Key Highlights
- Backpack will release 25% of its tokens at TGE, giving 24% to Points users and 1% to Mad Lads NFT holders.
- There are no token sales or presales, and distribution happens only through participation.
- The remaining 75% of tokens will support platform growth, pre-IPO milestones, and the post-IPO treasury.
Backpack, a Dubai-based exchange, announced the details of its token release at its Token Generation Event (TGE).
In a post on X on Monday, the platform said it will put 25% of its total token supply into use, and this moment marks the first time Backpack tokens will be given out to real users and holders. This event is part of a planned token distribution designed to support both current participants and the future growth of Backpack’s global financial platform.
Out of the 1 billion tokens Backpack has created, 250 million tokens will be given out at TGE. 240 million tokens (24%) of those will go to users who have earned Backpack Points. These points come from trading on the platform and users who have been active and engaging.
Another 10 million tokens (1%) will go to people who own Mad Lads NFTs, which are special digital collectibles linked to Backpack. This allocation is intended to reward both active users and NFT supporters.
NFT and token distribution details
The Mad Lads collection has about 10,000 NFTs on the Solana Blockchain, which were created by Coral, the same team behind Backpack. Any user holding one of the NFTs will get VIP status on the platform, which means they will enjoy lower trading fees. They have also received airdrops from other Solana projects like Wormhole, Tensor, and io.net.
However, Backpack has not yet confirmed any token allocation for the holder beyond the 1% at TGE. The exchange said any claims about guaranteed future tokens are not confirmed.
In its blog post, the exchange made it clear that no token has been sold yet. It said there had been no private sale or presale. All tokens are distributed through participation and contribution, not money. Anyone claiming early access or presales is spreading false information.
How tokens will be released
Backpack’s token distribution is divided into three phases:
- The first phase is the TGE release of 25%.
- The second phase is pre-IPO, where 37.5% of tokens will be unlocked gradually as Backpack hits growth milestones.
- The third phase is post-IPO, with another 37.5% of tokens held in the company treasury and locked for one year.
The Backpack also launched a Points program where users earn points through trading on the spot and futures markets. The points are updated weekly and divided into six tiers, which are Bronze, Silver, Gold, Platinum, Diamond, and Challenger. Currently, the program is in Season 4. However, the exchange did not give an update on how points will convert to token rewards, which are not confirmed yet.
Broader context
Backpack’s token launch follows a different path from other crypto projects. Instead of selling tokens early, the exchange waited until the product was live and had enough engagement.
The exchange says its focus is on building its product and gaining more users. Meanwhile, Backpack has also secured licenses before introducing its token. In its blog post, the exchange has licenses in regions, including VARA in Dubai and MiFID II in Europe. It also said it returned funds to former FTX EU customers before launching.
In addition, the exchanges have processed over $160 billion in trading volume, served users in over 150 countries, and plan to offer tokenized stocks and lending soon.
Also Read: Bitmine Reveals $10B Crypto Treasury, Holding 3.6% of ETH Supply
