Cardano’s Midnight Sidechain Enters Scavenger Mine Phase to Advance Privacy in DeFi
The Cardano ecosystem is entering a new era of privacy and scalability with the launch of the Scavenger Mine phase on the Midnight Network, a data-protection-focused sidechain built by Input Output Global (IOG). This latest development, which began in early November 2025, marks the active distribution of the network’s native token, NIGHT, through a unique community-driven mining and airdrop initiative. Running until November 19, 2025, the Scavenger Mine is designed to seed liquidity, encourage early adoption, and reward users who contribute computational power to strengthen Midnight’s privacy framework.
Empowering Private Transactions and DeFi Innovation
Midnight was developed to address one of blockchain’s most persistent challenges—confidentiality. While public blockchains provide transparency, they often lack mechanisms to protect sensitive data in financial or business operations. Midnight solves this by introducing private smart contracts that enable secure and anonymous lending, trading, and governance activities. Built atop Cardano’s robust infrastructure, it ensures both privacy and interoperability, allowing seamless interaction with the broader Web3 ecosystem.
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The Scavenger Mine initiative builds upon the success of the earlier Glacier Drop, which distributed 24 billion NIGHT tokens across major blockchains including Cardano, Ethereum, Bitcoin, and Ripple. That campaign, which ran from August to October 2025, targeted users who held at least $100 worth of supported assets based on a June 2025 wallet snapshot. The new phase, however, is fully open to all participants globally—no minimum holdings required.
Inclusive Token Distribution and Long-Term Utility
Participants can join by downloading compatible wallets such as Lace or Exodus, connecting to the official Midnight site, and completing browser-based computational mining tasks. The goal is to democratize access while testing the network’s privacy and scalability features in real time. Unclaimed tokens from the Glacier Drop have been redirected to this phase, ensuring fair and broad distribution across the community.
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NIGHT tokens earned through this process will initially remain locked until the Midnight mainnet rolls out in stages through 2025. Once live, these tokens will serve multiple functions—governance, staking, transaction fees, and participation in privacy-preserving DeFi applications. Analysts suggest that Midnight’s integration could increase Cardano’s total value locked (TVL) by up to 30% in the fourth quarter, attracting institutional investors seeking compliant yet private blockchain solutions.
A Milestone for Cardano’s Future
With the Scavenger Mine now live, Cardano is positioning itself as a pioneer in privacy-oriented blockchain technology. Midnight represents not just a technical milestone but a strategic leap toward secure, transparent, and inclusive decentralized finance—paving the way for a more private and powerful Web3 ecosystem.
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