The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled by a single individual, Erik Zhang, with no multi-sig protections in place. According to co-founder Da Hongfei, Zhang holds around 85% of the project's native tokens, worth between $200 million and $250 million, with single-signature control. Da has proposed a restructuring plan, which includes redomiciling the Neo Foundation to the Cayman Islands, replacing the current governance with an independent board, and redistributing tokens to holders.
Zhang has countered with a proposal that includes an investigation into historical asset management and a continued role on the board. The two founders have been at odds since December, with their dispute spilling into the public domain.
Da's proposal is seen as a form of mutual disarmament, where both founders would relinquish control over the project's assets. However, the success of this plan depends on Zhang's cooperation, which is far from guaranteed.