Overview
This proposal seeks DAO approval to upgrade the TREE token contract to include a blacklisting function, allowing specific addresses to be restricted from interacting with and transferring TREE in the event of a security incident.
The function is intended as a risk control for exploit scenarios, such as a hack or theft involving TREE, and would operate under defined access controls. If approved, it will apply to TREE across all supported networks.
Token Details:
- Token: Treehouse (TREE)
- Address: 0x77146784315ba81904d654466968e3a7c196d1f3
- Networks:
- Ethereum (ERC-20)
- BNB Chain
- Avalanche
- Arbitrum
- Base
- HyperEVM
Background
TREE is the native governance token of the Treehouse ecosystem, supporting governance, panelist staking, consensus payouts, querying fees, DAO grants, and community incentives.
The current TREE contract does not include a mechanism to restrict specific addresses from interacting with or transferring TREE. In the event of an exploit, stolen TREE could be moved or sold before the DAO or Treehouse team is able to respond. The TREE token contract is upgradeable under the control of Treehouse protocol.
Motivation
As the Treehouse ecosystem grows, TREE is held and used across more venues, networks, and integrations. This increases the potential impact of a security incident involving the token.
A blacklisting function would allow the protocol to respond to a confirmed exploit by restricting the movement of stolen funds, limiting downstream harm to holders and integrated venues.
Implementing this function is expected to:
- Provide a response mechanism for exploit scenarios involving TREE
- Reduce the risk of stolen TREE being sold or laundered through integrated venues
- Strengthen TREE’s security posture as its footprint expands across networks and integrations
Because this function introduces a privileged power over holder addresses, this proposal limits its use to confirmed security incidents and places control with the Treehouse protocol multisig.
Specification
If approved, this proposal will:
- Upgrade the TREE token contract to include a blacklisting function that restricts a specified address from interacting with and transferring TREE
- Apply the blacklisting function to TREE on all supported networks
- Assign control of the function to the Treehouse protocol multisig
- Limit use of the function to confirmed security incidents, such as an exploit involving stolen or fraudulently obtained TREE
- Include a function to remove an address from the blacklist
No existing balances, allocations, or vesting schedules will be changed under this proposal.
The DAO retains authority to revise, restrict, or remove the blacklisting function through future governance proposals.
Risk Considerations
The upgrade introduces exposure to the following risks:
- Smart contract risk from the contract upgrade
- Centralization risk, as the function grants power to restrict holder addresses
- Integration risk, as blacklist logic may affect bridges, liquidity pools, or exchange integrations if not properly scoped
Mitigations
- Use of the function is limited to confirmed security incidents
- Control of the function sits with the Treehouse protocol multisig
- Blacklisted addresses can be removed from the blacklist
- The upgraded contract will be audited before deployment
- DAO authority to revise the function through governance
Implementation Plan
If approved, the DAO assigns Treehouse Protocol to:
- Finalize the technical design of the blacklisting function, including access controls
- Develop the upgraded TREE contract
- Submit the upgraded contract for security audit
- Verify compatibility with existing bridges, liquidity pools, and integrations
- Deploy the upgrade on Ethereum and apply it to TREE on all other supported networks
Next Steps
- Gather community feedback on the Governance Forum
- Escalate the proposal to Snapshot for formal voting
- Implement the TREE contract upgrade upon approval