Coindesk Logo

Nearly Half of All DAO Funds Withdrawn After Ethereum Hard Fork

Nearly Half of All DAO Funds Withdrawn After Ethereum Hard Fork

Nearly Half of All DAO Funds Withdrawn After Ethereum Hard Fork

Forty-three percent, or nearly half of all funds, associated with The DAO have now been withdrawn by former project investors.

Forty-three percent, or nearly half of all funds, associated with The DAO have now been withdrawn by former project investors.

Forty-three percent, or nearly half of all funds, associated with The DAO have now been withdrawn by former project investors.

AccessTimeIconJul 20, 2016, 8:25 PM
Updated Aug 18, 2021, 5:04 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Roughly 43%, or nearly half of all funds associated with The DAO, have now been withdrawn by former project investors.

The activity comes hours after developers on the ethereum network executed a hard fork of its blockchain, a network change meant to specifically reverse the failure of The DAO project and move funds tied to its compromised smart contracts into a new account.

 from the ethereum blockchain shows users began removing funds in ether shortly after the fork. At press time, the address for the new smart contract shows 6.6m ETH (or roughly $80m).

This figure was down from the roughly 11.58m ETH (worth $145.2m) available in the original smart contract shortly after its creation. In total, 1,188 withdrawal transactions have been executed in the first six hours the funds were available, a figure that can be tracked more closely here.

Prior to its mid-June collapse, The DAO had an estimated 23,574 users who had purchased DAO tokens, and would therefore be eligible for refunds. Should the withdrawal transaction figures represent individual users, this would mean roughly 5% of DAO users have now received refunds.

That such a small number of users could withdraw nearly half of the smart contract's ether funds is not surprising.

Those funds were originally exchanged for DAO tokens during a crowdsale earlier this summer, and while the total The DAO raised was impressive, its number of investors was comparably small.

Previous CoinDesk Research analysis revealed the top 500 DAO addresses held more than 70% of all DAO tokens, while the top 50 held over 40% of the funds. Developers and individuals close to both the ethereum project and Slock.it, the startup that wrote code for The DAO, were also among those who held funds in the project, an issue that proved controversial in previous weeks.

Regardless, reports on social media indicate that users began pulling out their ethers this morning to a mostly positive response.

Block explorers indicate that not all transactions were successful, though errors were said to be unrelated to the contract design, attributable instead to errors such as the failure of those executing transactions to pay the necessary gas fees. Users were paying on average 1 cent to execute transactions at press time.

For more on the ethereum hard fork, read our full report here.

Pete Rizzo contributed reporting.

Coin bowl image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.