Midnight blockchain & $NIGHT Airdrop Overview

The Midnight privacy preserving network is set to launch by the end of March 2026 as Cardano’s first partner chain. Midnight is a 4th generation blockchain developed by IOG that uses zero-knowledge (“ZK”) proof technology to offer utility without compromising data protection or ownership. This allows for entirely new use cases of applications that protect data.

Midnight utilizes a dual-component tokenomics design to protect metadata. The native asset of the blockchain (NIGHT) exists as a Cardano Native Asset with a total supply of 24B NIGHT.

https://www.midnight.gd/tokenomics

The token generation event (TGE) and distribution schedule is divided into 4 equal parts according to the Glacier Drop release schedule. The release of NIGHT to claimed users works such that a user’s first distribution is randomly scheduled between the first and 90th day of the Redemption period, with the following three distributions following every 90 days after the first.

NIGHT tokens were allocated to users who held ADA during the Midnight snapshot as well as users who held BTC, ETH, SOL, XRP and select other crypto-assets. ADA deposits in the Liqwid ADA market were included in the ADA Midnight snapshot on June 11, 2025 at 00:00 UTC.

The multi-phased release of NIGHT tokens includes:

Firstly the Midnight Glacier Drop distribution. As the first method to claim NIGHT tokens the Glacier Drop included mechanism was implemented as a gradual unlocking of claimed allocations.

Second is the Scavenger Mine phase of the Midnight token distribution which enabled anyone to receive a portion of NIGHT by solving computational tasks. NIGHT token rewards were allocated proportional to the computational effort contributed.

The third and final NIGHT distribution is the Lost-and-Found phase which allows eligible Glacier Drop recipients another opportunity to claim a fraction of their originally allocated NIGHT tokens if they missed the first claim window.

Liqwid DAO NIGHT Allocation

ADA deposits in Liqwid’s ADA market were included in the NIGHT snapshot and claimed by Liqwid Labs as the DAO’s technical operator during the Glacier Drop phase. The total NIGHT allocated for the Liqwid ADA market is 18,813,699.9 NIGHT with the first thaw ending on March 6, 2026, at 00:00 UTC.

The Liqwid DAO exists to strengthen the ecosystem of Liqwid users, deliver new Liqwid-built DeFi products to the wider Cardano ecosystem and scale current products. Each of these purposes enables the growth of Liqwid DAO’s revenues and the protocol to reach a new set of users. This is how the Liqwid protocol’s long-term growth and the LQ DAO Token’s value proposition is successfully achieved.

This shared focus allows the Liqwid DAO to maintain a natural incentive coordination with the two substrates of the ecosystem; Liquidity Suppliers and LQ Holders.

Suppliers who deposit liquidity into Liqwid money markets form the foundation of the protocol. They earn real yield from borrowing activity within these markets, as well as staking rewards for supplying ADA. In addition, suppliers have received LQ token rewards as market incentives, including a significant incentive allocation distributed to ADA market suppliers during Liqwid’s first year on mainnet, when only a limited number of other markets were supported.

LQ Holders are the focal point of the Liqwid DAO and through staking, delegation and active governance participation actions move the entire Liqwid DAO forward. LQ Holders that staked their tokens have received staking rewards in the form of LQ and programmatic distributions in the form of ADA, Cardano Native Tokens, stablecoins and LQ distributed from buybacks utilizing protocol revenues.*

*LQ distributed as staking rewards originated from protocol emissions and were distributed in addition to LQ which was bought on the open market using protocol revenues and then distributed to LQ Stakers.

A recent governance vote executed in December 2025 (Proposal 110) has refocused the Liqwid ecosystem on sustainable financing to achieve the DAO’s stated goals of growing the protocol’s revenues and expanding its reach to a new set of users. To achieve these goals the Liqwid DAO core development team is currently focused on the Liqwid V3 implementation but this also includes product launches that are currently in various stages of implementation including Bitcoin DeFi, RWAs, Liqwid Prime, yield-bearing stablecoins and Liqwid deployments on Cardano Layer 2’s and partner chains.

Proposal 110 was a critical decision point for the Liqwid DAO because long-term growth positioning must become the ultimate focus if the Liqwid ecosystem seeks to achieve its full scaling potential and continue delivering as Cardano’s premier lend-borrow protocol. If effectively reached allows the Liqwid DAO to operate in full alignment with Cardano DeFi’s 2030 vision to surpass $3B in TVL.

Given this context of balancing financial sustainability with the need to continue securely innovating within the Cardano DeFi ecosystem the Liqwid DAO core team suggests the following proposals for the claimed NIGHT allocation distributions. Ultimately LQ Holders will decide the distribution of the Liqwid DAO’s claimed NIGHT allocation between one of these proposals:

Proposal	ADA Suppliers	LQ Stakers	Liqwid DAO
Proposal 1 *	100%	-	-
Proposal 2 **	-	100%	-
Proposal 3	50%	50%	-
Proposal 4 ***	33.3%	33.3%	33.3%
Proposal 5	-	-	100%
Proposal 6	90%	5%	5%
Proposal 7	75%	12.5%	12.5%
Proposal 8	5%	90%	5%
Proposal 9	12.5%	75%	12.5%
Proposal 10	12.5%	12.5%	75%
Proposal 11	5%	5%	90%
Proposal 12	50%	-	50%
Proposal 13	25%	-	75%
Proposal 14	10%	-	90%
Proposal 15	90%	-	10%
Proposal 16	99%	-	1%
Proposal 17	95%	2.5%	2.5%
Proposal 18	98%	1%	1%

* The technical work to distribute claimed NIGHT allocations to ADA suppliers based on the snapshot time has already been completed by the Liqwid core team and is visible within the Sundae rewards app.

** The distribution to LQ Stakers would be in addition to current LQ staking rewards and distributed based on the current thaw release schedule for the DAO’s claimed NIGHT allocation.

*** The distribution to Liqwid DAO would be claimed by the Liqwid Labs core team and used to achieve the delivery of currently in development products and Liqwid V3.