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Midnight Partial Failures: What Commits and Who Pays the Fee?

On Midnight, guaranteed work can succeed even when fallible work fails. The transaction’s DUST fee is collected in the guaranteed phase, while transactions rejected before block inclusion pay nothing.
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If a Midnight transaction’s guaranteed portion succeeds but its fallible portion fails, the outcome is partial success—not a full rollback. The transaction’s fee is collected during the guaranteed phase, so it is not refunded after a later fallible failure. A transaction rejected before it reaches a block pays no fee. These distinctions are documented in Midnight’s Midnight.js API Reference v4.0.4 and DUST fee guide.

What do guaranteed and fallible outcomes mean?

Midnight.js API Reference v4.0.4 defines three transaction outcomes:

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  • SucceedEntirely: all transaction segments succeed.
  • FailFallible: the guaranteed portion succeeds, but the fallible portion fails.
  • FailEntirely: the transaction is invalid.

In the second case, some guaranteed work has succeeded even though fallible work did not. Calling every failure a transaction “revert” obscures that distinction: the API has an explicit partial-failure outcome.

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The API page describes a client flow of local circuit execution, proof generation, transaction balancing, network submission, and waiting for finalization. At a higher level, Midnight says users compute on private data locally and submit zero-knowledge proofs; intended public outputs go on-chain, while private state updates remain in users’ local storage. A state update therefore does not by itself mean private inputs are revealed or written to public state. See What is Midnight?

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When is the fee collected?

The fee for the whole transaction is collected in the guaranteed phase, according to Midnight’s DUST guide. If the transaction reaches a block and its fallible portion then fails, the fee has already been taken; the guide says the indexer reports PARTIAL_SUCCESS for this documented outcome. By contrast, a transaction rejected before reaching a block pays nothing.

These statements distinguish pre-block rejection from a failure after guaranteed processing. They do not establish that every cause of FailEntirely has the same fee consequence; the fee result depends on where the failure occurs.

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What pays the fee: DUST, not NIGHT

Midnight transaction fees are paid in DUST, a non-transferable fee resource. NIGHT can generate DUST when registered, but NIGHT itself is not spent to use the network, as the Midnight FAQ explains. Fees are not ordinary bids paid in NIGHT: the FAQ says validators process transactions in packed order, without a gas auction or price-priority mempool.

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In the documented Midnight.js wallet flow, the wallet balances a transaction with balanceTx and attaches the DUST fee. An application can request a fee estimate before sending. The amount is not fixed: it depends on transaction size, computation, state written, and a price the ledger adjusts after each block. The declared fee can also include the configured feeBlocksMargin price margin and additionalFeeOverhead.

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For a fee paid through a DUST spend, the wallet’s DUST decreases by the whole declared amount; the guide says a DUST spend has no refund. First registration is different: the ledger takes the required fee from the DUST that the NIGHT UTXO would have generated, and the remainder becomes the initial DUST UTXO value.

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Who pays when a transaction is sponsored?

Midnight’s version v1 DUST sponsorship guide describes a wallet-side pattern that separates authorization from payment: the user proves and authorizes the action, while a sponsor adds the fee offer and pays the DUST. The user’s transaction is bound before handoff, and the sponsor must not receive the user’s secret.

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This is a documented pattern, not a guarantee that every wallet or deployment supports sponsorship. Developers should check the component support matrix for the wallet and component versions they use.

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What costs remain after deployment?

The DUST guide says deployment pays one fee, each contract call pays its own fee, and the ledger charges nothing between calls. A contract therefore has no recurring ledger charge simply for remaining deployed.

How to interpret a transaction result

  1. Check whether it reached a block. If it was rejected before block inclusion, the DUST guide says no fee is paid.
  2. Read the outcome label. SucceedEntirely means every segment succeeded; FailFallible means guaranteed work succeeded but fallible work failed; FailEntirely means the transaction is invalid.
  3. For FailFallible, account for the fee. The documented fee is collected in the guaranteed phase and is not refunded because fallible work later fails.
  4. For other invalid outcomes, identify the failure stage. The cited documentation does not support treating every FailEntirely case as having an identical fee result.

The outcome names above are from Midnight.js API Reference v4.0.4; the fee behavior is described in the DUST guide. Runtime or contract-specific rollback behavior beyond those documented outcomes depends on the relevant ledger and runtime semantics.

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