NIGHT, Explained
Discover what NIGHT is, its role in the Midnight network, and how it powers a privacy-focused network.
What is NIGHT?
NIGHT is the native utility token of the Midnight Network, a fourth-generation, privacy-first blockchain designed by IOG. Midnight blends data protection with business utility, enabling secure, compliant decentralized applications (dApps).
Unlike traditional blockchains, Midnight offers selective privacy using zero-knowledge proofs (ZKPs), allowing both transparent and private operations on the same chain. ZKPs are cryptographic techniques that allow one party to prove something is true (like having valid credentials) without revealing the data itself, enabling privacy without sacrificing verifiability.
Midnight uses a dual-token model:
NIGHT: The main governance and utility token.
DUST: When used to pay for transactions, it hides your transaction information, ensuring privacy.
What NIGHT does
Generates DUST: DUST is required to submit transactions on the network. The more NIGHT you hold, the more DUST you generate.
Governance: Through voting on proposals.
Block production incentives: Rewarding node operators who validate and produce blocks on the Midnight network.
Cross-chain participation: Cardano stake pool operators (SPOs) can help run Midnight and earn NIGHT reward.
Key features of NIGHT
Non-expendable: It is not used up in transactions.
Deflationary: Rewards decrease over time; max supply is capped at 24B NIGHT.
Cross-chain ready: Live on both Cardano and Midnight with enforced 1:1 supply rules.
Unshielded: NIGHT transactions are public, while DUST transactions are private.
How NIGHT supports the ecosystem
Secure Transactions: NIGHT generates DUST, enabling shielded, metadata-protected interactions.
Staking & Rewards: Cardano SPOs can participate in Midnight block production and earn NIGHT rewards without affecting their ADA operations.
On-chain Treasury: Funded with NIGHT, used to support ecosystem growth via community governance.
Fair Distribution: NIGHT is being distributed through inclusive, no-cost mechanisms like the Glacier Drop and Scavenger Mine.
