At the recent Midnight Summit, Charles Hoskinson, the founder of Cardano and CEO of Input Output Global (IOG), revealed big plans for a new privacy-focused blockchain network called Midnight. He described it as the next evolution in crypto—a powerful layer for privacy and identity that works alongside existing blockchains like Ethereum, Bitcoin, Solana, and XRP, rather than competing with them.

Hoskinson explained that Midnight will roll out in four key stages, or “gates,” leading up to a fully decentralized and operational network.

**Gate 1: Token Launch and Liquidity (Starting December 8, 2025)**
The first step is launching the NIGHT token. Users will be able to claim their tokens and start trading them on crypto exchanges and decentralized platforms. This creates real market value and visibility, as the token will appear on platforms like CoinMarketCap. This phase is tied to initiatives like Glacier Drop and Scavenger Mine, with Hoskinson estimating over a million participants—though not all wallets represent unique users.

**Gate 2: Federated Mainnet Launch (Q1 2026)**
In early 2026, Midnight will move to a federated mainnet. This means some network nodes will be operated by IOG and others by outside organizations, including a major Fortune 500 company. This setup allows developers to test real applications with real users before the network becomes fully decentralized. More than 100 projects are already being built for Midnight, showing strong early interest.

**Gate 3: Incentivized Testnet (Q2 2026)**
Next comes an incentivized testnet where community members can run stake pools and test the final version of Midnight’s consensus algorithm. The network is designed to handle around 5,000 transactions per second with extremely fast block times. However, since this setup hasn’t been deployed on Substrate before, the team wants to test everything under real conditions to ensure security and reliability.

**Gate 4: Full Mainnet Launch and Final Upgrade**
Once the testnet proves stable, Midnight will undergo a hard fork to become a fully decentralized, production-ready blockchain. At this stage, it will integrate deeply with other ecosystems—becoming a privacy layer that works across chains like Ethereum, Bitcoin, Solana, and XRP. This means users from different blockchains can benefit from Midnight’s privacy features without leaving their own networks.

**Midnight’s Unique Token Model: NIGHT and DUST**
Midnight uses a two-token system. NIGHT is the main token that holders can use to generate DUST, which powers apps and transactions on the network. Developers can cover DUST costs so users don’t need to buy crypto to use apps—bringing a smoother, Web2-like experience to Web3. This makes Midnight more user-friendly and accessible.

**Privacy in the Age of AI**
Hoskinson emphasized that with AI rapidly advancing, protecting personal data is more important than ever. AI systems are collecting people’s content and likenesses without permission or payment. Midnight aims to fix this by giving users tools to control their data using zero-knowledge proofs. This technology lets people prove things like being human or eligible for a service without revealing personal details—helping reduce spam and bots online.

**Governance for Faster Progress**
To avoid the slow decision-making seen in some blockchain projects, Midnight’s governance will be managed by the Linux Foundation and executed by a dedicated Midnight Foundation. Their goal is to deliver updates quickly and keep the project on track using performance metrics.

**The Big Picture: A Three-Layer Crypto Future**
Hoskinson summed up his vision as a crypto “triumvirate”:
– Bitcoin for trust and value
– Cardano for smart contracts and computation
– Midnight for privacy and identity

If all goes according to plan—with token trading starting in December 2025, a federated mainnet in Q1 2026, a testnet in Q2 2026, followed by a full launch—Midnight could redefine how privacy works across multiple blockchain ecosystems.