The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled by a single individual, Erik Zhang, with no multisig protection or formal oversight. 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 replacing the current two-founder governance with an independent five-member board and redistributing tokens to holders. However, Zhang has countered with a rival proposal, calling for a formal investigation into historical asset management and addressing potential corruption.
The dispute has led to a stalemate, with both founders holding leverage over each other. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would sacrifice individual control over assets. The outcome remains uncertain, with the community's response pending.