The cryptocurrency project NEO has been operating with an unusual financial setup, where hundreds of millions of dollars in crypto assets have been controlled by personal wallets with no multi-signature protections and limited oversight. According to co-founder Da Hongfei, approximately 85% of these assets are controlled by the other co-founder, Erik Zhang, with a single signature, estimated to be worth between $200 million and $250 million.
Da has proposed a restructuring plan, which includes replacing the current two-founder governance with an independent five-member board, redistributing tokens to holders, and implementing multi-signature protection. However, Zhang has countered with a rival proposal, calling for an investigation into historical asset management and seeking to maintain his role on the board. The dispute has sparked a debate over the project's governance and the need for greater transparency and accountability.
Da's proposal is seen as a form of mutual disarmament, where both founders would relinquish control over the assets, but its success depends on Zhang's cooperation. If Zhang refuses, the community may need to intervene to determine the project's future.