Neemo Finance - Compensation Model Referendum

Introduction

On 5 July 2025 an admin-key compromise allowed an attacker to over-mint nsASTR and nrETH, drain liquidity and attempt to unstake 204 million ASTR. Immediate action by the Astar Core Team, Main Council and Astar Collective froze those funds and prevented a total loss:
• 204 283 546.036 ASTR — safely held in the Astar Treasury
• 91.634 ETH — voluntarily returned by a white-hat

Over the past week we gathered feedback from the Neemo community, Astar community, Main Council, Astar Collective and all affected DeFi protocols. That open forum discussion (see link below) produced four candidate compensation models.This referendum asks the community to select one of those models so that Phase-1 reimbursement contracts can be Finalized.
Forum discussion thread: https://forum.astar.network/t/neemo-exploit-reimbursement-plan/8727/86

What this referendum does and next steps

48-hour vote from 7am UTC, 25th — choose the preferred compensation formula (no funds move yet).
Immediately after this vote closes, a second 48-hour referendum will request the Treasury transfer of the protected ASTR to Neemo Multisig.
Claims open – With the burn model, users can start claiming as soon as the vote concludes, whereas the snapshot model requires extensive off-chain calculations and therefore takes significantly longer before claims can begin.

Compensation Model

Model	Allocation to nsASTR holders	Allocation to nrETH holders	Estimated Discount
1. Asset-linked (Burn Model)	100% of protected ASTR	100 of returned ETH	nsASTR ≈ 21.7％, nrETH ≈ 30.5%
2. Split Model (Burn Model)	Protected ASTR + 50 % of the 91.634 ETH	50 % of the 91.634 ETH	nsASTR ≈ 21.72 % (partly offset by 45.82 ETH in ASTR value), nrETH ≈ 67.6 %
3. Unified pool model (Burn Model)	ASTR + ETH combined and redistributed pro-rata by each token’s loss ratio	Same pool & ratio	Same discount rate for both tokens
4. Snapshot model	Protected ASTR only to nsASTR wallets (no DeFi portion in Phase 1)	Returned ETH only to nrETH wallets (no DeFi portion in Phase 1)	-

Key Concerns with Model 4 (Snapshot model)

High implementation risk – Mass address matching and manual checks are time-consuming; any calculation error is potentially fatal.
Uneven treatment – The majority of nsASTR / nrETH exposure sits in DeFi positions; a pure snapshot would over-reward passive holders and vault users while under-compensating active DeFi users.
No repayment incentive – Borrowers in lending pools could walk away, leaving pools locked and both ASTR and nsASTR withdrawals frozen.
Because of these drawbacks, Snapshot-Only is documented for completeness but is not recommended for adoption.
More details: https://forum.astar.network/t/neemo-exploit-reimbursement-plan/8727/86

Conclusion

Please review each option and cast your vote. Your choice will determine how assets are distributed in Phase-1; the follow-up referendum will then release the protected ASTR to the contracts accordingly. Thank you for your careful consideration and continued support.