Neo Foundation Stalls Over $200 Million Treasury Control

The Neo Foundation faces a critical governance impasse as co-founders Da Hongfei and Erik Zhang diverge on the future management of a $200 million crypto treasury. The current structure, which centralizes control, has become a focal point for internal restructuring efforts. Da Hongfei is advocating for a transition toward independent governance models and the implementation of multi-signature security protocols to mitigate single-point-of-failure risks. This shift aims to distribute authority away from individual stakeholders and toward a more decentralized framework.

Erik Zhang has countered this proposal with a demand for formal accountability investigations into past operations. Zhang maintains that any structural transition must be preceded by a thorough review of the project's history. Furthermore, he has expressed an intent to remain on the board, creating a direct conflict with Da's push for a clean break from the existing leadership configuration. The tension between these two visions has effectively stalled the implementation of security upgrades that would move the treasury away from its current custodial arrangement.

Treasury Security and Multi-Sig Implementation

The core of the dispute centers on the technical custody of the $200 million asset pool. In the current environment, the concentration of access rights creates significant exposure to internal disputes or potential security compromises. Multi-signature requirements are standard in institutional crypto management to ensure that no single individual can unilaterally move funds. The delay in adopting these protocols leaves the project vulnerable to the ongoing friction between its founding members. Without a consensus on the transition to a multi-sig architecture, the treasury remains tied to the existing, centralized access model.