Crypto trading platform Backpack Exchange has announced a novel token economics model that directly links its forthcoming Backpack token to company equity. The move is designed to offer users a stake in the exchange as it pursues a potential initial public offering (IPO) in the United States.
In a post on X (formerly Twitter) on February 23, 2026, Backpack CEO and founder Armani Ferrante stated that users who stake the Backpack token for a minimum of one year will be able to exchange those tokens for equity in the company at a fixed ratio. “20% of Backpack equity given to users who stake for a year,” Ferrante wrote, adding a personal note: “Don’t just use the next big thing. Own it.”
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
— Backpack 🎒 (@Backpack) February 23, 2026
Anchoring Value to Equity: A Response to “False Promises”
Ferrante framed the equity-offering model as a direct response to the widespread “false promises” of utility that have characterized many past token launches. In his announcement, he expressed frustration with the current state of the industry, stating, “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.”
By tying the token’s value directly to a share of the company, Backpack aims to provide a tangible, non-speculative asset foundation. “We live in the most centralized era crypto has ever experienced,” Ferrante acknowledged, noting that “the more centralized something is, the less meaningful a token is.” However, he positioned this interim step as a genuine commitment: “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.”
Tokenomics Designed to Invert the Typical Insider Allocation
Backpack first teased the token launch earlier in February 2026. The detailed tokenomics plan, as published by the company, outlines a supply of 1 million tokens with a vesting schedule tied to milestones on the path to a U.S. IPO.
Key elements of the plan include:
- Initial Unlock: 25% of the total supply will be unlocked at the Token Generation Event (TGE).
- Pre-IPO Unlock: An additional 37.5% will be released before the IPO, contingent on Backpack achieving specific milestones like regulatory approvals and new product launches.
- Distribution Focus: Critically, the first 62.5% of all tokens (the initial 25% plus the pre-IPO 37.5%) are designated entirely for distribution to users, primarily through staking rewards and platform incentives.
- Post-IPO Vesting: The remaining 37.5% of tokens are reserved for Backpack’s team members and investors, with vesting schedules beginning only after the IPO is complete.
This structure is a deliberate inversion of the common venture capital-backed token model, where large insider allocations unlock early, creating predictable sell pressure on retail holders. Backpack states its goal is to ensure that the majority of the circulating supply in the early stages is in the hands of its user base.
Context and Regulatory Pathway
Backpack Exchange was founded in 2022 by Armani Ferrante, a former employee of Alameda Research, the trading firm closely linked to the collapsed FTX exchange. While the exact TGE date for the Backpack token remains unannounced, the equity proposal follows a strategic partnership with Superstate, a Securities and Exchange Commission (SEC)-registered transfer agent. Announced in October 2025, that partnership aims to bring tokenized stocks onchain, a clear signal of Backpack’s intent to operate within a regulated U.S. financial framework.
This approach combines the user-centric distribution model of decentralized finance (DeFi) with the regulatory clarity and asset backing of traditional finance (TradFi), a hybrid strategy that could set a precedent for future token launches seeking mainstream legitimacy and long-term stability.
