Backpack Exchange unveiled an equity-for-stake plan: users who stake the forthcoming Backpack token for at least a year can exchange those tokens for 20% of the company's equity today, tying long-term token holding to ownership as the firm moves toward an IPO.

CEO Armani Ferrante frames the offer as a remedy to vague past token launches, saying the equity-for-stake model aligns user commitment with the company’s growth and long-term incentives.

Ferrante acknowledges crypto industry shortcomings such as centralized tendencies and signals plans to decentralize the token gradually as the product evolves.

The company emphasizes commitment and long-term alignment, noting that the model is partially centralized but represents a strategic approach to stakeholder ownership and governance.

Ferrante argues the model aligns incentives and avoids the hype-driven, post-unlock selling pressure seen in many token launches.

The token unlock schedule prioritizes users, with 62.5% reserved for them over time: 25% at the Token Generation Event, 37.5% unlocked before the IPO upon milestones like regulatory approvals and product launches, and the remainder to insiders after the IPO.

The proposal stands out from typical token rewards by offering direct company ownership rather than merely increasing token emissions, while noting the structure remains partially centralized.

The broader context reflects skepticism of centralized crypto infrastructure; Ferrante stresses avoiding false promises and proving long-term commitment through the token-equity structure.

Regulatory compliance and potential IPO milestones are in focus, with no fixed Token Generation Event date announced at publication.

Ferrante’s background at Alameda Research and FTX-linked entities informs Backpack’s push toward gradual decentralization, starting with a more centralized approach and evolving over time.

Tokenomics invert typical insider-heavy allocations by prioritizing user distribution and implementing time- and milestone-based vesting to reduce sell pressure on retail holders.

Backpack, founded in 2022 by Ferrante (a former Alameda employee), has pursued on-chain tokenized stocks with SEC-registered Superstate since October, signaling ongoing securities integration.