Vitalik Buterin Plans DAO Revival to Strengthen Ethereum Governance

TLDR

• Vitalik Buterin and the Ethereum Foundation are leading efforts to relaunch the DAO after nearly a decade.
• The new DAO will bring an extra layer of governance to Ethereum and improve its security measures.
• The DAO’s treasury will hold 75,000 ETH, with a portion allocated for security grants and staking.
• $13.5 million will be directed towards security project grants governed by DAO voting.
• The DAO aims to generate up to $8 million annually through staking rewards on the Beacon Chain.

Vitalik Buterin and the Ethereum Foundation are in talks to reintroduce the DAO, nearly a decade after its initial dissolution. The renewed governance entity will provide a fresh layer of governance to Ethereum. This initiative marks the return of a key concept that originally paved the way for similar decentralized organizations.

In April 2016, the DAO contract was deployed as a governance entity based on Ethereum. However, the project was short-lived due to a hack that resulted in the loss of 3.6 million ETH. Following the hack, a hard fork split Ethereum into two chains: Ethereum and Ethereum Classic. Ethereum Classic still holds the record of the stolen funds, but its influence is far less compared to Ethereum’s.

The DAO is set to return, albeit with a different structure and more security features. This time, it will be supported by the Ethereum Foundation and Vitalik Buterin. The goal is to improve governance and bolster Ethereum’s security efforts, especially given the ongoing threat of smart contract exploits.

Vitalik Buterin’s Role in the New DAO

Vitalik Buterin, along with the Ethereum Foundation, will play a crucial role in relaunching the DAO. The renewed organization will not only focus on governance but also establish a security fund to mitigate potential risks. “The new DAO represents a new era for Ethereum,” said Griff Green, a co-founder of multiple Ethereum ecosystem projects. The DAO will distribute funds for security grants and invest in Ethereum’s protection mechanisms.

The DAO’s treasury will hold 75,000 ETH, sourced from unclaimed funds left from the original DAO. Of these, $13.5 million will go directly to security grants, while the remainder will be staked on Ethereum’s Beacon Chain. This staking will generate passive income, providing an additional revenue stream for the DAO’s security efforts.

New DAO Features and Funding Strategy

The new DAO will feature a more cautious approach to governance, learning from the mistakes of the original model. It aims to avoid centralization trends seen in other DAOs and focus on maintaining a decentralized structure. The fund will also include a $220 million security reserve to address any unforeseen threats, ensuring that Ethereum’s ecosystem remains secure.

The DAO will generate passive income from staking, which could amount to up to $8 million annually. These funds will be reinvested into Ethereum’s infrastructure, improving both its governance and security.

The revival of the DAO marks an important milestone in Ethereum’s evolution. With stronger backing and a more secure framework, the project is set to contribute significantly to Ethereum’s future.

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