The treasury of the NEO project has been managed in an unconventional manner, with hundreds of millions of dollars in crypto assets controlled through personal wallets, lacking multi-signature protections and formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, holds around 85% of the assets, valued at approximately $200-250 million, with single-signature control. The native NEO and GAS tokens are currently worth more than the project's $197 million market capitalization. Da has proposed a restructuring plan, which involves relocating 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 and keeping the Foundation in Singapore, with a focus on investigating historical asset management. The dispute between the co-founders has resulted in a stalemate, with each holding significant leverage over the other. Da has framed his proposal as a mutual disarmament, where both parties would relinquish control over the assets. However, the success of the plan depends on Zhang's cooperation, and the community may need to intervene if an agreement cannot be reached.