Backpack, a crypto exchange co-founded by Solana developer Armani Ferrante and ex-FTX executive Tristan Yver, has introduced a new token allocation framework. This framework is structured to prevent insiders from profiting ahead of the company’s upcoming public offering in the US.
The company announced on Monday that during the Token Generation Event, 25% of the total token supply, equating to 250 million tokens, will be distributed. Of these, 240 million tokens are earmarked for points holders, while the remaining 10 million will go to holders of Mad Lads NFTs.
Additionally, 37.5%, which equals 375 million tokens, will be unlocked before the initial public offering through specific growth-driven milestones that relate to measurable regulatory progress, product expansion, and improved market access.
The remaining 375 million tokens will be kept in the company’s reserves and will remain inaccessible for at least one year following a successful IPO. It's important to note that team members and early investors will have their stake in the parent company rather than receiving direct token allocations. This structure links their financial outcomes directly to a successful public market debut, ensuring that rewards are tied to the company's performance.
How does Backpack connect insider rewards to long-term strategies and IPO plans?
The approach adopted by Backpack is strategic, aiming to limit insider profits until the exchange develops into a large, sustainable, and regulated entity within the financial sector. They are set on pursuing a public listing in the US, aligning with other cryptocurrency firms eager to leverage improved regulatory conditions and an increasing acceptance of digital assets by the market.
Backpack aims to develop both cryptocurrency products and traditional financial instruments. They plan to provide comprehensive access to various crypto assets, blockchains, and decentralized applications while establishing banking infrastructure on a global scale.
Currently, Backpack captures about 48% of the global market by prioritizing regulatory licensing before accelerating its geographical expansion. The company’s future plans include enhancing banking capabilities, offering fiat currency accounts in key markets, and allowing for securities trading.
The intention is that the team will not benefit financially from the project until the company goes public or until another equity event occurs. It is through accessing the largest and most liquid capital markets via an IPO that the team can eventually realize the value generated by Backpack's community efforts leading up to that point.