A smart contract vulnerability in a private DAO fund first of all the cryptocurrency leakage worth tens of millions of dollars (billions today) and then at hard fork of the second largest blockchain network. You can find tons of articles investigating those events, including a wiki page. Although the purpose here is the conclusions, let us refresh in memory what happened five years ago.
The DAO was a startup that managed an investment fund in Ether (ETH) and operated as a smart contract on Ethereum. DAO is a proper name that the founders decided to take as a reference to a general concept of decentralized autonomous organizationor DAO. The fund claimed early on that they operate under the terms and conditions of their smart contract that it was nothing more than code from a program implemented on the blockchain. Their website did not contain legal terms and conditions, but rather a notice proclaiming the supremacy of machine code over any human-readable text to explain this code.
Oleksii Konashevych is a Ph.D. Fellow of the Joint International Doctorate Program in Law, Science and Technology funded by the EU government. Oleksii has been collaborating with the RMIT University Blockchain Innovation Hub, researching the use of blockchain technology for e-governance and e-democracy. He also works on the tokenization of real estate titles, digital IDs, public records and electronic voting. Oleksii co-authored a law on electronic petitions in Ukraine, collaborated with the country’s presidential administration, and served as manager of the Non-Governmental Group on Electronic Democracy from 2014 to 2016. In 2019, Oleksii participated in the drafting of a draft of law against money laundering and tax issues for crypto assets in Ukraine.
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