Backpack Exchange, a Solana-based cryptocurrency trading platform, launched its native token, BP, on Monday, detailing a token generation event (TGE) that includes a mix of user distribution, lockups, and a company equity-linked mechanism.
At launch, 25% of the total supply of 1 billion tokens, or approximately 250 million BP, will be distributed, primarily through an airdrop to existing users. The majority of this allocation is reserved for participants in Backpack’s points program, with a smaller portion reserved for holders of its “Mad Lads NFT collection.”
The company said no tokens were assigned to founders, team members, or investors initially, a departure from many exchange token rollouts. The structure places more of the initial distribution in the hands of users rather than insiders.
The remaining supply will be released on a multi-phase unlock schedule tied to the company’s growth and potential plans for a public listing. Around 37.5% of the tokens are expected to be released over time based on operational milestones, such as market expansion or product launches, while another 37.5% will remain locked in the company’s treasury until a possible IPO.
Backpack also said long-term shareholders may be able to convert BP into shares of the company, representing a share of ownership in the company. The mechanism connects the token to the company’s broader capital markets plans, rather than limiting its role to commercial incentives or governance.
“Backpack was founded by former employees of FTX and Alameda Research and came under scrutiny following FTX’s collapse in 2022. The company then acquired the European arm of the defunct exchange, relaunching it as Backpack EU as part of its push into regulated markets.
Read more: Backpack opens regulated perpetual exchange in Europe after acquiring FTX EU
