Just finished reading the announcement that Balance will be hosting @MidnightNetwork on the first day of the mainnet launch, and my first reaction is that this matter has been underestimated.
It should be noted that Balance is a strictly audited compliance institution, and the fact that they dare to take on $NIGHT for hosting itself indicates that Midnight's 'selective disclosure' mechanism has passed, at least legally, it is not the kind of 'black box' that would trap institutions.
I've been thinking today about why institutions value this step so much?
Actually, the logic is very straightforward; what large funds fear most is not volatility, but underlying compliance risks.
Without this kind of native custody support, the mainnet launch would just be a self-indulgence among insiders, making it difficult for real long-term incremental funds to come in.
However, I am also worried about this deep binding; although the entry of a giant like Balance stabilizes the basic market, it also means that Midnight may have to make significant concessions for compliance on its path to decentralization. This kind of 'dancing with shackles' posture indeed tests the team's balancing ability.
I feel this is more like a power transfer regarding privacy standards.
Current test data shows that the access process for institutions is much smoother than that for ordinary users, which indicates that Midnight's initial focus is to stabilize large clients first. I deduce that in the first few days after the mainnet opens, the release of liquidity will be very restrained.
This approach is stable, but the explosive power may not be as exaggerated as everyone thinks. I am optimistic about the current situation to a degree of seventy percent, but the remaining thirty percent depends on whether the actual output logic of DUST will have any friction with the custody institutions once the mainnet is operational.
In short, don’t let the four words 'mainnet launch' cloud your judgment; we need to see how these big players are actually laying out their strategies. I will continue to monitor the subsequent node data from Balance.