Nemo Protocol Launches NEOM Token to Fully Cover $2.4M Hack Losses

Nemo Protocol turns crisis into opportunity with groundbreaking compensation model.

Damage Control Done Right

Instead of begging for bailouts or folding quietly, Nemo Protocol engineered an elegant solution—minting the NEOM token specifically to reimburse affected users. Every single dollar of that $2.4 million hack gets covered, no government forms or waiting periods required.

Tokenomics With Teeth

The NEOM distribution model prioritizes hacked users first, rewarding loyalty while demonstrating actual utility beyond speculative trading. It’s DeFi actually defending its users for once—refreshing, if you’re used to traditional finance’s ‘sorry, your funds are gone’ policy.

Building Trust Through Transparency

Full blockchain visibility means every token move gets tracked, every claim gets verified. No backroom deals, no hidden clauses—just code-enforced fairness. Take that, Wall Street.

When protocols protect better than banks, you know the revolution’s working—even the cynics might crack a smile.

The Sui-based DeFi platform, Nemo protocol, has introduced a compensation plan for the affected users in the recent $2.4 million hack. The platform is planning to issue NEOM tokens equal to the value of their losses in USD to compensate. 

Nemo Protocol Launches Debt Token NEOM

In a blog post on Sunday, Nemo explained that it adopted a debt token strategy instead of paying in USD because the company does not have sufficient funds or capital to offer all the affected users. But the company will ensure that every user gets NEOM equal to the full amount of their original losses from this security incident.

Nemo wrote, “Our goal is to make every user whole by issuing a debt token equal to their loss in USD, with the understanding that its value may change over time depending on market conditions and the progress of fund recovery.” 

Moreover, Nemo is also making sure that all calculations of $2.4 million loss, token distributions, and use of funds are conducted with high transparency and fairness. 

Three Path Recovery for Compensation

It has introduced a three-path recovery method for users to claim their lost assets. 

• Migration: Users can move their remaining assets from affected pools into new secure contracts with one click. 

• Compensation: They will receive $NEOM tokens equal to the value of their losses, based on a snapshot. 

• Restoration: Users can either sell NEOM right away or hold it while waiting for fund recovery.

According to the blog, one $NEOM will be minted for every $1.00 of confirmed loss, based on the pre-hack snapshot. The company is poised to reimburse with complete transparency. It said, “To ensure full transparency, we will establish a dedicated website to track the NEOM burn progress, allowing the community to monitor real-time updates on the initiative.”

Nemo also revealed that it is planning to make a 100% deposit for recovered funds from the hacker into a new, multi-party managed “Redemption Pool.” It will allow NEOM holders to claim their share, based on how much they hold.