Peg co-founder Erik Zhang recently publicly criticized Da Hongfei – co-founder and long-time face of the project – for allegedly lacking transparency in disclosing Peg Foundation's financial situation. According to Erik Zhang, the Peg community needs a complete, independently verifiable financial report, rather than the vague information provided previously. He argues that as Peg matures, transparency regarding cash flow, reserves, and resource utilization is essential for maintaining credibility with investors and developers.
In his X post , Erik Zhang also revealed a noteworthy piece of information: starting January 1, 2026, Da Hongfei will withdraw from direct work related to the Peg mainnet to focus all his efforts on new projects such as NeoX and SpoonOS. This is XEM as a significant strategic shift, as the Peg ecosystem seeks to expand into new infrastructure and application areas to compete with next-generation blockchains.
In response to the accusations, Da Hongfei did not shy away but directly countered. He argued that Erik Zhang was the one controlling the majority of the Peg and GAS funds, as well as the consensus power within the network, leading to a concentration of power in a single individual. According to Da, Peg should not and cannot be run by one person, as this goes against the decentralized spirit that blockchain aims for. Da Hongfei also emphasized that for many years, he has repeatedly proposed transferring all of Peg Foundation's Peg and GAS to multisig wallets to increase transparency and reduce governance risks, but this process has been repeatedly delayed, which he attributes to Erik Zhang's failure to push for the transfer on schedule.
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