Everyone was thrilled when DAO announced they had Ether worth over one hundred million dollars, which they planned to use to improve the Ethereum network. According to DAO, they wanted to use the money to fund projects on the ETH network using smart contracts for these projects. Sadly, something bad happened, and that plan was stalled.
The Hack
A hacker discovered a loophole in the system and stole the funds. The hackers were reported to have stolen over ten million worth of Ether from the raised funds. DAO did act quickly to secure the remaining funds, but the story after that has been quite sketchy. There have been accusations and counter-accusations.
The Split
The discrepancies arise from conflicting reports and records. Also, there is a question of how the loophole existed for so long without being noticed.
Consequently, DAO split into two brands, they are Ethereum and Ethereum Classic. Eventually, the members of the community were allowed to participate in smart contracts and trade their DAO tokens for Ethereum or the classic version. Visit the Wiki Site and learn more.
The Funds
We hear that up to $4million Classic Ether funds remain in the DAO smart contract. This money is meant to be used as a refund to the investors. There have been massive withdrawals from the network. However, it is quite a worry that over $4million has not been given back to investors.
The Controversy
The issues surrounding the remaining funds linger. Many users are not happy about the plans to transfer the $4million to the parties which secured the tokens in the first place.
While they argue that since the money is stolen, funds, which have been recovered, it should be given to the previous owners, others want the money to be left in a smart contract for now.
While these arguments go on, we also know that other contracts connected to DAO withdrawals still hold up to $21 million worth of Ether which remains unclaimed.
Overall, these funds can impact the crypto sector significantly. Also, people could have turned over profits with the funds. It is essential that all the parties involved arrive at a solution soon.
