Charles Hoskinson, founder of Cardano, has introduced the tokenomics for the new Midnight project. This paper outlines two key tokens: NIGHT and DUST.
Overview of Midnight Tokenomics
The Midnight tokenomics consists of two main components: NIGHT, as a utility token for enhancing value and governance, and DUST, a new type of shielded resource that powers transactions.
Key Features of NIGHT Token
The NIGHT token has a fixed supply of 24 billion units, distributed between Cardano and the new Midnight network. The primary role of NIGHT is to generate DUST, which operates as energy rather than currency.
Token Distribution Processes
Token distribution begins with the 'Glacier Drop', where tokens will be given for free to users. Next is the 'Scavenger Mine', where unclaimed tokens will be awarded to users contributing computing power. A 'Lost-and-Found' phase will follow for those who missed the earlier opportunity.
With the launch of Midnight, a new economic system is expected to emerge, interacting with the existing Cardano protocol. The impact on the original project remains an open question.