Unclaimed Ether from the 2016 DAO hack is set to be redirected into a new Ethereum security fund, according to blockchain advocate Griff Green. The DAO, a decentralized autonomous organization, was exploited in June 2016, resulting in the theft of over $50 million in Ether at the time. While a hard fork returned most funds to tokenholders, some edge cases remained unclaimed.
Green noted that roughly $200 million of Ether remains unclaimed and will be staked to generate revenue for initiatives aimed at improving Ethereum’s security infrastructure. “We’re going to stake them and use the revenue to actually support Ethereum security,” he said, emphasizing that the fund will focus on strengthening the network rather than direct development projects.
DAO-Style Distribution to Guide Security Funding
The initiative will prioritize decentralized distribution methods consistent with The DAO’s original ethos. Funding mechanisms will include retroactive funding, quadratic funding, conviction voting, and ranked-choice voting to allocate resources effectively to security projects. Green highlighted that the team possesses strong technical expertise but aims to focus on ensuring the most impactful allocation of funds across the Ethereum ecosystem.
The DAO hack is widely credited with catalyzing the emergence of smart contract auditing and security practices within Ethereum. With the new security fund, the project seeks to make Ethereum safer than traditional financial systems for storing digital assets. The initiative reflects ongoing efforts to enhance blockchain resilience while honoring The DAO’s legacy in promoting decentralized security innovation.
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