The feature was originally available in the PC version of the game. Each day, it generates a set of levels that have the same seed for everyone playing it. Players only get one shot at the Daily Challenge each day. Yu said the feature cranks up the tension of playing Spelunky, and if a player performs well in a Daily Challenge, they can attribute it to their skill and knowledge of the game, rather than luck of the draw.
The Daily Challenge is currently available on the PlayStation versions of Spelunky. The addition of the feature is part of an update that also fixes a number of the game's bugs.