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DAO HACK – The Hardfork Refund & “The Attacker”


As the DAO hack develops, more information about the attack itself and the measures that will be implemented to fight it are coming to light:

The Softfork

The softfork proposed by Vitalik Buterin has been implemented in the Ethereum Network, as a pull request in the core Ethereum software. This hardfork will essentially freeze all the Ethereum drained from The DAO by “the attacker” for a longer period than the default 27day time frame for the normal splitting process. This will allow miners to reach a well thought consensus.

The Hardfork Refund

It appears the Hard-fork solution can be achieved without the need for a rollback that would revert the transitions made and blocks mined. All the funds from contracts with DAO 0.0 code hash will me moved to a new DAO, this new DAO (RefundDAO) will have one function only, which is to return all the Ethereum sent to the original DAO address, back to the token holders.

“The Attacker”

Two possible “theories” have showed up regarding the person or group behind this attack.

During an interview, as person claiming to be part of a group that carried out this attack is offering 1 million Ethers to be distributed to miners who mine against the implementation of the fork. The alleged hacker claims this would be achieved through the deployment of a smart contract. The Attacker also claimed to be able to withdraw the rest of eth on the DAO address, but stopped when Vitalik announced the hard-fork.

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An open letter to the Ethereum community has also been allegedly written by a famous member of the Bitcoin community, Mircea Popescu. In this letter Mircea Popescu admits to have taken advantage of The DAO’s code design in order to do what The DAO was ment to do: “Give out money”. Mircea Popescu further claims that he is acting within the limits of the law and that his attorneys have issued Cease and Desist notices to the he refers as “accomplices of illegitimate theft, freezing, or seizure of my legitimate ether”. It is unclear if this letter was truly written by Mircea Popescu and if it should be taken serious at all.

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Bitcoin Fork

On another note, there is also a popular notion that Bitcoin was never hardforked. This is not true, bitcoin was forked in 2010, when someone “hacked” 92 billion BTC bitcoins into existence in a single block, you can see how problematic this is since Bitcoin’s total supply is just over 19.6 million. Bitcoin’s hardfork, unlike the one recently suggested by Vitalik, made the blockchain roll back to the point before the attack occurred. Unlike the current situation, the Hardfork proposed and implemented then was essential for Bitcoin’s survival.

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