Neemo Finance: Treasury Transfer of 204,283,546 ASTR for Neemo Reimbursement — Snapshot Model Proposal - treasury proposal #13

1. Background

• On July 5, 2025, an exploit involving over-minting of nsASTR / nrETH occurred.

• To determine the reimbursement method, four options were proposed and compared via community voting.

• In the off-chain vote (SubSquare Poll #11), Option 4: Snapshot-Only received the highest number of votes.

  Forum thread → https://forum.astar.network/t/neemo-exploit-reimbursement-plan/8727

  Poll results → https://astar.subsquare.io/posts/11

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2. Option 4 – Snapshot-Only (Selected Option)

1. A snapshot is taken based on wallet balances at the block prior to the exploit.
2. nsASTR / nrETH balances are distributed only to eligible wallets, allowing those users to claim ASTR and ETH.

Note: For DeFi participants, only the amount of nsASTR / nrETH will be calculated including wallet, and defi activities. No ASTR/ETH will be calculated based on DeFi activities.

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3. Requested Amount & Recipient

Asset	Amount	Recipient	Wallet Address
ASTR	204,283,546	Polkadot Multisig	ZLktMBPpV8KUGNADv5sVKzA5p8cLoLWfZGLB4VsgAW6ebSN

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4. Major Drawbacks (as highlighted during voting)

1. High implementation risk – Mass address matching and manual checks are time-consuming; any calculation error is potentially fatal.
2. 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.
3. 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. Full discussion: https://forum.astar.network/t/neemo-exploit-reimbursement-plan/8727/86

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5. Finalization via On-Chain Referendum

The off-chain poll lacked sufficient Sybil resistance, so the final decision rests with the on-chain referendum.

• On-chain votes are weighted by Conviction × ASTR balance, meaning small accounts created in bulk have virtually no influence.

• If this proposal is rejected, no treasury funds will be transferred.

  Instead, the second most-voted option will be submitted in a new on-chain referendum.