1. Generation: DUST is not bought on exchanges; it is automatically generated by holding or staking NIGHT. This functions like a “rechargeable battery” where NIGHT holdings act as the generator.
2. Non-Transferability: DUST is strictly tied to the wallet that generated it and cannot be traded or sent to others. This is a strategic design to satisfy regulators, as it prevents DUST from being used for money laundering.
3. Decay Property: DUST degrades or “evaporates” over time if it is not used. This prevents hoarding and makes it harder for analysts to track users by examining long-term balances.
4. Pridictable Cost: Because DUST is a renewable resource rather than a speculative asset, transaction costs remain stable even if the market price of NIGHT fluctuates wildly.
By keeping the speculative asset (NIGHT) transparent and the operational fuel (DUST) non-transferable, Midnight aims to provide privacy that is “compliant by design”.