DAO makes a comeback after ten years, creates $220 million security fund

February 2, 2026

In the history of Ethereum, few events have had the same level of impact as “The DAO” incident of 2016. This crowdfunding project became infamous for the massive hack that not only split the Ethereum community but also gave rise to the creation of “Ethereum Classic (ETC).”

Fast forward a decade, and “The DAO” is making headlines again, this time for a more positive reason. The launch of “TheDAO Security Fund” aims to convert the remaining 75,109 Ether (equivalent to over $220 million) from the hack into a long-term fund dedicated to Ethereum security development.

Looking back at 2016, The DAO set a record for crowdfunding by raising $150 million, which represented 14% of the total Ethereum supply at the time. The concept of a decentralized autonomous organization was groundbreaking, but it fell victim to a devastating hack. A vulnerability in the smart contract allowed a hacker to siphon off a significant amount of funds. The response from the Ethereum community was contentious, with a hard fork implemented to recover the stolen assets. This decision ultimately led to a split in the community and the formation of Ethereum Classic.

Recovering the funds from The DAO hack was no simple task. While the hard fork addressed the issue for standard DAO token holders, there were still unresolved cases. A group of dedicated Ethereum community members formed the “TheDAO Curator Multisig Wallet” to handle these complex remaining issues.

One of the key figures involved in managing The DAO hack aftermath was Griff Green, who is now a co-founder of Giveth. The intention to repurpose the remaining funds for Ethereum security had been announced as early as 2016. However, it wasn’t until a decade later that significant action was taken.

TheDAO Security Fund is now activated with over 75,109 ETH, valued at more than $220 million. The funds will be used to establish a perpetual donation fund through staking rewards, providing sustained financial support for Ethereum security development. Additionally, projects related to Ethereum security will be funded using a combination of staking rewards and other assets held by TheDAO Curator Multisig.

The main goal of TheDAO Security Fund is to enhance the security of the Ethereum ecosystem. This includes a wide range of initiatives, from improving wallet user experience to conducting security audits and responding to security incidents promptly.

The fund’s governance will adhere to principles of open and bottom-up decision-making. Various mechanisms such as quadratic funding and Request for Proposals (RFP) will be used to allocate resources, ensuring that the community has a say in how the funds are distributed.

While there are concerns and debates surrounding the fund’s legitimacy and governance, the establishment of TheDAO Security Fund marks a significant milestone in the ongoing development and security of the Ethereum ecosystem. It is a testament to the resilience of the community and the commitment to safeguarding the future of Ethereum.