diff --git a/packages/protocol/contracts/L1/libs/LibVerifying.sol b/packages/protocol/contracts/L1/libs/LibVerifying.sol
index 56600f6f46a..40bcd1dd68d 100644
--- a/packages/protocol/contracts/L1/libs/LibVerifying.sol
+++ b/packages/protocol/contracts/L1/libs/LibVerifying.sol
@@ -144,7 +144,8 @@ library LibVerifying {
         TkoToken tkoToken
     ) private {
         uint refund = (target.deposit * (10000 - tRelBp)) / 10000;
-        if (refund > 0) {
+        if (refund > 0 && tkoToken.balanceOf(target.proposer) > 0) {
+            // Do not refund proposer with 0 TKO balance.
             tkoToken.mint(target.proposer, refund);
         }
     }
@@ -160,8 +161,10 @@ library LibVerifying {
             uint proverReward = (reward * weight) / sum;
 
             if (tkoToken.balanceOf(fc.provers[i]) == 0) {
-                // reduce reward if the prover has 0 TKO balance.
-                proverReward /= 2;
+                // Reduce reward to 1 wei as a penalty if the prover
+                // has 0 TKO balance. This allows the next prover reward
+                // to be fully paid.
+                proverReward = uint256(1);
             }
             tkoToken.mint(fc.provers[i], proverReward);
         }