TREE Buyback Proposal Worth Watching Treehouse DAO has introduced a new governance proposal: if passed, 50% of protocol revenue will be used to buy back TREE on the open market. The significance of this lies in re-establishing a direct link between protocol growth and token value. The buybacks are funded by real revenue, not inflation or incentive pools, which is relatively rare in DeFi. Historically, projects that adopted similar mechanisms include: - **AAVE**: After introducing a stable buyback cycle, the overall price range shifted upward within six months. - **HYPE**: Relied on continuous buybacks and saw a significant rebound after a major pullback. While these cases can't be directly replicated, they provide a logical reference: when protocol revenue is sustainable and buyback cycles are stable, the token's supply-demand curve may gradually improve. As for TREE itself: its market cap is still relatively small. If revenue continues to grow, this design typically results in a slow reduction of sell-side pressure rather than short-term price spikes. My personal observation approach: Look for changes in supply-demand structure → Confirm with chart patterns → Gradually clarify trend direction. In other words: focus on structure first, then sentiment, without assuming outcomes. Proposals like this are more about introducing variables for mid-term trends rather than immediately altering price movements.