For years, the treasury of a prominent cryptocurrency project has been managed through an unconventional setup, with hundreds of millions of dollars in crypto assets controlled by personal wallets and lacking multisignature protections or formal oversight. According to co-founder Da Hongfei, his fellow co-founder Erik Zhang holds around 85% of the project's assets, currently valued at between $200 million and $250 million, with single-signature control. This has led to a public dispute between the two founders, with each presenting rival governance plans. Da's proposal, published on GitHub, suggests relocating the project's foundation to the Cayman Islands, establishing an independent five-member board, and redistributing a significant portion of the project's 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 situation has sparked concerns among observers, given the project's significant treasury holdings and the token's substantial decline in value. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets, but the outcome remains uncertain without Zhang's cooperation.