Ethereum Foundation supports return of DAO governance layer

Vitalik Buterin and the Ethereum Foundation may be in talks to bring back the DAO after nearly a decade. The entity may bring an extra layer of governance to Ethereum. 

The Ethereum DAO is coming back, with support from Vitalik Buterin and the Ethereum Foundation. The governance entity will bring another layer to Ethereum, and will have to navigate a more mature crypto market a decade after dissolving. The DAO contract was first deployed in April 2016. 

The DAO was the original organization based on ETH ownership. Now, the entity will come back as a fund with 75,000 ETH. 

TheDAO is back. BULLISH

A decade later, we’re opening a new chapter.

TheDAO Security Fund: activating 75,000+ ETH to strengthen Ethereum security.https://t.co/VV3cH313TE pic.twitter.com/1Sf3g7xUWv

— thedao.fund (@thedaofund) January 29, 2026

The DAO gave the original model for similar organizations, but it was extremely short-lived. The governance body dissolved after losing 3.6M ETH in a hack. The funds were later returned in a highly disputed hard fork, which, for some, was damaging to the ‘code is law’ ethos of the early Ethereum community. 

After the dissolution of the DAO, the hard fork created Ethereum Classic, which still holds the records of the stolen 3.6M coins. However, ETC is much less valuable and influential compared to ETH. 

Vitalik Buterin brings back the DAO with $220M security fund

The DAO will be brought back as an entity with the help of the Ethereum Foundation and Vitalik Buterin. In addition to its governance role, the organization will have a $220M security fund for unexpected circumstances. The fund aims to improve Ethereum security at a stage where smart contract exploits are still a regular event. 

The funds and ETH available will be much lower compared to the original DAO, which held over 12.5M ETH. The new DAO will use unclaimed remaining ETH from the original organization to boost security and achieve a form of passive income. 

The proposal arrives at a time when DAOs are rethinking their structure and becoming more centralized. The goal of the new DAO will be to improve governance infrastructure and avoid the mistakes of the original organization. 

Ethereum DAO to be revived with the efforts of Griff Green

The renewed DAO will be relaunched with the efforts of Griff Green, the co-founder of multiple Ethereum ecosystem projects. 

Green called the DAO a new era for Ethereum, extending the focus on network security and protections against exploits. The DAO will distribute funds to security grants and build reserves for its future operations, reported the Unchained podcast.

The 75,000 ETH come from funds that were not claimed following the dissolution of the initial DAO. Of those funds, $13.5M will be directly allocated to security project grants, governed by DAO voting. 

The remaining reserve of 69,420 ETH will be staked on the Beacon chain smart contract, with the potential to further finance security efforts. Based on passive income staking rewards, the DAO may expect up to $8M annually from block producer and fee rewards.

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