diff --git a/lib/api/useApiFetch.tsx b/lib/api/useApiFetch.tsx
index 056c5a946c..ab6ff8a38c 100644
--- a/lib/api/useApiFetch.tsx
+++ b/lib/api/useApiFetch.tsx
@@ -35,6 +35,7 @@ export default function useApiFetch() {
     { pathParams, queryParams, fetchParams, logError, chain }: Params<R> = {},
   ) => {
     const apiToken = cookies.get(cookies.NAMES.API_TOKEN);
+    const rewardsApiToken = cookies.get(cookies.NAMES.REWARDS_API_TOKEN);
     const apiTempToken = cookies.get(cookies.NAMES.API_TEMP_TOKEN);
     const showScamTokens = cookies.get(cookies.NAMES.SHOW_SCAM_TOKENS) === 'true';
 
@@ -49,6 +50,9 @@ export default function useApiFetch() {
         'api-v2-temp-token': apiTempToken,
         'show-scam-tokens': showScamTokens ? 'true' : undefined,
       } : {}),
+      ...(apiName === 'rewards' && rewardsApiToken ? {
+        Authorization: `Bearer ${ rewardsApiToken }`,
+      } : {}),
       ...resource.headers,
       ...fetchParams?.headers,
     }, Boolean) as HeadersInit;
diff --git a/lib/contexts/rewards.tsx b/lib/contexts/rewards.tsx
index a42cbec38a..735196e939 100644
--- a/lib/contexts/rewards.tsx
+++ b/lib/contexts/rewards.tsx
@@ -1,8 +1,7 @@
-import type { UseQueryResult } from '@tanstack/react-query';
-import { useQueryClient } from '@tanstack/react-query';
+import { useQueryClient, type UseQueryResult } from '@tanstack/react-query';
 import { useToggle } from '@uidotdev/usehooks';
 import { useRouter } from 'next/router';
-import React, { createContext, useContext, useEffect, useMemo, useCallback } from 'react';
+import React, { createContext, useContext, useEffect, useMemo, useCallback, useState } from 'react';
 import { useSignMessage, useSwitchChain } from 'wagmi';
 
 import type * as rewards from '@blockscout/points-types';
@@ -33,13 +32,14 @@ type TRewardsContext = {
   referralsQuery: ContextQueryResult<rewards.GetReferralDataResponse>;
   rewardsConfigQuery: ContextQueryResult<rewards.GetConfigResponse>;
   checkUserQuery: ContextQueryResult<rewards.AuthUserResponse>;
-  apiToken: string | undefined;
   isInitialized: boolean;
   isLoginModalOpen: boolean;
+  isAuth: boolean;
   openLoginModal: () => void;
   closeLoginModal: () => void;
-  saveApiToken: (token: string | undefined) => void;
   login: (refCode: string) => Promise<{ isNewUser: boolean; reward?: string; invalidRefCodeError?: boolean }>;
+  onLoginSuccess: (token: string) => void;
+  logout: () => Promise<void>;
   claim: () => Promise<void>;
 };
 
@@ -58,13 +58,14 @@ const initialState = {
   referralsQuery: defaultQueryResult,
   rewardsConfigQuery: defaultQueryResult,
   checkUserQuery: defaultQueryResult,
-  apiToken: undefined,
   isInitialized: false,
   isLoginModalOpen: false,
+  isAuth: false,
   openLoginModal: () => {},
   closeLoginModal: () => {},
-  saveApiToken: () => {},
   login: async() => ({ isNewUser: false }),
+  onLoginSuccess: () => {},
+  logout: async() => {},
   claim: async() => {},
 };
 
@@ -108,73 +109,36 @@ type Props = {
 
 export function RewardsContextProvider({ children }: Props) {
   const router = useRouter();
-  const queryClient = useQueryClient();
   const apiFetch = useApiFetch();
+  const queryClient = useQueryClient();
+
   const { address } = useAccount();
   const { signMessageAsync } = useSignMessage();
   const { switchChainAsync } = useSwitchChain();
   const profileQuery = useProfileQuery();
 
   const [ isLoginModalOpen, setIsLoginModalOpen ] = useToggle(false);
-  const [ isInitialized, setIsInitialized ] = useToggle(false);
-  const [ apiToken, setApiToken ] = React.useState<string | undefined>();
+  const [ isInitialized, setIsInitialized ] = useState(false);
+  const [ isAuth, setIsAuth ] = useState(false);
 
-  // Initialize state with the API token from cookies
-  useEffect(() => {
-    if (!profileQuery.isLoading) {
-      const token = cookies.get(cookies.NAMES.REWARDS_API_TOKEN);
-      const registeredAddress = getRegisteredAddress(token || '');
-      if (registeredAddress === profileQuery.data?.address_hash) {
-        setApiToken(token);
-      }
-      setIsInitialized(true);
-    }
-  }, [ setIsInitialized, profileQuery ]);
+  const enabled = feature.isEnabled && isAuth;
 
-  // Save the API token to cookies and state
-  const saveApiToken = useCallback((token: string | undefined) => {
-    if (token) {
-      cookies.set(cookies.NAMES.REWARDS_API_TOKEN, token, { expires: 365 });
-    } else {
-      cookies.remove(cookies.NAMES.REWARDS_API_TOKEN);
-    }
-    setApiToken(token);
-  }, []);
-
-  const [ queryOptions, fetchParams ] = useMemo(() => [
-    { enabled: Boolean(apiToken) && feature.isEnabled },
-    { headers: { Authorization: `Bearer ${ apiToken }` } },
-  ], [ apiToken ]);
-
-  const balancesQuery = useApiQuery('rewards:user_balances', { queryOptions, fetchParams });
-  const dailyRewardQuery = useApiQuery('rewards:user_daily_check', { queryOptions, fetchParams });
-  const referralsQuery = useApiQuery('rewards:user_referrals', { queryOptions, fetchParams });
+  const balancesQuery = useApiQuery('rewards:user_balances', { queryOptions: { enabled } });
+  const dailyRewardQuery = useApiQuery('rewards:user_daily_check', { queryOptions: { enabled } });
+  const referralsQuery = useApiQuery('rewards:user_referrals', { queryOptions: { enabled } });
   const rewardsConfigQuery = useApiQuery('rewards:config', { queryOptions: { enabled: feature.isEnabled } });
   const checkUserQuery = useApiQuery('rewards:check_user', { queryOptions: { enabled: feature.isEnabled }, pathParams: { address } });
 
-  // Reset queries when the API token is removed
-  useEffect(() => {
-    if (isInitialized && !apiToken) {
-      queryClient.resetQueries({ queryKey: getResourceKey('rewards:user_balances'), exact: true });
-      queryClient.resetQueries({ queryKey: getResourceKey('rewards:user_daily_check'), exact: true });
-      queryClient.resetQueries({ queryKey: getResourceKey('rewards:user_referrals'), exact: true });
-    }
-  }, [ isInitialized, apiToken, queryClient ]);
-
   // Handle 401 error
   useEffect(() => {
-    if (apiToken && balancesQuery.error?.status === 401) {
-      saveApiToken(undefined);
-    }
-  }, [ balancesQuery.error, apiToken, saveApiToken ]);
-
-  // Check if the profile address is the same as the registered address
-  useEffect(() => {
-    const registeredAddress = getRegisteredAddress(apiToken || '');
-    if (registeredAddress && !profileQuery.isLoading && profileQuery.data?.address_hash !== registeredAddress) {
-      setApiToken(undefined);
+    if (balancesQuery.error?.status === 401) {
+      const rewardsToken = cookies.get(cookies.NAMES.REWARDS_API_TOKEN);
+      if (rewardsToken) {
+        cookies.remove(cookies.NAMES.REWARDS_API_TOKEN);
+        setIsAuth(false);
+      }
     }
-  }, [ apiToken, profileQuery, setApiToken ]);
+  }, [ balancesQuery.error?.status ]);
 
   // Handle referral code in the URL
   useEffect(() => {
@@ -182,11 +146,11 @@ export function RewardsContextProvider({ children }: Props) {
     if (refCode && isInitialized) {
       cookies.set(cookies.NAMES.REWARDS_REFERRAL_CODE, refCode);
       removeQueryParam(router, 'ref');
-      if (!apiToken) {
+      if (!isAuth) {
         setIsLoginModalOpen(true);
       }
     }
-  }, [ router, apiToken, isInitialized, setIsLoginModalOpen ]);
+  }, [ router, isInitialized, setIsLoginModalOpen, isAuth ]);
 
   const errorToast = useCallback((error: unknown) => {
     const apiError = getErrorObjPayload<{ message: string }>(error);
@@ -196,6 +160,41 @@ export function RewardsContextProvider({ children }: Props) {
     });
   }, [ ]);
 
+  const onLoginSuccess = useCallback((token: string) => {
+    cookies.set(cookies.NAMES.REWARDS_API_TOKEN, token, { expires: 365 });
+    setIsAuth(true);
+  }, [ ]);
+
+  const logout = useCallback(async() => {
+    const rewardsToken = cookies.get(cookies.NAMES.REWARDS_API_TOKEN);
+    if (rewardsToken) {
+      await apiFetch('rewards:logout', { fetchParams: { method: 'POST' } });
+      queryClient.resetQueries({ queryKey: getResourceKey('rewards:user_balances'), exact: true });
+      queryClient.resetQueries({ queryKey: getResourceKey('rewards:user_daily_check'), exact: true });
+      queryClient.resetQueries({ queryKey: getResourceKey('rewards:user_referrals'), exact: true });
+
+      cookies.remove(cookies.NAMES.REWARDS_API_TOKEN);
+    }
+    setIsAuth(false);
+  }, [ apiFetch, queryClient ]);
+
+  // Initialize state with the API token from cookies
+  useEffect(() => {
+    if (!profileQuery.isLoading) {
+      const token = cookies.get(cookies.NAMES.REWARDS_API_TOKEN);
+      if (token && profileQuery.data?.address_hash) {
+        // Check if the profile address is the same as the registered address
+        const registeredAddress = getRegisteredAddress(token);
+        if (registeredAddress === profileQuery.data.address_hash) {
+          setIsAuth(true);
+        } else {
+          logout();
+        }
+      }
+      setIsInitialized(true);
+    }
+  }, [ profileQuery.isLoading, profileQuery.data?.address_hash, logout ]);
+
   // Login to the rewards program
   const login = useCallback(async(refCode: string) => {
     try {
@@ -227,7 +226,7 @@ export function RewardsContextProvider({ children }: Props) {
           },
         },
       }) as rewards.AuthLoginResponse;
-      saveApiToken(loginResponse.token);
+      onLoginSuccess(loginResponse.token);
       return {
         isNewUser: loginResponse.created,
         reward: checkCodeResponse.reward,
@@ -236,7 +235,7 @@ export function RewardsContextProvider({ children }: Props) {
       errorToast(_error);
       throw _error;
     }
-  }, [ address, apiFetch, checkUserQuery.data?.exists, switchChainAsync, signMessageAsync, saveApiToken, errorToast ]);
+  }, [ address, apiFetch, switchChainAsync, checkUserQuery.data?.exists, signMessageAsync, onLoginSuccess, errorToast ]);
 
   // Claim daily reward
   const claim = useCallback(async() => {
@@ -244,14 +243,13 @@ export function RewardsContextProvider({ children }: Props) {
       await apiFetch('rewards:user_daily_claim', {
         fetchParams: {
           method: 'POST',
-          ...fetchParams,
         },
       }) as rewards.DailyRewardClaimResponse;
     } catch (_error) {
       errorToast(_error);
       throw _error;
     }
-  }, [ apiFetch, errorToast, fetchParams ]);
+  }, [ apiFetch, errorToast ]);
 
   const openLoginModal = React.useCallback(() => {
     setIsLoginModalOpen(true);
@@ -271,19 +269,21 @@ export function RewardsContextProvider({ children }: Props) {
       referralsQuery,
       rewardsConfigQuery,
       checkUserQuery,
-      apiToken,
-      saveApiToken,
       isInitialized,
       isLoginModalOpen,
       openLoginModal,
       closeLoginModal,
       login,
+      onLoginSuccess,
+      logout,
       claim,
+      isAuth,
     };
   }, [
     balancesQuery, dailyRewardQuery, checkUserQuery,
-    apiToken, login, claim, referralsQuery, rewardsConfigQuery, isInitialized, saveApiToken,
+    login, claim, referralsQuery, rewardsConfigQuery, isInitialized,
     isLoginModalOpen, openLoginModal, closeLoginModal,
+    isAuth, logout, onLoginSuccess,
   ]);
 
   return (
diff --git a/lib/hooks/useRewardsActivity.tsx b/lib/hooks/useRewardsActivity.tsx
index da3dc8d3e1..c681e4131d 100644
--- a/lib/hooks/useRewardsActivity.tsx
+++ b/lib/hooks/useRewardsActivity.tsx
@@ -20,14 +20,14 @@ type RewardsActivityEndpoint =
   'rewards:user_activity_track_usage';
 
 export default function useRewardsActivity() {
-  const { apiToken } = useRewardsContext();
+  const { isAuth } = useRewardsContext();
   const apiFetch = useApiFetch();
   const lastExploreTime = useRef<number>(0);
 
   const profileQuery = useProfileQuery();
   const checkActivityPassQuery = useApiQuery('rewards:user_check_activity_pass', {
     queryOptions: {
-      enabled: feature.isEnabled && Boolean(apiToken) && Boolean(profileQuery.data?.address_hash),
+      enabled: feature.isEnabled && isAuth && Boolean(profileQuery.data?.address_hash),
     },
     queryParams: {
       address: profileQuery.data?.address_hash ?? '',
@@ -44,7 +44,7 @@ export default function useRewardsActivity() {
   }, []);
 
   const makeRequest = useCallback(async(endpoint: RewardsActivityEndpoint, params: Record<string, string>) => {
-    if (!apiToken || !checkActivityPassQuery.data?.is_valid) {
+    if (!isAuth || !checkActivityPassQuery.data?.is_valid) {
       return;
     }
 
@@ -53,11 +53,10 @@ export default function useRewardsActivity() {
         fetchParams: {
           method: 'POST',
           body: params,
-          headers: { Authorization: `Bearer ${ apiToken }` },
         },
       });
     } catch {}
-  }, [ apiFetch, checkActivityPassQuery.data, apiToken ]);
+  }, [ apiFetch, checkActivityPassQuery.data, isAuth ]);
 
   const trackTransaction = useCallback(async(from: string, to: string, chainId?: string) => {
     return (
@@ -84,7 +83,7 @@ export default function useRewardsActivity() {
 
   const trackUsage = useCallback((action: string) => {
     // check here because this function is called on page load
-    if (!apiToken || !checkActivityPassQuery.data?.is_valid) {
+    if (!isAuth || !checkActivityPassQuery.data?.is_valid) {
       return;
     }
 
@@ -103,7 +102,7 @@ export default function useRewardsActivity() {
       action,
       chain_id: config.chain.id ?? '',
     });
-  }, [ makeRequest, apiToken, checkActivityPassQuery.data ]);
+  }, [ makeRequest, isAuth, checkActivityPassQuery.data ]);
 
   return {
     trackTransaction,
diff --git a/ui/pages/RewardsDashboard.tsx b/ui/pages/RewardsDashboard.tsx
index c7ba536273..941c052555 100644
--- a/ui/pages/RewardsDashboard.tsx
+++ b/ui/pages/RewardsDashboard.tsx
@@ -23,7 +23,7 @@ import PageTitle from 'ui/shared/Page/PageTitle';
 import useRedirectForInvalidAuthToken from 'ui/snippets/auth/useRedirectForInvalidAuthToken';
 
 const RewardsDashboard = () => {
-  const { balancesQuery, apiToken, referralsQuery, rewardsConfigQuery, dailyRewardQuery, isInitialized } = useRewardsContext();
+  const { balancesQuery, isAuth, referralsQuery, rewardsConfigQuery, dailyRewardQuery, isInitialized } = useRewardsContext();
   const { nextAchievementText, isLoading: isBadgesLoading, badgesQuery } = useStreakBadges();
   const streakModal = useDisclosure();
   const isMobile = useIsMobile();
@@ -33,10 +33,10 @@ const RewardsDashboard = () => {
   useRedirectForInvalidAuthToken();
 
   useEffect(() => {
-    if (!config.features.rewards.isEnabled || (isInitialized && !apiToken)) {
+    if (!config.features.rewards.isEnabled || (isInitialized && !isAuth)) {
       window.location.assign('/');
     }
-  }, [ isInitialized, apiToken ]);
+  }, [ isInitialized, isAuth ]);
 
   useEffect(() => {
     setIsError(balancesQuery.isError || referralsQuery.isError || rewardsConfigQuery.isError || dailyRewardQuery.isError);
diff --git a/ui/rewards/RewardsButton.tsx b/ui/rewards/RewardsButton.tsx
index 3f65bfe85a..343bc0ffed 100644
--- a/ui/rewards/RewardsButton.tsx
+++ b/ui/rewards/RewardsButton.tsx
@@ -16,7 +16,7 @@ type Props = {
 };
 
 const RewardsButton = ({ variant = 'header', size }: Props) => {
-  const { isInitialized, apiToken, openLoginModal, dailyRewardQuery, balancesQuery } = useRewardsContext();
+  const { isInitialized, isAuth, openLoginModal, dailyRewardQuery, balancesQuery } = useRewardsContext();
   const isMobile = useIsMobile();
   const isLoading = !isInitialized || dailyRewardQuery.isLoading || balancesQuery.isLoading;
 
@@ -28,15 +28,15 @@ const RewardsButton = ({ variant = 'header', size }: Props) => {
     <Tooltip
       content="Earn Merits for using Blockscout"
       openDelay={ 500 }
-      disabled={ isMobile || isLoading || Boolean(apiToken) }
+      disabled={ isMobile || isLoading || isAuth }
     >
       <Button
         variant={ variant }
-        selected={ !isLoading && Boolean(apiToken) }
+        selected={ !isLoading && isAuth }
         flexShrink={ 0 }
-        as={ apiToken ? 'a' : 'button' }
-        { ...(apiToken ? { href: route({ pathname: '/account/merits' }) } : {}) }
-        onClick={ apiToken ? undefined : openLoginModal }
+        as={ isAuth ? 'a' : 'button' }
+        { ...(isAuth ? { href: route({ pathname: '/account/merits' }) } : {}) }
+        onClick={ isAuth ? undefined : openLoginModal }
         onFocus={ handleFocus }
         size={ size }
         px={{ base: '10px', lg: 3 }}
@@ -52,9 +52,9 @@ const RewardsButton = ({ variant = 'header', size }: Props) => {
         />
         <chakra.span
           display={{ base: 'none', md: 'inline' }}
-          fontWeight={ apiToken ? '700' : '600' }
+          fontWeight={ isAuth ? '700' : '600' }
         >
-          { apiToken ? (balancesQuery.data?.total || 'N/A') : 'Merits' }
+          { isAuth ? (balancesQuery.data?.total || 'N/A') : 'Merits' }
         </chakra.span>
       </Button>
     </Tooltip>
diff --git a/ui/rewards/dashboard/tabs/ActivityTab.tsx b/ui/rewards/dashboard/tabs/ActivityTab.tsx
index 925bd732da..08b50de64a 100644
--- a/ui/rewards/dashboard/tabs/ActivityTab.tsx
+++ b/ui/rewards/dashboard/tabs/ActivityTab.tsx
@@ -44,7 +44,7 @@ function getMaxAmount(rewards: Record<string, string> | undefined) {
 }
 
 export default function ActivityTab() {
-  const { apiToken, rewardsConfigQuery } = useRewardsContext();
+  const { isAuth, rewardsConfigQuery } = useRewardsContext();
   const explorersModal = useDisclosure();
   const taskDetailsModal = useDisclosure();
   const isMobile = useIsMobile();
@@ -53,7 +53,7 @@ export default function ActivityTab() {
   const profileQuery = useProfileQuery();
   const checkActivityPassQuery = useApiQuery('rewards:user_check_activity_pass', {
     queryOptions: {
-      enabled: feature.isEnabled && Boolean(apiToken) && Boolean(profileQuery.data?.address_hash),
+      enabled: feature.isEnabled && isAuth && Boolean(profileQuery.data?.address_hash),
     },
     queryParams: {
       address: profileQuery.data?.address_hash ?? '',
@@ -61,10 +61,9 @@ export default function ActivityTab() {
   });
   const activityQuery = useApiQuery('rewards:user_activity', {
     queryOptions: {
-      enabled: Boolean(apiToken) && feature.isEnabled,
+      enabled: isAuth && feature.isEnabled,
       placeholderData: USER_ACTIVITY,
     },
-    fetchParams: { headers: { Authorization: `Bearer ${ apiToken }` } },
   });
   const instancesQuery = useApiQuery('rewards:instances', {
     queryOptions: { enabled: feature.isEnabled },
diff --git a/ui/rewards/hooks/useStreakBadges.ts b/ui/rewards/hooks/useStreakBadges.ts
index 3543ae5a16..0bdd9de7d5 100644
--- a/ui/rewards/hooks/useStreakBadges.ts
+++ b/ui/rewards/hooks/useStreakBadges.ts
@@ -9,11 +9,11 @@ import { useRewardsContext } from 'lib/contexts/rewards';
 const feature = config.features.rewards;
 
 export default function useStreakBadges() {
-  const { apiToken, dailyRewardQuery } = useRewardsContext();
+  const { isAuth, dailyRewardQuery } = useRewardsContext();
 
   const badgesQuery = useApiQuery<'rewards:user_badges', unknown, GetAvailableBadgesResponse>('rewards:user_badges', {
     queryOptions: {
-      enabled: feature.isEnabled && Boolean(apiToken),
+      enabled: feature.isEnabled && isAuth,
       select: (data) => ({
         ...data,
         items: data.items
@@ -21,7 +21,6 @@ export default function useStreakBadges() {
           .slice(0, 3), // UI limit
       }),
     },
-    fetchParams: { headers: { Authorization: `Bearer ${ apiToken }` } },
   });
 
   const nextAchievementText = useMemo(() => {
diff --git a/ui/snippets/auth/AuthModal.tsx b/ui/snippets/auth/AuthModal.tsx
index ce9b5d84fc..d7123f6f83 100644
--- a/ui/snippets/auth/AuthModal.tsx
+++ b/ui/snippets/auth/AuthModal.tsx
@@ -39,8 +39,7 @@ const AuthModal = ({ initialScreen, onClose, mixpanelConfig, closeOnError }: Pro
   const [ isSuccess, setIsSuccess ] = React.useState(false);
   const [ rewardsApiToken, setRewardsApiToken ] = React.useState<string | undefined>(undefined);
 
-  const { saveApiToken } = useRewardsContext();
-
+  const { onLoginSuccess: onRewardsLoginSuccess } = useRewardsContext();
   const router = useRouter();
   const csrfQuery = useGetCsrfToken();
   const queryClient = useQueryClient();
@@ -93,11 +92,11 @@ const AuthModal = ({ initialScreen, onClose, mixpanelConfig, closeOnError }: Pro
 
     if ('rewardsToken' in screen && screen.rewardsToken) {
       setRewardsApiToken(screen.rewardsToken);
-      saveApiToken(screen.rewardsToken);
+      onRewardsLoginSuccess(screen.rewardsToken);
     }
 
     onNextStep(screen);
-  }, [ initialScreen, mixpanelConfig?.account_link_info.source, onNextStep, csrfQuery, queryClient, saveApiToken ]);
+  }, [ initialScreen, mixpanelConfig?.account_link_info.source, onNextStep, csrfQuery, queryClient, onRewardsLoginSuccess ]);
 
   const onModalClose = React.useCallback(() => {
     onClose(isSuccess, rewardsApiToken);
diff --git a/ui/snippets/auth/useLogout.ts b/ui/snippets/auth/useLogout.ts
index 92c49c0acc..f78c6bdb67 100644
--- a/ui/snippets/auth/useLogout.ts
+++ b/ui/snippets/auth/useLogout.ts
@@ -7,6 +7,7 @@ import type { Route } from 'nextjs-routes';
 import config from 'configs/app';
 import useApiFetch from 'lib/api/useApiFetch';
 import { getResourceKey } from 'lib/api/useApiQuery';
+import { useRewardsContext } from 'lib/contexts/rewards';
 import * as cookies from 'lib/cookies';
 import * as mixpanel from 'lib/mixpanel';
 import { toaster } from 'toolkit/chakra/toaster';
@@ -25,6 +26,7 @@ export default function useLogout() {
   const router = useRouter();
   const queryClient = useQueryClient();
   const apiFetch = useApiFetch();
+  const { logout: rewardsLogout } = useRewardsContext();
 
   return React.useCallback(async() => {
     try {
@@ -32,14 +34,7 @@ export default function useLogout() {
       cookies.remove(cookies.NAMES.API_TOKEN);
 
       if (config.features.rewards.isEnabled) {
-        const rewardsToken = cookies.get(cookies.NAMES.REWARDS_API_TOKEN);
-        if (rewardsToken) {
-          await apiFetch('rewards:logout', { fetchParams: {
-            method: 'POST',
-            headers: { Authorization: `Bearer ${ rewardsToken }` },
-          } });
-          cookies.remove(cookies.NAMES.REWARDS_API_TOKEN);
-        }
+        rewardsLogout();
       }
 
       mixpanel.logEvent(mixpanel.EventTypes.ACCOUNT_ACCESS, { Action: 'Logged out' }, { send_immediately: true });
@@ -66,5 +61,5 @@ export default function useLogout() {
         description: 'Please try again later',
       });
     }
-  }, [ apiFetch, queryClient, router ]);
+  }, [ apiFetch, rewardsLogout, queryClient, router ]);
 }
diff --git a/ui/snippets/navigation/vertical/NavLinkRewards.tsx b/ui/snippets/navigation/vertical/NavLinkRewards.tsx
index 1f14b95722..3ab6e26086 100644
--- a/ui/snippets/navigation/vertical/NavLinkRewards.tsx
+++ b/ui/snippets/navigation/vertical/NavLinkRewards.tsx
@@ -15,18 +15,18 @@ type Props = {
 
 const NavLinkRewards = ({ isCollapsed, onClick }: Props) => {
   const router = useRouter();
-  const { openLoginModal, dailyRewardQuery, apiToken, isInitialized } = useRewardsContext();
+  const { openLoginModal, dailyRewardQuery, isAuth, isInitialized } = useRewardsContext();
 
   const pathname = '/account/merits';
   const nextRoute = { pathname } as Route;
 
   const handleClick = useCallback((e: React.MouseEvent) => {
-    if (isInitialized && !apiToken) {
+    if (isInitialized && !isAuth) {
       e.preventDefault();
       openLoginModal();
     }
     onClick?.();
-  }, [ onClick, isInitialized, apiToken, openLoginModal ]);
+  }, [ onClick, isInitialized, isAuth, openLoginModal ]);
 
   if (!config.features.rewards.isEnabled) {
     return null;