3 Minutes to Understand Midnight Network: Cardano's Privacy L1, Is the NIGHT Token Worth Watching?

As blockchain development enters the mainstream application stage, a long-neglected issue is becoming increasingly real: privacy.

Most public chain transaction data and behavioral metadata are publicly available by default across the network. This may be acceptable during the DeFi experimental phase, but in financial, enterprise, and compliance scenarios, it is neither necessary nor secure. How to balance “verifiability” and “privacy protection” has become the question that the next generation of public chains must answer.

Midnight Network is a privacy-first Layer-1 blockchain born in this context.

What is Midnight Network?

Midnight Network is a new type of privacy Layer-1 public chain driven by the Cardano ecosystem, with the core goal of resolving the structural contradiction between privacy protection and functionality in traditional blockchains.

It introduces zero-knowledge proofs (ZK Proofs) to enable on-chain data to remain verifiable while achieving privacy protection, supporting selective disclosure. This means users can prove qualifications, statuses, or compliance conditions without revealing sensitive information, while still meeting audit or regulatory requirements.

In other words, Midnight is not “fully anonymous,” but controllable, verifiable, and compliance-friendly privacy.

Midnight’s Vision: More Than Just “A Privacy Chain”

From a design perspective, Midnight does not position itself as a sidechain or a single-purpose privacy chain. Instead, it aims to be a fourth-generation blockchain infrastructure that balances:

• Privacy protection
• On-chain verifiability
• Real-world compliance needs

Technologically, Midnight provides developers with dedicated privacy smart contract toolchains and programming language support, lowering the barriers to developing privacy applications and attempting to attract more real-world use cases rather than conceptual projects into its ecosystem.

What is NIGHT? The Native Token Logic of Midnight

The native token of Midnight Network is NIGHT, which is not a “traditional fuel token.”

NIGHT is designed as a capital asset + governance token, and is not directly used to pay transaction fees. The actual resources used for transactions and smart contract execution are another resource asset: DUST.

This design is central to Midnight’s economic model.

NIGHT + DUST: Why a “Dual-Asset Model”?

In Midnight’s system, holding NIGHT automatically generates DUST.

DUST is a non-transferable, recyclable network resource used specifically for paying transaction fees and executing privacy smart contracts. Over time, DUST will be consumed, but as long as you continue holding NIGHT, new DUST will be continuously generated.

This mechanism separates “value storage” from “on-chain resource consumption”:

• Users and developers don’t need to constantly sell or consume NIGHT to maintain usage
• Transaction costs are more stable and predictable
• Governance rights and economic incentives are clearer

For high-frequency applications, developers can even pre-hold NIGHT to provide users with an experience close to “fee-free” transactions.

Governance and Security Role of NIGHT

Besides resource generation, NIGHT also plays a core role in network governance and security incentives.

NIGHT holders can participate in protocol governance votes, making decisions on upgrade paths, economic parameters, ecosystem incentive schemes, and other key matters. As the network matures, Midnight will gradually transition to a more autonomous governance structure, increasing community-led decision-making.

Supply and Distribution of NIGHT

The total supply of NIGHT is fixed at 24 billion tokens, with no inflation mechanism.

Tokens are distributed through a multi-stage Glacier Drop airdrop to the community, covering major ecosystems such as Bitcoin, Ethereum, Cardano, Solana, BNB Chain, XRP, Avalanche, BAT, and others. This distribution aims to enhance initial decentralization and reduce risks of dominance by a single group.

Airdropped tokens will be gradually released according to a predetermined unlocking schedule to mitigate price shocks caused by concentrated selling pressure.

Recent Price Performance of NIGHT

By mid-December 2025, NIGHT was listed on major exchanges like Gate. During the initial listing, the price surged quickly, reaching around $0.1, then experienced a significant correction amid liquidity release and airdrop unlocking expectations.

This kind of movement is common in new token launches, reflecting market divergence in expectations about the privacy blockchain narrative, economic model, and the pace of real-world adoption in the medium to long term.

What’s Next? The Key Is Not Short-Term Sentiment

From a medium- to long-term perspective, NIGHT’s performance mainly depends on three factors:

1. Whether token unlocks and supply release are smooth. If the release structure is reasonable, it can help reduce short-term volatility caused by selling pressure.
2. Whether the Midnight ecosystem truly develops privacy applications. If privacy smart contracts are genuinely adopted, the demand for DUST will support the value of NIGHT.
3. The market’s recognition of “compliant privacy infrastructure.” In an increasingly regulated environment, privacy solutions that allow selective disclosure may become scarce assets.

Summary

Midnight Network aims to address an increasingly pressing issue: How can blockchain move toward real-world applications without sacrificing privacy?

NIGHT is not just a “transaction fuel,” but a long-term capital token built around governance, resource generation, and network security. Short-term price fluctuations are inevitable, but its long-term value will still depend on whether the ecosystem’s real-world adoption and privacy demands truly explode.