For years, the NEO project's treasury, valued at hundreds of millions of dollars, has been managed through an unconventional setup, with a significant portion controlled by a single individual, Erik Zhang, using personal wallets and lacking multisig protection. According to co-founder Da Hongfei, Zhang holds around 85% of the project's native tokens, currently worth between $200 million and $250 million, with no multisig protection and little formal oversight. Da has proposed a restructuring plan, which includes transferring the Neo Foundation from Singapore to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders.
In contrast, Zhang's counter-proposal involves staying on the board, keeping the foundation in Singapore, and conducting a formal investigation into historical asset management. The dispute has sparked a heated debate, with some observers questioning the project's financial management and the significant disparity between the treasury's value and the project's market capitalization. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets, but the success of this plan depends on Zhang's cooperation.