Cardano's Midnight Privacy Sidechain Launches with 4.5B NIGHT Token Redemption

Cardano is launching its highly anticipated privacy-focused sidechain, Midnight, with the NIGHT token generation event (TGE) now live. Founder Charles Hoskinson announced the launch during the Cardano Summit in London, with the sidechain and token officially launching on December 8, 2025.

The rollout has entered a critical phase with the opening of the redemption portal for over 4.5 billion NIGHT tokens claimed during the project's Glacier Drop airdrop and Scavenger Mine event. Redemptions are scheduled to begin at 00:00 UTC on December 10, 2025. This distribution is described by the Midnight Foundation as one of the broadest in recent blockchain history, involving over 37 million qualifying Cardano wallets.

The token unlock is designed to be gradual and responsible. Claimed NIGHT allocations will unlock in four equal installments over 360 days. Each recipient's first "thaw" date will be randomly assigned within an initial 90-day window, with subsequent unlocks every 90 days thereafter. This staggered release is intended to smooth supply as the network progresses from testnet to a fully decentralized mainnet, planned for early next year.

"This is a pivotal step on the Midnight roadmap," said Fahmi Syed, President of the Midnight Foundation. "The community will now be able to hold their NIGHT, see their unlock schedules, and prepare to meaningfully participate in a network that’s bringing essential privacy infrastructure to the entire industry."

Technologically, Midnight is a Layer-1 blockchain focused on "rational privacy," combining zero-knowledge proofs with a dual-token model. NIGHT serves as the native token for usage, consensus, and governance. At mainnet launch, the protocol will also begin generating DUST, a renewable on-chain resource designed to power shielded transactions and smart contracts, aiming to create predictable network capacity while preserving auditability.

The NIGHT token will initially exist as a Cardano native asset, with a protocol-level mechanism ensuring its total supply of 24 billion units is mirrored onto the Midnight ledger at mainnet. This mechanism prevents value duplication as tokens move between chains. The team expects major exchanges, custodians, and wallet partners to announce support imminently, broadening liquidity. The launch is seen as a major boost for the Cardano ecosystem, potentially increasing utility, attracting institutional interest, and enhancing its competitive position in smart contracts and DeFi.