The next steps

NOTE: This is a re-post from: https://blog.daohub.org/the-next-steps-786323e6fac9#.5ptkfanrd

Hello community,

At this point, we can say that The DAO cannot continue as it is. This is sad, but it doesn’t mean that the community cannot continue, nor that the concept of DAO’s is bad. A bug has been exploited, bugs need to be fixed — and then we can move on.

I think we all have the same question: What actually happened, and what am I supposed to do now?

What happened

Exploiting a bug in the contract of The DAO allowed an attacker to make repeated transactions of ~280 eth that drained the funds of The DAO. You can see such a transaction here — and the contract of the attacker here.

At this time about 30% of the ETH of the DAO has been drained, which is 3,641,694 ETH in numbers. The attack vector is still open, so the attack may continue. Child DAOs and DAOS using the DAO 1.0 Framework are susceptible to the same vulnerability.

To prevent this and to prevent the attacker from withdrawing the funds, Vitalik suggested a soft fork.
An additional measure that might be taken is a hard-fork that will revert the states of The DAO to the point of the beginning of the attack and will replace the contract of The DAO with a simple contract that allows token holders to withdraw the amount of eth they invested.

What am I supposed to do now?

That is kind of a tough question. There are some possibilities right now:

  1. Wait until things settle a bit and more viable information is there.
  2. Sell your DAO tokens on an exchange.
  3. Wait for the hard fork. There is no guarantee that this will happen. The DAO could continue leaking funds in the interim.
  4. Vote yes to an upcoming split as soon as the voting ends, call splitDAO(): Your relative percentage of what is left will be transferred to a new DAO. The new DAO, however, will be vulnerable to the same kind of attack.
  5. Call splitDAO() if you have already voted yes on split: your relative percentage of what is left will be transferred to new DAO. The new DAO, however, will be vulnerable to the same kind of attack.

Advice regarding splitting: This will currently give you back a ~70:1 of portion of the eth you invested — if The DAO continues to be exploited, this share will decrease. In the case of a hard fork you will NOT be able to claim the difference.

Bonus: Where can I contribute my opinion regarding the hard fork

There are several places in which the discussion is going on right now. Ethcore came up with this statement and this follow-up statment in which they describe the fork possibility.

You can contribute your opinion on consider.it, via Vlad Zamfirs twitter or a discussion on our forum that has been started by one of our members. Other platforms will surely follow soon, we will keep you updated on that.

A personal statement from DAOhub

The way everyone handles themselves in this situation will shape the path forward. All eyes are on The DAO, Ethereum, and the community. We would like to remind everyone that, even with a difference in opinions and viewpoints, humility, empathy, and civility should be a priority. Do not let this turn us into a toxic, hateful, and spiteful community. Being gracious and mature is in everyone’s best interest. We have the ability to make the best of a bad situation: if we shine, we reveal the true strength in Ethereum and decentralized systems.

Be the first to comment

Leave a Reply

Your email address will not be published.


*