Cardano’s founder, Charles Hoskinson, has just introduced a groundbreaking tokenomics framework for the upcoming Midnight network, signaling a major evolution in the Cardano ecosystem. The newly released whitepaper details the mechanics behind two innovative digital assets: NIGHT and DUST, designed to power value creation and governance in a way that’s both accessible and future-proof for crypto users of all levels.
What’s New? NIGHT and DUST Explained
• NIGHT Token:
NIGHT is a utility token with a fixed supply of 24 billion, minted directly on the Cardano blockchain. Its distribution is split between Cardano and the new Midnight network, using a cross-chain system to ensure security and prevent double-counting. NIGHT’s primary function is to generate DUST, rather than being spent directly on network fees.
• DUST Resource:
DUST acts as a shielded resource, similar to “energy” for the network. Instead of paying transaction fees with NIGHT, users generate DUST simply by holding NIGHT tokens. The more NIGHT you hold, the more DUST you accumulate, making network usage predictable and less vulnerable to market swings.
How Will NIGHT Be Distributed?
• Glacier Drop:
The initial distribution phase is a free airdrop to eligible users across major blockchains, including Cardano, Bitcoin, Ethereum, and Solana. This broad approach aims to onboard a diverse user base from day one.
• Scavenger Mine:
Unclaimed tokens from the airdrop will be made available to users who contribute computing power, rewarding active participation in the network.
• Lost-and-Found:
A final phase ensures that anyone who missed earlier opportunities can still claim their NIGHT tokens, maximizing community inclusion.
All NIGHT tokens claimed in the first two phases will unlock gradually over 360 days after the mainnet launch, with a 90-day grace period for redemption.
Block Rewards and Incentives
Midnight’s block rewards will follow a decelerating issuance model, managed by an on-chain reserve pool. Early block producers won’t receive rewards immediately, but over time, Cardano Stake Pool Operators (SPOs) will be able to earn NIGHT through a mix of fixed subsidies and usage-based incentives, aligning long-term network health with user participation.
A Parallel Economic System for Cardano
This new tokenomics model isn’t just about launching another token—it’s about building a parallel economic system that could reshape how value and governance work within the Cardano ecosystem. The impact on ADA, Cardano’s original token, remains to be seen, but the introduction of NIGHT and DUST marks a bold step toward a more dynamic and inclusive blockchain economy
