Unclaimed ETH from DAO Hack to be used for security fund
Ethereum tokens unclaimed from the infamous 2016 lawsuit against The DAO will be moved to a new security fund intended to strengthen the network, according to Ethereum advocate Griff Green.
“There's a lot of money sitting in random contracts that will go back to the people who were affected by the hack,” Greene said in an interview with Unchained podcast host Laura Sheen on Thursday, explaining plans to launch the security fund.
The DAO was a decentralized independent organization that an anonymous hacker used to steal over $50 million worth of Ether in June 2016.
The incident led to a hard fork of the Ethereum blockchain to recover the money, which split the community and eventually created two separate chains, Ethereum and Ethereum Classic.
Green stated that the hard fork returned much of the Ether (ETH) held in the DAO to token holders, but the claim process was not straightforward. Green said some of the “edge cases” were handled by a multi-signature purse he was involved in, worth around $6 million.
While more than 80% of the funds have been claimed, the remaining balance is now around $200 million. “We'll put them in and use the revenue to actually support the security of Ethereum,” he said.
The goal is to make Ethereum more secure than banking.
“It makes sense for The DAO to focus on security now,” Greene said.
“We want to stick to our guns with DAO and live up to the DAO name, so we're focusing on DAO-style distributions,” he said.
According to Greene, while The DAO has an “amazing” pool of developers to identify security projects to support, it prioritizes security distribution methods, including back-end funding, quadratic funding, guilt voting, and tiered voting, to strengthen the broader ecosystem.
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“I'd like to see the DAO security fund come to a place where they feel it's safer to store assets on Ethereum than on a bank,” Green said.
“The DAO really started the security industry in Ethereum,” Green added, noting that there was no audit market before the hack, but smart contract audits have become widespread since then.
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