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Neo co-founder proposes $461M treasury overhaul to end ‘trust me’ governance
TL;DR
Neo co-founder Da Hongfei has proposed a $461 million treasury overhaul to address governance issues after years of deadlock with Erik Zhang. The plan aims to shift away from founder-driven governance and could set a precedent for other aging blockchain networks.
Key points
- Da Hongfei proposed a $461 million treasury overhaul
- Governance issues have paralyzed the Neo network
- The plan aims to replace founder-driven governance
- Neo disclosed $461 million in assets for 2025
- Restructuring could set a precedent for other blockchain networks
Mentioned in this story
Neo FoundationNeo Global DevelopmentDa HongfeiErik Zhang
Neo co-founder Da Hongfei has proposed a sweeping overhaul of the Neo Foundation after years of deadlock with co-founder Erik Zhang left one of crypto’s oldest networks effectively paralyzed.
The plan follows Neo’s first public financial disclosure since 2019, showing about $461 million in assets held across the Neo Foundation (NF) and Neo Global Development (NGD) at the end of 2025.
The proposed restructuring aims to replace what Hongfei described as informal, founder-driven governance, arguing the outcome could serve as a test case for how aging blockchain networks manage large treasuries and transition away from founder control.
Zhang has pushed back on key elements of the proposal, exposing further divisions at the top of the project and increasing scrutiny from users and investors.
Hongfei told Cointelegraph that at the core of the restructuring is a break with the founder-centric model that defined Neo’s first decade.
The proposal would redomicile the foundation to the Cayman Islands, create a five-member board and an independent Supervisor with power to block bylaw breaches, and impose a 24-month ban on either founder sitting on the board or supervisory body.
Neo’s fight has become a case study in how older blockchain networks with large treasuries struggle to move beyond founder-centric governance, especially after years of informal control and limited public financial disclosure.
Related: Aave DAO approves $25M funding grant, token allocation for Aave Labs
Returning NEO tokens to the community
According to the disclosure, NF and NGD currently control about 41 million NEO (31.3%), mainly under single-signature control. Hongfei’s “Giveback II” plan would return 49.5 million reserved NEO (NEO) to the community and consolidate NGD-managed investments back into the foundation, which would operate under mandatory annual financial reports, onchain attestations for large transfers, and fully disclosed multi-signature wallets for Bitcoin (), Ether (), stablecoins and other liquid assets.
Q&A
What is the proposed treasury overhaul by Neo's co-founder?
Da Hongfei has proposed a $461 million treasury overhaul to replace the informal, founder-driven governance model of the Neo Foundation.
Why is the Neo Foundation's governance being restructured?
The restructuring aims to end years of deadlock between co-founders and to transition away from founder control, which has paralyzed the network.
What are the financial details disclosed by Neo for 2025?
Neo's first public financial disclosure since 2019 revealed approximately $461 million in total assets held by the Neo Foundation and Neo Global Development.
What are the implications of the governance changes for Neo's future?
The proposed changes could serve as a test case for how aging blockchain networks manage large treasuries and governance transitions.
