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Version: Canary 🚧

Wallet SDK v1.0.0 release notes

  • Version: v1.0.0
  • Date: 28 January, 2026
  • Environment: preprod, preview

High-level summary​

This is the initial stable release of the Midnight Wallet SDK, a TypeScript wallet implementation for the Midnight Network. It provides complete support for Midnight's three-token system: unshielded tokens (including NIGHT), shielded tokens with zero-knowledge proofs, and DUST for fee payments.

Audience​

This release is relevant for developers who:

  • Implement wallet functionality on the Midnight Network
  • Integrate Midnight token transfers into their DApps
  • Need to manage shielded (private) and unshielded token balances
  • Implement atomic swaps between parties

What changed (Summary of updates)​

  • Full support for unshielded tokens (including NIGHT)
  • Full support for shielded tokens with zero-knowledge proofs
  • Dust management for transaction fee payments
  • HD wallet key derivation
  • Bech32m address encoding and decoding
  • Transaction balancing across all token types
  • Atomic swap support

New features​

Below is a detailed breakdown of the new features added in this release.

Wallet facade​

Unified API that enables shielded, unshielded, and dust wallet operations through a single interface. It handles transaction balancing, transfers, and swaps. This is the main entry point for most developers, abstracting the complexity of managing three separate wallet types.

Unshielded wallet​

Manages NIGHT and other unshielded tokens using a UTxO model with Schnorr signatures. Tracks UTxOs, creates offers for swaps, and provides inputs/outputs for transaction balancing. Use this for transparent token operations.

Shielded wallet​

Manages privacy-preserving shielded tokens using Zswap zero-knowledge proofs. Handles ZK proof generation, coin commitment tracking, and encrypted output decryption. Token values and addresses are hidden from observers while maintaining verifiability.

DUST wallet​

Manages Dust, the fee payment resource generated from NIGHT holdings. Handles Dust address designation, balance tracking, and automatic fee payment during transaction balancing. Required for submitting any transaction on the network.

HD wallet​

Derives cryptographic keys from a seed following BIP-32/BIP-44/CIP-1852 standards. Generates keys for unshielded (secp256k1), shielded (JubJub curve), and Dust (BLS12-381 curve) operations from a single mnemonic or seed.

Address format​

Encodes and decodes Midnight addresses using Bech32m format. Supports three address types with network identifiers:

  • mn_addr - Unshielded payment addresses
  • mn_shield-addr - Shielded payment addresses
  • mn_dust-addr - Dust addresses for fee generation

Transaction balancing​

Automatically provides inputs to cover outputs, creates change outputs for surplus, and adds Dust spends for fees. Works across all token types in a single transaction. This is the core operation that enables transfers, contract interactions, and swaps.

Atomic swaps​

Enables trustless token exchanges between parties using Midnight's offer system. Offers can be merged into a single transaction that hides the exchanged amounts from observers. Currently supports shielded-only or unshielded-only swaps.

New features requiring configuration updates​

The following updates are required to configure the wallet to use the new features.

Prover service connection​

Zero-knowledge proofs for shielded transactions and Dust spends require an external prover service. The wallet cannot submit shielded transactions without this configuration.

Required updates:

  • Configure prove server endpoint URL.
  • Ensure the prove server is running and accessible via the configured endpoint URL.

Node endpoint​

The wallet requires a connection to a Midnight Node to submit transactions and query blockchain state.

Required updates:

  • Configure Midnight Node WebSocket endpoint.
  • Ensure the Midnight Node is running and accessible.

Indexer endpoint​

The wallet requires a connection to the indexer to synchronize UTxOs, transaction history, and state data.

Required updates:

  • Configure indexer GraphQL endpoint.
  • Ensure the indexer is running and accessible.

Known issues​

This section lists the known issues with this release of the wallet SDK.

Pending coins not cleared on transaction failure​

When transaction submission or proof generation fails, coins marked as pending are not automatically released. This can cause the wallet to report lower available balances until the pending state is manually cleared or the wallet is restarted.

Workaround: Restart the wallet or re-sync to clear the stale pending state.

Transaction history not implemented for shielded and dust wallets​

The shielded and dust wallets do not currently track transaction history. While the unshielded wallet maintains transaction records, the shielded and dust wallets only track coin balances without historical transaction data.

Packages​

PackageVersionDescription
@midnight-ntwrk/wallet-sdk-facade1.0.0Unified API that enables shielded, unshielded, and dust wallet operations through a single interface. Handles transaction balancing, transfers, and swaps.
@midnight-ntwrk/wallet-sdk-unshielded-wallet1.0.0Manages NIGHT and other unshielded tokens. Tracks UTxOs, creates offers for swaps, and provides inputs/outputs for transaction balancing.
@midnight-ntwrk/wallet-sdk-shielded-wallet1.0.0Manages privacy-preserving shielded tokens. Handles ZK proof generation, coin commitment tracking, and encrypted output decryption.
@midnight-ntwrk/wallet-sdk-dust-wallet1.0.0Manages Dust for transaction fees. Handles Dust designation, balance tracking, and automatic fee payment during transaction balancing.
@midnight-ntwrk/wallet-sdk-hd3.0.0Derives cryptographic keys from a seed following BIP-32/BIP-44/CIP-1852. Generates keys for unshielded (secp256k1), shielded (JubJub), and Dust (BLS12-381) operations.
@midnight-ntwrk/wallet-sdk-address-format3.0.0Encodes and decodes Midnight addresses using Bech32m format. Supports payment addresses, shielded addresses, and Dust addresses with network identifiers.
@midnight-ntwrk/wallet-sdk-node-client1.0.0Communicates with Midnight Node. Submits transactions and queries blockchain state.
@midnight-ntwrk/wallet-sdk-indexer-client1.0.0Queries the Midnight indexer via GraphQL over websocket. Retrieves UTxOs, events and block information.
@midnight-ntwrk/wallet-sdk-prover-client1.0.0Interfaces with the prover service to generate zero-knowledge proofs for shielded transactions and Dust spends.
@midnight-ntwrk/wallet-sdk-runtime1.0.0Organizes wallet lifecycle and state management. Supports version migration for protocol upgrades.
@midnight-ntwrk/wallet-sdk-capabilities3.0.0Shared wallet features including coin selection algorithms and transaction balancing logic.
@midnight-ntwrk/wallet-sdk-abstractions1.0.0Core interfaces and domain types used across all packages.
@midnight-ntwrk/wallet-sdk-utilities1.0.0Common utilities for serialization, networking, and testing.