$NIGHT (Midnight Network) Market Trend Analysis

Traditional blockchain transaction data and behavioral metadata are publicly available across the entire network, but this is neither necessary nor safe in many real-world application scenarios. Midnight introduces Zero-Knowledge Proof (ZKP) technology, enabling a balance between verifiability of on-chain data and privacy protection. It also supports Selective Disclosure to meet compliance requirements, such as proving the validity of certain credentials or statuses without revealing sensitive data and satisfying audit demands.

Midnight’s design aims to provide a foundational infrastructure for decentralized applications that adheres to core cryptographic principles while being suitable for enterprise and compliance scenarios. It ensures that data and metadata on-chain can be protected yet verifiable when authorized, as needed. Midnight also offers developer-friendly toolchains and dedicated programming language support to lower the barrier for privacy smart contract development and foster broader ecosystem growth.

Under this architecture, Midnight is not just a sidechain or privacy chain but a fourth-generation blockchain network that balances verifiability, privacy protection, and compliance requirements.

NIGHT: A Native Token with Network Utility and Governance Functions

The native token of Midnight Network is called $NIGHT. It serves as the core economic unit of the protocol and also functions as a governance token. NIGHT’s usage logic is closely integrated with Midnight, with a design that differs significantly from traditional public chain tokens. NIGHT is not used as a direct gas fee for transactions but acts as a capital asset that, when held, automatically generates another network resource called DUST, which is used to pay transaction fees and execute smart contracts. This reduces the need for users to continuously spend native tokens to maintain on-chain activity, lowering transaction costs and economic uncertainty, while clarifying governance and incentive mechanisms.

In Midnight’s dual-asset model, NIGHT plays several key roles:

First, NIGHT symbolizes both a capital asset and governance rights. Holders can participate in protocol governance votes and have decision-making power over key parameters such as ecosystem development and incentive schemes.

Second, holding NIGHT automatically generates DUST resources. DUST is a recyclable, consumable on-chain resource used to pay for transaction fees and enable smart contract logic. DUST itself is non-transferable and its sole purpose is to serve as “fuel” for privacy transactions and smart contract execution. This design separates economic value from actual on-chain resource consumption, improving network predictability and sustainability.

Third, NIGHT is used for secure participation in network operation and governance. As a native token, it supports node rewards, ecosystem incentives, community funds, and gradually transitions toward a more autonomous governance system, enhancing community autonomy.

The total supply of NIGHT is fixed at 24 billion tokens, with no inflation. It is distributed through a multi-stage Glacier Drop airdrop mechanism to the community. The airdrops target holders of Bitcoin, Ethereum, Cardano, Solana, BNB Chain, XRP, Avalanche, BAT, and other mainstream chains, promoting a broader and more decentralized initial distribution. Tokens are released in phases according to a set unlocking schedule to reduce price volatility.

NIGHT’s Economic Model: DUST and Governance Mechanisms

Midnight’s economic model employs a unique “dual-asset system”: NIGHT and DUST. NIGHT is designated as the core capital asset and governance token, while DUST is a renewable network resource with a value and usage logic fundamentally different from traditional token fuel models. NIGHT holders automatically generate DUST based on their holdings, similar to a “token holder as resource provider” dynamic. DUST is used to pay for on-chain operations, including transactions and smart contract calls, and has a decay feature—over time, DUST gradually depletes but is continuously regenerated through NIGHT holdings.

This mechanism’s advantage lies in separating capital from operational costs, allowing most on-chain activities not to require direct consumption of native assets, thereby enhancing user experience and reducing transaction fee uncertainty. For frequently used decentralized applications (dApps), developers can pre-hold NIGHT and generate sufficient DUST to offer users “fee-free” or low-friction interactions.

From a governance perspective, as the community ecosystem matures, NIGHT will become the basis for decision-making votes. Holders can participate in on-chain voting on protocol upgrades, economic parameters, ecosystem fund allocations, and other key matters. This means the value of NIGHT is not only reflected in resource generation and transaction incentives but also directly influences the network’s development trajectory.

Recent Price Performance of NIGHT

By mid-December 2025, the NIGHT token was officially listed and tradable on major exchanges such as Gate. According to Gate market data, NIGHT experienced significant price fluctuations shortly after launch, rising from a low level to around $0.1, then falling back as liquidity increased and selling pressure emerged. These large swings reflect differing market expectations regarding the underlying privacy architecture and future potential of the project.

Additionally, after reaching its peak, the NIGHT token’s price saw a notable correction, related to large-scale airdrop unlocks and trader sentiment shifts following the token’s listing. Market indicators show that the circulating supply and unlock schedule significantly impact the price, and such initial volatility is common for new tokens.

Future Outlook: Supply Release Pace and Ecosystem Development as Key Factors

Looking ahead, the medium- and long-term performance of NIGHT will likely be influenced by:

First, the token unlock mechanisms and changes in circulating supply. As airdrop distributions and unlock phases proceed, the available circulating supply will gradually increase. The pace of unlocking is crucial—steady releases can help mitigate sell pressure, while uneven unlocks may cause short-term volatility.

Second, the development of the Midnight network’s application ecosystem. If more privacy smart contract dApps are launched and adopted by users, this will boost DUST demand and the practical utility of NIGHT, providing price support. Conversely, slow ecosystem growth could suppress demand.

Third, overall market interest in privacy technology and compliant blockchain infrastructure. In a regulatory environment that is becoming more stringent, offering optional disclosure and compliant privacy protection mechanisms could become a competitive advantage, increasing the long-term attractiveness of Midnight and NIGHT.

In summary, NIGHT’s short-term price may still fluctuate, but its long-term performance will depend more on ecosystem implementation, supply release control, and growing market demand for privacy infrastructure.