Midnight token distribution
The free, multi-phase distribution of NIGHT tokens is aimed at empowering a broad, diverse community to build the future of the Midnight network.
Multi-phase token distribution
NIGHT token allocations will be granted for free to eligible participants through a multi-phase token distribution: no purchase is involved.
The distribution will consist primarily of three Claim phases and a Redemption period, giving a broad community of users multiple opportunities to participate.
Claims
Participants claim their token allocations by demonstrating they meet the eligibility criteria for each phase.
Redemption
Claimants then redeem their tokens as they thaw (unlock) during the Redemption period, thus transferring their tokens to their Destination Address.
Token allocations
The allocation of the NIGHT token supply will follow the three claim phases below. Community participation levels during each phase will determine allocations towards core network constituents.
Up to 100% of the total supply claimable by eligible Glacier Drop participants in proportion to tokens held across key networks as per the breakdown below. Unclaimed tokens carry over to the next phase.
- 50% of the supply allocated to ADA holders
- 20% of the supply allocated to BTC holders
- 30% split among holders of ETH, SOL, XRP, BNB, AVAX, and BAT, in proportion to their relative USD value
Dual-component tokenomics
Midnight introduces a composite system where NIGHT, the native token, continually generates DUST, the shielded network resource that powers transactions. This segregation enables metadata protection and promotes sustainable operations.
There’s no capital expenditure for executing transactions: NIGHT holders can effectively transact on Midnight for free for as long as they hold enough tokens to generate the minimum required DUST.
NIGHT
NIGHT is the utility token and the main component driving the Midnight economic system.
NIGHT utility
- Generating DUST resources to power transactions
- Promoting network security as block production rewards
- Enabling decentralized on-chain governance (expected)
- Driving ecosystem growth initiatives (expected)
What is the NIGHT token?
Token supply
24 billion NIGHT tokens minted on Cardano, which are mirrored on the Midnight network.
Disinflationary
The expansion of the circulating supply via block rewards slows down over time, until the total supply is circulating and no more inflation occurs.
Non-expendable
NIGHT is not expendable to execute transactions, nor destroyed/burned during the exercise of its functions.
Multi-chain
In contrast with wrapped token representations, NIGHT exists natively and maintains the same properties and rights both on Cardano and on Midnight.
DUST
DUST is the shielded and renewable network resource whose single function is to allow users to execute transactions on Midnight.
Shielded
DUST allows for transactions to take place without exposing metadata.
Consumable
DUST is consumed when used – meaning it is destroyed and does not cycle back into circulation.
Renewable
DUST is continually generated by NIGHT balances in perpetuity.
Decaying
A DUST balance decays when disassociated from the NIGHT address that generates it, meaning it cannot act as a store of value.
Non-transferrable
DUST cannot be transferred between addresses – insulating it from volatility and strengthening its sole utility.