To make a long story short: Treehouse is about to launch the $TREE buyback with specific execution details: 50% of the protocol's revenue will be directly invested in the buyback, conducted publicly + executed irregularly (at least once a week) + the repurchased tokens will be deposited into the DAO treasury. The key issue is

CN
4 hours ago

In short: Treehouse is about to launch the $TREE buyback.

Details on execution:

50% of protocol revenue will be directly allocated to the buyback.

Public buyback + irregular execution (at least once a week) + buyback tokens will be deposited into the DAO treasury.

The key question is whether the scale of this buyback can have a substantial impact.

First, let's look at the revenue data. According to DefiLlama, Treehouse has an annualized revenue of $11 million. With a 50% buyback ratio, the annual buyback amount is approximately $5.5 million.

Although the absolute amount is not huge, considering the current circulating market value of $26 million for $TREE, the buyback effort and its potential impact are still considerable.

We can refer to other buyback cases.

Aave: bought back 95,000 tokens over 6 months, with the price rising from $130 to $295.

Hyperliquid: cumulative buyback exceeded $490 million, with the price rebounding 400% from the low.

Metaplex: bought back 91.71 million MPLX, with the price increasing by 125%.

Of course, there are also counterexamples. After Jupiter announced its buyback, the JUP price performed poorly, mainly dragged down by overall market sentiment.

Treehouse has several advantages compared to other cases.

A more stable revenue model. Unlike meme platforms that rely on volatility for profit, Treehouse provides infrastructure services, which are essential.

A smaller market cap. $26 million vs. Aave's tens of billions, the same buyback funds have a greater marginal impact on price.

The only issue is that to strengthen the perception of the buyback among users and the market, relying solely on media promotion is not enough.

It is recommended to collaborate with platforms like FOMO, register an official account, and showcase the buyback situation weekly. Once the $TREE price rises, it can create a positive promotional cycle. $GAME did this before, and the results were good.

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