TIP 12: Supporting Ecosystem Growth Through Community Rewards

Overview

This proposal seeks DAO approval to allocate 15,000,000 TREE from the Community Rewards allocation to fund ecosystem growth initiatives over the next 12 months.

The budget is intended to support initiatives that expand adoption of Treehouse’s products and infrastructure, including tAssets, Decentralized Offered Rates (DOR), and broader ecosystem growth opportunities.

Background

Under the TREE tokenomics, 20% of the total supply (200,000,000 TREE) is allocated to Community Rewards, released linearly over 48 months from the Token Generation Event on 29 July 2025.

This allocation is intended to bootstrap adoption, encourage participation, and support long-term ecosystem growth.

As Treehouse continues expanding across multiple products, networks, and integrations, growth opportunities increasingly arise throughout the year. Establishing a dedicated ecosystem budget allows the protocol to respond to these opportunities more efficiently while remaining within the Community Rewards allocation approved by the DAO.

Motivation

This proposal establishes a standing ecosystem growth budget that can be deployed over a 12-month period.

The budget is intended to support three primary areas:

  1. tAsset adoption
    Fund incentive programs that grow TVL, liquidity depth and adoption across existing and future tAssets, including tETH, tAVAX, tHYPE and subsequent protocol deployments.
  2. DOR participation
    Support programs that increase participation in Treehouse’s Decentralized Offered Rates through TREE delegation and ecosystem engagement, strengthening the adoption and credibility of DOR rates such as the Treehouse Ethereum Staking Rate (TESR), Treehouse Ethereum Lending Rate (TELR), and Treehouse Ethereum Borrowing Rate (TEBR).
  3. Ecosystem Growth
    Support strategic integrations, partnerships, campaigns, and other initiatives that strengthen the broader Treehouse ecosystem.

Rather than seeking governance approval for individual growth initiatives throughout the year, this proposal establishes a budget that allows the protocol to deploy incentives more efficiently while remaining accountable.

The DAO retains authority to revise the budget, its permitted uses, or future allocations through subsequent governance proposals.

Specification

If approved, this proposal will:

  • Allocate 15,000,000 TREE from the Community Rewards allocation.
  • Transfer the allocated TREE from the Community Rewards multisig to 0xaEe069A700baa4dC01238B5Cc67eD6C50066Bdb8.
  • Authorize the Treehouse team to deploy this budget over a 12-month period toward initiatives that supports tAsset adoption, DOR participation, and the broader Treehouse ecosystem.

Any TREE not deployed by the end of the 12-month period remains in the Community Rewards allocation, available for future proposals.

Implementation Plan

If approved, the DAO assigns Treehouse Protocol to:

  1. Transfer 15,000,000 TREE from the Community Rewards allocation to the designated wallet.
  2. Deploy the budget over the 12-month period toward ecosystem growth initiatives as they are identified.

Next Steps

  • Gather community feedback on the Governance Forum.
  • Escalate the proposal to Snapshot for formal voting.
  • Upon approval, transfer the allocated TREE and begin deploying the budget toward ecosystem growth initiatives.

Could I get more details on the plans for developing the ecosystem? I’m concerned that these tokens will simply hit the order book.

Thank you for the question!

The allocation is scoped to three defined areas: tAsset adoption, DOR participation, and strategic ecosystem growth initiatives. In practice, this means programs like liquidity incentives, TVL campaigns, and integration support, and not open-market TREE sales. You can see examples of how prior Community Rewards budgets have been deployed in TIP 2 and TIP 11, which funded LP emissions and tHYPE incentives respectively.

The concern about tokens hitting the order book is understandable, but the mechanism here is closer to incentive distribution. TREE is deployed to eligible participants through structured campaigns (such as via Merkl), not sold. Any TREE not deployed within the 12-month period remains in the Community Rewards allocation and does not leave the multisig.

We’ll be sharing more details on specific initiatives as they are planned and deployed. As always, any material changes to how the budget is used will remain subject to DAO governance.

Hope that helps clarify, and happy to answer any other questions.

1 Like

The proposal has been officially escalated to the Snapshot voting stage:

We encourage all community members to review the details and make your voice heard.

The Snapshot vote has concluded.

FOR received the highest support, with 2.3k veTREE votes (100%).

Accordingly, TIP 12: Supporting Ecosystem Growth Through Community Rewards has PASSED.

Thank you to all participants for contributing to the governance process, implementation will follow accordingly.