The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled by a single individual, Erik Zhang, with no multi-signature protection and limited oversight. According to co-founder Da Hongfei, Zhang has sole control over around 85% of the project's assets, currently worth between $200 million and $250 million. Da has proposed a restructuring plan, which includes relocating the Neo Foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. Zhang, however, has countered with a proposal that includes an investigation into historical asset management and allows him to remain on the board.
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 aims to introduce mutual disarmament, where both he and Zhang relinquish control over the project's assets, but its success depends on Zhang's cooperation. With the project's treasury split almost evenly between the two co-founders, the community is left waiting for a resolution.