Crypto trading platform Backpack Exchange recently announced a new incentive for users staking its forthcoming token. As the company edges closer to a potential initial public offering (IPO), stakers will be able to convert their tokens into equity stakes, amounting to 20% of the company.

“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,” said Backpack CEO Armani Ferrante in a post to X.

Here’s a glimpse from Ferrante’s post:

20% of Backpack equity given to users who stake for a year. Don’t just use the next big thing. Own it. 🎒 tweet

Ferrante expressed concerns about past token offerings being based on ‘false promises.’ He aims to establish a long-term commitment with this offering, which will tie the token’s value to company equity, thus providing a more stable investment.

Backpack Prioritizes User-Centric Tokenomics

Earlier this month, Backpack announced its plan to launch a Backpack token. Tokens will be unlocked in phases as they work towards a potential U.S. IPO. According to the company, 25% of the total 1 million token supply will be available at the Token Generation Event, while the remaining will be released progressively as regulatory approvals and product launches occur.

Backpack aims to invert the traditional model of token allocation, which often sees insiders receiving large initial allocations, thereby preventing predictable sell pressure on retail investors.

Ferrante noted that while this plan may not be perfect, it reflects the company’s intent to gradually decentralize the token as it evolves. He stated, “The more centralized something is, the less meaningful a token is.”

Overall, Backpack aims to carve a distinct path in the crypto market while maintaining transparency and user-centric approaches.