Ethereum DAO to Restart? Vitalik, Foundation Support, 75,000 ETH Security Fund Becomes Focus

Ethereum Foundation supports the reactivation of The DAO remaining funds, establishing a security fund of approximately 75,000 ETH, which will generate staking rewards and be invested long-term in smart contracts and ecosystem security infrastructure.

After nearly 10 years of silence, The DAO funds are transformed into a security fund

The DAO, which triggered Ethereum’s largest governance and security crisis in 2016, is now rumored to return to the core of the ecosystem in a new form. According to community sources and relevant individuals, Ethereum Foundation and founder Vitalik Buterin support consolidating the remaining unclaimed funds from that year to establish a security fund called “The DAO Security Fund,” with a scale of about 75,000** ETH****, currently valued at approximately $220 million.**

The DAO was hacked that year, resulting in the loss of about 36 million ETH, ultimately leading to a hard fork of Ethereum, splitting the network into Ethereum (Ethereum) and Ethereum Cash. Today, these assets, originally used for edge refunds, are viewed as resources that can be transformed into long-term network security enhancements rather than remaining idle in the smart contract.

Funding sources and operational model revealed, staking rewards as growth momentum

The fund’s capital mainly comes from two parts: one is the unclaimed balance of about 70,500 ETH labeled “ExtraBalance,” and the other is about 4,600 ETH along with some DAO tokens, originally stored in a Curator multi-signature wallet. The total capital amounts to approximately 75,100 ETH, most of which will be staked.

The plan shows that about 69,420 ETH will be staked on the Ethereum Beacon Chain, which at current yield levels can generate approximately $8 million annually, transforming the fund from a one-time reserve into a sustainable security capital pool. The use of funds will cover smart contract audits, infrastructure strengthening, security incident response, user protection mechanisms, and other industry-related activities.

DAO governance mechanism returns, advancing security and governance infrastructure

Unlike 2016, the new fund is no longer a high-risk investment vehicle but a funding mechanism focused on public security infrastructure. Capital allocation is expected to be managed through DAO governance, including quadratic funding, retroactive rewards, and ranked voting, with application eligibility and review frameworks set by the Ethereum Foundation.

One of the key figures promoting this plan, Griff Green, who participated in the white-hat team’s fund recovery efforts that year and has long been involved in DAO and public funding infrastructure, pointed out that many DAOs have ceased operations or shut down in recent years, leading to declining community confidence in governance models. This restart symbolizes a shift of the DAO concept from speculation to infrastructure and public goods.

Image source: ETHDenver Griff Green participated in the white-hat team’s fund recovery efforts that year and has long been involved in DAO and public funding infrastructure.

From historical trauma to institutional assets, Ethereum security issues heat up again

This initiative is also incorporated into the Ethereum Foundation’s broader “Trillion Dollar Security” campaign. As on-chain asset scales continue to grow, incidents of phishing attacks, wallet thefts, and protocol vulnerabilities are frequent, making the community’s demand for long-term security resources more urgent.

Nearly 10 years after the split caused by The DAO, it has now become a source of funding for strengthening network security, symbolizing Ethereum’s transition from early experimental stages to institutionalized infrastructure development. The governance approach and actual effectiveness of these funds will serve as important indicators to observe whether the DAO model can regain stability in the new generation blockchain environment.

This content is summarized by Crypto Agent from various sources, reviewed and edited by “Crypto City.” It is still in the training phase and may contain logical biases or inaccuracies. The content is for reference only and should not be considered investment advice.