DAO Members Safety - Mixing your funds

TL;DR:

  1. always send funds from an exchange (never from your hardware wallet)
  2. use your web-browser wallet as petty cash (only hold an amount you’re ready to loose)

.

Long version


As you might already know, Ethereum is ‘only’ pseudo-anonymous so this post is to educate DAO participants who don’t know how to protect themselves, to raise awareness on simple steps to keep every participant safe:

  • Use a dedicated wallet for each DAO - it will make bookkeeping much simpler, especially if you are in several DAOs
  • Use a fresh wallet - that has no previous transactions linked to it
  • Use a “petty cash” wallet, holding funds you don’t mind loosing - I recommend not using a hardware wallet because it’ll be a annoying to use every time you need to vote/stake/etc & you won’t want to transport this around with you at all time (i.e. when traveling, attending a meetup)
  • Understand: your wallet = your ID. And in many DAOs, your ID is public (you cannot join unless proving who you “really” are)
  • NEVER SEND FUNDS FROM YOUR HARDWARE WALLET
  • Only send funds from exchanges - this is a work around to hide where you send the funds from

.

For the crypto-savvy readers


Decentralized mixer are coming, Vitalik’s been tweeting about this; as of writing (August 2019), Hopper and Heiswap are doing good progress.
.

For the crypto-savvy paranoids


If super paranoid when mixing your coins, that’s the procedure I’d recommend:

  1. Send funds to exchange
  2. Exchange for Monero
  3. Send Monero to private-and-temporary monero wallet (i.e. using mymonero.com wallet)
  4. Send Monero through Shapeshift-like service (changenow.io, coinswitch.co or else) & receive in your wallet

.
Wishing you a safe DAO journey

3 Likes

Good tip, and a McAfee-ian take on it here :wink:https://youtu.be/cTTW8aST85Q?t=469

Mad old man :joy: I can’t believe some people still take him seriously