Cardano-linked blockchain Midnight launched its mainnet on Monday, introducing programmable privacy to on-chain transactions. Founder Charles Hoskinson said crypto adoption has been held back by usability challenges, not regulation, pointing to complicated wallets and transparent ledgers that deter everyday users.
Selective Disclosure: Privacy Without Full Transparency
Midnight runs as a standalone chain integrated with Cardano. Its key feature is selective disclosure—users can verify transaction details without exposing underlying data. For example, a company can prove total payroll size to an auditor without revealing individual salaries. This hybrid design resolves the old trade-off between privacy and auditability.
The network also hides complexity: users can interact with dApps without directly handling private keys, in some cases without even knowing a blockchain is involved.
Dual-Token Model: NIGHT for Governance, DUST for Fees
Midnight uses two tokens. NIGHT handles governance and security, while DUST covers transaction fees. This separates speculation from utility, stabilizing fee costs. Applications can pay fees on behalf of users, lowering the entry barrier.
Tokens were distributed via a massive airdrop reaching 37 million wallets across eight blockchains. Shortly after launch, Midnight's valuation briefly crossed $1 billion, according to on-chain data.
Institutional Move: Monument Bank Tokenizes £250M Deposits
London-based Monument Bank plans to tokenize £250 million in deposits on Midnight. The rollout is phased: infrastructure first, then applications and governance. Early use cases include confidential payroll systems and private financial transfers where identity can be verified without storing personal data.
Hoskinson sees Midnight as a gateway for enterprise adoption, offering privacy without sacrificing the verifiability that institutions require.