Neo Co-Founder Proposes Governance Overhaul Amid Controversy

The Neo Foundation, one of the oldest blockchain networks, is facing a major governance overhaul after years of deadlock between co-founders Da Hongfei and Erik Zhang. The proposal, which aims to replace founder-centric governance with a more transparent model, has sparked controversy within the community.

According to the plan, the Neo Foundation would be redomiciled in the Cayman Islands, and an independent supervisor would be appointed to oversee the network's activities. Additionally, a five-member board would be established, and both founders would be barred from sitting on the board or supervisory body for 24 months.

The proposal is seen as a test case for how aging blockchain networks manage large treasuries and transition away from founder control. The Neo Foundation currently holds around $461 million in assets, which are mainly under single-signature control. Hongfei's plan would return 49.5 million reserved NEO tokens to the community and consolidate NGD-managed investments back into the foundation.