Midnight is a privacy-centric, fourth-generation blockchain designed to enable decentralized applications that protect sensitive data without sacrificing utility. Midnight is built in conjunction with Input Output Global (IOG, the team behind Cardano) as a “partner chain” in the Cardano ecosystem, leveraging cutting-edge cryptography that merges public verifiability with confidential data handling. The platform integrates zero-knowledge proofs (ZKPs) at the protocol level, meaning users can use Midnight's selective disclosure and ZK proofs to build apps that:

• Verify correctness without revealing sensitive data.
• Share only the information users choose to disclose.
• Prove compliance while keeping private records confidential.

Project Function

• Privacy-First Smart Contracts: Midnight’s smart contracts have built-in data protection. Using zero-knowledge proofs, contracts can validate transactions or user attributes without exposing sensitive information on-chain.
• Shielded & Unshielded Transactions: The network supports both shielded transactions (encrypted addresses and amounts) and unshielded transactions. This means some assets/data can be private while others remain public, allowing fine-grained control over what is revealed.
• New Smart Contract Language (Compact): To make privacy tech accessible, Midnight provides a TypeScript-based smart contract language called Compact. This high-level language lets developers write contracts in a familiar syntax (inspired by TypeScript/Javascript) while the platform handles the heavy cryptography under the hood.
• Regulation-Friendly Compliance Features: Developers can implement selective disclosure policies – for example, an application could prove a user is over 18 or has a certain license without revealing the user’s identity or other details. This makes it possible to satisfy KYC/AML, financial regulations, or data protection laws while still using a public blockchain. 

Token Utility

• Network Access & Fees: Uniquely, NIGHT is not used directly to pay transaction fees. Instead, holding NIGHT continuously generates a secondary resource called DUST, which is used to pay for gas/fees on the Midnight network. In essence, holding NIGHT gives you the capacity to use the network’s services.
• Staking and Network Security: NIGHT also functions as the staking and consensus token. It is envisioned to be staked by block producers/validators to secure the network. By staking or delegating NIGHT, holders help protect the network and in return earn block rewards (paid in NIGHT) from the protocol’s reserve.
• Governance (future): NIGHT is the planned governance token of the Midnight network. Once governance is live, holding NIGHT will give the community the right to propose and vote on protocol decisions and improvements.

About the Founders

Eran Barak — CEO of Midnight: Eran was previously the Co-founder / COO of Symphony Communication Services LLC – a secure, compliance-focused platform for financial institutions. He took it from inception to a “unicorn” valuation. He has also held senior roles at Amdocs Limited (strategy & business development) and Thomson Reuters (marketing / community strategy) earlier in his career.

Fahmi Syed — President of the Midnight Foundation: Fahmi was previously the CFO at Parity Technologies (the engineering company behind Polkadot and Kusama) during a period of significant ecosystem growth and the COO at FIFTHDELTA, a hedge-fund spin-off from Citadel, which launched with ~$1.25 billion in assets. Fahmi has also held senior leadership positions at Marshall Wace LLP (a large global hedge‐fund manager) contributing to global growth and asset-management.

Risks of NIGHT

Like an investment in other crypto assets, there are some general risks to investing in NIGHT. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in NIGHT is subject to the following specific risks:

• NIGHT operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with NIGHT. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The NIGHT community and Midnight founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of NIGHT have no recourse to the NIGHT community, Midnight founding team, or Uphold if NIGHT declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing NIGHT on the Uphold Platform, Uphold performed due diligence on NIGHT and determined that NIGHT is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of NIGHT, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of NIGHT.
• Any marketing materials put forward by the NIGHT social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with NIGHT, including any code defects, security breaches and other threats concerning NIGHT and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with NIGHT, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of NIGHT.