The NEO project's treasury has been managed through an unconventional setup, with hundreds of millions of dollars in crypto assets controlled by personal wallets lacking multi-signature protections and formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder and core protocol architect, holds around 85% of the assets with single-signature control, estimated to be 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.
In contrast, Zhang's counter-proposal involves staying on the board, keeping the Foundation in Singapore, and initiating a formal investigation into historical asset management. The dispute between the co-founders has sparked a governance debate, with some observers pointing to the project's significant treasury holdings and drastic token price drop.
Da's proposal aims to achieve mutual disarmament, where both he and Zhang would relinquish individual control over assets. However, the success of this plan relies on Zhang's cooperation, and the community's response may be crucial in determining the project's future.