Backpack Founder: Team Token Allocation Unlocks Only After Company IPO to Prevent Token Dumping to Retail Investors

BlockBeats News, February 9th, Backpack founder Armani Ferrante posted on social media:

In Backpack's tokenomics, it follows a core principle of eliminating "insider dumping on retail." No founder, executive, employee, or VC should accrue wealth through tokens before the product achieves "escape velocity."

For Backpack, the answer to "escape velocity" is clear. Backpack aims to go public with an IPO in the United States. The listing could happen soon, not so soon, or possibly not at all. But regardless, the team is working towards it.

Each time Backpack expands into a new region or launches a new product, it is an opportunity for growth. Opening up the EU, Japan, the US, launching prediction markets, stock trading, card services—all will drive growth. The token acts as a catalyst, continually igniting new markets, similar to what the points system did over the past few seasons. For this to work, there is a clear goal constraint: "the growth value from new token issuance must always exceed the dilutive effect of the issuance."

As such, no founder, executive, team member, or VC is directly allocated tokens. The entire "team allocation" is held in the "company treasury," reflected on Backpack's balance sheet—with a lock-up period of at least one year post-IPO. The team holds equity in the company, while the company holds a significant portion of the total token supply. It is only upon the company's listing (or another type of equity event) that the team can derive any wealth from the project.

"Either achieve greatness, or have nothing at all," stated Armani Ferrante.