diff --git a/webview-ui/src/App.tsx b/webview-ui/src/App.tsx
index 655421c..31547ef 100644
--- a/webview-ui/src/App.tsx
+++ b/webview-ui/src/App.tsx
@@ -32,64 +32,81 @@ const App: React.FC = () => {
 	const [taskHistory, setTaskHistory] = useState<HistoryItem[]>([])
 	const [showAnnouncement, setShowAnnouncement] = useState(false)
 	const [koduCredits, setKoduCredits] = useState<number | undefined>(undefined)
+	const [isNewUser, setIsNewUser] = useState(false)
 
 	useEffect(() => {
 		vscode.postMessage({ type: "webviewDidLaunch" })
 	}, [])
 
-	const handleMessage = useCallback((e: MessageEvent) => {
-		const message: ExtensionMessage = e.data
-		switch (message.type) {
-			case "state":
-				setVersion(message.state!.version)
-				const hasKey =
-					message.state!.apiConfiguration?.apiKey !== undefined ||
-					message.state!.apiConfiguration?.openRouterApiKey !== undefined ||
-					message.state!.apiConfiguration?.awsAccessKey !== undefined ||
-					message.state!.apiConfiguration?.koduApiKey !== undefined
-				setShowWelcome(!hasKey)
-				setApiConfiguration(message.state!.apiConfiguration)
-				setMaxRequestsPerTask(
-					message.state!.maxRequestsPerTask !== undefined ? message.state!.maxRequestsPerTask.toString() : ""
-				)
-				setCustomInstructions(message.state!.customInstructions || "")
-				setAlwaysAllowReadOnly(message.state!.alwaysAllowReadOnly || false)
-				setVscodeThemeName(message.state!.themeName)
-				setClaudeMessages(message.state!.claudeMessages)
-				setTaskHistory(message.state!.taskHistory)
-				setKoduCredits(message.state!.koduCredits)
-				// don't update showAnnouncement to false if shouldShowAnnouncement is false
-				if (message.state!.shouldShowAnnouncement) {
-					setShowAnnouncement(true)
-				}
-				setDidHydrateState(true)
-				break
-			case "action":
-				switch (message.action!) {
-					case "settingsButtonTapped":
-						setShowSettings(true)
-						setShowHistory(false)
-						break
-					case "historyButtonTapped":
-						setShowSettings(false)
-						setShowHistory(true)
-						break
-					case "chatButtonTapped":
-						setShowSettings(false)
-						setShowHistory(false)
-						break
-					case "koduAuthenticated":
-						setShowSettings(true)
-						setShowHistory(false)
-						break
-				}
-				break
-		}
-		// we don't need to define any dependencies since we're not using any state in the callback. if you were to use state, you'd either have to include it in the dependency array or use the updater function `setUserText(prev => `${prev}${key}`);`. (react-use takes care of not registering the same listener multiple times even if this callback is updated.)
-	}, [])
+	const handleMessage = useCallback(
+		(e: MessageEvent) => {
+			const message: ExtensionMessage = e.data
+			switch (message.type) {
+				case "state":
+					setVersion(message.state!.version)
+					const hasKey =
+						message.state!.apiConfiguration?.apiKey !== undefined ||
+						message.state!.apiConfiguration?.openRouterApiKey !== undefined ||
+						message.state!.apiConfiguration?.awsAccessKey !== undefined ||
+						message.state!.apiConfiguration?.koduApiKey !== undefined
+					setShowWelcome(!hasKey)
+					if (!hasKey && !isNewUser) {
+						setIsNewUser(true)
+					}
+					setApiConfiguration(message.state!.apiConfiguration)
+					setMaxRequestsPerTask(
+						message.state!.maxRequestsPerTask !== undefined
+							? message.state!.maxRequestsPerTask.toString()
+							: ""
+					)
+					setCustomInstructions(message.state!.customInstructions || "")
+					setAlwaysAllowReadOnly(message.state!.alwaysAllowReadOnly || false)
+					setVscodeThemeName(message.state!.themeName)
+					setClaudeMessages(message.state!.claudeMessages)
+					setTaskHistory(message.state!.taskHistory)
+					setKoduCredits(message.state!.koduCredits)
+					// don't update showAnnouncement to false if shouldShowAnnouncement is false
+					if (message.state!.shouldShowAnnouncement) {
+						setShowAnnouncement(true)
+					}
+					setDidHydrateState(true)
+					break
+				case "action":
+					switch (message.action!) {
+						case "settingsButtonTapped":
+							setShowSettings(true)
+							setShowHistory(false)
+							break
+						case "historyButtonTapped":
+							setShowSettings(false)
+							setShowHistory(true)
+							break
+						case "chatButtonTapped":
+							setShowSettings(false)
+							setShowHistory(false)
+							break
+						case "koduAuthenticated":
+							if (!isNewUser) {
+								setShowSettings(true)
+								setShowHistory(false)
+							}
+							break
+					}
+					break
+			}
+			// (react-use takes care of not registering the same listener multiple times even if this callback is updated.)
+		},
+		[isNewUser]
+	)
 
 	useEvent("message", handleMessage)
 
+	useEffect(() => {
+		if (showWelcome === false) {
+			setIsNewUser(false)
+		}
+	}, [showWelcome])
+
 	const { selectedModelInfo } = useMemo(() => {
 		return normalizeApiConfiguration(apiConfiguration)
 	}, [apiConfiguration])
diff --git a/webview-ui/src/components/Announcement.tsx b/webview-ui/src/components/Announcement.tsx
index 92719d9..55edc26 100644
--- a/webview-ui/src/components/Announcement.tsx
+++ b/webview-ui/src/components/Announcement.tsx
@@ -54,9 +54,9 @@ const Announcement = ({ version, hideAnnouncement, apiConfiguration }: Announcem
 				</li>
 				<li>
 					Added "Always allow read-only operations" setting to let Claude read files and view directories
-					without needing to hit Allow.
+					without needing to approve (off by default)
 				</li>
-				<li>Added sliding window context management to keep tasks going past 200k tokens.</li>
+				<li>Added sliding window context management to keep tasks going past 200k tokens</li>
 			</ul>
 			<p style={{ margin: "0" }}>
 				Follow me for more updates!{" "}