"We have made a preliminary decision that we likely will fund a contest, similar to that used to develop AES and SHA3, to determine the best ASIC-proof (ie. going beyond just "memory hard" as a heuristic) mining algorithm"
http://www.reddit.com/r/ethereum/comments/1vh94e/dagger_upda...
And now they've stated,
"We have made a preliminary decision that we likely will fund a contest, similar to that used to develop AES and SHA3, to determine the best ASIC-proof (ie. going beyond just "memory hard" as a heuristic) mining algorithm" http://www.reddit.com/r/ethereum/comments/1vh94e/dagger_upda...