Unclaimed ETH From 2016 DAO Hack to Fund Ethereum Security

Griff Green said unclaimed Ethereum (ETH) from the 2016 hack of The DAO will be redirected into a new security fund, he told Unchained podcast host Laura Shin on Thursday. The DAO was a decentralized autonomous organization that an anonymous hacker exploited in June 2016 to siphon more than $50 million worth of Ether at the time.

The incident led to a hard fork of the Ethereum blockchain to recover the funds, which split the community and created two chains, Ethereum and Ethereum Classic. Green explained that the hard fork returned much of the ETH to token holders, but the claims process was not straightforward.

He said certain 'edge cases' were handled through a multisignature wallet he joined, involving around $6 million. While more than 80% of those funds have since been claimed, Green said the remaining balance is now worth around $200 million. Green said the plan is to stake the unclaimed ETH and use the revenue to support Ethereum security.

'We’re going to stake them and use the revenue to actually support Ethereum security,' he said. He said The DAO will focus on DAO-style distributions and named methods including retroactive funding, quadratic funding, conviction voting and ranked-choice voting. Green added that The DAO has a pool of developers capable of identifying security projects to support, and that The DAO helped kickstart the Ethereum security and audit market after the hack.

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