Crypto exchange Backpack reveals tokenomics plan to prevent ‘dumping on retail’

Backpack, a crypto exchange founded by former FTX employees, has unveiled a tokenomics plan for its forthcoming utility token designed to prevent the dilution of retail holders. Under this scheme, only 25% of the total token supply will be unlocked during the Token Generation Event (TGE), with a portion airdropped to Backpack Points participants and Mad Lads NFT holders. The remaining supply is split into pre-IPO and post-IPO tranches, each containing 37.5% of the total supply. Pre-IPO tokens will be progressively released based on hitting growth triggers and milestones, such as launching new products or expanding into new regions like the EU, Japan, and the U.S., which CEO Armani Ferrante stated helps fuel market expansion. The final 37.5% is locked until at least one year after the exchange's initial public offering (IPO), forming the corporate treasury. Ferrante emphasized that the team owns company equity rather than direct token allocations, ensuring the team only earns wealth after the company goes public or achieves an equity exit, aligning their rewards with the value created for the community.

(Source：The Block)