Cardano Founder Defends Privacy: ‘This Is Why Midnight Exists’ After EU Anti-Anonymity Call

• Charles Hoskinson positions Midnight as countermeasure to potential digital surveillance threats.
• Privacy sidechain allows selective disclosure and regulatory compliance only when necessary.
• Midnight Summit scheduled for November 17-19 where mainnet launch roadmap may be revealed.

Cardano founder Charles Hoskinson has emphasized the core purpose behind the network’s privacy-focused sidechain, Midnight. The executive responded to claims regarding the European Union’s stance on online anonymity through recent commentary.

🚨 WEF 2025 BOMBSHELL 🚨

Spanish PM Pedro Sánchez DEMANDS the END of online anonymity — calling for every social media account to be linked to an EU Digital ID Wallet.

At the World Economic Forum, Sánchez declared:

“No one can walk the streets with a mask — so why allow people… pic.twitter.com/foADJkIvtC

— Jim Ferguson (@JimFergusonUK) November 12, 2025

Hoskinson’s remarks came in response to a viral post from political commentator Jim Ferguson, founder of Freedom Train International. Ferguson criticized comments made by Spanish Prime Minister Pedro Sánchez at the 2025 World Economic Forum.

Ferguson warned the developments could create a “digital surveillance grid” in which every online action is tied to an individual’s identity.

Hoskinson positioned Midnight as a direct response to these traceability concerns. Midnight operates as a privacy-focused sidechain on the Cardano blockchain, designed to allow online engagement while maintaining control over personal information and identity.

Through Midnight, users can execute private transactions, maintain selective disclosure capabilities, and comply with regulators only when necessary.

Hoskinson frames the sidechain as Cardano’s answer to concerns that governments may impose mandatory identity verification, biometric tracking, or comprehensive monitoring of online activity.

The founder cautioned users to “not let the vampires in,” encouraging adoption of Midnight as a tool to protect privacy and prevent unauthorized access by institutions or other entities.

Since its introduction in November 2022, Midnight has progressed through various developmental phases, including DevNet and token distribution stages. The first phase of Midnight (NIGHT) token distribution, called Glacier Drop, occurred in August.

Eligible beneficiaries across eight blockchains, including Cardano, Bitcoin, Ethereum, and XRP Ledger, could claim portions of the 24 billion NIGHT supply.

Token distribution continues through mining phase

The second phase, known as Scavenger Mine, is currently underway. This phase allows users to earn unclaimed tokens from Glacier Drop by completing computational tasks. The mechanism provides an alternative distribution method for tokens that went unclaimed during the initial drop.

Cryptocurrency enthusiasts are anticipating the Midnight Summit, scheduled for November 17-19. Many expect the team to reveal the final roadmap for the project’s mainnet launch during this event. Optimism exists within the community that the privacy sidechain could launch later this year.

Hoskinson’s emphasis on Midnight arrives as debates about digital privacy, surveillance, and identity verification intensify globally. The sidechain represents a technical approach to maintaining privacy while operating within regulatory frameworks through selective disclosure mechanisms..