Donut (DONUT) is an ERC-20 token that signifies community points within the /r/ethtrader subreddit. It was the first cryptocurrency token to be distributed to subreddit participants based on the quality of their submissions and activity. Unlike Reddit karma, Donut tokens are distributed monthly based on the number of upvotes users receive when posting content. These tokens can be transferred directly from user to user within the subreddit as a tip. The Donut project is maintained by a pseudonymous individual or team, with the original developer of the community point system being Carl Larson, a moderator on the /r/ethtrader subreddit and an early hobbyist Ethereum developer.

Donut operates by rewarding users of the /r/ethtrader subreddit for their contributions. The tokens can be used to vote in governance polls, with more Donuts representing a greater weight in the vote. They can also be used to purchase limited edition loyalty badges and membership for the subreddit, which unlock exclusive features for the user. Additionally, Donuts can be used to purchase the banner at the top of the subreddit. Donuts initially exist as a simple community point token on the subreddit, but can also be converted into an ERC-20 token for moving and spending the token outside of the platform.

The potential use cases for Donut are primarily within the /r/ethtrader subreddit. Here, they can be used to vote in governance polls, buy limited edition loyalty badges and membership, and purchase the banner at the top of the subreddit. Outside of the subreddit, Donuts can be converted into an ERC-20 token and exchanged with other cryptocurrencies. The project is supported by a decentralized autonomous organization powered by Aragon, which is involved in the creation of Donut tokens and governance of the project.

Donut was first launched as a simple community point in October 2018, and has been available as an ERC-20 token on Ethereum from December 2019. The original developer of the community point system is Carl Larson, a moderator on the /r/ethtrader subreddit and an early hobbyist Ethereum developer. An internal development team at Reddit took an interest in the project, but the extent of their involvement in its further development remains unclear. The project has grown to become a source of Donut tokens for some users, who receive them as a result of producing popular content on the Ethtrader subreddit.