#What is the Dispute between Neo Co-founders?
The conflict between Erik Zhang and Da Hongfei, the co-founders of Neo, centers around the financial management of the Neo Foundation. They have publicly disagreed on issues regarding financial transparency and the control over the organization’s assets. Zhang accused Hongfei of not fulfilling his promises related to public financial disclosures and suggested a reevaluation of leadership roles.
In a recent message, Zhang highlighted that Hongfei failed to provide the expected financial statements and reports. He mentioned an earlier agreement in which Hongfei was to concentrate on NeoX and SpoonOS, stepping away from direct involvement with the Neo mainnet. Zhang has called for a thorough, transparent accounting of the Neo Foundation’s funds and expenditures, believing such disclosure is vital for alleviating community concerns regarding transparency and governance.
#How has Hongfei Responded to the Accusations?
In response to Zhang’s assertions, Hongfei expressed concerns over Zhang's dominance over the foundation’s treasury and consensus mechanisms. He warned that concentrating such power within one individual poses risks for the network. Furthermore, Hongfei pointed out that he has consistently advocated for transferring NEO and GAS into a multisig custody that would be managed by the foundation.
Hongfei criticized the call for financial disclosure by Zhang, emphasizing that Zhang maintains control over a large portion of Neo’s treasury and directs the consensus node voting. He labeled Zhang's claims as self-serving, indicating that these allegations came from the individual who holds significant control over the foundation’s financial assets.
As this conflict escalates, Zhang has contended that Hongfei has overseen a considerable share of the foundation’s assets without adequate transparency. He further claimed that after removing him from a leadership role, Hongfei began another blockchain project called EON, a situation Zhang deemed as a clear conflict of interest for someone in Hongfei's position.
#What is the Future for Neo?
Hongfei dismissed Zhang’s accusations, asserting that NEO and GAS were the foundation's primary assets as documented in previous financial reports. To conclude the ongoing controversy, Zhang plans to release a financial report for the end of 2025, expected in early 2026, purporting to clarify the validity of the claims made by both parties.
Founded in 2014 and rebranded in 2017, Neo has gained recognition as the "Ethereum of China" due to its capabilities in smart contracts and decentralized applications. Its ecosystem operates using two primary tokens: NEO for governance and GAS for utility within the network. Last year, the platform took significant steps to enhance interoperability and user experience by launching Neo X, an EVM-compatible sidechain, alongside the N3 upgrade, which introduced advanced features that include storage, identity, and oracle services.