The community has spoken. Following the successful voting of TIP 4: Proposal for TREE Token Buybacks with Protocol Revenue, Treehouse is officially activating the TREE Token Buyback Program, a key step in linking protocol revenue directly to long-term tokenholder value.
Under this program, 50% of all protocol fees generated from the Market Efficiency Yield (MEY) of Treehouse’s tAssets, starting with tETH, will be directed toward recurring open-market purchases of TREE, the governance and utility token that powers the ecosystem.
As Treehouse expands its product suite and revenue grows, the DAO may put forward additional governance proposals to include other revenue sources such as redemption fees, and revenue from other tAssets like tAVAX, strengthening long-term value capture over time.
To kick off the first week of buybacks under this program, Treehouse has completed its initial TREE purchase, marking the first step in what will become a recurring, revenue-backed value accrual cycle for the ecosystem.
All purchased TREE will be held in the DAO’s publicly visible reserve wallet (0xCBCC15e2f566fDb46e93D925efCbF0ccc5378d3B), reinforcing alignment between protocol adoption, yield generation, and long-term tokenholder value.
View the buyback proposal blog here and the official snapshot here.
What Happens Next
TREE buybacks will continue weekly, executed transparently on-chain on the Ethereum network. To maintain fairness and reduce the risk of front-running, purchases will occur at irregular intervals rather than on a fixed schedule.
Because MEY fees accrue in tETH, the DAO may convert these tETH revenues into USDT at discretionary times when market conditions are favorable. This approach gives the protocol flexibility to optimize execution before completing recurring TREE buybacks.
Operations will follow Treehouse’s existing security standards, ensuring that buybacks and treasury movements are performed safely and reliably.
All buyback activity will be fully visible on-chain. Our TREE Buyback Dashboard on Dune provides real-time tracking of purchases, wallet flows, and reserve balances. Periodic reports will also be released to summarize total TREE purchased, cumulative protocol fees, and DAO treasury growth.
This marks the beginning of a new operational rhythm, one where real yield continuously feeds back into the ecosystem and strengthens its foundation over time.
Community and Governance Alignment
The approval of TIP 4 represents more than the start of buybacks; it reflects the growing maturity of the Treehouse DAO. By voting to reinvest protocol revenue, the community has chosen long-term sustainability over short-term gain.
Accumulating TREE in the DAO treasury strengthens Treehouse’s long-term positioning, allowing the DAO to support future initiatives such as liquidity programs, strategic partnerships, or community incentives through separate governance proposals.
Through this buyback program, the DAO aims to:
- Return value to TREE holders by linking protocol usage to token demand
- Strengthen DAO reserves and tokenholder confidence over the long term
- Reflect long-term confidence in Treehouse’s revenue model and operational sustainability
TIP 4 also establishes a blueprint for future proposals, showing that the DAO is aligned with strategic decisions that strengthen the ecosystem.
Growing the Ecosystem
As Treehouse expands across chains and markets, the scale of MEY-driven revenue, and by extension, buybacks, will grow alongside it.
Each new tAsset and its integrations added to the ecosystem strengthen the same loop that now powers TREE value capture.
From the expansion of DOR benchmarks to deeper integrations with institutional partners, every layer of growth contributes to a single outcome: a resilient, self-reinforcing economy where utility, participation, and token value move together.
Looking Forward
The activation of TREE buybacks marks a defining moment in Treehouse’s evolution, a sign that the protocol is not only generating real yield but also channeling it back into the ecosystem in a transparent, community-governed way.
With every step forward, Treehouse grows stronger, deepening its roots in DeFi’s fixed-income landscape and paving the way for the next phase of sustainable, on-chain finance.
The forest continues to thrive, and with it, every participant who helped build it. 🌳
About Treehouse 🌳
Treehouse, a digital assets infrastructure firm and the decentralized arm of the parent company Treehouse Labs, is at the forefront of revolutionizing the decentralized fixed income market. Treehouse Protocol introduces innovative fixed income products and primitives across chains through tAssets, liquid staking tokens that empower its users to participate in the convergence of on-chain interest rates while retaining the flexibility to engage in DeFi activities.
Treehouse Protocol is also pioneering the Decentralized Offered Rates (DOR) consensus mechanism for benchmark rate setting, enabling a range of fixed income products and primitives into digital assets. Treehouse is dedicated to creating safer and more predictable return alternatives for both individual investors and institutions.
Website: https://treehouse.finance
Discord: https://discord.gg/treehousefi
