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

On February 9, Backpack founder Armani Ferrante took to social media to share: Backpack’s tokenomics revolves around a core principle: no insider dumping to retail. No founder, executive, employee, or venture capitalist should profit from tokens before the product hits “escape velocity.” For Backpack, “escape velocity” is defined as a U.S. initial public offering (IPO). The listing could happen soon, take time, or never materialize—but the team is pushing hard for it. Every time Backpack expands to a new region (EU, Japan, U.S.) or launches a new product (prediction markets, stock trading, card services), it’s a growth opportunity. Tokens act as fuel—just like the points system did in past seasons—to keep igniting new markets. For this to work, there’s a hard rule: the growth value from new token releases must always outweigh the dilution they cause. Here’s how it breaks down: Founders, executives, team members, and VCs won’t get direct token allocations. All “team allocations” go to the company treasury (listed on Backpack’s balance sheet) with a lockup of at least one year post-IPO. The team owns company equity, and the company holds a large share of the total token supply. The team will only profit from the project if the company goes public (or has another equity exit). “Either achieve greatness, or have nothing,” Ferrante stated.