Ethereum OGs Bring Back the DAO, Backed by $220M Security Fund

Ethereum’s earliest contributors, including co-founder Vitalik Buterin, have moved to revive one of the network’s most iconic and controversial experiments, The DAO.

Notably, nearly a decade after the 2016 DAO hack reshaped Ethereum’s history, the group plans to redeploy over 70,500 ETH to a major security-focused initiative worth roughly $220 million, according to a report by Unchained.

Furthermore, the funds come from ETH that has remained untouched since the original DAO collapse. This event triggered Ethereum’s historic hard fork and permanently split the community.

From Existential Crisis to Security Mission

Under the plan, 70,500 ETH valued at about $220 million at current prices will support a long-term Ethereum security initiative. Of that amount, $13.5 million will go directly toward security grants distributed through a new entity called The DAO Fund.

The DAO Fund will use the governance mechanisms common to decentralized autonomous organizations to allocate grants. These include quadratic funding, retroactive public goods funding, ranked-choice requests for proposals (RFPs), and other community-driven decision processes.

Moreover, organizers aim to channel funds toward developers and teams working on tools, audits, and infrastructure that improve Ethereum’s resilience.

The remaining 69,420 ETH will be staked to create a self-sustaining endowment. At current staking yields, the endowment could generate roughly $8 million per year, providing ongoing funding for Ethereum security without depleting the principal.

While the report does not outline a detailed timeline for grant distributions or finalize governance rules, the structure signals a renewed commitment to decentralized coordination, this time with lessons learned from the past.

The DAO Returns, With a Different Purpose

The revival carries heavy symbolism. The original DAO represented Ethereum’s first large-scale attempt at decentralized governance, but its 2016 exploit exposed serious security flaws and forced the community into a contentious hard fork. That moment defined Ethereum’s early identity and maturity.

Now, core contributors frame the reboot as both practical and reflective.

“TheDAO is back, a decade later, we’re opening a new chapter,” the project wrote on X.

Unlike the original experiment, the new DAO focuses narrowly on security, sustainability, and public goods rather than broad investment mandates.

Nonetheless, by combining staking yields with structured, transparent grant mechanisms, Ethereum’s early builders aim to turn a painful chapter into a lasting resource for the network’s future.

If successful, the effort could reestablish DAO-based coordination as a credible tool for funding critical infrastructure this time, with higher stakes and fewer illusions.

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