neom

DeFi platform Nemo Protocol, built on the Sui network, has announced an ambitious plan to compensate victims of its recent $2.4 million hack. The solution: the introduction of a new debt token called $NEOM, designed to cover users’ losses.

How NEOM Compensation Works
Instead of offering direct payouts in U.S. dollars, Nemo Protocol has introduced a debt token system due to a lack of available funds.
🔹 For every $1 lost, users will receive 1 $NEOM, calculated based on a snapshot taken before the hack

🔹 The value of NEOM may fluctuate depending on market conditions and recovery progress

🔹 All steps will be conducted with full transparency – from loss calculations to token distribution
“Our goal is to make every user whole by issuing a debt token equal to their losses, knowing that its value may change over time as recovery unfolds,” the platform stated in a blog post.

A Three-Phase Recovery Path
Nemo outlined a three-step compensation strategy that gives users multiple options for regaining their lost assets:
🔹 Migration – move remaining assets with one click to new, secure contracts

🔹 Compensation – receive $NEOM tokens equal to their confirmed losses

🔹 Recovery – choose to sell NEOM immediately or hold it while waiting for the recovery fund to replenish

Redemption Pool: Community-Led Restitution
The platform also confirmed that 100% of the funds recovered from the hacker will be deposited into a newly created “Redemption Pool,” managed under a multi-signature framework.
NEOM holders will be able to redeem their tokens based on the proportion they hold. To ensure maximum transparency, Nemo plans to launch a dedicated website allowing the community to track token burning progress and recovery updates in real time.

What Does This Mean for DeFi?
While Nemo Protocol faces a serious challenge, the launch of the NEOM token highlights how DeFi projects are exploring innovative mechanisms to protect users and restore trust.
The critical question remains: will NEOM evolve into a sustainable tool for restitution, or will it only serve as a temporary measure to calm the community after one of the platform’s largest-ever exploits?

#NemoProtocol , #NEOM , #defi , #CryptoSecurity , #CryptoHack

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“