Nemo Protocol Launches NEOM Token: A Recovery Plan After $2.4 Million Hack

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

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