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The DAO Returns: From Historic Hack to Ethereum’s New Defense Fund

CN
bitcoin.com
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2 months ago
AI summarizes in 5 seconds.

Nearly a decade after the original hack that forced a historic hard fork, unclaimed funds linked to the DAO are being repurposed into what is now called the DAO Security Fund, according to an exclusive report by Laura Shin at Unchained. More than 75,000 ether tied to the DAO has sat untouched since 2016, and its appreciation has turned a long-dormant pool into a sizable endowment. The capital will be deployed to support audits, incident response, infrastructure protection, and security research across Ethereum, while preserving a portion of funds for any remaining claimants.

Rather than resurrecting the DAO as a speculative governance experiment, the reboot focuses on grants and long-term funding mechanics, Shin’s report notes. Roughly 69,420 ETH will be staked to generate ongoing yield, creating an estimated annual funding stream of $8 million for security initiatives. Grant distribution will rely on DAO-style processes such as quadratic funding, ranked-choice voting, and retroactive grants, with eligibility criteria shaped alongside the Ethereum Foundation. Organizers say the aim is pragmatic: turn one of crypto’s most painful lessons into permanent security infrastructure, while cautiously reviving DAO governance at a moment when many such organizations have stalled or dissolved.

  • What is the DAO Security Fund?
    It is a $220 million endowment created from long-unclaimed DAO-related ether to fund Ethereum security initiatives.
  • Where did the funds come from?
    They originate from unclaimed balances tied to the original 2016 DAO and related contracts.
  • How will the money be used?
    Funds will support audits, research, incident response, infrastructure security, and user protection.
  • Is this the same DAO as in 2016?
    It uses the DAO’s remaining assets but with a narrower, security-focused mandate.

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