Simply put
- Midnight Network plans to distribute night tokens to holders of Bitcoin, Ethereum, XRP, and Cardano.
- This privacy-centric blockchain is offering 100% of its 24 billion tokens to eligible claimants.
- To qualify, users need to hold at least $100 in supporting assets based on a snapshot taken on June 11th.
Midnight Network, which is connected to Cardano and focuses on privacy and data protection, will airdrop night tokens to users from major networks like Bitcoin, Ethereum, and Solana as part of its launch.
The protocol has introduced a two-tier system along with what they call “glacial drops,” which are essentially phased token distribution events.
The project released a 45-page white paper outlining its tokenomics on Monday.
The white paper critiques traditional token models that depend on a single token, suggesting this creates volatility and limits broad community participation, favoring only a select group of insiders and early investors.
To counteract some of these issues, Midnight is offering up to 100% of the night token supply through its first phase, Glacier Drop. This phase will cater specifically to holders of native tokens valued over $100. Eligible cryptocurrencies include Cardano (ADA), Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), BNB Chain (BNB), Avalanche (AVAX), and Basic Attention Token (BAT), as recorded in the June 11 snapshot.
Out of the total 24 billion tokens, 50% will be allocated to Cardano ADA owners, 20% to Bitcoin holders, and the last 30% will go to other eligible blockchains.
While these tokens can be claimed, they won’t be immediately tradable. Instead, they must undergo a “thawing” process, meaning they can only be accessed in 25% increments every 90 days over a period of 360 days.
According to the incentive paper, once the glacial drop is executed, tokens are initially frozen in Cardano Network’s smart contracts and can’t be transferred until they’re gradually thawed during the redemption phase.
Although it’s technically possible for 100% of the supply to be claimed in the initial distribution phase, there’s skepticism about whether all eligible users will take their share by the deadline. Charles Hoskinson had previously indicated the potential for up to 37 million users participating in this Airdrop, though the token documentation does not specify how many users qualify.
Any night tokens that remain unclaimed will transition into a second phase called Scavenger Mines. In this phase, anyone providing computing power to the network can earn night tokens based on the amount of power they contribute.
Lastly, a final stage allows eligible users who missed the Glacier Drop Phase to still claim some tokens. If tokens aren’t claimed within four years, they’ll revert to the protocol’s on-chain Treasury.
The Midnight Network focuses on privacy through a zero-knowledge proof mechanism, which is designed to grant secure access while allowing selective data disclosure, shielding wallet details, and managing transaction data carefully.
Currently, the network is operating on a testnet, with the mainnet launch projected to occur 90 days after the glacier drops. Besides night tokens, Midnight also utilizes dust tokens for transactions.
As of now, representatives from the Midnight Foundation have not responded to inquiries regarding the Glacier Drops deployment.
