TLDR
- Midnight produced its genesis block on Monday after years of development by Input Output Global.
- The network uses zero-knowledge proofs for selective privacy and controlled disclosure.
- Midnight uses NIGHT for governance and DUST as a rechargeable gas token.
- Early node operators include Google Cloud, Worldpay, MoneyGram, Bullish, and eToro.
Charles Hoskinson has unveiled Midnight, a privacy-focused partner chain linked to Cardano.
The network produced its genesis block on Monday after years of development.
Input Output Global built Midnight as a separate blockchain with close ties to Cardano.
The project targets private transactions, tokenized assets, and regulated onchain activity.
It also introduces a dual-token model for governance and transaction fees.
Hoskinson said Midnight gives users their “identity and privacy” back.
Midnight launches as a separate chain with privacy tools
Midnight runs on its own ledger, consensus system, and smart contract environment. Even so, it was designed to work closely with Cardano from the start. That link gives Cardano users access to privacy tools on a connected network.
The chain uses zero-knowledge proofs to hide selected transaction details. At the same time, users can reveal data when rules require it. This model supports privacy while keeping room for compliance checks.
Midnight also uses a hybrid ledger with public and private data. Shielded assets can hide balances and the parties in a transfer. As a result, one transaction can hold both open and protected information.
The network also includes Compact, a language for private applications. Input Output Global said it lowers the technical barrier for developers. That may help teams build privacy features without deep cryptography knowledge.
NIGHT and DUST shape how the network handles fees
Midnight uses NIGHT as its governance and utility token. The token is unshielded, and holders can vote on network matters. Input Output Global said NIGHT is not meant for daily transaction payments.
Instead, holders receive DUST, which works as the network’s gas token. The company said DUST follows a recharge model, “similar to a battery.” That means it renews over time instead of being spent in the usual way.
NIGHT holders can assign their DUST to other users or services. Because of that, developers can cover fees for users inside their apps. That setup could reduce direct transaction costs for new users.
In December, Midnight opened a year-long NIGHT airdrop.
The distribution covers 37 million eligible wallets.
The move is aimed at widening access to the network at launch.
Cardano links give Midnight an early base of support
Midnight is separate from Cardano, but both networks can communicate directly. Assets can move in both directions without outside bridges. Cardano apps can also call Midnight when private functions are needed.
Cardano stake pool operators can run Midnight validators and earn NIGHT tokens. So, Midnight may draw early support from Cardano’s existing operator base. At launch, the network will use a federated validator model for stability.
Early node operators include Google Cloud, Worldpay, MoneyGram, Bullish, and eToro. Hoskinson said he spent about $200 million to support development.That funding covered technical work, cryptographic engineering, and protocol design.
Last week, Monument Bank announced plans tied to Midnight. The UK-regulated bank said it aims to tokenize up to £250 million in deposits. That plan shows Midnight’s early push toward regulated finance and real-world assets.
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