Lace 2.5.0 Enables DUST Generation From NIGHT Held on Cardano
The browser wallet now lets users designate a Midnight address without moving their NIGHT to another network. The release also updates ADA sends and account synchronization.
By SongMarketCap
Input Output has released Lace 2.5.0, adding a way for users to generate Midnight transaction fees from NIGHT held in a Cardano account. The feature is available in the Lace browser extension.
Users select a destination Midnight address, review the transaction and confirm it in the wallet. Their NIGHT remains on Cardano, while the designated address receives the DUST generated from eligible holdings.
Designating NIGHT to a Midnight Address
The destination can be the user’s own Midnight address or one belonging to someone else. Designating NIGHT to another address can support that recipient’s transactions by generating DUST for their wallet.
The registration is made on Cardano and links a Cardano stake credential to a Midnight DUST address. Midnight processes the registration and related Cardano events after their blocks reach the required stability threshold.
In its FAQ, Midnight estimates that DUST generation from NIGHT held on Cardano begins approximately 12 hours after address registration. The delay reflects the confirmations needed for Cardano information to take effect on Midnight.
ADA Sends and Wallet Synchronization
Lace 2.5.0 also changes how the wallet completes ADA transactions. It uses the available balance first and can automatically include eligible staking rewards when additional funds are needed. Any reward withdrawal is shown on the transaction review screen.
The release adds more detailed errors when a decentralized application’s transaction signing request fails. Users can copy those details and share them with support.
A synchronization reset is now available for each account separately. The process refreshes locally stored transaction data, token information and activity, rather than requiring users to reset every account.
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How Cardano NIGHT Generates DUST
NIGHT is a transferable token available on Cardano and Midnight. DUST is a separate, nontransferable resource used to pay Midnight transaction fees. Paying a fee consumes DUST rather than NIGHT.
Eligible NIGHT generates DUST over time, up to a limit proportional to the amount backing it. When a generating NIGHT output is spent, its associated DUST begins to decline gradually.
Midnight’s documentation specifies a condition for NIGHT held on Cardano: only transaction outputs created while the registration is active generate DUST. NIGHT received before registration begins generating DUST once it has moved into a new eligible output. That does not require transferring the tokens to Midnight.