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core-concepts:tokenomics

Explains Midnight's dual-token system with NIGHT and DUST.

37|9|Updated Feb 25, 2026
Search Tags:#tokenomics#midnight#dust#night#token-distribution#block-rewards#dual-token-model
One-click install
npx skills add https://github.com/devrelaicom/midnight-expert --skill core-concepts-tokenomics
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: core-concepts:tokenomics
Source: https://github.com/devrelaicom/midnight-expert/tree/main/plugins/core-concepts/skills/tokenomics
Command: npx skills add https://github.com/devrelaicom/midnight-expert --skill core-concepts-tokenomics

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

Midnight tokenomics can be confusing for developers, validators, and users because it separates value and fee mechanics across two distinct assets while preserving privacy and cross-chain presence. This Skill distills the core concepts—NIGHT as the value/governance token and DUST as the shielded fee resource—so stakeholders can design, audit, and interact with Midnight contracts and economic flows with confidence.

Core Features & Use Cases

  • Dual-token explanation: Clear breakdown of NIGHT (fixed supply, STAR denomination, governance) and DUST (non-transferable, shielded, generated from NIGHT) and how they interact at protocol level.
  • Operational mechanics: Description of DUST generation/decay, fee payment semantics, block reward formula and subsidy behavior, and cross-chain native token handling.
  • Distribution and policy: Summaries of Glacier Drop, Scavenger Mine, and Lost-and-Found phases plus eligibility and allocation implications for token distribution and treasury flows.
  • Use case: Helps a smart contract developer determine how to design token flows, fee accounting, and privacy considerations when implementing Compact token operations or Zswap-based shielded transfers.

Quick Start

Ask the assistant to explain Midnight's token model, covering NIGHT supply and STAR denomination, DUST generation and use for fees, block reward formula, and distribution phases.

Frequently Asked Questions about core-concepts:tokenomics

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How does the Midnight dual-token model work with NIGHT and DUST?▼

The Midnight dual-token model separates value and fees: NIGHT is a fixed-supply governance token, while DUST is a non-transferable shielded resource generated from NIGHT to pay transaction fees.

What is the Midnight block reward formula and how are subsidies distributed?▼

Midnight block rewards and subsidies are distributed using a specific protocol formula that balances network incentives, applying to both shielded and unshielded token behaviors across distribution phases.

How do I design Compact contract token flows and fee accounting for Midnight?▼

Design Compact contract token flows by implementing Zswap-based shielded transfers, utilizing DUST generation and consumption semantics for fee payment, and handling shielded versus unshielded token behaviors.

What are the Midnight token distribution phases and Glacier Drop eligibility rules?▼

Midnight token distribution phases include the Glacier Drop, Scavenger Mine, and Lost-and-Found phases, each with specific eligibility criteria and allocation implications for treasury flows.

Can DUST tokens be transferred cross-chain like NIGHT tokens?▼

DUST is a non-transferable shielded fee resource, whereas NIGHT handles cross-chain native token behavior, meaning only NIGHT maintains cross-chain presence and transferability.

When should I account for DUST generation and decay in Midnight smart contracts?▼

Account for DUST generation and decay during contract-level token operations when implementing fee accounting logic, as DUST is consumed for shielded fees and requires precise tracking.

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