Buyback Program Details and Objectives
Treehouse, a DeFi protocol with $294 million in deposits, has launched a buyback program for its native TREE token. This initiative is designed to boost demand and align holder incentives with the protocol’s growth. The program involves 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 be held in the DAO treasury, and their future utilization, such as for incentive programs, liquidity provision, or protocol-aligned deployments, will be determined through governance.
Community Support and Transparency
The proposal for the buyback program received overwhelming support from the community, with 99.59% approval 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. The program also includes retrospective revenue from tETH’s launch in September 2024. The frequency of token purchases will remain discretionary, with the goal of adjusting operations according to ecosystem performance.
Future Expansion and Market Context
tETH is the first in a series of tokenized yield strategies, known as tAssets, designed to deliver sustainable returns through programmatic capital allocation across DeFi markets. Treehouse aims 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 of the buyback program, the TREE token price has doubled. However, it remains 35% below its all-time high of $0.4 reached in August. Several other protocols, including Aave, Hyperliquid, Jupiter, and Pump.fun, have implemented revenue-backed buyback programs instead of relying solely on token emissions. The results of these programs have varied; while Hyperliquid saw average gains of 45% during its program, Aave, Jupiter, and Pump.fun experienced declines of 27%, 36%, and 40%, respectively.
Treehouse’s program represents a strategic approach focused on the sustainability and transparency of its ecosystem. The protocol's objective is to strengthen community trust, reinforce the DAO treasury, and ensure structured ecosystem growth through this revenue-backed initiative.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.