The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled through personal wallets with little oversight, sparking a dispute between co-founders Da Hongfei and Erik Zhang. Da has proposed a restructuring plan that includes independent governance, multi-sig protection, and the redistribution of tokens to holders.
In contrast, Zhang's plan calls for an investigation into historical asset management and his continued involvement on the board. The two co-founders have been airing their disputes publicly since December, with Da estimating that Zhang controls around 85% of the project's crypto assets, worth between $200 million and $250 million, with single-signature authority.
The dispute has resulted in rival governance plans and an unsuccessful mediation effort in Hong Kong. Da's proposal, published on GitHub, aims to address the issue by transferring the treasury to a multi-sig lock address and implementing a new governance structure.
However, the plan's success relies on Zhang's cooperation, which remains uncertain. The situation has sparked concerns among observers, with some highlighting the project's significant treasury holdings, which exceed its market value, and the token's substantial decline in value since its 2018 peak.