Crypto trading platform Backpack Exchange has announced a novel tokenomics model that directly ties its forthcoming native token to company equity. CEO and founder Armani Ferrante revealed on Monday that users who stake the Backpack token for at least one year will have the opportunity to exchange those tokens for equity at a fixed ratio, with 20% of the company's current equity set aside for the program.
The announcement comes as Backpack moves toward a potential initial public offering (IPO) in the United States. The company has outlined a detailed token distribution plan for its 1 million token supply. At the Token Generation Event (TGE), 25% of the tokens will be unlocked and distributed to users who participated in platform points campaigns or hold Mad Lads NFTs. An additional 37.5% of tokens, tied to the corporate treasury, will be released before the IPO, contingent on Backpack reaching specific regulatory and product milestones. The final 37.5% will unlock post-IPO for team members and investors.
Ferrante positioned this structure as a direct critique of common industry practices. "I'm just tired of false promises," he stated, arguing that many past token launches were built on unfulfilled utility claims. He aims to invert the typical model where insiders receive large early allocations, creating predictable sell pressure on retail users. "The more centralized something is, the less meaningful a token is," Ferrante acknowledged, while pledging that plans are in place to progressively decentralize the token as the product evolves.
In parallel with its token plans, Backpack is reportedly in talks to raise $50 million at a pre-money valuation of $1 billion, which would grant it unicorn status. The exchange is already operational under regulatory frameworks in the Middle East and Europe and is live in over a dozen U.S. states with plans for national expansion. This follows a partnership in October with SEC-registered transfer agent Superstate to bring tokenized stocks onchain.
Ferrante, a former employee of the FTX-linked Alameda Research, founded Backpack in 2022. The equity-for-staking initiative is seen as a move to demonstrate long-term commitment to users amid a shifting U.S. regulatory landscape following changes in SEC leadership.
