Cryptocurrency exchange Backpack has announced a novel tokenomics model linking the launch of its native utility token to a prospective initial public offering (IPO) in the United States. With this model, the company aims to protect the long-term interests of token holders and investors by locking up a significant portion of the token supply until the IPO.
Three Phases of Token Distribution
Backpack’s total token supply is capped at 1 billion. Of this, 25% (250 million tokens) will be distributed in the initial phase as part of the Token Generation Event. During this period, participants of the Backpack Points Program and holders of Mad Lads NFTs will receive an airdrop. The remaining tokens are divided into two equal parts: one half will be available before the IPO, and the other half a year post-IPO.
According to the company’s CEO, Armani Ferrante, the tokens reserved pre-IPO will be gradually released as certain business targets are achieved. These include obtaining regulatory approvals in new regions like the U.S., the European Union, and Japan, as well as launching new products like stock trading and the Backpack Card via the exchange.
A Distinct Model for Investors and Team
Backpack’s unique tokenomics approach sets itself apart from traditional exchange tokens. The company states that early investors and team members gain ownership in the company rather than direct shares of the tokens, which doesn’t provide immediate income. This structure is designed to ensure a long-term commitment to the company by its team and investors.
Backpack CEO Ferrante mentioned that pre-IPO tokens would be released gradually in alignment with specific growth metrics.
The model emphasizes business growth and market expansion over early high token liquidity. It aims for a transparent and measurable rollout process, avoiding the volatility linked with prior attempts in the industry to provide rapid liquidity.
Focus on Security and Regulatory Compliance
Backpack emphasizes that its new model places a high priority on security and regulatory compliance. Following significant security breaches in the crypto sector in 2025, including an attack on Curve Finance’s domain, the company is working to build trust with a transparent token lock-release schedule.
The company is also in negotiations for a new $50 million funding round, valuing Backpack around $1 billion. This valuation suggests that investors view the exchange’s growth potential positively.
Backpack management points out that, unlike other exchanges, they aim to establish a sustainable structure by steering clear of recycling old contents or constant new version releases. The goal is to ensure that corporate activities and the token economy grow in parallel.
