The Midnight network introduces a novel blockchain architecture designed to address key privacy-limiting designs of existing public blockchains, supporting applications that require a balance between privacy and disclosure. It employs a dual-component model in which the NIGHT token continuously generates DUST, a shielded, non-transferable, and decaying resource used solely to pay for transactions. This decouples operational costs from token price volatility and enables predictable, renewable access to network capacity.
Token Utility: NIGHT is required to generate DUST, a renewable, shielded resource used to interact with private smart contracts on the Midnight network. This creates recurring, on-chain demand as users and applications consume DUST for transactions, effectively anchoring NIGHT's utility in the network's core functionality.
NIGHT serves as the core utility and governance asset, with key functions which will include:
Consensus participation and validator incentives: Validators receive NIGHT as part of block rewards for securing the network.
On-chain governance: NIGHT holders will progressively gain influence over network upgrades and treasury decisions.
Supply cap: NIGHT has a fixed total supply, supporting long-term value alignment and scarcity-based demand.
DUST is not a token, but a decaying, shielded resource that will be:
Consumed to execute metadata-shielded transactions, ensuring that wallet addresses, transaction values, and timestamps are never exposed on the public ledger.
Generated automatically by holding NIGHT, allowing users to transact privately without relying on externally priced fees.
Non-transferable, making it suitable for compliant private computation without behaving like a financial asset.
Together, this system will enable private-by-default applications, predictable usage costs, and alignment between token holders and privacy-centric network activity.
Midnight's funding comes via an $85 million long-term loan from Input Output (IOG), Midnight’s parent and incubator. The loan is structured with low interest, no short-term repayment obligations and reflects IOG’s deep, long-term commitment to the project.
In addition, the Midnight Foundation is allocated a significant portion of tokens under the project’s tokenomics. These tokens are not included in the current financial runway, and there are no near-term plans to sell them, but they represent meaningful future optionality depending on market and governance conditions.
Importantly, it is also possible that additional funding from IOG may be made available in the future, if required to support the project’s mission or ecosystem growth.
Key metrics (as at March 13, 2026):
1. What is Midnight?
Midnight is a new generation of blockchain, developed by Charles Hoskinson - the cofounder of Ethereum and founder of Cardano, that uses zero-knowledge (“ZK”) proof technology to offer utility without compromising data protection or ownership, enabling applications that safeguard user, commercial, and transaction data and metadata. The Midnight protocol combines the use of a ZK proofs-based, public-private dual-state ledger architecture to protect data, with a composite, dual-component tokenomics design to protect metadata.
The Midnight network introduces a novel blockchain architecture designed to address key privacy-limiting designs of existing public blockchains, supporting applications that require a balance between privacy and disclosure. It employs a dual-component model in which the NIGHT token continuously generates DUST, a shielded, non-transferable, and decaying resource used solely to pay for transactions. This decouples operational costs from token price volatility and enables predictable, renewable access to network capacity.
Project value proposition
Midnight is a new category defining L1, operating in the vertical of Privacy Enhancing Technology and supports applications that support privacy, selective disclosure, and regulatory compliance across markets such as DeFi, financial services, identity solutions, and enterprise workflows.
Project Key Highlights:
Initial onboarding: Glacier Drop and Scavenger Mine
The Glacier Drop represented the largest airdrop in crypto history, targeting over 34 million eligible wallets across eight major blockchain ecosystems, with over 171,000 addresses having been claimed. Its purpose was to catalyze broad community adoption, drive initial decentralization, and onboard a diverse global user base.
Scavenger Mine offered eligible participants the opportunity to claim a share of unclaimed tokens from the Glacier Drop phase. Over 18 million addresses registered, of which over 9 million were actively mining. Over 900m NIGHT tokens have been allocated, with over 300m solutions provided to date.
Initial onboarding: Confirmed Ecosystem partners providing critical infrastructure
Midnight also enters mainnet with a wide range of confirmed ecosystem partners spanning infrastructure, custody, wallets, developer tooling, oracles, identity, and formal verification. Confirmed day 1 participants include critical infrastructure providers in the industry such as Fireblocks, Copper, Blockchain.com, Open Zeppelin, Alchemy, Blockdaemon. These ecosystem partners represent some of the key infrastructure required for institutions to operate on chain - and will facilitate their activity on Midnight.
Phase 1: Midnight DeFi
Midnight is taking a phased go-to-market approach. Phase one focuses on the DeFi ecosystem - starting with decentralized exchanges, dark pools, lending protocols, launchpads, and other high-volume on-chain activity where programmable privacy offers a clear edge. DeFi projects are already exploring how Midnight’s selective disclosure and shielded transactions can address MEV resistance, regulatory alignment, and institutional participation.
Cross-chain onboarding
Midnight aims to offer non-Midnight users frictionless access to Midnight network capacity
Non-Midnight end-users: could tap into Midnight apps and functionality without having to hold NIGHT or understand DUST mechanics – or to even know they exist. Any token – and even fiat – could potentially be used to access Midnight transactions.
Phase 2 - Use cases
Phase two will expand into onboarding Web3 and Web2 enterprises across industries where data privacy is critical. This includes Finance and Banking, Supply Chain, Healthcare, Identity, Real Estate, Insurance, and Public Sector services, among others. Midnight's architecture is designed to meet these sectors’ compliance and data sovereignty needs, enabling them to transition sensitive operations to blockchain infrastructure safely and scalably. In short, the project expects DeFi to drive early traction, and Web2 companies with limited exposure to Web3 to drive long-term adoption.
2. Risk Analysis:
Circulating Retail:Institution Ratio (as of Mar 13, 2026):
3. Market Makers Information:
The following market makers have been engaged by the project:
Cumberland
IMC (International Marketmakers Combination)
Selini Capital
B2C2
KeyRock
GSR
Note: All market makers listed above have confirmed their participation to support liquidity for NIGHT across exchanges.
4. Roadmap & Updates:
Completion Date | Milestone | Commentary |
|---|---|---|
2025 Q4 | Hilo - The New Moon | This phase marks the beginning of the Midnight network with the launch and listing of the NIGHT token. Liquidity is established and the foundation of the ecosystem is set. It is the initial activation point where the network becomes accessible to early users and partners. |
2026 Q1 | Kūkolu - The Waxing Crescent | The network moves from token launch to real utility as privacy-enhanced dApps go live. Developers begin deploying applications that demonstrate Midnight’s programmable privacy model. This phase represents early growth as the ecosystem starts taking shape with live on-chain activity. |
2026 Q2 | Mohalu - The First Quarter | Midnight enters operational decentralization. |
2026 Q3 | Hua - The Full Moon | This is the maturity phase of the network. Midnight achieves full decentralization, and hybrid public-private dApps run in production. The network becomes capable of supporting institutions, enterprises, and advanced use cases at scale, combining privacy, programmability, and compliance-ready architecture in a fully operational environment. |
Commercial and Business Development Progress:
Midnight was incubated by Input Output (IOG), the research and engineering company behind Cardano. There are no external investors in the project, which has been 100% funded by Charles Hoskinson (>$100MM invested to date).
NB: Midnight Token Generation Event has secured $25 million in funding through an intra-group term loan agreement with Midnight Foundation.
5. Community