#PostTowinNight

The Midnight network is built around a two-component tokenomics system that addresses the primary usability issues in blockchain. This system offers privacy by default and continuous access without ongoing token expenditure. At the core of this network is the NIGHT token, a utility asset designed not just for speculation. This token allows you to use the network and conduct private transactions by generating DUST, and also gives you a voice in governance. This article explains how Midnight's tokenomics work, why DUST is important, how distribution is handled, and what all of this means for you.

KEY POINTS
➤ Midnight is a blockchain network designed to enhance privacy and usability without speculative token costs.
➤ NIGHT (utility token) provides network access and governance, while DUST (generated by NIGHT) funds transactions.
➤ NIGHT is not spent on transactions; instead, holding NIGHT continuously generates DUST, a resource that cannot be transferred and will decrease in value.
➤ NIGHT distribution mainly occurs through community airdrops designed to be fair (Glacier Drop), prevent farming airdrops, and ensure gradual token release.

The NIGHT token has one function: giving you access to the Midnight network. You do not spend NIGHT for transaction fees. Instead, just by holding it, you can use the blockchain through a secondary resource called DUST.

In other words, simply owning NIGHT grants you ongoing access to Midnight services without constantly spending your tokens on gas fees.

This token has an initial supply of 24 billion tokens, minted at the start of token distribution (on the Cardano blockchain) and reflected on the Midnight network itself at launch.

▶️This is the purpose NIGHT is designed for:

•Generating DUST:
NIGHT produces a renewable capacity resource called DUST, used for all Midnight transactions.
•Block rewards:
NIGHT helps secure the network by providing incentives for block production. Block producers will receive NIGHT from a pre-allocated reserve.
•Governance:
NIGHT holders will control protocol changes, treasury usage, and governance proposals through a decentralized system.
Cash funding: Part of NIGHT is allocated to the protocol’s treasury, ultimately controlled by community governance.
•Multichain representation:
NIGHT is natively present on Cardano and Midnight. Cross-chain locking mechanisms ensure supply integrity 1:1.

In short, NIGHT is not a token you spend to use the network. It is a token you hold to access Midnight’s features and help guide its evolution.