diff --git a/CHANGELOG.md b/CHANGELOG.md
index b3327cf56b..82aec40833 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -30,6 +30,7 @@
 - [11577](https://github.com/vegaprotocol/vega/issues/11577) - Add API for party discounts and rewards.
 - [10716](https://github.com/vegaprotocol/vega/issues/10716) - Set Tendermint defaults during init.
 - [11612](https://github.com/vegaprotocol/vega/issues/11612) - Reward scaling support.
+-[11624](https://github.com/vegaprotocol/vega/issues/11624) - prevent creation of rewards with no payout, but with high computational cost.
 
 ### 🐛 Fixes
 
diff --git a/commands/transfer_funds.go b/commands/transfer_funds.go
index cf32c059a0..b8c6402cf1 100644
--- a/commands/transfer_funds.go
+++ b/commands/transfer_funds.go
@@ -243,6 +243,24 @@ func validateDispatchStrategy(toAccountType vega.AccountType, dispatchStrategy *
 	if dispatchStrategy.EntityScope == vega.EntityScope_ENTITY_SCOPE_TEAMS && len(dispatchStrategy.NTopPerformers) == 0 {
 		errs.AddForProperty(prefix+".n_top_performers", ErrIsRequired)
 	}
+	if dispatchStrategy.Metric == vega.DispatchMetric_DISPATCH_METRIC_ELIGIBLE_ENTITIES {
+		var metricAssetDefined, marketScope, stakingRequirement, positionRequirement bool
+		if len(dispatchStrategy.AssetForMetric) > 0 {
+			metricAssetDefined = true
+		}
+		if len(dispatchStrategy.Markets) > 0 {
+			marketScope = true
+		}
+		if len(dispatchStrategy.StakingRequirement) > 0 {
+			stakingRequirement = true
+		}
+		if len(dispatchStrategy.NotionalTimeWeightedAveragePositionRequirement) > 0 {
+			positionRequirement = true
+		}
+		if !metricAssetDefined && !marketScope && !stakingRequirement && !positionRequirement {
+			errs.AddForProperty(prefix+".dispatch_metric", fmt.Errorf("eligible_entities metric requires at least one of (markets, asset_for_metric, staking_requirement, notional_time_weighted_average_position_requirement) to be defined"))
+		}
+	}
 
 	if dispatchStrategy.Metric == vega.DispatchMetric_DISPATCH_METRIC_ELIGIBLE_ENTITIES && len(dispatchStrategy.NotionalTimeWeightedAveragePositionRequirement) > 0 && len(dispatchStrategy.AssetForMetric) == 0 {
 		errs.AddForProperty(prefix+".asset_for_metric", fmt.Errorf("asset for metric must be provided if NotionalTimeWeightedAveragePositionRequirement is specified"))
diff --git a/commands/transfer_funds_test.go b/commands/transfer_funds_test.go
index 7498d9350c..3aa6aa01bc 100644
--- a/commands/transfer_funds_test.go
+++ b/commands/transfer_funds_test.go
@@ -1526,34 +1526,7 @@ func TestTransferFunds(t *testing.T) {
 				Reference: "testing",
 			},
 			errString: "transfer.kind.dispatch_strategy.target_notional_volume (must be positive)",
-		},
-		{
-			transfer: commandspb.Transfer{
-				FromAccountType: vega.AccountType_ACCOUNT_TYPE_GENERAL,
-				ToAccountType:   vega.AccountType_ACCOUNT_TYPE_REWARD_ELIGIBLE_ENTITIES,
-				Kind: &commandspb.Transfer_Recurring{
-					Recurring: &commandspb.RecurringTransfer{
-						StartEpoch: 10,
-						EndEpoch:   ptr.From(uint64(11)),
-						Factor:     "1",
-						DispatchStrategy: &vega.DispatchStrategy{
-							AssetForMetric:       "",
-							Metric:               vega.DispatchMetric_DISPATCH_METRIC_ELIGIBLE_ENTITIES,
-							EntityScope:          vega.EntityScope_ENTITY_SCOPE_INDIVIDUALS,
-							IndividualScope:      vega.IndividualScope_INDIVIDUAL_SCOPE_IN_TEAM,
-							WindowLength:         100,
-							TransferInterval:     &tooLongTransferInterval,
-							TargetNotionalVolume: &notionalVolumeValid,
-						},
-					},
-				},
-				To:        "84e2b15102a8d6c1c6b4bdf40af8a0dc21b040eaaa1c94cd10d17604b75fdc35",
-				Asset:     "080538b7cc2249de568cb4272a17f4d5e0b0a69a1a240acbf5119d816178daff",
-				Amount:    "1",
-				Reference: "testing",
-			},
-			errString: "transfer.kind.dispatch_strategy.target_notional_volume (not allowed for metric DISPATCH_METRIC_ELIGIBLE_ENTITIES)",
-		},
+		},		
 		{
 			transfer: commandspb.Transfer{
 				FromAccountType: vega.AccountType_ACCOUNT_TYPE_GENERAL,
@@ -1598,6 +1571,9 @@ func TestTransferFunds(t *testing.T) {
 							WindowLength:         100,
 							TransferInterval:     &tooLongTransferInterval,
 							TargetNotionalVolume: &notionalVolumeValid,
+							DistributionStrategy: vega.DistributionStrategy_DISTRIBUTION_STRATEGY_PRO_RATA,
+							EntityScope:          vega.EntityScope_ENTITY_SCOPE_TEAMS,
+							// no asset for metric, no markets in scope, no position requirement, no staking requirement
 						},
 					},
 				},
@@ -1606,7 +1582,7 @@ func TestTransferFunds(t *testing.T) {
 				Amount:    "1",
 				Reference: "testing",
 			},
-			errString: "transfer.kind.dispatch_strategy.target_notional_volume (not allowed for metric DISPATCH_METRIC_VALIDATOR_RANKING)",
+			errString: "transfer.kind.dispatch_strategy.dispatch_metric (eligible_entities metric requires at least one of (markets, asset_for_metric, staking_requirement, notional_time_weighted_average_position_requirement) to be defined)",
 		},
 	}