Backpack Exchange on Monday unveiled a novel incentive for its upcoming Backpack token: committed stakers of at least 12 months can swap tokens for equity in the exchange at a fixed ratio—20% of the company today. CEO Armani Ferrante disclosed the plan in a post on X, signaling a shift toward a token structure designed to emphasize long-term commitment rather than speculative utility. The move aligns with Backpack’s broader strategy as it eyes a potential United States IPO, and ties token unlocks to regulatory milestones, product launches, and other milestones that could unlock the rest of the supply for early backers and the team.

Key takeaways

• Long-term staking converts into equity: users who hold Backpack tokens for at least one year may exchange their stake for equity representing 20% of the company today.
• Structured token unlocks tied to milestones: the supply is 1 million tokens, with 25% unlocked at the Token Generation Event (TGE) and 62.5% slated for distribution to users ahead of the IPO, while the remaining 37.5% would unlock post-IPO for the team and investors.
• Tokenomics aimed at reducing sell pressure: Backpack emphasizes an inverted model that prioritizes user ownership and alignment with long-term growth rather than insider-first allocations.
• Foundational critique of centralized promises: Ferrante argues that many past token launches offered “false promises” of utility, and positions this plan as a more accountable approach to token utility.
• Regulatory and product milestones drive progress: the plan is designed to keep token unlocks in step with regulatory approvals and the rollout of new products, including recent on-chain stock tokenization efforts.

Tickers mentioned:

Sentiment: Neutral

Market context: The move arrives amid broader industry experimentation with tokenized equity and milestone-based token unlocks as projects edge toward traditional financing routes, including potential IPOs, while navigating an evolving regulatory landscape.

Why it matters

The Backpack project is venturing beyond the conventional token model by tying a portion of its equity directly to user participation. By offering an equity exchange for token staking, the company is attempting to fuse governance, financial upside, and product loyalty into a single instrument. If successful, this approach could recalibrate how users perceive token utility, moving away from short-lived hype cycles toward genuine ownership stakes in a platform’s growth trajectory.

Ferrante has positioned the plan as a corrective to perceived excesses in the crypto boom-and-bust era. In a bold assertion, he described a crypto landscape that has become “the most centralized” in its history, where “the more centralized something is, the less meaningful a token is.” The strategy, he suggests, aims to counterbalance that trend by anchoring token value to company equity and tying unlocks to milestones rather than speculative trading alone. While the message leans toward a principled stance on token design, it also acknowledges the practical need to maintain a viable path to decentralization as the product matures.

The proposed structure signals a broader industry shift: tokenized equity as a pathway for user incentivization and as a bridge to potential public-market access. Backpack’s approach would anchor a significant portion of the token supply to user-driven value creation, a model that could influence how future crypto platforms think about long-term incentives and governance. However, the roadmap remains conditional on regulatory approvals and the successful execution of product milestones, which adds a layer of risk for token holders and early backers alike.

Backpack’s emphasis on preventing early insider dominance also speaks to a growing insistence on fairness and sustainability in token distribution. The plan to allocate a substantial share of tokens to users before an IPO, with insiders and investors receiving allocations later, is designed to reduce immediate sell pressure and foster a longer horizon for value realization. If the strategy resonates with the market, it could encourage a more patient, utility-driven participation from both retail and professional users.

“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.”

Backpack’s tokenomics also dovetail with its broader business moves. The company has previously announced plans to unlock tokens in stages as part of a path toward a potential US IPO, and it has pursued on-chain stock tokenization through a partnership with a registered transfer agent. The token distribution plan underscores a concerted effort to align incentives with the company’s regulatory and product milestones, rather than relying solely on passive liquidity or speculative drivers.

What to watch next

• Timing and criteria for the Token Generation Event, including the 25% unlock and the milestone-based releases before the IPO.
• Progress toward regulatory approvals and the practical milestones that unlock the remaining supply.
• Details surrounding the equity-exchange mechanism for stake-holders and how the fixed ratio will be applied in practice.
• Status of the on-chain tokenization of stocks and any regulatory considerations that accompany that initiative.
• Any updates about the company’s IPO journey and how token liquidity will evolve post-IPO.

Sources & verification

• Backpack CEO Armani Ferrante’s X post announcing the 20% equity offer for year-long token staking.
• Cointelegraph report outlining Backpack’s token unlocks tied to IPO ambitions and the initial 25%/62.5%/37.5% schedule.
• Backpack tokenomics overview detailing the supply and milestone-based unlocks.
• Announcement of the partnership with Superstate to bring tokenized stocks on-chain.
• Background on Backpack’s leadership and prior ventures related to the crypto landscape.

What the article means for investors and users

Backpack’s approach narrows the gap between a conventional equity stake and a crypto token by offering actual equity in exchange for token staking. If realized, it would create an explicit counterweight to the typical risk-reward profile of early-stage exchanges that often rely on mere token liquidity rather than tangible ownership or governance influence. For users, it could translate into more meaningful participation in a platform’s success, turning long-term commitment into a measurable stake in the company’s outcomes.

From a market perspective, the plan contributes to a broader discussion about how to align incentives as crypto platforms transition toward regulated milestones. While it introduces potential benefits, it also raises questions about valuation, governance rights, and the practical mechanics of converting tokens into equity—issues that regulators will scrutinize as the project progresses toward an IPO.

What to watch next

• Whether the Token Generation Event occurs on a defined timeline and how milestones influence ongoing unlocks.
• Regulatory developments in the US that could impact both the token structure and the eventual IPO process.
• Operational readiness to support tokenized equity and the technology to ensure secure, auditable exchanges between tokens and equity.

Backpack’s equity-for-stake plan: a closer look at the tokenomics

The essence of Backpack’s model is to anchor token value to real company equity, a move that could reshape incentives in the crypto exchange space. By design, the first 62.5% of tokens are slated for user distribution ahead of the IPO, with the remaining 37.5% reserved for insiders and investors post-IPO. The 25% at the Token Generation Event acts as a foundation for early adoption, while milestone unlocks before the IPO encourage continued product development and regulatory alignment. The structure aims to avoid the insider-dominant dynamics that can accelerate sell pressure and erode retail confidence in a token’s long-term viability.

Critically, the plan reflects a broader push in crypto to demonstrate tangible value beyond hype. Ferrante’s comments about centralized trends and false promises point to a deliberate attempt to combine utility with governance and economic upside. Whether this model gains traction depends on execution—timely regulatory clarity, robust product milestones, and transparent reporting to token-holders about how equity allocations translate into real-world ownership and voting rights. As Backpack proceeds, observers will be watching how the equity outcomes interact with on-chain capabilities and the pace at which decentralization goals are realized after the IPO.

In the near term, users will be assessing the practical mechanics of staking, the fixed equity ratio, and how liquid the equity component will be in a pre-IPO environment. It remains to be seen how this approach will interact with the broader market sentiment around new token launches and the appetite for long-horizon bets tied to traditional corporate milestones. The alignment of token unlocks with regulatory milestones could, if successful, serve as a blueprint for future tokenized equity initiatives within crypto exchanges and beyond.

Backpack’s token-to-equity plan signals a shift in crypto tokenomics and IPO ambitions