This paper initiates the study of locally self-adjusting networks: networks whose topology adapts dynamically and in a decentralized manner, to the communication pattern σ. Our vision can be seen as a distributed generalization of the self-adjusting datastructures introduced by Sleator and Tarjan, 1985: In contrast to their splay trees which dynamically optimize the lookup costs from a single node (namely the tree root), we seek to minimize the routing cost between arbitrary communication pairs in the network. As a first step, we study distributed binary search trees (BSTs), which are attractive for their support of greedy routing. We introduce a simple model which captures the fundamental tradeoff between the benefits and costs of self-adjusting networks. We present the SplayNet algorithm and formally analyze its performance, and prove its optimality in specific case studies. We also introduce lower bound techniques based on interval cuts and edge expansion, to study the limitations of any demand-optimized network. Finally, we extend our study to multi-tree networks, and highlight an intriguing difference between classic and distributed splay trees.