Griff Green, a renowned advocate of the ecosystem, announced that the unclaimed Ether following the 2016 DAO hack will be allocated to a new fund to strengthen Ethereum network security. This initiative seeks to leverage assets stuck in smart contracts to finance projects that protect the protocol through decentralized distribution methods effectively.
Green revealed during an interview that, after the hard fork a decade ago, unclaimed balances remained in multi-signature wallets, which have now reached a value of approximately 200 million dollars. According to the expert, the current intention is to stake these funds on the blockchain, generating passive income continuously to support various technical projects.
The financial rebirth of the forgotten funds of The DAO
This strategy will allow the yields obtained to be used to financially support various security distribution methods, such as retroactive funding and quadratic funding, prioritizing technical resilience. In this regard, the official spokesperson noted that, although they have developers capable of identifying threats, the main focus will be establishing robust community governance mechanisms.
Likewise, the organization aims to honor its decentralized roots through the use of ranked-choice voting and conviction voting, ensuring that resources flow toward the most vulnerable sectors. For this reason, the ultimate goal is to make storing assets in this digital ecosystem perceived as a much safer option than a traditional bank.
On the other hand, the history of this capital dates back to the incident that split the community in 2016, when an anonymous attacker drained over 50 million dollars. However, the claims process was not simple for everyone, leaving a 20% remainder that, thanks to the asset’s revaluation over time, has become a massive capital.
How is the future of protection in the Ethereum ecosystem heading?
The relevance of this milestone lies in the fact that The DAO was precisely the catalyst that boosted the smart contract audit industry in the crypto sector. Before this event, the audit market was practically non-existent, but the disaster forced developers to adopt extremely rigorous security standards on a global scale to prevent future losses.
In this way, the new fund not only represents a recovery of capital but an evolution in how the ecosystem manages its own systemic risks autonomously. This project solves the problem of the lack of incentives for preventive security, establishing a perpetual financing model for the common good of all participants and users.
Finally, the deployment of this security fund is expected to transform public perception regarding the stability of decentralized finance during the coming months. Although the path toward total immunity against exploits is long, this initiative sets a historical precedent on how to turn an old financial tragedy into a strength for the future.
