Neo Co-Founder Suggests Major Treasury Reforms Amid Governance Disputes
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James Mitchell combines investment banking with cryptocurrency journalism to analyze the institutional adoption of digital assets. Specializing in ETFs and regulation, he translates complex developments…
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In a significant development for the Neo blockchain, co-founder Da Hongfei has put forth a comprehensive plan aimed at restructuring the Neo Foundation. This proposal comes after a prolonged period of governance challenges, particularly a stalemate with fellow co-founder Erik Zhang, which has left the platform struggling to make progress.
Recent financial disclosures revealed that the Neo Foundation (NF) and Neo Global Development (NGD) collectively possess approximately $461 million in assets as of late 2025. This revelation underscores the urgency of addressing governance issues that have hindered the organization’s growth.
Hongfei’s proposed reforms are designed to shift away from the existing founder-focused governance model, which he argues has become outdated. He envisions this initiative as a potential benchmark for aging blockchain platforms grappling with large treasuries while transitioning power away from their founders.
The core elements of the proposal suggest relocating the foundation to the Cayman Islands, establishing a five-member board, and appointing an independent supervisor with authority to prevent breaches of bylaws. Furthermore, it advocates for a 24-month exclusion of either founder from holding a position on the board or supervisory body.
Despite these proposals, Zhang has voiced opposition, highlighting further rifts within the project. He contends that the governance model Hongfei suggests may not adequately address transparency issues, suggesting it relies on external legal frameworks rather than ensuring on-chain verification.
Hongfei’s initiative also includes returning nearly 49.5 million reserved NEO tokens to the community and consolidating NGD-managed investments into the foundation. This move is aimed at enhancing transparency by instituting mandatory annual financial reporting and implementing on-chain attestations for significant transfers.
As the discourse surrounding governance continues to be a contentious topic in decentralized finance, the Neo Foundation’s restructuring proposal occurs against the backdrop of similar debates across the sector. Initiatives like Aave’s ongoing governance issues and the criticisms faced by other cryptocurrency projects reflect widespread concerns regarding control and oversight in decentralized organizations.
Additionally, the restructuring plan appears to be part of a broader strategy to rejuvenate Neo’s relevance in an evolving crypto landscape, where competition has intensified, particularly from Ethereum and other layer-2 solutions. Hongfei acknowledges that Neo’s user engagement has dwindled compared to previous years, particularly following regulatory pressures in China and delays in key upgrades.
Looking ahead, Hongfei expresses optimism about the integration of AI within blockchain interactions, positioning Neo X as a leading platform tailored to this emerging trend. The upcoming months will be critical in determining whether these governance reforms can successfully reinvigorate the network and attract new project developments.
In summary, Hongfei’s proposed restructuring of the Neo Foundation seeks to not only address governance issues but also to redefine the platform’s strategic direction in a rapidly changing digital environment. The outcome of these efforts remains to be seen.
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