Unclaimed Ethereum tokens from the infamous 2016 DAO hack will be redirected to a new security fund aimed at strengthening the network, according to Ethereum supporter Griff Green.
“There’s just a lot of money sitting in random contracts that was supposed to go back to the people who were affected by the hack,” Greene said in an interview Thursday with “Unchained” host Laura Shin, reiterating his plans to launch a security fund.
The DAO is a decentralized autonomous organization that was exploited by anonymous hackers in June 2016 to siphon more than $50 million worth of Ether at the time.
This incident led to a hard fork of the Ethereum blockchain to recover the funds, splitting the community, and ultimately creating two separate chains: Ethereum and Ethereum Classic.
Griff Green spoke with Laura Shinn on Thursday’s “Unchained” podcast. sauce: unchained
Green explained that the hard fork returned a large amount of ether (ETH) held in the DAO to token holders, but the claim process was not easy. Green said certain “edge cases” were handled through participating multisig wallets and involved approximately $6 million.
More than 80% of these funds have since been claimed, but the remaining balance is now worth about $200 million. “We’re going to stake them and use the proceeds to actually support the security of Ethereum,” he said.
The goal is to make Ethereum more secure than banks
“It makes sense that the DAO will focus on security going forward,” Green said.
“We really want to live up to our beliefs at The DAO and live up to the name The DAO, so we’re going to focus on DAO-style distribution,” he said.
Green said the DAO has “incredible” developers who can identify security projects to support, but that security distribution methods such as retroactive funding, secondary funding, guilty voting and ranked voting will be prioritized with the aim of strengthening the broader ecosystem.
“I really hope the DAO Security Fund gets to a place where people feel safer storing their assets on Ethereum than storing them in banks,” Green said.
“DAO really revitalized the security industry on Ethereum,” Green added, noting that before the hack there was virtually no audit market, but since then smart contract auditing has become widespread.
