diff --git a/app/handle-negentropy.go b/app/handle-negentropy.go
index 892e6e9..191cff7 100644
--- a/app/handle-negentropy.go
+++ b/app/handle-negentropy.go
@@ -108,7 +108,7 @@ func (l *Listener) HandleNegOpen(msg []byte) error {
 
 	// Call gRPC service
 	ctx := context.Background()
-	respMsg, errStr, err := negentropyClient.HandleNegOpen(
+	respMsg, haveIDs, needIDs, complete, errStr, err := negentropyClient.HandleNegOpen(
 		ctx,
 		l.connectionID,
 		subscriptionID,
@@ -124,8 +124,29 @@ func (l *Listener) HandleNegOpen(msg []byte) error {
 		return l.sendNegErr(subscriptionID, errStr)
 	}
 
-	// Send NEG-MSG response with initial message
-	return l.sendNegMsg(subscriptionID, respMsg)
+	// Log need_ids (events client should send us)
+	if len(needIDs) > 0 {
+		log.D.F("NEG-OPEN: client needs to send %d events", len(needIDs))
+	}
+
+	// Send NEG-MSG response FIRST (before events)
+	if err := l.sendNegMsg(subscriptionID, respMsg); err != nil {
+		return err
+	}
+
+	// If reconciliation is complete, log it
+	if complete {
+		log.D.F("NEG-OPEN: reconciliation complete for %s", subscriptionID)
+	}
+
+	// AFTER sending response, send events for IDs we have that client needs
+	if len(haveIDs) > 0 {
+		if err := l.sendEventsForIDs(subscriptionID, haveIDs); err != nil {
+			log.E.F("failed to send events for NEG-OPEN: %v", err)
+		}
+	}
+
+	return nil
 }
 
 // HandleNegMsg processes NEG-MSG messages
@@ -180,19 +201,12 @@ func (l *Listener) HandleNegMsg(msg []byte) error {
 		return l.sendNegErr(subscriptionID, errStr)
 	}
 
-	// If we have events to send (have_ids), fetch and send them
-	if len(haveIDs) > 0 {
-		if err := l.sendEventsForIDs(subscriptionID, haveIDs); err != nil {
-			log.E.F("failed to send events for NEG-MSG: %v", err)
-		}
-	}
-
 	// Log need_ids (events client should send us)
 	if len(needIDs) > 0 {
 		log.D.F("NEG-MSG: client needs to send %d events", len(needIDs))
 	}
 
-	// Send NEG-MSG response
+	// Send NEG-MSG response FIRST (before events)
 	if err := l.sendNegMsg(subscriptionID, respMsg); err != nil {
 		return err
 	}
@@ -202,6 +216,13 @@ func (l *Listener) HandleNegMsg(msg []byte) error {
 		log.D.F("NEG-MSG: reconciliation complete for %s", subscriptionID)
 	}
 
+	// AFTER sending response, send events for IDs we have that client needs
+	if len(haveIDs) > 0 {
+		if err := l.sendEventsForIDs(subscriptionID, haveIDs); err != nil {
+			log.E.F("failed to send events for NEG-MSG: %v", err)
+		}
+	}
+
 	return nil
 }
 
@@ -275,13 +296,12 @@ func (l *Listener) sendEventsForIDs(subscriptionID string, ids [][]byte) error {
 
 	log.I.F("NEG: sending %d events for subscription %s", len(ids), subscriptionID)
 
-	// Build filter with hex-encoded IDs
+	// Build filter with binary IDs (32 bytes each)
 	f := &filter.F{}
 	f.Ids = &tag.T{}
 	for _, id := range ids {
-		// IDs can be 32 bytes (full) or 16 bytes (truncated per NIP-77)
-		hexID := hex.EncodeToString(id)
-		f.Ids.T = append(f.Ids.T, []byte(hexID))
+		// IDs are binary (32 bytes full or 16 bytes truncated per NIP-77)
+		f.Ids.T = append(f.Ids.T, id)
 	}
 
 	// Query events by IDs
diff --git a/pkg/proto/orlysync/negentropy/v1/service.pb.go b/pkg/proto/orlysync/negentropy/v1/service.pb.go
index cf17adc..31baa56 100644
--- a/pkg/proto/orlysync/negentropy/v1/service.pb.go
+++ b/pkg/proto/orlysync/negentropy/v1/service.pb.go
@@ -95,8 +95,11 @@ func (x *NegOpenRequest) GetConnectionId() string {
 // NegOpenResponse returns the initial negentropy response
 type NegOpenResponse struct {
 	state         protoimpl.MessageState `protogen:"open.v1"`
-	Message       []byte                 `protobuf:"bytes,1,opt,name=message,proto3" json:"message,omitempty"` // Negentropy protocol message to send back
-	Error         string                 `protobuf:"bytes,2,opt,name=error,proto3" json:"error,omitempty"`     // Error message if failed
+	Message       []byte                 `protobuf:"bytes,1,opt,name=message,proto3" json:"message,omitempty"`                // Negentropy protocol message to send back
+	HaveIds       [][]byte               `protobuf:"bytes,2,rep,name=have_ids,json=haveIds,proto3" json:"have_ids,omitempty"` // Event IDs we have that client needs (if initial reconciliation completes)
+	NeedIds       [][]byte               `protobuf:"bytes,3,rep,name=need_ids,json=needIds,proto3" json:"need_ids,omitempty"` // Event IDs we need from client (if initial reconciliation completes)
+	Complete      bool                   `protobuf:"varint,4,opt,name=complete,proto3" json:"complete,omitempty"`             // True if reconciliation completed in first round
+	Error         string                 `protobuf:"bytes,5,opt,name=error,proto3" json:"error,omitempty"`                    // Error message if failed
 	unknownFields protoimpl.UnknownFields
 	sizeCache     protoimpl.SizeCache
 }
@@ -138,6 +141,27 @@ func (x *NegOpenResponse) GetMessage() []byte {
 	return nil
 }
 
+func (x *NegOpenResponse) GetHaveIds() [][]byte {
+	if x != nil {
+		return x.HaveIds
+	}
+	return nil
+}
+
+func (x *NegOpenResponse) GetNeedIds() [][]byte {
+	if x != nil {
+		return x.NeedIds
+	}
+	return nil
+}
+
+func (x *NegOpenResponse) GetComplete() bool {
+	if x != nil {
+		return x.Complete
+	}
+	return false
+}
+
 func (x *NegOpenResponse) GetError() string {
 	if x != nil {
 		return x.Error
@@ -1124,10 +1148,13 @@ const file_orlysync_negentropy_v1_service_proto_rawDesc = "" +
 	"\x0fsubscription_id\x18\x01 \x01(\tR\x0esubscriptionId\x122\n" +
 	"\x06filter\x18\x02 \x01(\v2\x1a.orlysync.common.v1.FilterR\x06filter\x12'\n" +
 	"\x0finitial_message\x18\x03 \x01(\fR\x0einitialMessage\x12#\n" +
-	"\rconnection_id\x18\x04 \x01(\tR\fconnectionId\"A\n" +
+	"\rconnection_id\x18\x04 \x01(\tR\fconnectionId\"\x93\x01\n" +
 	"\x0fNegOpenResponse\x12\x18\n" +
-	"\amessage\x18\x01 \x01(\fR\amessage\x12\x14\n" +
-	"\x05error\x18\x02 \x01(\tR\x05error\"w\n" +
+	"\amessage\x18\x01 \x01(\fR\amessage\x12\x19\n" +
+	"\bhave_ids\x18\x02 \x03(\fR\ahaveIds\x12\x19\n" +
+	"\bneed_ids\x18\x03 \x03(\fR\aneedIds\x12\x1a\n" +
+	"\bcomplete\x18\x04 \x01(\bR\bcomplete\x12\x14\n" +
+	"\x05error\x18\x05 \x01(\tR\x05error\"w\n" +
 	"\rNegMsgRequest\x12'\n" +
 	"\x0fsubscription_id\x18\x01 \x01(\tR\x0esubscriptionId\x12\x18\n" +
 	"\amessage\x18\x02 \x01(\fR\amessage\x12#\n" +
diff --git a/pkg/sync/negentropy/grpc/client.go b/pkg/sync/negentropy/grpc/client.go
index fa0369e..23b1cdd 100644
--- a/pkg/sync/negentropy/grpc/client.go
+++ b/pkg/sync/negentropy/grpc/client.go
@@ -102,7 +102,8 @@ func (c *Client) Stop(ctx context.Context) error {
 }
 
 // HandleNegOpen processes a NEG-OPEN message from a client.
-func (c *Client) HandleNegOpen(ctx context.Context, connectionID, subscriptionID string, filter *commonv1.Filter, initialMessage []byte) ([]byte, string, error) {
+// Returns: message, haveIDs, needIDs, complete, errorStr, error
+func (c *Client) HandleNegOpen(ctx context.Context, connectionID, subscriptionID string, filter *commonv1.Filter, initialMessage []byte) ([]byte, [][]byte, [][]byte, bool, string, error) {
 	resp, err := c.client.HandleNegOpen(ctx, &negentropyv1.NegOpenRequest{
 		ConnectionId:   connectionID,
 		SubscriptionId: subscriptionID,
@@ -110,9 +111,9 @@ func (c *Client) HandleNegOpen(ctx context.Context, connectionID, subscriptionID
 		InitialMessage: initialMessage,
 	})
 	if err != nil {
-		return nil, "", err
+		return nil, nil, nil, false, "", err
 	}
-	return resp.Message, resp.Error, nil
+	return resp.Message, resp.HaveIds, resp.NeedIds, resp.Complete, resp.Error, nil
 }
 
 // HandleNegMsg processes a NEG-MSG message from a client.
diff --git a/pkg/sync/negentropy/manager.go b/pkg/sync/negentropy/manager.go
index aa85241..42ba3f2 100644
--- a/pkg/sync/negentropy/manager.go
+++ b/pkg/sync/negentropy/manager.go
@@ -260,6 +260,9 @@ func (m *Manager) performNegentropy(ctx context.Context, peerURL string) (int64,
 	var eventsSynced int64
 	var needIDs []string
 	var haveIDs []string
+	var waitingForEvents bool
+	var expectedEvents int
+	var receivedEvents int64
 
 	// Exchange messages until complete
 	for i := 0; i < 20; i++ { // Max 20 rounds
@@ -308,10 +311,20 @@ func (m *Manager) performNegentropy(ctx context.Context, peerURL string) (int64,
 			haveIDs = append(haveIDs, neg.CollectHaves()...)
 
 			if complete {
-				// Send NEG-CLOSE
-				negClose := []any{"NEG-CLOSE", subID}
-				conn.WriteJSON(negClose)
-				goto done
+				log.I.F("negentropy: reconciliation complete, waiting for %d events from peer", len(needIDs))
+				// Don't send NEG-CLOSE yet - wait for EVENT messages
+				// The server will send events we need after this
+				waitingForEvents = true
+				expectedEvents = len(needIDs)
+				if expectedEvents == 0 {
+					// No events to receive, close now
+					negClose := []any{"NEG-CLOSE", subID}
+					conn.WriteJSON(negClose)
+					goto done
+				}
+				// Set a read deadline to avoid waiting forever
+				conn.SetReadDeadline(time.Now().Add(30 * time.Second))
+				continue
 			}
 
 			// Send NEG-MSG response
@@ -329,7 +342,20 @@ func (m *Manager) performNegentropy(ctx context.Context, peerURL string) (int64,
 
 		case "EVENT":
 			// Peer is sending us an event
-			eventsSynced++
+			if len(msg) >= 3 {
+				if err := m.storeEventFromJSON(ctx, msg[2]); err != nil {
+					log.W.F("negentropy: failed to store event from peer: %v", err)
+				} else {
+					eventsSynced++
+					receivedEvents++
+				}
+			}
+			// If we've received all expected events (or more), we can close
+			if waitingForEvents && receivedEvents >= int64(expectedEvents) {
+				negClose := []any{"NEG-CLOSE", subID}
+				conn.WriteJSON(negClose)
+				goto done
+			}
 		}
 	}
 
diff --git a/pkg/sync/negentropy/server/service.go b/pkg/sync/negentropy/server/service.go
index 4bde5ab..f82a309 100644
--- a/pkg/sync/negentropy/server/service.go
+++ b/pkg/sync/negentropy/server/service.go
@@ -3,6 +3,7 @@ package server
 
 import (
 	"context"
+	"encoding/hex"
 	"fmt"
 
 	"google.golang.org/grpc"
@@ -75,8 +76,8 @@ func (s *Service) HandleNegOpen(ctx context.Context, req *negentropyv1.NegOpenRe
 
 	// If we have an initial message from client, process it
 	var respMsg []byte
+	var complete bool
 	if len(req.InitialMessage) > 0 {
-		var complete bool
 		respMsg, complete, err = neg.Reconcile(req.InitialMessage)
 		if err != nil {
 			log.E.F("NEG-OPEN: reconcile failed: %v", err)
@@ -99,9 +100,35 @@ func (s *Service) HandleNegOpen(ctx context.Context, req *negentropyv1.NegOpenRe
 		log.D.F("NEG-OPEN: started negentropy, initial msg len=%d", len(respMsg))
 	}
 
+	// Collect IDs we have that client needs (to send as events)
+	haveIDs := neg.CollectHaves()
+	var haveIDBytes [][]byte
+	for _, id := range haveIDs {
+		// ID is a hex string, decode to binary
+		if decoded, err := hex.DecodeString(id); err == nil {
+			haveIDBytes = append(haveIDBytes, decoded)
+		}
+	}
+
+	// Collect IDs we need from client
+	needIDs := neg.CollectHaveNots()
+	var needIDBytes [][]byte
+	for _, id := range needIDs {
+		// ID is a hex string, decode to binary
+		if decoded, err := hex.DecodeString(id); err == nil {
+			needIDBytes = append(needIDBytes, decoded)
+		}
+	}
+
+	log.I.F("NEG-OPEN: complete=%v, haves=%d, needs=%d, response len=%d",
+		complete, len(haveIDs), len(needIDs), len(respMsg))
+
 	return &negentropyv1.NegOpenResponse{
-		Message: respMsg,
-		Error:   "",
+		Message:  respMsg,
+		HaveIds:  haveIDBytes,
+		NeedIds:  needIDBytes,
+		Complete: complete,
+		Error:    "",
 	}, nil
 }
 
@@ -138,14 +165,20 @@ func (s *Service) HandleNegMsg(ctx context.Context, req *negentropyv1.NegMsgRequ
 	haveIDs := neg.CollectHaves()
 	var haveIDBytes [][]byte
 	for _, id := range haveIDs {
-		haveIDBytes = append(haveIDBytes, []byte(id))
+		// ID is a hex string, decode to binary
+		if decoded, err := hex.DecodeString(id); err == nil {
+			haveIDBytes = append(haveIDBytes, decoded)
+		}
 	}
 
 	// Collect IDs we need from client
 	needIDs := neg.CollectHaveNots()
 	var needIDBytes [][]byte
 	for _, id := range needIDs {
-		needIDBytes = append(needIDBytes, []byte(id))
+		// ID is a hex string, decode to binary
+		if decoded, err := hex.DecodeString(id); err == nil {
+			needIDBytes = append(needIDBytes, decoded)
+		}
 	}
 
 	log.I.F("NEG-MSG: complete=%v, haves=%d, needs=%d, response len=%d",
diff --git a/pkg/version/version b/pkg/version/version
index 97efdeb..a6fe2e6 100644
--- a/pkg/version/version
+++ b/pkg/version/version
@@ -1 +1 @@
-v0.55.6
+v0.55.7
diff --git a/proto/orlysync/negentropy/v1/service.proto b/proto/orlysync/negentropy/v1/service.proto
index faaa637..c359754 100644
--- a/proto/orlysync/negentropy/v1/service.proto
+++ b/proto/orlysync/negentropy/v1/service.proto
@@ -80,7 +80,10 @@ message NegOpenRequest {
 // NegOpenResponse returns the initial negentropy response
 message NegOpenResponse {
   bytes message = 1;            // Negentropy protocol message to send back
-  string error = 2;             // Error message if failed
+  repeated bytes have_ids = 2;  // Event IDs we have that client needs (if initial reconciliation completes)
+  repeated bytes need_ids = 3;  // Event IDs we need from client (if initial reconciliation completes)
+  bool complete = 4;            // True if reconciliation completed in first round
+  string error = 5;             // Error message if failed
 }
 
 // NegMsgRequest processes a NEG-MSG from client