Backpack plans to offer company equity to token stakers

Backpack CEO Armani Ferrante stated that users who stake their upcoming tokens for at least one year will have the right to exchange them for company equity at a fixed ratio. The company has reserved 20% of its equity for this plan. Armani Ferrante pointed out that this move aims to improve the existing token model, addressing the issues of many projects relying solely on utility to support token value and the lack of long-term decentralization incentives.
Currently, Backpack is in fundraising negotiations with a valuation of $1 billion, aiming to raise $50 million. Its total token supply is 1 billion, with the initial distribution opening 25% of the supply to points program participants and Mad Lads holders. Additionally, the token allocation plan for the team and investors has been deposited into the company treasury, with a lock-up period of at least one year after the IPO. Team members will mainly be incentivized through holding company equity.