Nearly a decade after one of the most seismic events in blockchain history, the legendary TheDAO project is making a comeback. Key members of the Ethereum core team have announced the revival of the initiative, but with a radical shift in purpose. No longer a venture fund, it has been reimagined as a strategic pillar for the ecosystem’s security.
“TheDAO is back. […] Ten years later, we are opening a new chapter,” the organization stated in its official announcement.
A New Mission: Security First
The project has been repurposed into a Blockchain Security Fund with a capital pool of approximately $220 million. The primary objective is ambitious: to harden Ethereum’s infrastructure to the point where storing assets in DeFi protocols is safer and more efficient than using traditional banking systems.
Resource Allocation:
- $13.5 Million – Allocated for external developer grants. Funding distribution will be governed through DAO-native mechanisms.
- The Core Capital – The remaining assets will be moved into staking. At current ETH prices, this is expected to generate a yield of roughly $8 million annually, providing a permanent treasury for security initiatives.
Where is the Funding Coming From?
The fund’s capital consists of “dormant” assets that have remained unclaimed since the infamous 2016 attack. The total pool of approximately 75,000 ETH is sourced from two main origins:
- The ExtraBalance Contract (~70,500 ETH): Funds from original participants who, technically, can still claim their portion of the assets.
- TheDAO Curator Multisig (~4,600 ETH): Residual assets held in the curators’ multisig vault.
The New Guardians
The project’s new curators carry significant weight in the industry. The lineup includes several Ethereum core developers, most notably Vitalik Buterin, alongside key members from other prominent teams. This high-level oversight is intended to ensure the transparent use of funds and prevent the architectural vulnerabilities of the past.
Outlook: A Redemption Arc
The revival of TheDAO is more than just a nostalgic callback; it is a calculated move to turn a historic failure into a powerful tool for growth. If the team successfully establishes this “safe harbor” for DeFi, it could serve as a major catalyst for institutional confidence.
“The goal of TheDAO fund is to make Ethereum so secure that it becomes more profitable and safer to keep your savings in a DeFi protocol than in a bank,” the organization concluded.
