Cardano Introduces Privacy Layer with Midnight’s NIGHT Token Launch
Cardano’s privacy ambitions advanced this week with the launch of Midnight’s NIGHT token, which has already doubled in value since debut. Early trading was volatile, but NIGHT rebounded quickly, approaching a $1 billion valuation as OKX, Bybit, and MEXC listed the token. Additional activity came from redemptions from the ‘Glacier’ airdrop, the first of several planned releases through 2026.
How Midnight Works
Developed by Input Output, Midnight is a partner chain that provides Cardano with a programmable privacy layer using zero-knowledge proofs (ZKPs). Its dual-state architecture separates public and private data while allowing controlled disclosure to auditors, institutions, or counterparties.
The network maintains two parallel ledgers—one public, one encrypted—so applications can reveal only the necessary information. This structure supports regulated DeFi, enterprise data exchange, identity frameworks, and financial products that cannot operate on fully transparent chains.
Smart Contracts and Cross-Chain Strategy
Midnight uses Compact, a TypeScript-inspired smart contract language, to make ZK development accessible to non-cryptographers. NIGHT’s 24 billion token supply was distributed across eight major ecosystems—including Bitcoin, Ethereum, Solana, BNB Chain, and Cardano—to encourage cross-chain adoption and a shared privacy environment.
Key metrics to watch include privacy adoption in Cardano DeFi, bridge activity, Compact usage, and token distribution. Midnight adds a privacy and compliance layer that could redefine value transfer across Cardano’s ecosystem in 2026 and beyond.
