core-concepts:tokenomics

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.