Key Highlights:
- Backpack CEO Armani Ferrante said that the company will let users convert staked tokens into up to 20% company equity.
- The plan links user participation directly with ownership and long-term growth by creating a stronger bond between the product and its community.
- Token supply will unlock in phases tied to product, regulatory, and market milestones.
Armani Ferrante, founder and CEO of Backpack, has announced a new plan that allows users involved in token staking with company ownership. Armani said, “Backpack community grows, we will decentralize the token, offering new things over time, some centralized like our equity offering, some decentralized as our product evolves.” He added that users who stake Backpack tokens for at least one year will be able to convert their tokens into company equity at a fixed ratio, which currently represents 20 percent of the firm’s equity.
The company seeks to align users with the long-term growth of the platform with this decision. Ferrante said the aim is to create a stronger bond between the product and its community. He also noted that more features linked to the crypto will be introduced over time as the ecosystem expands and matures.
Backpack: Company Equity For Long-Term Token Stakers
Ferrante has been outspoken about his long-term perspective on crypto. Nearly nine years ago, he said he entered the industry because he had the conviction that blockchain technology can change the workings of financial systems. That the industry itself has undergone cycles of hype, rapid gains and failures is another point Ferrante has noted. He added that many tokens available today, however, depend on promises that are not always enforceable, particularly when projects are highly centralized.
I didn’t come into crypto 9 years ago to launch a shit coin.
I didn’t come into crypto to get rich quick.
I came into crypto because I believe it’s going to change the world, and that the industry was something worth dedicating my life to.
But somewhere along the way, amidst… https://t.co/Iddz4za7i0
— Armani Ferrante (@armaniferrante) February 23, 2026
Backpack attempts to fill that void by giving a straightforward, tangible connection between a token being actively used and the value the company represents. So that users’ participation is proportional to how much ownership they have now, the company is allowing users to exchange staked tokens for equity. Ferrante described it as a simple idea that indicates more about a long-term commitment than short-term hype. He added that decentralization would grow further with the passing of time. Early on some of the features will be more centralized (like the equity conversion plan). Many more components are expected to shift toward decentralized structures as the product matures. Ferrante said he anticipates the crypto will ultimately be a more encompassing type of value than a single firm can provide.
Backpack’s plan comes following a wider crypto distribution strategy. On February 9, the company confirmed that 25 percent of the total token supply, or 250 million tokens, will be distributed during the Token Generation Event. Out of this amount, 240 million tokens will go to points holders and 10 million tokens will be allocated to holders of the Mad Lads NFT collection.
Another 37.5 percent of the token supply, or 375 million tokens, is set to unlock before a potential public listing. These tokens will be released based on growth-linked milestones. These milestones include progress in regulation, product expansion, and market access. The structure will align token release with measurable business development rather than fixed timelines.
Ferrante said the company will continue to introduce new utility features for the token over the coming months and years. The company aims to gradually build a system where users gain value by actively participating in the ecosystem. He also noted that even as no outcome can be guaranteed, the company is focused on maintaining long-term commitment to its user base.
The proposal comes at a time when many crypto projects are facing scrutiny over token value and governance. Investors and users have been calling for models that provide clearer links between usage, ownership, and value creation, as the industry struggles with crypto braindrain. Backpack’s equity conversion model is one attempt to respond to those concerns.
Moreover, for Backpack, the immediate focus remains on building its product and growing its user base. The equity conversion plan is expected to play a central role in that effort.
Also Read: Backpack Expands Borrow/Lend and Reward Access in Japan
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