$200M Unclaimed DAO Ethereum to Fund New Security Initiative on ETH
Ethereum that remains unclaimed from the 2016 DAO hack will go into a new security fund to help strengthen the Ethereum network...
Quick overview
- Unclaimed Ethereum from the 2016 DAO hack will be allocated to a new security fund aimed at enhancing the Ethereum network.
- Griff Green plans to stake approximately $200 million of the remaining funds to support Ethereum security projects.
- The DAO hack led to the creation of a hard fork, resulting in Ethereum (ETH) and Ethereum Classic (ETC), with over 80% of the funds claimed.
- The security fund will utilize DAO-style methods for distribution, focusing on retroactive funding and smart contract audits to bolster Ethereum's safety.
Ethereum that remains unclaimed from the 2016 DAO hack will go into a new security fund to help strengthen the Ethereum network, according to Ethereum advocate Griff Green.
“There’s a lot of money just sitting in random contracts that were supposed to be returned to people who were affected by the hack,” Green said in a Thursday interview on the Unchained podcast with Laura Shin. He plans to stake about $200 million of the remaining funds and use the earnings to support Ethereum security projects.
The DAO Hack and Hard Fork
The DAO, a decentralized autonomous organization, was hacked in June 2016, and the attacker took over $50 million in Ether. To recover the funds, the Ethereum community created a hard fork, which split the blockchain into Ethereum (ETH) and Ethereum Classic (ETC).
Most of the Ether was returned to tokenholders, but some special cases totaling $6 million were managed through a multisignature wallet that included Green. Over 80% of these funds have been claimed, leaving $200 million for the security fund. At the time of reporting, ETH was trading around $2,717.
the last thing you see before, well, getting a useful grant to improve Ethereum security 😁 pic.twitter.com/MTONNyRBAG
— polar (@post_polar_) January 29, 2026
Key DAO hack figures:
- $50M stolen in 2016 hack
- $6M handled via multisig edge cases
- 80% claimed, $200M remaining
- ETH price ~$2,717 at reporting
DAO Security Fund and Distribution
The DAO will focus on how to distribute security funding instead of picking projects directly. Green called The DAO’s group of developers “incredible,” but said the main focus will be on DAO-style methods such as:
- Retroactive funding
- Quadratic funding
- Conviction voting
- Ranked-choice voting
The fund’s goal is to make Ethereum even safer than a bank. It will provide money for smart contract audits, retroactive security projects, and help strengthen the whole ecosystem.
DAO’s Role in Ethereum Security
Green pointed out that The DAO played a big role in starting Ethereum’s security industry. Before the hack, few people wanted smart contract audits, but after the hack, audits became common.
By staking the unclaimed funds and sharing the returns through DAO methods, this effort will continue The DAO’s legacy, encourage secure development, and help protect the Ethereum blockchain from future attacks.
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