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December 2025 donut report: milestones and updates recap

December 2025 DONUT Report | Ecosystem Growth and Community Insights

By

Sofia Martinez

Jan 7, 2026, 11:22 AM

Edited By

John Carter

Updated

Jan 7, 2026, 01:54 PM

2 minutes reading time

A visual representation of key updates in the DONUT ecosystem, showcasing governance milestones and changes in liquidity incentives.

The Donut ecosystem continues to broaden its horizons, making noticeable progress in December 2025. As the year closes, key updates reflect community sentiment and aspirations, including governance changes and a fresh direction for distribution.

Governance and Community Engagement

Recent updates in governance introduced flair badges at 500K and 1M governance weight milestones. Users reaching the 500K threshold can customize their profiles. One user observed, "Scaling in 2026 looks good and the team keeps delivering!" These enhancements are aimed at fostering active community participation.

Liquidity Adjustments

The Donut DAO has realigned liquidity pool incentives on Ethereum and Arbitrum One, reducing them to 200K DONUT per month. This decision is designed to bolster future treasury reserves, freeing up 50K DONUT monthly. Concerns from the community remain over its impact on liquidity for providers.

Strategic Expansion to New Platforms

In a noteworthy pivot, Donut DAO has begun distributing tokens on X, moving beyond conventional forums. This initiative, described by some as a smart move, aims to boost user engagement and broaden visibility. Users are supportive, with one comment highlighting, "Expanding to other platforms is such a good idea!"

Reflecting on a Busy 2025

The close of 2025 signals significant growth for Donut with:

  • Growing Community: Notable increase in holders.

  • Tokens Burned: Enhanced commitment to sustainability.

  • Active Governance: A total of 17 proposals were voted on.

Financial Summary

In December, the treasury reported:

  • Monthly Inflows: 1,692,557 DONUT

  • Monthly Outflows: 422 ETH

  • Monthly Burns: Contribution to value retention.

Community Outlook on Future Changes

While optimism pervades the community, questions about broader market presence linger. A user's remark, "Are there plans to list on CEX?" indicates a desire for deeper engagement in larger markets.

Key Takeaways

  • ๐Ÿ… Milestone Badges: New badges encourage engagement.

  • ๐Ÿ’ฐ Liquidity Adjustments: Aimed at treasury stabilization.

  • ๐ŸŒ New Distribution Channels: Expanding reach enhances exposure.

Looking forward, Donut's attempt to engage users through new platforms may potentially boost participation rates in 2026. As discussions around liquidity and exchange listings grow, the outlook remains cautiously optimistic, with experts predicting a solid stabilization of treasury health in the coming months. The community appears geared up to navigate these changes, with involvement being crucial to future developments.