Tuesday, 02 January 2024 12:17 GMT

Treehouse Launches TREE Token Buyback Program Backed By Protocol Revenue


(MENAFN- FinanceWire) George Town, Cayman Islands, November 25th, 2025, FinanceWire

Treehouse DAO commits 50% of tETH MEY revenue to recurring open-market TREE buybacks to strengthen tokenholder alignment and treasury resilience

Treehouse Foundation today announced the completion of the first round of buybacks for TREE, the native governance token of digital assets infrastructure firm Treehouse, formally initiating a recurring buyback program underpinned by real protocol revenue. This program establishes a long-term mechanism designed to reinforce tokenholder alignment while strengthening the DAO's treasury structure.

Approved through a Treehouse Improvement Proposal with 99.59% community support, the program commits 50% of all Market Efficiency Yield (MEY) fees generated by Treehouse's flagship yield product, tETH, to the open-market acquisition of TREE tokens on Ethereum.

Protocol-Driven Alignment Through Revenue

Launched in September 2024, tETH is the first in a series of tokenized yield strategies (tAssets) developed by Treehouse. Designed to deliver consistent Market Efficiency Yield (MEY), tETH programmatically allocates capital across DeFi markets to capture sustainable returns. This architecture reflects Treehouse's focus on establishing the foundational infrastructure for fixed income in DeFi, laying the groundwork for a more mature and sustainable on-chain yield ecosystem.

While the current program is anchored in MEY revenue from tETH, the underlying framework is planned with long-term scalability in mind. As protocol earnings increase and the ecosystem expands, future governance proposals may seek to extend the buyback mandate to include additional revenue sources-such as redemption fees and revenue from other tAssets.

Program Structure and Design

  • Revenue Allocation: 50% of all MEY fees from tETH
  • Execution Frequency: Discretionary, with undefined weekly purchases
  • Token Destination: TREE purchases held in a DAO-controlled multi-sig wallet (0xCBCC15e2f566fDb46e93D925efCbF0ccc5378d3B) as strategic reserves
  • Scope: Includes retrospective revenue since tETH's inception

The acquired TREE tokens remain within the DAO treasury, with potential future uses to be determined via governance. These may include incentive programs, liquidity initiatives, or other protocol-aligned deployments.

Aligning With a Broader DeFi Realignment

Treehouse joins a growing cohort of DeFi protocols, including Aave, Jupiter, Resolv, and Hyperliquid, implementing structured, revenue-backed buybacks to better align tokenholder incentives with protocol growth. These initiatives mark a strategic shift away from emissions-based growth toward treasury-driven models of value accrual.

TREE's buyback mechanism 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

By executing all buybacks on-chain and maintaining transparent treasury operations, Treehouse reinforces the evolving role of TREE as both a governance and capital asset within the protocol.

Transparency, Permanence, and Community Trust

The TREE buyback program reflects Treehouse's broader approach to long-term protocol development. As new tAssets are launched and protocol adoption increases, both protocol revenue sources and TREE buyback volume are expected to scale accordingly.

Users interested in tracking buyback activity may refer to the Treehouse Buyback Dashboard on Dune here.

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.

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About Treehouse Labs

Treehouse Labs is the parent company of Treehouse. The firm builds products that provide infrastructure, data, and standards, enabling people to invest in digital assets with confidence and foresight.

Established in 2021, Treehouse Labs spans five locations and offers extensive expertise in traditional finance, digital assets, and data. By setting new benchmarks and creating robust financial tools, Treehouse Labs aims to bridge the gap between traditional finance and digital assets.

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LinkedIn: Tags: Blockchain, Crypto, Ethereum, Finance, Token

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