Unclaimed Ether (ETH) from the infamous 2016 hack of The DAO will be redirected to a fresh security fund aimed at strengthening the network, says Ethereum supporter Griff Green.
“There is a lot of money in the haphazard contracts that was supposed to be paid back to people affected by the hack,” Green he said in an interview Thursday with Unchained podcast host Laura Shin, reiterating plans to launch a hedge fund.
The DAO was a decentralized, autonomous organization created by an anonymous hacker exploited in June 2016 to siphon off over $50 million worth of ether during that time.
The incident led to a challenging fork of the Ethereum blockchain to recover funds, split the community, and ultimately create two separate chains: Ethereum and Ethereum Classic.
Green explained that the challenging fork returned a vast portion of the Ether held in the DAO to token holders, but the claim process was not straightforward. Green said some of the “edge cases” were handled through a multi-signature wallet he joined and amounted to about $6 million.
While more than 80% of these funds have since been withdrawn, the remaining balance is now worth approximately $200 million.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 safer than a bank
“It makes sense that the DAO will now focus on security,” Green said.
“We really want to stick to our premise at The DAO and live up to The DAO name, so we will focus on DAO-style distributions,” he said.
Green said that while the DAO has an “incredible” pool of developers capable of identifying security projects to support, priority will be given to security distribution methods, including retroactive funding, square funding, conviction voting and ranked choice voting, to strengthen the broader ecosystem.
Related: Bitcoin long positions on Bitfinex have reached their highest level in two years: is an enhance to 100,000 possible? dollars?
“I really want the DAO hedge fund to get to a place where people feel it’s safer to hold assets in Ethereum than in a bank,” Green said.
“DAOs really gave birth to the security industry on Ethereum,” Green added, noting that there was effectively no audit market before the hack, but later clever contract audits became common.
Warehouse: Griff Green: Doge-loving hippie hacker steals cryptocurrencies before the bad guys do
