Ethereum Veterans Mobilize Billion-Dollar Security Fund from TheDAO Era

Veterans of Ethereum are initiating the transformation of decades-old staking funds in their portfolio. Specifically, they plan to transfer approximately 75,000 ETH into a newly created staked foundation focused on funding security across the entire Ethereum ecosystem and its Layer 2 solutions. This initiative marks a significant shift in the approach to protecting the decentralized network at an institutional level.

Origin of the Funds and Their Long History

These funds have a fascinating history dating back to 2016 and the hard fork that followed the incident with TheDAO. Remnants of this ancient crisis are now being transformed into modern security tools. The ecosystem veterans have decided that it is time to utilize these long-held assets productively instead of leaving them unused. Their move to a staked model opens new possibilities for financing security initiatives.

Generating Revenue for the Security Ecosystem

According to NS3.AI analysis, the new foundation is expected to generate an annual revenue between $7.8 million and $11.1 million. This financial capacity will enable continuous support for security projects and smart contract audits without the need to liquidate the main capital. Currently, with ETH priced at $2.11K, 75,000 ETH represents a substantial value in a steady stream of income for the sector.

Strategic Transformation of Institutional Funding

This transformation symbolizes the evolution of Ethereum’s approach to funding security at an institutional level. Through this step, Ethereum veterans confirm their long-term vision to become a global financial platform that not only evolves technologically but also institutionalizes support for key areas. Security of smart contracts across various Layer 2 ecosystems thus becomes a priority with guaranteed funding sources.