Co-Founder Holds Keys to $200 Million in Project Funds, Sparking Governance Debate

The NEO project's treasury, valued at hundreds of millions of dollars, has been managed through personal wallets without multi-signature protection or formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, controls around 85% of the funds with a single signature. The native NEO and GAS tokens held by Zhang are estimated to be worth between $200 million and $250 million. Da has proposed a restructuring plan that includes redomiciling the Neo Foundation 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 and keeping the Foundation in Singapore, with a focus on investigating historical asset management. The two co-founders have been publicly airing their disputes since December, resulting in rival governance plans and an unsuccessful mediation effort. Da's proposal, published on GitHub, aims to introduce a more decentralized governance structure, while Zhang's plan emphasizes the need for accountability and transparency. The situation has sparked debate within the community, with some observers highlighting the significant disparity between the project's treasury and its market value. The treasury holds approximately $460 million in assets, roughly double the project's $197 million market capitalization, while the token has dropped 98% from its 2018 peak. Da has characterized his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets. However, the success of this plan relies on Zhang's cooperation, which remains uncertain.