Donut is an ERC-20 token that represents the community points of /r/ethtrader subreddit. It is the very first cryptocurrency token to be distributed to subreddit participants simply based on the quality of their submissions and activity.

Donut was first launched as a simple community point in October 2018, but has also been available as an ERC-20 token on Ethereum from December 2019

Unlike Reddit karma, these tokens are only distributed based on /r/ethtrader subreddit on a monthly basis based on the number of upvotes users receive when posting content. It can also be transferred directly from user to user within the sub as a tip — unlike regular karma points.

The Donut token has a variety of functions within the /r/ethtrader subreddit. For one, the tokens can be used to vote in governance polls, with more Donuts representing a greater weight in the vote.

They’re also used for buying limited edition loyalty badges and membership for the subreddit, which unlock exclusive features for the user — at a cost of 200 Donuts/month. The main feature is the ability to add gifs to comments — which regular members can’t do.

Besides this, Donuts can be used to purchase the banner at the top of the subreddit.