Ethereum turns unclaimed DAO hack funds into $220M security endowment

Ethereum is establishing the DAO Security Fund, a roughly $220 million endowment funded by unclaimed capital from the 2016 DAO exploit, to enhance ecosystem security. This fund will primarily use about 70,500 ETH (worth $206 million) from an unclaimed withdrawal contract, plus additional ETH and DAO tokens. The capital will be staked to generate an estimated $8 million in annual yield to support ongoing security efforts, including audits, infrastructure, incident response, and user protection across Ethereum mainnet and Layer 2 networks. Griff Green noted the goal is to redirect dormant capital to improve safety as Ethereum handles more value. The initiative is part of the Ethereum Foundation’s Trillion Dollar Security program, addressing growing risks like phishing and wallet drains.

(Source：Crypto Briefing)