     }
 
-    const address = didToAddress(did)
+    const _newConversations = await Promise.all(
+      conversations.map(async (conversation) => {
+        // Get timestamp of last read notification
+        const lastRead =
+          notifsLastRead[accountId]?.[conversation.stream_id] || 0
 
-    const { data, error } = await orbis.api.rpc('orbis_f_notifications', {
-      user_did: did || 'none',
-      notif_type: 'messages'
-    })
+        const { data, error } = await orbis.api
+          .rpc('orbis_f_count_notifications_alpha', {
+            user_did: did,
+            notif_type: 'messages',
+            q_context: CONVERSATION_CONTEXT,
+            q_conversation_id: conversation.stream_id,
+            q_last_read: lastRead
+          })
+          .single()
 
-    if (!error && data.length > 0) {
-      const _usersNotifications = { ...usersNotifications }
-      const _conversationIds = conversations.map((o) => o.stream_id)
+        if (error) {
+          console.log(error)
+          return conversation
+        }
 
-      // Only show new notifications from existing conversations
-      const _unreads = data.filter((o: IOrbisNotification) => {
-        return (
-          _conversationIds.includes(o.content.conversation_id) &&
-          o.status === 'new'
-        )
-      })
-      _unreads.forEach((o: IOrbisNotification) => {
-        const conversationId = o.content.conversation_id
-        const { encryptedString } = o.content.encryptedMessage
-
-        // Add address if not exists
-        if (!_usersNotifications[address]) _usersNotifications[address] = {}
-
-        // Add conversationId if not exists
-        if (!_usersNotifications[address][conversationId])
-          _usersNotifications[address][conversationId] = []
-
-        // Add encryptedString if not exists
-        if (
-          !_usersNotifications[address][conversationId].includes(
-            encryptedString
-          )
-        ) {
-          _usersNotifications[address][conversationId].push(encryptedString)
+        if (data) {
+          const newNotifsCount = data.count_new_notifications
+          // Get conversation by stream_id
+          conversation.notifications_count = newNotifsCount
+          return conversation
         }
       })
-      setUsersNotifications(_usersNotifications)
+    )
 
-      if (_unreads.length > 0) {
-        // Get unix timestamp in seconds
-        const timestamp = Math.floor(Date.now() / 1000)
-        // Set read time
-        await orbis.setNotificationsReadTime('messages', timestamp)
-      }
-    }
+    setConversations(_newConversations)
   }
 
-  const clearMessageNotifs = (conversationId: string) => {
-    const _usersNotifications = { ...usersNotifications }
-    const address = didToAddress(account?.did)
-    if (_usersNotifications[address]) {
-      delete _usersNotifications[address][conversationId]
+  const clearConversationNotifs = async (conversationId: string) => {
+    if (!accountId || !conversationId) return
+
+    const _notifsLastRead = { ...notifsLastRead }
+
+    // Add address if not exists
+    if (!_notifsLastRead[accountId]) {
+      _notifsLastRead[accountId] = {}
     }
-    setUsersNotifications(_usersNotifications)
+
+    // Add conversationId if not exists
+    if (!_notifsLastRead[accountId][conversationId]) {
+      _notifsLastRead[accountId][conversationId] = 0
+    }
+
+    // Update last read
+    _notifsLastRead[accountId][conversationId] = Math.floor(Date.now() / 1000)
+    setNotifsLastRead(_notifsLastRead)
+
+    // Set conversation notifications count to 0
+    const _conversations = conversations.map((conversation) => {
+      if (conversation.stream_id === conversationId) {
+        conversation.notifications_count = 0
+      }
+      return conversation
+    })
+
+    setConversations(_conversations)
   }
 
   const getConversations = async (did: string = null) => {
@@ -285,8 +301,8 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     })
 
     // Only show conversations with unique recipients
-    const filteredConversations: IOrbisConversation[] = []
-    data.forEach((conversation: IOrbisConversation) => {
+    const filteredConversations: IConversationWithNotifsCount[] = []
+    data.forEach((conversation: IConversationWithNotifsCount) => {
       if (conversation.recipients.length > 1) {
         // Sort recipients by alphabetical order and stringify
         const sortedRecipients = conversation.recipients.sort()
@@ -294,7 +310,7 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
 
         // Check if conversation already exists based on sorted and stringified recipients
         const found = filteredConversations.find(
-          (o: IOrbisConversation) =>
+          (o: IConversationWithNotifsCount) =>
             o.recipients.length > 1 &&
             o.recipients.sort().join(',') === stringifiedRecipients
         )
@@ -306,7 +322,7 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     })
 
     // Also fetch message notifications
-    await getMessageNotifs()
+    await getConversationNotifications(filteredConversations)
 
     setConversations(filteredConversations)
     return filteredConversations
@@ -319,7 +335,7 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
       await sleep(2000)
       await getConversation(conversationId)
     } else {
-      return data
+      return data as IConversationWithNotifsCount
     }
   }
 
@@ -330,7 +346,7 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     if (!_conversations.length) return null
 
     const filteredConversations = _conversations.filter(
-      (conversation: IOrbisConversation) => {
+      (conversation: IConversationWithNotifsCount) => {
         return (
           conversation.recipients.length === 2 &&
           conversation.recipients.includes(userDid)
@@ -361,61 +377,6 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     }
   }
 
-  // const createConversation = async (userDid: string) => {
-  //   let _account = account
-  //   if (!_account) {
-  //     // Check connection and force connect
-  //     _account = await checkOrbisConnection({
-  //       address: accountId,
-  //       autoConnect: true
-  //     })
-  //   }
-
-  //   if (!hasLit) {
-  //     const res = await connectLit()
-  //     if (res.status !== 200) {
-  //       alert('Error connecting to Lit.')
-  //       return
-  //     }
-  //   }
-
-  //   let existingConversation = conversations.find(
-  //     (conversation: IOrbisConversation) => {
-  //       return conversation.recipients.includes(userDid)
-  //     }
-  //   )
-
-  //   // Refetch to make sure we have the latest conversations
-  //   if (!existingConversation) {
-  //     const _conversations = await getConversations(_account?.did)
-  //     existingConversation = _conversations.find(
-  //       (conversation: IOrbisConversation) => {
-  //         return conversation.recipients.includes(userDid)
-  //       }
-  //     )
-  //   }
-
-  //   if (existingConversation) {
-  //     setConversationId(existingConversation.stream_id)
-  //     setOpenConversations(true)
-  //   } else {
-  //     const res = await orbis.createConversation({
-  //       recipients: [userDid],
-  //       context: CONVERSATION_CONTEXT
-  //     })
-  //     if (res.status === 200) {
-  //       setTimeout(async () => {
-  //         const { data, error } = await orbis.getConversation(res.doc)
-  //         if (!error && data) {
-  //           setConversations([data, ...conversations])
-  //         }
-  //         setConversationId(res.doc)
-  //         setOpenConversations(true)
-  //       }, 2000)
-  //     }
-  //   }
-  // }
-
   const getConversationTitle = async (conversationId: string) => {
     if (conversationId && conversations.length) {
       // Get conversation based on conversationId
@@ -438,13 +399,17 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
     }
   }
 
-  const notifications = useMemo(() => {
-    let _notifications = {}
-    if (accountId && accountId.toLowerCase() in usersNotifications) {
-      _notifications = usersNotifications[accountId.toLowerCase()]
-    }
-    return _notifications
-  }, [accountId, usersNotifications])
+  const totalNotifications = useMemo(() => {
+    if (!conversations.length) return 0
+
+    // Loop through conversations and count notifications
+    let count = 0
+    conversations.forEach((conversation: IConversationWithNotifsCount) => {
+      count += conversation?.notifications_count || 0
+    })
+
+    return count
+  }, [conversations])
 
   useInterval(async () => {
     await getConversations(account?.did)
@@ -477,9 +442,10 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
         openConversations,
         conversationId,
         conversations,
-        notifications,
         activeConversationTitle,
         newConversation,
+        notifsLastRead,
+        totalNotifications,
         connectOrbis,
         disconnectOrbis,
         checkOrbisConnection,
@@ -490,9 +456,9 @@ function OrbisProvider({ children }: { children: ReactNode }): ReactElement {
         setConversationId,
         getConversationByDid,
         createConversation,
-        clearMessageNotifs,
         getConversationTitle,
-        getDid
+        getDid,
+        clearConversationNotifs
       }}
     >
       {children}
diff --git a/src/components/@shared/Orbis/DirectMessages/Conversation.module.css b/src/components/@shared/Orbis/DirectMessages/Conversation.module.css
index 5a62a59dd..308b58498 100644
--- a/src/components/@shared/Orbis/DirectMessages/Conversation.module.css
+++ b/src/components/@shared/Orbis/DirectMessages/Conversation.module.css
@@ -17,9 +17,11 @@
   padding: calc(var(--spacer) / 4);
   text-align: center;
   color: var(--color-secondary);
-  -webkit-animation: pulse 2s cubic-bezier(0.4, 0, 0.6, 1) infinite;
+  /* -webkit-animation: pulse 2s cubic-bezier(0.4, 0, 0.6, 1) infinite;
   -moz-animation: pulse 2s cubic-bezier(0.4, 0, 0.6, 1) infinite;
-  animation: pulse 2s cubic-bezier(0.4, 0, 0.6, 1) infinite;
+  animation: pulse 2s cubic-bezier(0.4, 0, 0.6, 1) infinite; */
+  background-color: var(--background-content);
+  z-index: 2;
 }
 
 .connectLit {
diff --git a/src/components/@shared/Orbis/DirectMessages/Conversation.tsx b/src/components/@shared/Orbis/DirectMessages/Conversation.tsx
index c7bc283b3..178521faa 100644
--- a/src/components/@shared/Orbis/DirectMessages/Conversation.tsx
+++ b/src/components/@shared/Orbis/DirectMessages/Conversation.tsx
@@ -15,12 +15,13 @@ export default function DmConversation() {
     conversationId,
     hasLit,
     connectLit,
-    clearMessageNotifs
+    clearConversationNotifs
   } = useOrbis()
 
   const messagesWrapper = useRef(null)
   const [isInitialized, setIsInitialized] = useState(false)
   const [isLoading, setIsLoading] = useState(false)
+  const [isCreatingConvo, setIsCreatingConvo] = useState<boolean>(false)
   const [messages, setMessages] = useState<IOrbisMessage[]>([])
   const [currentPage, setCurrentPage] = useState(0)
   const [hasMore, setHasMore] = useState(true)
@@ -58,7 +59,7 @@ export default function DmConversation() {
         _messages = [...data, ..._messages]
         setMessages(_messages)
         if (currentPage === 0) {
-          clearMessageNotifs(conversationId)
+          clearConversationNotifs(conversationId)
           scrollToBottom()
         }
         setCurrentPage(_page + 1)
@@ -116,7 +117,7 @@ export default function DmConversation() {
       Math.ceil(el.scrollTop) >= Math.floor(el.scrollHeight - el.offsetHeight)
     ) {
       setNewMessages(0)
-      clearMessageNotifs(conversationId)
+      clearConversationNotifs(conversationId)
     }
 
     // Remove scroll listener
@@ -172,6 +173,11 @@ export default function DmConversation() {
       ) : (
         <>
           {isLoading && <div className={styles.loading}>Loading...</div>}
+          {isCreatingConvo && (
+            <div className={styles.loading}>
+              Creating conversation and sending message. Please wait...
+            </div>
+          )}
           <div className={styles.messages}>
             {!isLoading && messages.length === 0 ? (
               <div className={styles.noMessages}>No message yet</div>
@@ -215,7 +221,11 @@ export default function DmConversation() {
               </button>
             )}
           </div>
-          <Postbox callback={callback} />
+          <Postbox
+            callback={callback}
+            isCreatingConvo={isCreatingConvo}
+            setIsCreatingConvo={setIsCreatingConvo}
+          />
         </>
       )}
     </div>
diff --git a/src/components/@shared/Orbis/DirectMessages/Header.module.css b/src/components/@shared/Orbis/DirectMessages/Header.module.css
index eec96da39..1f518113c 100644
--- a/src/components/@shared/Orbis/DirectMessages/Header.module.css
+++ b/src/components/@shared/Orbis/DirectMessages/Header.module.css
@@ -88,8 +88,8 @@
 
 .notificationCount {
   background-color: var(--color-primary);
-  width: 20px;
-  height: 20px;
+  width: 24px;
+  height: 24px;
   color: var(--brand-white);
   border-radius: 100%;
   display: flex;
diff --git a/src/components/@shared/Orbis/DirectMessages/Header.tsx b/src/components/@shared/Orbis/DirectMessages/Header.tsx
index d1ac26b69..2d024bfd3 100644
--- a/src/components/@shared/Orbis/DirectMessages/Header.tsx
+++ b/src/components/@shared/Orbis/DirectMessages/Header.tsx
@@ -14,9 +14,9 @@ export default function Header() {
     conversations,
     conversationId,
     openConversations,
-    notifications,
     activeConversationTitle,
     newConversation,
+    totalNotifications,
     setActiveConversationTitle,
     setNewConversation,
     getConversationTitle,
@@ -78,9 +78,9 @@ export default function Header() {
             <ChatBubble role="img" aria-label="Chat" className={styles.icon} />
           </div>
           <span>Direct Messages</span>
-          {Object.values(notifications).flat().length > 0 && (
+          {totalNotifications > 0 && (
             <span className={styles.notificationCount}>
-              {Object.values(notifications).flat().length}
+              {totalNotifications}
             </span>
           )}
         </>
diff --git a/src/components/@shared/Orbis/DirectMessages/List.tsx b/src/components/@shared/Orbis/DirectMessages/List.tsx
index d3431150d..f88be3941 100644
--- a/src/components/@shared/Orbis/DirectMessages/List.tsx
+++ b/src/components/@shared/Orbis/DirectMessages/List.tsx
@@ -1,27 +1,24 @@
 import React from 'react'
-import { useOrbis } from '@context/Orbis'
+import { useOrbis, IConversationWithNotifsCount } from '@context/Orbis'
 import ListItem from './ListItem'
 import ChatBubble from '@images/chatbubble.svg'
 import styles from './List.module.css'
 
 export default function List() {
-  const { conversations, notifications, setConversationId } = useOrbis()
-
-  const getConversationUnreads = (conversationId: string) => {
-    return notifications[conversationId]?.length || 0
-  }
+  const { conversations, setConversationId } = useOrbis()
 
   return (
     <div className={styles.conversations}>
       {conversations.length > 0 ? (
-        conversations.map((conversation: IOrbisConversation, index: number) => (
-          <ListItem
-            key={index}
-            conversation={conversation}
-            unreads={getConversationUnreads(conversation.stream_id)}
-            setConversationId={setConversationId}
-          />
-        ))
+        conversations.map(
+          (conversation: IConversationWithNotifsCount, index: number) => (
+            <ListItem
+              key={index}
+              conversation={conversation}
+              setConversationId={setConversationId}
+            />
+          )
+        )
       ) : (
         <div className={styles.empty}>
           <ChatBubble role="img" aria-label="Chat" className={styles.icon} />
diff --git a/src/components/@shared/Orbis/DirectMessages/ListItem.module.css b/src/components/@shared/Orbis/DirectMessages/ListItem.module.css
index 0603adb67..ea2bf18e9 100644
--- a/src/components/@shared/Orbis/DirectMessages/ListItem.module.css
+++ b/src/components/@shared/Orbis/DirectMessages/ListItem.module.css
@@ -30,8 +30,8 @@
   bottom: -4px;
   right: -4px;
   background-color: var(--color-primary);
-  width: 20px;
-  height: 20px;
+  width: 24px;
+  height: 24px;
   color: var(--brand-white);
   border-radius: 100%;
   display: flex;
@@ -39,9 +39,6 @@
   align-items: center;
   font-size: var(--font-size-mini);
   font-weight: 600;
-  position: absolute;
-  bottom: -4px;
-  right: -4px;
 }
 
 .accountInfo {
diff --git a/src/components/@shared/Orbis/DirectMessages/ListItem.tsx b/src/components/@shared/Orbis/DirectMessages/ListItem.tsx
index e5c68069c..bf03da185 100644
--- a/src/components/@shared/Orbis/DirectMessages/ListItem.tsx
+++ b/src/components/@shared/Orbis/DirectMessages/ListItem.tsx
@@ -1,6 +1,6 @@
 import React, { useState, useEffect } from 'react'
 import { useCancelToken } from '@hooks/useCancelToken'
-import { useOrbis } from '@context/Orbis'
+import { useOrbis, IConversationWithNotifsCount } from '@context/Orbis'
 import { didToAddress } from '@utils/orbis'
 import Avatar from '@shared/atoms/Avatar'
 import Time from '@shared/atoms/Time'
@@ -8,11 +8,9 @@ import styles from './ListItem.module.css'
 
 export default function ConversationItem({
   conversation,
-  unreads,
   setConversationId
 }: {
-  conversation: IOrbisConversation
-  unreads: number
+  conversation: IConversationWithNotifsCount
   setConversationId: (value: string) => void
 }) {
   const { account, getConversationTitle } = useOrbis()
@@ -45,8 +43,10 @@ export default function ConversationItem({
     >
       <div className={styles.accountAvatarSet}>
         <Avatar accountId={address} className={styles.accountAvatar} />
-        {unreads > 0 && (
-          <div className={styles.notificationCount}>{unreads}</div>
+        {conversation.notifications_count > 0 && (
+          <div className={styles.notificationCount}>
+            {conversation.notifications_count}
+          </div>
         )}
       </div>
       <div className={styles.accountInfo}>
diff --git a/src/components/@shared/Orbis/DirectMessages/Postbox.tsx b/src/components/@shared/Orbis/DirectMessages/Postbox.tsx
index 2cb5bd794..4520654b1 100644
--- a/src/components/@shared/Orbis/DirectMessages/Postbox.tsx
+++ b/src/components/@shared/Orbis/DirectMessages/Postbox.tsx
@@ -8,10 +8,14 @@ import { didToAddress, sleep } from '@utils/orbis'
 
 export default function Postbox({
   replyTo = null,
+  isCreatingConvo,
+  setIsCreatingConvo,
   cancelReplyTo,
   callback
 }: {
   replyTo?: IOrbisMessage
+  isCreatingConvo: boolean
+  setIsCreatingConvo: (isCreatingConvo: boolean) => void
   cancelReplyTo?: () => void
   callback: (value: IOrbisMessage) => void
 }) {
@@ -49,8 +53,12 @@ export default function Postbox({
 
     setIsSending(true)
 
+    const body = postBoxArea.current.innerText
+    postBoxArea.current.innerText = ''
+
     let _conversationId = conversationId
     if (_conversationId.startsWith('new-') && newConversation) {
+      setIsCreatingConvo(true)
       const _newConversation = await createConversation(
         newConversation.recipients
       )
@@ -60,10 +68,9 @@ export default function Postbox({
         setNewConversation(null)
         await sleep(1000)
       }
+      setIsCreatingConvo(false)
     }
 
-    const body = postBoxArea.current.innerText
-
     const content: IOrbisMessageContent & { decryptedMessage?: string } = {
       encryptedMessage: null,
       decryptedMessage: body,
@@ -91,7 +98,6 @@ export default function Postbox({
     }
 
     if (callback) callback(_callbackContent)
-    postBoxArea.current.innerText = ''
 
     const res = await orbis.sendMessage({
       conversation_id: _conversationId,
@@ -109,7 +115,12 @@ export default function Postbox({
   const handleKeyDown = (e: KeyboardEvent<HTMLDivElement>) => {
     if (!e.key) return
 
-    if (e.key === 'Enter' && !e.shiftKey && !isSending) {
+    if (isSending && isCreatingConvo) {
+      e.preventDefault()
+      return
+    }
+
+    if (e.key === 'Enter' && !e.shiftKey) {
       // Don't generate a new line
       e.preventDefault()
       share()
@@ -151,6 +162,9 @@ export default function Postbox({
           onKeyDown={handleKeyDown}
           onKeyUp={saveCaretPos}
           onMouseUp={saveCaretPos}
+          style={{
+            pointerEvents: isSending || isCreatingConvo ? 'none' : 'auto'
+          }}
         />
         <EmojiPicker onEmojiClick={onEmojiClick} />
       </div>