Cardano Delegators Will Earn Both ADA and NIGHT Tokens When Midnight Launches

Cardano founder Charles Hoskinson says Cardano stake pool operators and delegators will earn both ADA and the NIGHT token as staking rewards.

Hoskinson made this statement while analyzing how the Cardano treasury will become a multi-chain asset. He highlighted that when the privacy-focused sidechain Midnight launches on mainnet, Cardano SPOs and delegators will receive block rewards.

Key Points

• Cardano founder Charles Hoskinson says Cardano stake pool operators and delegators will earn both ADA and the NIGHT token as staking rewards.
• He highlighted that when privacy-focused sidechain Midnight launches on mainnet, Cardano SPOs and delegators will receive block rewards.
• Any SPO who opts in for this receives ADA and NIGHT for their participation in sustaining block production on both the Cardano and Midnight networks.
• As staking and trading activities intensify on the sidechain, Cardano will realize more in transaction fees, boosting treasury inflows.
• Hoskinson noted that once enabled, the treasury will receive fees generated from partner chains to the treasury in their native tokens.

Partner-Chain Theory

The relationship between Cardano and Midnight allows Cardano stake pool operators to become validators on the Midnight network. Notably, SPOs run nodes that validate transactions and create new blocks on a blockchain.

Any operator who opts in for this will receive ADA and NIGHT for their participation in sustaining block production on both the Cardano and Midnight networks. For Midnight, rewards would be earned through a protocol-managed reserve tasked with issuing block incentives without minting new tokens.

Meanwhile, Cardano delegators, ADA holders who conferred their staking and voting rights to a stake pool operator, will earn passive rewards for indirectly supporting the Cardano and Midnight networks.

What Does This Mean for the Cardano Treasury

Notably, these Midnight-related activities could somehow impact the Cardano treasury. As staking and trading activities intensify on the sidechain, Cardano realizes more in transaction fees, boosting treasury inflows.

Furthermore, it would make the Cardano treasury multi-asset. Hoskinson noted that once the ecosystem enables the treasury to receive Cardano-native assets, fees generated from partner chains will go to the treasury in their native tokens.

He also teased that transaction fees generated from Bitcoin DeFi, or by Tether and Circle using Cardano to deploy stablecoins on Bitcoin, could be in BTC, USDT, and USDC, further adding to the treasury’s multi-asset state.