# kaal:claim:3071378-012

**Claim.** The DAO failed because its code had not yet been perfected: hackers took a third of the DAO tokens and transferred them to another account, and that hack together with other technological limitations led to the demise of the DAO.

**Type.** failure  **Support.** evidenced

**Holds when.**

- The DAO, launched May 2016 on Ethereum

**Source quote.**

> Unfortunately, the code had not yet been perfected and hackers were able to take a third of the DAO tokens and transfer them into another account. This hack and other technological limitations, led to the demise of the DAO.58

**From.** Wulf A. Kaal, *Blockchain Technology and Race in Corporate America* (2017), II.2 Limitations, page 14

**Cite as.** Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378

**Verify.** sha256 of source PDF `125f01674d13b6bb0310c4be7a20ff538dccbc36ecf352770b3c580028387edd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Blockchain%20Technology%20and%20Race%20in%20Corporate%20America.pdf

**Failure mode.** dao-code-vulnerability  (family: smart-contract-bug-and-exploit)

**Topics.** dao, governance-design

**Keywords.** dao, code-vulnerability, hack, governance-failure, ethereum

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3373393-030
- restates: https://wulfkaal.github.io/claims/2939127-030
- restates: https://wulfkaal.github.io/claims/2998033-007
- restated_by: https://wulfkaal.github.io/claims/3227933-035

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.