The blockchain world has achieved a significant breakthrough, and the decentralization concept of Web3 has been further put into practice. Recently, a community named Treehouse announced the official launch of the DAO governance voting mechanism, marking the birth of the world's first decentralized autonomous organization focused on DeFi interest rate governance.

In this innovative governance model, TREE token holders will have the power to determine the rules for on-chain revenue. This mechanism places DeFi users at the center of the ecosystem, granting them actual control over key decisions, including the setting of DOR interest rate parameters and the distribution of staking rewards.

Treehouse has adopted an on-chain voting system developed based on CosmWasm, which has already been launched on the mainnet. To ensure the seriousness of proposals, initiating a proposal requires locking up TREE tokens equivalent to 1% of the circulating supply. Once a proposal is approved through voting, it will be automatically executed after 7 days, reflecting the efficiency of smart contracts.

To encourage users to actively participate in governance, Treehouse has introduced the innovative concept of "governance mining." Users who participate in voting can receive additional TREE rewards, with an annual incentive rate of up to 5%-8%. This design cleverly upgrades the shareholder voting mechanism from traditional finance to a "liquidity contributor co-governance" model in a decentralized environment.

From a technical perspective, Treehouse employs a dual-token economic model. TREE serves as the governance token, which, together with tAssets, forms a "governance + yield" dual-driven system. Users can obtain DOR quoting rights by staking TREE, while staking tETH grants them yield rights, allowing for value interoperability between the two tokens on the Treehouse platform.

What is even more noteworthy is that Treehouse is actively promoting the establishment of a cross-chain governance alliance. By collaborating with well-known blockchain ecosystems such as Cosmos and Polkadot, Treehouse aims to achieve the grand goal of "one token, global governance," allowing TREE holders to participate in interest rate decisions across multiple public chains, thereby forming a powerful cross-chain super community.

This innovation not only reflects the technological advancements in the DeFi field but also demonstrates the blockchain industry's relentless pursuit of true decentralization governance. With the emergence of this new governance model, we can foresee that the DeFi ecosystem will usher in a more democratic, transparent, and efficient stage of development.