**Day 3 Inside Treehouse’s Fixed Income Layer \$TREE

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We’ve covered the “what,” now let’s dive into the “how.” Beyond its tokens, Treehouse’s most impressive feature is its economic engine: the Delegated Proof of Stake (DPoS) Treasury.

Most crypto projects function like basic vending machines—you put in one token and get another out. Treehouse, in contrast, operates more like an advanced investment fund working for you around the clock.

**❍ The Treasury: Where Yield Is Created and Shared**

At its heart, the DPoS Treasury fosters a mutually beneficial relationship between tETH (the liquid staking token) and TREE (the governance token), creating a self-reinforcing cycle.

**Here’s how it works:**

🔸 **Yield Generation:** Deposited ETH isn’t idle. It’s staked through trusted validators, producing a steady flow of Ethereum rewards.

🔸 **Smart Distribution:** Yield is automatically allocated. A large portion goes directly to tETH holders, enhancing their token value.

🔸 **The Flywheel:** The remaining rewards are used to buy TREE tokens on the market. Purchased tokens are partially burned and partially given to long-term TREE stakers, creating ongoing buying pressure and reducing supply.

This design ensures that as more ETH is staked, both tETH and TREE increase in value. It aligns incentives across the ecosystem, benefiting casual ETH stakers and dedicated governance participants alike. Treehouse isn’t just a protocol — it’s a self-sustaining economic system.

@TreehouseOfficial #Treehouse