Here is an overview; https://www.reddit.com/r/ethtrader/wiki/donuts/

but, TLDR

$DONUT is a "proof of participation" type of token, they are earned via receiving tips for your contributions to r/EthTrader.

Every 28 days, data is published, and $DONUT is distributed to users that have been active within the community on the Arbitrum One network.

You can consider it tokenized Reddit karma, which also serves as a governance token should the community propose changes to the rules of the sub etc.

!tip 1