Backpack Exchange Pledges 20% Equity to Token Stakers Ahead of IPO

Backpack Exchange announced on Monday, February 24 that stakers of its upcoming Backpack token will be able to convert their holdings into real company equity — with 20% of the business on the table for users who commit to a minimum one-year lock-up period. The disclosure came via an X post by CEO Armani Ferrante and represents one of the more ambitious token-staking equity programs any crypto exchange has publicly proposed ahead of a potential IPO.

Backpack's 20% Equity Offer — How the Token Staking Program Works

Who Is Eligible and What Is the Lock-Up Period?

Under the program disclosed by Backpack Exchange, any user who stakes the Backpack token for a minimum of 12 months becomes eligible to participate in a token-for-equity conversion at a fixed ratio. The combined pool available for conversion represents 20% of the company as it stands today — a commitment that ties community participants directly to the exchange's corporate upside rather than speculative token price action alone.

The mechanics are straightforward: stake for at least a year, qualify for conversion, exchange tokens for shares at the predetermined fixed ratio, and receive a proportional slice of that 20% equity pool alongside all other eligible stakers. Armani Ferrante, Backpack's CEO and founder, framed the offer as a deliberate departure from launch models that historically rewarded insiders while leaving retail participants with tokens of questionable utility.

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.

— Armani Ferrante, CEO and Founder of Backpack Exchange

Backpack Token Tokenomics and TGE Distribution Plan

First 62.5% Goes Entirely to Users

Backpack first outlined its token launch plan earlier in February 2026. At the Token Generation Event — for which no specific date has been confirmed — 25% of the total 1 million-token supply will be unlocked immediately. A further 37.5% becomes available before the IPO, but only after the company clears defined milestones, including regulatory approvals and new product rollouts.

The combined first tranche — 62.5% of all tokens — flows entirely to users. That structure inverts the conventional model in which teams and venture backers capture the largest early allocations, creating sustained downward price pressure on retail holders through predictable vesting schedules. The remaining tokens unlock post-IPO for team members and investors, according to details reported by The Block.

Backpack Exchange IPO Plans and $1 Billion Valuation

$50 Million Funding Round at Unicorn Valuation

The token equity offer lands as Backpack navigates a potential path to public markets. According to reporting by Axios, the exchange is in discussions to raise $50 million at a $1 billion pre-money valuation — a figure that, if confirmed, would make Backpack a unicorn at the time its token reaches the market.

That context matters for stakers. A token-to-equity conversion at a fixed ratio tied to a $1 billion company is a meaningfully different proposition than a governance token with speculative utility. The program places Backpack squarely within the broader crypto exchange IPO 2026 wave, alongside other industry players eyeing public listings as market conditions stabilize. Backpack's approach, however, is notable for front-loading community benefit rather than treating the IPO as an insider liquidity event.

Armani Ferrante Criticizes 'False Promises' in Crypto Token Models

Armani Ferrante founded Backpack in 2022 after previously working at Alameda Research, the trading firm affiliated with FTX — both of which collapsed in November 2022. His stated motivation for the token structure draws directly on that background. In his public announcement, Ferrante described a crypto landscape that had drifted toward centralization and broken commitments.

"We live in the most centralized era crypto has ever experienced," Ferrante said in a statement, adding that centralization diminishes the meaning of any token issued within that environment. He acknowledged that Backpack's own token would begin life in a relatively centralized state but committed to progressively decentralizing it as the product matures. "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," he said.

Somewhere along the way, amidst the booms, the busts, the moonshots, the decentralization theater, and the straight up scams, we lost our way. I'm just tired of false promises.

— Armani Ferrante, CEO and Founder of Backpack Exchange

Backpack's Progressive Decentralization Roadmap

The token-equity announcement builds on an earlier partnership Backpack struck in October 2025 with Superstate, an SEC-registered transfer agent, to bring tokenized stocks on-chain. That collaboration positioned Backpack within the growing real-world asset (RWA) narrative and signals the exchange's ambition to bridge traditional finance instruments with on-chain infrastructure.

The Backpack TGE date remains unannounced as of February 24, 2026, with the company indicating it will align the event with regulatory and product milestones. For now, the 20% equity pledge stands as a concrete, verifiable commitment in an industry where such assurances have historically proven hollow — and one that gives potential stakers a reason to take the forthcoming Backpack token seriously beyond its speculative price trajectory.