Unclaimed DAO ETH to Power New Ethereum Security Fund

Crypto News Exploits

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 30, 2026

Key Takeaways

Unclaimed Ethereum from the DAO hack will be used to fund a new initiative to strengthen Ethereum’s security;
Around 80% of affected users have recovered their funds; the remaining Ethereum will be staked to generate rewards for security work;
The DAO will support network safety through decentralized funding models like retroactive and community-based voting.

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Unclaimed DAO ETH to Power New Ethereum Security Fund

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Ethereum supporter Griff Green has revealed that unclaimed Ethereum from the 2016 DAO hack will be redirected to a new fund focused on improving the network’s security.

In an interview with Laura Shin on the Unchained podcast, Green explained that a large amount of Ethereum remains in contracts created to return funds to users affected by the exploit.

The DAO, a decentralized organization, was attacked in June 2016 when a hacker drained about $50 million worth of Ethereum. The event forced a controversial hard fork that split the blockchain into two separate networks: Ethereum ETH $2,748.16 and Ethereum Classic ETC $10.67 .

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According to Green, while most tokenholders recovered their funds after the fork, the process was not simple.

Some unusual cases required manual handling through a multisignature wallet that he helped manage, involving around $6 million. Over time, more than 80% of those assets were claimed.

Green said the remaining Ethereum will be staked, with the staking rewards funding initiatives to enhance Ethereum’s overall security. He said:

We’re going to stake them and use the revenue to actually support Ethereum security.

He added, “It makes sense that The DAO is now going to be focused on security". The plan is to distribute funds using decentralized methods such as retroactive funding, quadratic funding, and community voting.

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