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Donut Protocol Guide

Everything you need to know about the Donut ecosystem, from mining mechanics to building your own shop.

What is Donut?

Donut is a decentralized protocol on the Base network that introduces a novel way to distribute tokens. Unlike traditional mining that requires hardware, Donut uses a competitive "King of the Hill" auction mechanism.

Fair Distribution

Tokens are emitted continuously to the current auction winner. No pre-sales or VC allocations.

Community Owned

The protocol is immutable and permissionless. Anyone can participate, mine, or build on top of it.

How Mining Works

Mining is based on a continuous Dutch Auction. Here is the lifecycle of a mining epoch:

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1. Price Decay

The price to become the King starts high and drops linearly over time (1 hour). It eventually reaches zero if no one buys.

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2. The Purchase

A user pays the current ETH price. They become the King Glazer and instantly start earning DONUT rewards.

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3. The Outbid

When someone else buys the rights, the previous King gets 80% of the new purchase price back!

Where does the ETH go?

80% Previous Miner
15% Treasury
5% Frontend Dev

How to Be a Miner

  1. Connect Your Wallet

    You need an Ethereum wallet (like MetaMask or Coinbase Wallet) connected to the Base network. Ensure you have some ETH for gas and purchasing.

  2. Monitor the Auction

    Watch the "Current Price" on the dashboard. It drops every second. Wait for a price you think is undervalued or fair.

  3. Buy Control

    Click "Mine" to pay the current price. You are now the King Glazer! You will stream DONUT tokens to your wallet every second.

  4. Profit & Exit

    When someone outbids you, you automatically receive 80% of their bid. If their bid is higher than what you paid, you made an ETH profit PLUS all the DONUTs you mined!

Build a Donut Shop

Donut is a "headless" protocol. This means there is no single official website. Anyone can build a frontend (a "Donut Shop") and earn rewards.

Why Build?

  • Earn 5% of every auction purchase made through your site.
  • Build your own community and brand around the protocol.

How to Start

We provide open-source SDKs and builder codes to help you get started quickly.

Get Builder Codes