Key Highlights
- Users staking Backpack tokens for at least one year can exchange them for a 20% equity in the company.
- Founder & CEO Armani Ferrante emphasizes long-term commitment over speculative token gains.
- The program combines centralized equity with plans for future decentralized features of the token.
Armani Ferrante, the Founder & CEO of Backpack and MadLab, has announced that users who stake Backpack tokens for at least a year will be able to exchange them for a share of the company. In a post on X, he talked about his experience in crypto and the problems many tokens face with real-world use and value.
Ferrante began by sharing his long-term perspective on the crypto industry. He emphasized that his involvement was driven by a belief in the transformative potential of cryptocurrency rather than short-term financial gain:
“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.”
He said he is concerned about the current state of the crypto market, highlighting centralization and promises that are often not kept as major problems for token holders and users.
“We live in the most centralized era crypto has ever experienced, and the more centralized something is, the less meaningful a token is,” Ferrante said.
Token staking converts to equity
The key announcement from Backpack is the launch of a program in which users who stake their tokens for at least one year can exchange them for 20% equity in the company. Ferrante described this as a unique approach to token utility:
“It’s such a simple idea, but as far as I’m aware, this is the first time a user has been able to earn the equity of a company by just using the product.”
The program is intended to give long-term users a tangible stake in the company, moving beyond the common model of token incentives, which often rely on price speculation or theoretical future utility.
Addressing challenges in crypto token models
In his post, Ferrante also highlighted the risks inherent in most crypto token models, such as team acquisitions, reinvestment decisions, and investor unlocks. According to him, unless a protocol is fully decentralized, the promises of token utility are often unenforceable.
Ferrante pointed to established decentralized networks such as Bitcoin, Ethereum, and Solana as examples where tokens maintain meaningful utility because of their decentralized structures. He noted, however, that projects like these are relatively rare in the crypto landscape.
The announcement also mentioned emerging token models, including MetaDAO, which aim to tackle similar challenges. Backpack’s approach was presented as part of a wider movement toward progressive decentralization within the industry.
Future plans for the Backpack token
Ferrante said the Backpack token will continue to evolve. Some parts of the Backpack token, such as the equity exchange program, will remain under centralized control. Other parts of the token are expected to change as the product grows and more decentralized features are added.
The company did not give a set timeline for these changes but said they will happen slowly over the coming weeks, months, and years. They said this is meant to keep users involved as the company grows.
Commitment to users
Ferrante also made it clear that the company’s focus is on maintaining commitment to its users rather than making promises about future returns or the value of the token.
“I’ve said it before and I’ll say it again. I can’t promise anything. The only thing I can promise is commitment. We go big or we go home together, actually together.”
This program is one of the few examples in the cryptocurrency sector where staking tokens can lead directly to company ownership. It provides a tangible way for users to participate beyond traditional staking or incentive models.
Also Read: Vitalik Buterin Explains Why Crypto Security Can Never Be Perfect
