Background: From the 2016 DAO Hack to 2026
Nearly ten years after the famous 2016 DAO hack that led to Ethereum’s historic hard fork the remaining unclaimed funds from that incident have found a new purpose. On January 30, 2026, $ETH Ethereum developers and community members announced that around 75,000 ETH worth over $220 million will now be used to improve Ethereum’s overall security.
What Is TheDAO Security Fund?
This new initiative is called TheDAO Security Fund. The recovered ETH will be staked, and the rewards earned from staking will be used to pay for important security needs. These include regular security audits, bug bounty programs, and defensive upgrades to protect the Ethereum network from future attacks.
How the Fund Will Be Managed
TheDAO which originally started as a decentralized investment fund, has been reintroduced as a grant giving organization. It will operate under blockchain governance and align with Ethereum’s official “Trillion Dollar Security” roadmap. While original holders of the DAO hack ETH can still claim their funds, the unclaimed portion will be managed for the benefit of the entire Ethereum community.
Community Support and Impact
Ethereum co founder Vitalik Buterin and many community members have welcomed the plan. Supporters believe this move transforms one of crypto’s darkest moments into a long term benefit calling it a “security dividend” for all Ethereum users. Overall, the DAO Security Fund represents a major step forward in using decentralized governance and staking to secure Ethereum’s future.