TL;DR
- Treehouse launched a buyback program for its TREE token, reinvesting 50% of tETH fees to strengthen demand and align incentives with token holders.
- The purchased tokens will remain in the DAO treasury, and their future uses will be determined through governance, including incentives, liquidity provision, or strategic deployments.
- Since the announcement, TREE has doubled in price. The program aims to reinforce sustainability and transparency, strengthening the DAO treasury and community trust.
Treehouse, a DeFi protocol with $294 million in deposits, launched a buyback program for its native TREE token, designed to boost demand and align holder incentives with the protocol’s growth.
The initiative consists of reinvesting 50% of the fees generated by tETH, Treehouse’s market yield product on Ethereum, into recurring purchases of TREE in the open market. The acquired tokens will remain in the DAO treasury, with potential future uses determined by governance, whether for incentive programs, liquidity provision, or protocol-aligned deployments.
Treehouse Receives Strong Community Support
The proposal was approved with 99.59% community support through a Treehouse Improvement Proposal. According to CEO Brandon Goh, the measure aims to establish a solid financial foundation and create consistent demand for TREE, directly linking protocol revenue to token value.
All operations are executed on-chain, ensuring transparency and permanence, and the program includes retrospective revenue since tETH’s launch in September 2024. The purchase frequency will remain discretionary, with the goal of adjusting operations according to ecosystem performance.
The Program Will Expand in the Future
tETH is the first in a series of tokenized yield strategies, called tAssets, designed to deliver sustainable returns through programmatic capital allocation across DeFi markets. Treehouse seeks to establish an on-chain fixed-income infrastructure, providing predictable return alternatives for both individual and institutional users. The DAO also plans to expand the buyback program in the future, incorporating revenue from other sources, such as redemption fees and earnings from additional tAssets.
Since the announcement, the TREE token price has doubled, although it still remains 35% below its all-time high of $0.4 reached in August. Several protocols, including Aave, Hyperliquid, Jupiter, and Pump.fun, have implemented revenue-backed buyback programs rather than relying solely on token emissions. Results have been mixed; while Hyperliquid achieved average gains of 45% during its program, Aave, Jupiter, and Pump.fun recorded declines of 27%, 36%, and 40%, respectively.
Treehouse’s program represents a bet on the sustainability and transparency of its ecosystem. The protocol aims to strengthen community trust, reinforce the DAO treasury, and ensure structured ecosystem growth
