Solana News Today: Cardano's Midnight Project Unveils Privacy-Compliant ZK Blockchain With 24 Billion NIGHT Supply

Cardano’s Midnight project has emerged as a focal point of interest within the cryptocurrency community, particularly following the June 2025 release of its tokenomics whitepaper. The initiative, championed by Cardano co-founder Charles Hoskinson as “the single biggest event in the history of Cardano,” is positioned as a fourth-generation blockchain designed to offer secure, compliant, and private decentralized applications [1]. However, this bold claim is prefaced with a cautionary note: the success of Midnight is conditional [1].

The context for Midnight is Cardano’s ongoing efforts to enhance its market position. While Cardano has long been recognized for its rigorous academic approach to blockchain development, it has struggled to match the traction of competitors like Ethereum and Solana. According to DefiLlama, Cardano’s total value locked (TVL) stands at $360 million, a stark contrast to Solana’s $10 billion [1]. This gap is partly attributed to the limited adoption of stablecoins and the inherently slower pace of Cardano’s development. In response, Hoskinson has suggested converting $100 million of ADA into USDM stablecoins via Moneta Digital, a regulated service [1].

Midnight, developed in tandem with Cardano’s core infrastructure provider Input Output Global (IOG), is designed to address these challenges. The project leverages zero-knowledge proof (ZK) technologies—specifically ZK-SNARKs—to offer privacy while maintaining regulatory compliance. The Midnight Network introduces a proprietary programming language, Compact, and a Zswap ledger for atomic token swaps [1]. This approach aims to bridge the gap between public and private ledgers, offering a solution for financial institutions hesitant to adopt blockchain due to transparency concerns.

The token economy of Midnight is structured around two key tokens: NIGHT and DUST. NIGHT functions as the native governance and utility token, while DUST serves as a renewable resource for executing free transactions. This dual-token system is designed to minimize metadata trails and resist manipulation from MEV (Maximal Extractable Value) actors [1]. The NIGHT token supply is capped at 24 billion, with 50% allocated to Cardano (ADA) holders in the initial airdrop phase known as “Glacier Drop” [1]. Additional airdrops—Scavenger Mine and Lost-and-Found—are planned to follow [1].

The gradual unlocking of NIGHT tokens over 360 days is intended to mitigate supply shocks and encourage sustained adoption. Eligibility for the airdrop is set at a minimum of $100 in holdings across supported chains, including Bitcoin, Ethereum, and Solana [1]. This phased release strategy mirrors similar approaches in the broader crypto space, where token distribution is often staggered to build long-term value.

From a broader market perspective, Midnight’s development aligns with a shifting regulatory landscape. With the departure of former SEC chair Gary Gensler, the crypto ecosystem faces a potentially more favorable environment. This development may provide fertile ground for Cardano and its associated projects, including Midnight. The recent filing by asset manager Grayscale to convert its Cardano Trust into a publicly traded spot ETF further underscores growing institutional interest [1].

However, the road to widespread adoption remains uncertain. While Midnight introduces compelling technical innovations—such as atomic swaps and cross-chain functionality—it must prove its value in real-world applications. Similar features have been explored by projects like Komodo, highlighting the competitive nature of the space. Midnight’s success will depend not only on its technological capabilities but also on its ability to integrate with existing blockchain ecosystems and attract developer and user participation.

Ultimately, Midnight represents a strategic move by Cardano to expand its offerings and strengthen its position in the evolving crypto market. As with all emerging projects, investors and users are advised to approach with cautious optimism, carefully evaluating both the opportunities and the risks.

Source: [1] Is Cardano’s Midnight worth the hype? (https://cryptoslate.com/is-cardanos-midnight-worth-the-hype/)