The DAO is back. Nearly a decade after its infamous hack drained millions from the Ethereum blockchain, the decentralized autonomous organization has relaunched — this time as a $130 million security fund. The move marks one of the most dramatic pivots in crypto history, transforming a project once synonymous with failure into a vehicle for funding blockchain security.
From hack to security fund
The original DAO launched in 2016 as a venture capital fund run by smart contracts. It raised over $150 million in ETH, making it the largest crowdfund of its time. But a vulnerability in its code allowed an attacker to siphon off about $60 million, leading to a contentious hard fork that split Ethereum into ETH and ETC. Now, roughly ten years later, the project is back with a completely different mission.
What the new fund does
The relaunched DAO operates as a security fund focused on supporting projects that improve blockchain security and governance. It holds $130 million in assets, making it one of the larger pools of capital dedicated to this niche on Ethereum. The fund will provide grants and investments to developers working on smart contract audits, bug bounties, and governance tools — areas that have become more critical as crypto grows.
Can trust be rebuilt?
The DAO's original failure was a governance nightmare. The hack exposed deep flaws in how decentralized organizations handle decision-making and emergency responses. The new iteration promises improved governance mechanisms, but it faces the same fundamental challenge: how to coordinate thousands of token holders in a crisis. The crypto industry's security landscape has evolved, but governance remains a weak spot. The DAO's second act is now live. Whether it avoids the pitfalls of its predecessor will be tested by the first major incident it faces.
