Backpack Token TGE is scheduled for March 23, and it can be exchanged for 20% of the company's equity.

Backpack Exchange CEO Armani Ferrante announced during a Twitch live stream that the token generation event (TGE) for the Backpack token is tentatively scheduled for March 23, with the exact date to be confirmed on March 12. This announcement follows Backpack’s February decision to allow users to stake tokens in exchange for 20% ownership of the company, an innovative structure.

TGE Date and Token Distribution Structure

(Source: Twitch)

According to Backpack’s announcement, the total token supply is set at 1 million tokens, with a distribution designed to prioritize user benefits and reduce internal sell pressure:

• TGE Unlock: 25% of the total supply will be unlocked at TGE.
• Pre-IPO Release: An additional 37.5% will be released before the IPO, contingent on meeting specific milestones (including regulatory approval and product launches).
• User Allocation: 62.5% of the total supply will be fully allocated to users.
• Team and Investor Portion: The remaining tokens are reserved for the team and investors, to be unlocked only after the IPO, deliberately avoiding time-based unlocks to prevent retail sell-offs.

Equity-Linked Tokens: Stake for 1 Year to Receive 20% Company Shares

The core innovation of the Backpack token is linking staking directly to company equity. Users who stake Backpack tokens for at least one year will be able to exchange their tokens for a fixed percentage of the company’s 20% ownership.

Ferrante stated that this design aims to “give tokens a solid foundation of company ownership rather than just platform utility,” hoping to provide an alternative token structure that reflects long-term commitment. This allows token holders to become actual shareholders of the company through long-term holding, rather than merely holding speculative or platform utility tokens.

In October last year, Backpack partnered with SEC-registered transfer agent Superstate to explore tokenized stock on the blockchain. The launch of equity-linked tokens is a further step in this direction.

IPO Roadmap and Industry Context: Connecting Crypto Exchanges with Traditional Capital Markets

Founded by Ferrante in 2022, who previously worked at Alameda Research, Backpack is currently working toward an IPO in the United States. The token structure includes unlock conditions tied to the completion of the IPO, indicating a clear roadmap.

Ferrante admitted that the initial token distribution is relatively centralized, but as the product develops, the company plans to gradually decentralize. He emphasized that the equity structure is the best way for the company to demonstrate long-term commitment to users in the short term.

Industry trends show that Kraken recently acquired tokenization platform Magna in preparation for a potential listing, highlighting the accelerating trend of connecting on-chain assets with traditional capital markets. Backpack’s equity-linked token model exemplifies this broader trend.

Frequently Asked Questions

When is Backpack’s TGE scheduled, and when will the date be confirmed?

According to CEO Armani Ferrante’s announcement on Twitch, the TGE is tentatively scheduled for March 23, with the exact date to be confirmed on March 12. This is the latest update since Backpack first announced its token issuance plans in early March.

How does the equity exchange mechanism for Backpack tokens work?

Users who stake Backpack tokens for at least one year can exchange their tokens for a fixed percentage of Backpack Exchange’s 20% company ownership. This mechanism enables long-term token holders to become actual shareholders, not just platform utility or governance token holders. It’s a rare direct equity linkage in crypto token structures.

Why does Backpack allocate 62.5% of tokens to users instead of the team?

Backpack deliberately allocates 62.5% of the total supply to users, with tokens for the team and investors only unlocking after the IPO. This design aims to avoid the sell pressure caused by traditional time-based unlocks, prioritizing user token holdings and protecting retail investors’ interests.