Backpack pledges 20% equity to token stakers amid IPO plans

The equity offering builds on Backpack’s token announcement earlier this month, in which the first 62.5% of tokens will be distributed to users.

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Crypto trading platform Backpack Exchange on Monday announced that stakers of its forthcoming Backpack token will be able to earn equity in the exchange, as the company moves toward a potential initial public offering.

“Users that stake the Backpack token for at least a year will have the opportunity to exchange those tokens for equity at a fixed ratio — 20% of the company today,” said Backpack CEO and founder Armani Ferrante in a post to X on Monday.

20% of Backpack equity given to users who stake for a year.Don't just use the next big thing.Own it. 🎒 pic.twitter.com/whdGUQ0XyH

Speaking about the equity offering, Ferrante said many past token launches were built on “false promises” of utility — a pitfall he wanted to avoid. Instead, he said he wanted to offer users an alternative token structure showing long-term commitment.

Backpack’s offer would anchor the token’s value to company equity.

Backpack first announced its plan to launch the Backpack token in a post on X 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, with the remaining 37.5% released before the IPO, provided Backpack reaches certain milestones, such as regulatory approvals and the launch of new products.

The first 62.5% of Backpack tokens will be distributed entirely to users, while the remaining tokens will be unlocked post-IPO for Backpack’s team members and investors.

Backpack said the tokenomics setup aims to invert a model that usually sees insiders receiving large allocations early, with time-based vesting creating predictable sell pressure on retail users who are often left holding the bag.

Backpack was founded in 2022 by Ferrante, who previously worked at the FTX-linked Alameda Research before the two entities collapsed in November of that year.

Related: Kraken acquires tokenization platform Magna ahead of potential IPO

While the Backpack TGE date has not been set, the token-equity announcement comes as Backpack partnered with Securities and Exchange Commission-registered transfer agent Superstate to bring tokenized stocks onchain in October.

Ferrante slammed the current state of crypto, stating: “We live in the most centralized era crypto has ever experienced,” and adding: “The more centralized something is, the less meaningful a token is.”

At the same time, Ferrante acknowledged that the token-equity offering would start out relatively centralized but added that plans are in place to progressively decentralize the token as the product evolves.

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