The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled by a single individual, co-founder Erik Zhang, with no multisig protection and little formal oversight. According to co-founder Da Hongfei, Zhang holds around 85% of the project's assets, worth between $200 million and $250 million, with a single signature. Da has proposed a restructuring plan, which includes redomiciling the Neo Foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders.
Zhang has countered with a rival proposal, calling for an investigation into historical asset management and seeking to remain on the board. The dispute has been ongoing since December, with both founders airing their grievances publicly. Da's plan aims to introduce a more decentralized governance structure, while Zhang's proposal focuses on accountability and transparency.
The project's treasury holds approximately $460 million in assets, roughly double its market value, and the token has dropped 98% from its 2018 peak. The situation has resulted in a stalemate, with each founder holding leverage over the other, and neither willing to concede. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would sacrifice their individual control over assets.
However, the success of the plan depends on Zhang's cooperation, and it remains uncertain whether he will agree to transfer the single-signature token holdings to a multisig lock address.