In a recent live-streamed AMA, Cardano’s visionary leader, Charles Hoskinson, expressed excitement over the upcoming launch of Midnight—a groundbreaking smart-contract side-chain. He strongly believes that this development will trigger “the most significant economic milestone in Cardano’s journey,” with key activities set to unfold by November.
The Economic Milestone on Cardano’s Horizon
“Cardano is poised to lead in distribution rates compared to larger market cap giants like Ethereum, Bitcoin, and Solana,” Hoskinson stated. He highlighted that Midnight will see its token generation event (TGE) and supporting foundation launch within this month and the next. This initiative will be accompanied by an extensive media campaign featuring various content formats including videos, infographics, and a well-structured tokenomics paper. “If Midnight meets our expectations, it will set a new benchmark for economic events within the Cardano ecosystem,” he emphasized.
Hoskinson describes Midnight as a critical component in a “triumvirate” comprised of Cardano, Bitcoin, and a dedicated data protection chain, creating a unified settlement layer. Integrating Taproot-enabled recursive proofs for Bitcoin ensures long-term security while utilizing a framework known as Fairgate for rapid transaction processing. This innovation will provide enterprises, from financial institutions to asset management behemoths, with options that blend maximum security with efficiency.
To facilitate swift retail transactions, Input Output is working on merging its research into Hydra and Lightning protocols with a new initiative called Thundercloud. Hoskinson is confident that this combination will revolutionize the DeFi landscape in conjunction with Blockfrost’s data indexing solutions. He envisions the complete Fairgate-Thundercloud stack being ready for market by November.
Despite his positive outlook for Midnight, Hoskinson voiced frustration regarding ongoing governance issues within the Cardano ecosystem. He pointed out the existing treasury containing 1.7 billion ADA without adequate mechanisms to utilize it effectively. “We could convert a substantial portion of our ADA to USDM instantly,” he noted, suggesting that proactive liquidity management could mitigate the persisting stablecoin scarcity. However, he bemoaned the continuous call for salvation from a source of stagnation marked by 39 pending budget votes.
This gridlock, he argued, stems from a 2022 change towards fully decentralized governance structures sans an executive function. “I’m not compensated enough for the work I do,” he asserted, making it clear that Input Output (IO) may pivot towards prioritizing development over infrastructure support unless conditions improve.
During the AMA, Hoskinson also revealed his growing desire to take a break, stating, “I’m exhausted after ten years of intensive work.” He plans to embark on a six-month sabbatical to recharge after Midnight’s successful launch and the anticipated budget restructuring for 2026. In the meantime, he assured viewers that IO will continue delivering vital upgrades including Ouroboros Leios, integration of Babel fees, Lace mobile functionality, and initiatives aimed at enhancing node diversity.
The Significance of November
While Hoskinson hinted that some Midnight components may launch ahead of schedule, he firmly positioned November as the month’s cornerstone. During this period, the Midnight Foundation expects to unveil over a hundred launch partners, including notable participants such as Brave Software. The dual capacity-token model will start facilitating privacy-centric transactions back to Cardano’s primary layer.
Should this rollout be successful, Hoskinson forecasts not only a wave of new users and transaction fees but also a recalibration of Cardano’s strategic importance in regulated decentralized finance (DeFi) and sovereign-grade financial sectors. “The synergy between Cardano and Midnight coupled with Bitcoin creates holistic solutions for existing challenges,” he noted.
Moreover, Hoskinson previously disclosed details about the “Glacier Drop,” aimed at distributing Midnight tokens (NIGHT and DUST) to around 37 million wallets spanning eight leading blockchains, including Bitcoin, Ethereum, Cardano, and others.
As of this moment, ADA is trading at $0.66.
