# kaal:claim:3373393-030

**Claim.** Fundamental flaws in the DAO code enabled hackers to transfer one third of total funds to a subsidiary account, and that hack combined with additional technological limitations brought down the first DAO initiative.

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

**Holds when.**

- the first DAO, 2016

**Source quote.**

> This hack in combination with additional technological limitations brought down the first DAO initiative.

**From.** Wulf A. Kaal, *Blockchain Solutions for Agency Problems in Corporate Governance* (2019), III.2 Removal of Agents, page 19

**Cite as.** Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393

**Verify.** sha256 of source PDF `4d1424b9ba9aff8a61bc7a0dddd02cded93785e5843685dde76c07dcdb23961e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Blockchain%20Solutions%20for%20Agency%20Problems%20in%20Corporate%20Governance.pdf

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

**Topics.** dao, governance-design

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

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2939127-030
- restates: https://wulfkaal.github.io/claims/3227933-035
- restates: https://wulfkaal.github.io/claims/3071378-012
- restates: https://wulfkaal.github.io/claims/2922176-035
- restates: https://wulfkaal.github.io/claims/2998033-007

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