Cardano Midnight Launches, Potential Benefits for NIGHT Instead of ADA

The privacy blockchain Midnight in the Cardano ecosystem has officially launched, but its impact on the price of ADA is expected to be limited. Midnight is designed as an independent blockchain, focusing demand on its own token, NIGHT, rather than ADA. Midnight released its mainnet in March and announced its official launch on the 29th. Midnight operates as a Layer 1 blockchain with a separate ledger and verification system, utilizing Cardano's security infrastructure while processing transactions independently. Transaction fees are managed using NIGHT tokens and a resource called DUST, which is used for fee payments. The reason why the growth of Midnight does not necessarily correlate with an increase in ADA prices is that transaction fees are not paid in ADA but rather in DUST. Currently, Midnight is in the initial operational phase with major companies like Google Cloud and Worldpay, and corporate participation does not imply an increase in ADA demand. Midnight plans to introduce a block generation reward system starting in the fourth quarter of this year and aims to expand participation from Cardano staking pool operators in the first quarter of next year. Midnight will also begin transitioning from the existing consensus algorithm to BABE.

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