Midnight's fee resource cannot be bought or sent, only generated by holding NIGHT

@MidnightNtwrk, described as @Cardano's first partner chain, is built around a deliberately split economy. It is a privacy-focused blockchain that combines zero-knowledge proofs, a dual-ledger architecture, and selective disclosure so applications can keep sensitive data confidential without sacrificing verification. The network's genesis block was created on March 17, 2026.

Two Tokens, One Network

Midnight splits its system into $NIGHT, which carries governance and utility functions, and DUST, which acts as the renewable resource used for network activity. $NIGHT is unshielded and is meant to serve as a store of value for the ecosystem without being consumed by daily transactions, while granting governance rights to holders. It has an initial supply of 24 billion tokens, minted at the start of the token distribution on the Cardano blockchain and mirrored on Midnight's own network at launch. The token launched in December 2025.

Holding $NIGHT generates DUST, a private and decaying resource that fuels transaction fees and smart contract execution. Unlike traditional gas models where tokens are burned or paid out, "DUST operates on a recharge model similar to a battery," with the amount of DUST earned proportional to the amount of $NIGHT held. Crucially, DUST is non-transferable and decays when unused. Once the $NIGHT generating it moves, the associated DUST drains to zero. Because DUST is the resource used for transaction fees and network usage, the cost of operating on Midnight becomes less tightly tied to the market price of the main token, creating more predictable fees that suit budgeting, app design, and enterprise adoption.

$NIGHT holders can also designate their DUST resources to others, meaning developers can cover transaction costs for users.

Compact and Selective Disclosure

Midnight introduces Compact, a domain-specific language based on TypeScript that makes privacy-preserving smart contracts accessible to mainstream developers. Traditional zero-knowledge development demands circuit design and proof-system knowledge, but Compact lowers this barrier by compiling TypeScript-like code into circuits and proofs automatically.

Midnight lets users compute on private data locally and submit zero-knowledge proofs instead of raw inputs. Validators verify correctness without learning the underlying data, preserving both privacy and trust. Selective disclosure is the ability to reveal only the information an application actually needs while proving everything else cryptographically, rather than choosing between full transparency and full secrecy. In practice this means a financial app could verify a user meets a balance threshold without exposing the actual figure, or a healthcare platform could confirm eligibility without sharing medical records.

Sources:
Midnight Network: NIGHT Token Overview
Midnight Official Docs: What is Midnight?
The Block: Cardano's Hoskinson Unveils Privacy-Preserving Midnight Partner Chain