Ethereum (ETH) developers have reactivated more than $100 million worth of unclaimed tokens tied to The DAO hack of 2016, converting nearly decade-old dormant funds into a long-term security reserve as the network prioritizes stability over expansion.
What Happened: DAO Funds Become Security Reserve
The reactivation involves approximately 75,000 ETH, valued at roughly $220 million, that remained untouched since the 2016 attack that drained 3.6 million ETH from The DAO, an early decentralized investment project.
Developers announced the funds will now serve as a dedicated security reserve for the network. The move follows years of internal discussion about what to do with assets frozen after Ethereum's controversial hard fork split the blockchain into two separate chains.
ETH prices showed little reaction to the announcement, holding near recent levels. The muted response suggests traders viewed the development as routine maintenance rather than a market-moving event.
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Why It Matters: Network Maturity Over Speculation
The decision reflects a broader shift in Ethereum's priorities from aggressive experimentation toward protecting existing infrastructure.
As more applications, stablecoins, and digital assets operate on the network, the cost of maintaining security rises proportionally. Using an existing pool of ETH rather than raising new funds avoids dilution concerns that might unsettle long-term holders.
The ETH already existed in the supply picture, so the reactivation does not introduce new tokens to circulation. Critics note that touching funds linked to past security failures carries symbolic baggage, though supporters argue the cleanup represents practical stewardship of network resources.