A group of early Ethereum ecosystem participants, including co-founder Vitalik Buterin, are bringing back one of the network’s most iconic and controversial initiatives — The DAO — nearly a decade after it reshaped Ethereum’s history.

According to a report by Unchained, more than 70,500 ETH that remained untouched since the 2016 DAO hack will be redirected into a new initiative focused on strengthening Ethereum’s security infrastructure. At current market prices, the total value of the initiative is estimated at around $220 million.

As part of the plan, approximately $13.5 million will be allocated to security-focused grants. These funds will be distributed using DAO-style governance mechanisms such as quadratic funding, retroactive public goods funding, ranked-choice requests for proposals, and other decentralized decision-making processes. The initiative will operate under a new structure called the DAO Fund.

The remaining 69,420 ETH will be staked to generate ongoing yield, forming a long-term treasury designed to finance Ethereum security efforts. Based on current staking returns, the fund is expected to generate roughly $8 million per year.

A Return to a Defining Chapter in Ethereum’s History

Originally launched in 2016, The DAO was an ambitious experiment in decentralized governance built on Ethereum. It allowed token holders to collectively vote on proposals and allocate capital without intermediaries, attracting massive attention and becoming one of the largest crowdfunding events in early crypto history.

However, vulnerabilities in its smart contract code were exploited, allowing an attacker to siphon off approximately $60 million worth of ETH at the time. The incident triggered intense debate within the community and ultimately led to Ethereum’s historic hard fork — splitting the network into Ethereum and Ethereum Classic.

The episode played a critical role in shaping Ethereum’s approach to security, governance, and smart contract auditing, while also igniting philosophical debates around immutability versus intervention that continue to influence the crypto industry today.

Nearly ten years later, the revival of The DAO represents both a symbolic and practical return to decentralized coordination — this time with lessons learned and a focus on reinforcing Ethereum’s core infrastructure.

“The DAO is back,” the project wrote on X. “Ten years later, we’re opening a new chapter.”