Nemo Protocol Launches NEOM Token to Compensate Users After $2.4M Hack

Sui-based DeFi platform Nemo Protocol has unveiled a compensation plan for users affected by a recent $2.4 million security breach. The solution involves issuing NEOM tokens equivalent to the USD value of lost assets, acknowledging the protocol's current inability to reimburse in cash.

The debt token strategy reflects Nemo's commitment to making users whole while transparently addressing fund recovery challenges. "Our goal is to make every user whole by issuing a debt token equal to their loss in USD," the team stated, noting the token's value may fluctuate with market conditions and recovery progress.

Three recovery paths are offered: asset migration to new secure contracts, NEOM token compensation, and a yet-to-be-detailed third option. The protocol emphasizes transparent calculations for the $2.4 million loss distribution and fund allocation.