Midnight Protocol has announced a planned airdrop of Night tokens for Cardano holders, suggesting potential value increase for ADA in the market.
Midnight Protocol Conducts Major Airdrop for Cardano Holders
Analyst Dan Gambardello noted that 50% of the Night token supply will be distributed among ADA holders, exceeding any other network distributions. The snapshot for the airdrop has already been taken, targeting users with ADA in self-custody wallets participating in staking pools and not on exchanges.
Night tokens were natively minted on Cardano as native assets, bypassing wrapping or bridging processes. The initial supply of tokens comes from Cardano smart contracts, allowing for deep integration between the two protocols. Cardano stake pool operators will operate Midnight nodes and will earn Night tokens while retaining their ADA staking rewards.
Deep Integration of Night Tokens with Cardano Infrastructure
The Midnight protocol establishes comprehensive integration with Cardano through various technical and governance mechanisms. All token movements operate under Cardano protocol rules, preventing over-minting or inflation while maintaining security through Cardano's proof-of-stake consensus mechanism rather than independent validation systems.
Midnight governance retains authority to update Cardano-side parameters, creating deeper integration between the two protocols. A planned two-way bridge will allow Cardano to observe Midnight operations directly, establishing what Gambardello describes as a true partner chain relationship rather than a separate blockchain project.
Analysts Analyze Historical Precedents and Predictions
Gambardello analyzes historical cryptocurrency launches to support his prediction that Midnight could reach top 25 rankings quickly after token distribution. He references Aptos, which launched in October 2022 and achieved top 25 status within a week despite being backed by major venture capital firms, including A16Z, Binance Labs, and Jump Crypto.
Sui serves as another precedent, reaching top 25 rankings within days of launch due to Mysten Labs’ strong venture capital support and high-speed Layer 1 narrative. Gambardello highlights that while Midnight lacks enormous VC support driving hype cycles, it benefits from Cardano’s established community and top 10 blockchain foundation behind the protocol.
The Night token airdrop combined with Cardano's community support could create significant adoption patterns similar to successful blockchain launches in the past.
