diff --git a/packages/contracts/contracts/staking/Staking.sol b/packages/contracts/contracts/staking/Staking.sol
index 2139160da..6878dad0c 100644
--- a/packages/contracts/contracts/staking/Staking.sol
+++ b/packages/contracts/contracts/staking/Staking.sol
@@ -812,18 +812,18 @@ abstract contract Staking is StakingV4Storage, GraphUpgradeable, IStakingBase, M
         // Get allocation
         Allocation memory alloc = __allocations[_allocationID];
 
-        // Validate that an allocation cannot be closed before one epoch
         alloc.closedAtEpoch = epochManager().currentEpoch();
+
+        // Allocation duration in epochs
         uint256 epochs = MathUtils.diffOrZero(alloc.closedAtEpoch, alloc.createdAtEpoch);
-        require(epochs > 0, "<epochs");
 
         // Indexer or operator can close an allocation
         // Anyone is allowed to close ONLY under two concurrent conditions
         // - After maxAllocationEpochs passed
         // - When the allocation is for non-zero amount of tokens
-        bool isIndexer = _isAuth(alloc.indexer);
+        bool isIndexerOrOperator = _isAuth(alloc.indexer);
         if (epochs <= __maxAllocationEpochs || alloc.tokens == 0) {
-            require(isIndexer, "!auth");
+            require(isIndexerOrOperator, "!auth");
         }
 
         // Close the allocation
@@ -834,7 +834,9 @@ abstract contract Staking is StakingV4Storage, GraphUpgradeable, IStakingBase, M
         // Process non-zero-allocation rewards tracking
         if (alloc.tokens > 0) {
             // Distribute rewards if proof of indexing was presented by the indexer or operator
-            if (isIndexer && _poi != 0) {
+            // and the allocation is at least one epoch old (most indexed chains require the EBO
+            // posting epoch block numbers to produce a valid POI which happens once per epoch)
+            if (isIndexerOrOperator && _poi != 0 && epochs > 0) {
                 _distributeRewards(_allocationID, alloc.indexer);
             } else {
                 _updateRewards(alloc.subgraphDeploymentID);
@@ -858,7 +860,7 @@ abstract contract Staking is StakingV4Storage, GraphUpgradeable, IStakingBase, M
             _allocationID,
             msg.sender,
             _poi,
-            !isIndexer
+            !isIndexerOrOperator
         );
     }
 
diff --git a/packages/contracts/test/staking/allocation.test.ts b/packages/contracts/test/staking/allocation.test.ts
index c4a104312..26281ff6b 100644
--- a/packages/contracts/test/staking/allocation.test.ts
+++ b/packages/contracts/test/staking/allocation.test.ts
@@ -876,9 +876,23 @@ describe('Staking:Allocation', () => {
           await expect(tx).revertedWith('!active')
         })
 
-        it('reject close before at least one epoch has passed', async function () {
+        it('allow close before one epoch has passed', async function () {
+          const currentEpoch = await epochManager.currentEpoch()
+          const beforeAlloc = await staking.getAllocation(allocationID)
+
           const tx = staking.connect(indexer).closeAllocation(allocationID, poi)
-          await expect(tx).revertedWith('<epochs')
+          await expect(tx)
+            .emit(staking, 'AllocationClosed')
+            .withArgs(
+              indexer.address,
+              subgraphDeploymentID,
+              currentEpoch,
+              beforeAlloc.tokens,
+              allocationID,
+              indexer.address,
+              poi,
+              false,
+            )
         })
 
         it('reject close if not the owner of allocation', async function () {
@@ -923,7 +937,7 @@ describe('Staking:Allocation', () => {
         it('should close an allocation (by public) only if allocation is non-zero', async function () {
           // Reject to close if public address and under max allocation epochs
           const tx1 = staking.connect(me).closeAllocation(allocationID, poi)
-          await expect(tx1).revertedWith('<epochs')
+          await expect(tx1).revertedWith('!auth')
 
           // Move max allocation epochs to close by delegator
           const maxAllocationEpochs = await staking.maxAllocationEpochs()