Updated September 2026: Midnight is live and DUST is now an active part of the network. DUST is not a tradable token, passive yield, or an extra ADA staking reward. It is Midnight’s shielded, non-transferable and renewable network resource used to pay transaction fees.
What Is DUST?
DUST is the resource that powers transactions and smart-contract execution on Midnight. NIGHT is the capital/governance asset; registered NIGHT generates DUST without spending or locking the underlying NIGHT.
How NIGHT Generates DUST
A NIGHT holder registers a Cardano address holding NIGHT and designates a Midnight DUST address. According to Midnight’s current protocol documentation, 1 NIGHT can support a maximum capacity of 5 DUST, with capacity building linearly over roughly one week. If DUST is consumed, registered NIGHT continues regenerating it toward the capacity limit.
If registered NIGHT is moved or the balance falls, supported DUST capacity falls as well and excess DUST decays over time.
Can You Buy or Trade DUST?
No. DUST is non-transferable and is not designed as a financial asset. It cannot be bought on an exchange or sent like NIGHT, ADA or a stablecoin. It is consumed when paying Midnight transaction fees.
DUST Sponsorship: The Interesting Part
DUST can power transactions for other users through sponsorship. A developer or service can hold NIGHT, generate DUST and cover transaction costs for users. This can let a Midnight application feel more like a normal web app because a new user does not necessarily need to acquire a gas asset before interacting.
Does Staking ADA with ZEIT Generate DUST?
No. Cardano delegation and Midnight DUST generation are separate mechanisms. Delegating ADA to ZEIT does not generate DUST. DUST is generated from registered NIGHT.
There is, however, a separate future opportunity around Midnight block production: Midnight plans to reward block producers in NIGHT and envisages participation by Cardano Stake Pool Operators. ZEIT intends to participate when permissionless SPO block production becomes available. See the current ZEIT + Midnight reward plan →
DUST in One Minute
- NIGHT: transferable native/governance asset.
- DUST: non-transferable network resource.
- Purpose: transaction fees and smart-contract execution.
- Generation: registered NIGHT generates DUST.
- Renewable: consumed capacity regenerates while the backing NIGHT remains registered.
- Sponsorship: DUST can be used to cover transaction costs for users.
