Summary

This proposal seeks community approval to allocate 50% of all protocol fees generated from tETH MEY toward recurring open-market purchases of TREE, the native governance token of the Treehouse ecosystem.

The objective is to strengthen alignment between protocol adoption and long-term tokenholder value by accumulating TREE in the DAO treasury.

If approved, all repurchased tokens will be held as DAO reserves, reducing effective circulating supply and reinforcing the protocol’s self-sustaining growth model.

Token Details:

• Token: Treehouse (TREE)

• Network: Ethereum (ERC-20)

• Address: 0x77146784315ba81904d654466968e3a7c196d1f3

• Etherscan: https://etherscan.io/token/0x77146784315ba81904d654466968e3a7c196d1f3

Motivation

As Treehouse continues to expand its ecosystem of tAssets and Decentralized Offered Rates (DOR), protocol revenue from Market Efficiency Yield (MEY) fees has become a recurring and scalable source of income.

Currently, the protocol charges a 20% fee on MEY generated across all tAssets, providing a sustainable revenue stream that grows proportionally with adoption.

Implementing a buyback mechanism allows the DAO to:

• Strengthen the intrinsic link between protocol success and tokenholder value.

• Establish a deflationary mechanism that reduces circulating supply over time.

• Build a strategic reserve of TREE that can later be deployed for ecosystem growth or incentive programs, subject to governance approval.

Specification

If approved, this proposal will:

• Direct 50% of protocol fees generated from tETH MEY toward TREE buybacks.

• Execute on-chain, open-market purchases on the Ethereum network.

• Conduct buybacks at irregular intervals to minimize front-running risk, with a minimum cadence of once per week.

• Hold repurchased TREE in the designated DAO buyback wallet as reserves for potential future incentive programs, pending further DAO approval.

This program will remain flexible, allowing the DAO to revisit and adjust parameters in response to changing market or protocol conditions.

Transparency Commitments

To ensure accountability and transparency, the DAO will:

• Publish on-chain tracking of buyback allocations and execution wallets.

• Provide periodic reports detailing program performance and total TREE repurchased.

Voting Options

• For – Approve allocating 50% of protocol fees generated from tETH MEY toward recurring TREE buybacks.

• Against – Reject the proposal.

• Abstain – Record sentiment without voting for or against.

Voting Outcomes

• If FOR passes:
  The DAO will begin recurring open-market TREE buybacks using 50% of tETH MEY protocol fees. All purchased TREE will be stored in DAO reserves for long-term alignment and future incentive use.

• If AGAINST passes:
  No buyback program will be initiated; protocol fees will continue to accrue under existing arrangements.

• If ABSTAIN passes:
  No direct effect; recorded for sentiment but not counted toward quorum.