According to breaking news, the Ethereum Foundation and Vitalik Buterin are creating a $220 million security fund that will be funded by TheDAO.
The 2016 TheDAO attack is considered one of the most important turning points in Ethereum’s history. Approximately 4.5% of the total was seized by attackers. $ETH What was in circulation at the time threatened the survival of the network. Ultimately, as a result of the hard fork, Ethereum was split in two, creating Ethereum Classic.
Almost a decade later, the biggest security vulnerability in Ethereum history has been exploited to strengthen the ecosystem’s security.
The remaining assets not yet claimed in TheDAO process will be used to create an approximately $220 million security fund named TheDAO Security Fund. While some of the funds will be left alone for future use, a significant portion will be allocated to projects focused on Ethereum security.
Griff Green, one of the key figures in the fund’s creation, worked at Slock.it, which coded TheDAO in 2016, and was later part of the “white hat group” that rescued the fund. “It’s 2026 and these funds are still untouched. Their value has increased significantly. Now is the time to use them to make Ethereum more secure,” Green said. Green is also associated with Giveth, known for its donations and DAO infrastructure.
After the 2016 attack, the Ethereum community established a mechanism through withdrawal agreements to recover stolen data. $ETH. However, over the years, some assets went unclaimed. These include approximately 4,600 $ETH (approximately $13.5 million) remaining on Curator Multisig for a total overpayment of $70,500. $ETHcalled “Extra Balance”.
The plan is to bet 69,420 $ETH From this ExtraBalance pool. Under current conditions, this amount is estimated to generate approximately $8 million in annual revenue. The fund thus transforms from a one-time source of funds to a safety fund that generates recurring income.
One of the Fund’s secondary goals is to revitalize the DAO ecosystem. Green noted that many DAOs have recently closed or ceased operations, saying, “The DAO ecosystem is in a downturn right now. People are asking, ‘Why should I start a DAO?'”
Green said Ethereum’s original promise was to make the decision-making process more transparent and participatory. This vision was the goal of TheDAO a decade ago, and it now aims to realize it through a new security-focused fund.
*This is not investment advice.