Midnight: How Your Current ADA Stake Earns You New Rewards

Introduction: Midnight at a glance

Midnight, an innovative new blockchain by Input Output Global (IOG), is set to launch by the end of 2025. If you're a Cardano ADA holder or delegator, the good news is that your existing ADA stake could soon generate an entirely new type of reward—without requiring you to move your ADA at all.

In this article, I'll walk you through exactly how this works, why you should care, and what you need to do (spoiler: very little!) to start earning Midnight’s native token, NIGHT, alongside your usual ADA staking rewards. Let’s dive in!

What is Midnight and why does it matter?

Midnight is a blockchain that combines privacy-focused technology, smart-contract capability, and seamless compatibility with Cardano. Developed by the same engineers who built Cardano, Midnight provides decentralized apps (dApps) with powerful privacy features—without sacrificing transparency or security.

The Midnight ecosystem: NIGHT and DUST

Midnight introduces two new tokens:

• NIGHT (Governance and Staking): NIGHT is the main token you’ll earn simply by continuing to stake your ADA. It’s used for staking rewards, governance (voting on protocol decisions), and staking to support the network.

• DUST (Transaction Fuel): Every time you make a transaction or run a dApp on Midnight, you’ll pay a fee in DUST. DUST is automatically generated 1:1 from your staked NIGHT, meaning if you hold NIGHT, you always have DUST.

But here's the kicker: to earn NIGHT, you don't even need to move your ADA. It stays right where it is on Cardano.

Why your ADA stake matters for Midnight

The innovative part of Midnight’s launch involves leveraging the existing infrastructure of Cardano stake pools. Here’s the exciting bit:

Midnight selects which stake pool will produce the next block based on the existing ADA delegated to that pool on Cardano.

If you're already delegating ADA, you're automatically included.

Here’s a quick breakdown of how it works in practice:

1. ADA stays on Cardano:Your delegated ADA never moves. It stays safely in your Cardano wallet.

2. Validators earn NIGHT tokens on Midnight:Midnight validators (which are simply Cardano stake pool operators who also run Midnight nodes) earn NIGHT for each block they produce.

3. You, the delegator, earn NIGHT automatically:Because your ADA stake supports the validator, you automatically earn NIGHT proportional to your ADA stake.

   
   

This is a win-win scenario: you continue receiving ADA staking rewards as usual, plus you get additional NIGHT rewards without needing to take extra action.

What happened with the “Glacier Drop” snapshot?

Midnight kicked things off with something called the “Glacier Drop”, an innovative airdrop distributing NIGHT tokens directly to cryptocurrency holders. On June 11, 2025, Midnight took a snapshot of wallets across multiple blockchains, including Cardano and Bitcoin.

If your ADA wallet had at least $100 worth of ADA on June 11, 2025, you qualify to claim free NIGHT tokens.

Claims open in July, and NIGHT tokens are unlocked gradually (25% every 90 days) to ensure steady growth and stable value.

Even if you missed this snapshot, don't worry: your ADA stake continues to earn NIGHT as soon as Midnight mainnet goes live, completely independently of Glacier.

When does this start? Mainnet timeline

Midnight’s mainnet launch is targeted for Q4 2025. Once mainnet goes live:

• Midnight block production and NIGHT rewards kick in immediately.

• Validators (Cardano stake pool operators who also run Midnight validators) begin earning NIGHT.

• ADA delegators automatically earn NIGHT proportional to their ADA stake.

You don't have to do anything special if you're already staking ADA. Just keep your ADA delegated and watch your rewards grow.

Why would Midnight do this?

You might wonder: why give away NIGHT to existing ADA holders and delegators? The reason is simple: community alignment.

Midnight is deeply integrated into Cardano's ecosystem. By aligning itself closely with ADA holders and stake pool operators, Midnight ensures robust decentralization, security, and immediate adoption by a committed community. This strategy strengthens both Cardano and Midnight together.

Practical guide: What you need to do to prepare

Here’s a simple checklist to make sure you're ready:

1. Check eligibility for Glacier Drop (if you held at least $100 ADA on June 11, 2025):

   • Keep an eye out for the claim portal opening in July 2025.

   • Claim your NIGHT tokens to ensure you maximize early rewards.

2. Continue delegating ADA:

   • Keep your ADA stake delegated to your preferred Cardano stake pool.

   • Remember, the more ADA delegated, the higher your NIGHT earnings will be when Midnight goes live.

3. Follow updates from your stake pool operator:

   • Your pool operator will announce if they’re participating in Midnight validation. This step ensures you receive NIGHT automatically at mainnet launch.

That's it—you're ready to earn extra rewards.

Common Questions from ADA holders

Here are some common concerns ADA holders often raise:

Q: Does my ADA leave my wallet?

No. Your ADA stays exactly where it is. Midnight only checks your delegated ADA balance without ever moving it.

Q: Do I lose my ADA rewards?

Absolutely not. You continue to earn ADA rewards as normal. NIGHT rewards are simply extra.

Q: What if my stake pool doesn’t run Midnight?

You’ll still earn ADA, but no NIGHT rewards. Consider moving your delegation to a pool that validates Midnight to maximize your returns.

Q: How do I claim NIGHT?

The first batch from the Glacier Drop requires manual claiming in July 2025. However, once mainnet launches, your earned NIGHT rewards from block production will be credited directly into your Midnight account automatically, without additional claiming.

Long-term benefits for Cardano delegators

By participating passively in Midnight through your ADA delegation, you contribute to:

• A healthier Cardano ecosystem: Interconnected networks enhance security and decentralization.

• Increased rewards and value: Additional income through NIGHT tokens means increased rewards for the same effort.

• Early adoption of powerful privacy tools: Midnight’s privacy-enabled smart contracts are a significant innovation. Your early involvement could open doors to future opportunities in DeFi, NFTs, and more.

  
  

Final Thoughts: Your ADA, Your Rewards, Multiplied

Midnight offers Cardano ADA holders a rare opportunity: a new stream of passive rewards without additional effort or risk. Simply by keeping your ADA delegated as usual, you support two networks at once—and reap the rewards from both.

In the coming months, keep an eye out for announcements from your Cardano stake pool operator and the Midnight team. You’re already positioned perfectly to benefit from this exciting new chapter in blockchain evolution.

Stay delegated, stay informed, and enjoy the journey into Midnight!