Crypto Exchange Backpack Offers Token Holders 20% Company Stake Ahead of US Public Listing
As it prepares for a public listing in the United States, Backpack Exchange has committed to allocating 20% of its corporate equity to users who stake its upcoming Backpack token.
On Monday, digital asset trading platform Backpack Exchange revealed that individuals who stake its upcoming Backpack token will gain access to ownership shares in the exchange, marking a significant development as the firm prepares for a possible initial public offering.
"Those who stake the Backpack token for a minimum period of one year will receive the chance to convert these tokens into equity at a predetermined ratio—representing 20% of the company as it stands today," Backpack CEO and founder Armani Ferrante stated in a Monday post on X.
Discussing the equity proposition, Ferrante noted that numerous previous token launches were constructed on "false promises" regarding utility — a trap he sought to sidestep. As an alternative, he expressed his desire to provide users with a different token framework that demonstrates sustained dedication.
"I came into crypto because I believe it's going to change the world … But somewhere along the way, amidst the booms, the busts, the moonshots, the decentralization theater, and the straight up scams, we lost our way. I don't know about you, but I'm just tired of false promises."
The proposal from Backpack would tie the token's worth directly to the company's equity holdings.
Backpack prioritizes users with tokenomics setup
Earlier this month, Backpack first revealed plans to introduce the Backpack token through a post on X.
The release of these tokens is designed to occur in phases as the organization progresses toward a possible initial public offering in the United States.
According to Backpack, 25% of the total 1 million-token supply will become available at the Token Generation Event, with an additional 37.5% of tokens set for release prior to the IPO, contingent upon Backpack achieving specific objectives, including obtaining regulatory clearances and rolling out new product offerings.
Users will receive the entire first allocation of 62.5% of Backpack tokens, whereas the remaining portion of tokens will become available following the IPO for distribution to Backpack's team members and investors.
According to Backpack, this tokenomics structure is designed to flip the traditional model where company insiders typically receive substantial allocations upfront, with time-based vesting schedules that generate predictable selling pressure, leaving retail investors to bear the consequences.
Ferrante, who previously held a position at Alameda Research, which had ties to FTX before both organizations imploded in November of that year, established Backpack in 2022.
Although Backpack has not announced a specific date for the TGE, this token-equity reveal follows Backpack's collaboration with Superstate, a transfer agent registered with the Securities and Exchange Commission, to introduce tokenized stocks onchain in October.
Backpack acknowledges its plan isn't perfect
Ferrante criticized the present condition of the cryptocurrency industry, declaring: "We live in the most centralized era crypto has ever experienced," and further noting: "The more centralized something is, the less meaningful a token is."
Simultaneously, Ferrante recognized that the token-equity proposition would begin in a relatively centralized manner but mentioned that strategies are established to gradually decentralize the token as the product matures and develops.
"I expect the token to represent more than anything a single company has to offer, but in the short run, it's the best we can do to show our long term commitment to our users."