Cryptocurrency trading platform Backpack Exchange announced its upcoming token will offer holders a direct path to company equity. CEO Armani Ferrante stated that users who stake the Backpack token for at least one year can exchange a portion of those tokens for a fixed 20% equity stake in the company. This move is part of the firm’s strategy as it progresses toward a potential initial public offering in the United States.
Backpack Exchange announced that stakers of its forthcoming token will be able to earn equity in the exchange. CEO Armani Ferrante stated that users staking for a year can exchange tokens for equity at a fixed ratio, representing 20% of the company.
Ferrante said many past token launches were built on “false promises” of utility. He said he wanted to offer an alternative structure showing long-term commitment.
The company first announced its plan to launch the Backpack token earlier this month. The tokens are intended to be unlocked in stages as the company moves toward a potential US IPO.
Backpack said 25% of the 1 million-token supply will be unlocked at the Token Generation Event. The remaining 37.5% will be released before the IPO, provided Backpack reaches certain regulatory and product milestones.
The first 62.5% of Backpack tokens will be distributed entirely to users. The remaining tokens will be unlocked post-IPO for the company’s team members and investors.
The tokenomics setup aims to invert a model that usually sees insiders receiving large allocations early. Time-based vesting in that model often creates predictable sell pressure on retail users.
Backpack was founded in 2022 by Ferrante, who previously worked at the FTX-linked Alameda Research. The equity announcement follows the platform’s partnership with SEC-registered transfer agent Superstate to bring tokenized stocks onchain.
Ferrante acknowledged the token-equity offering would start out relatively centralized. He added that plans are in place to progressively decentralize the token as the product evolves.
