Backpack introduces BP token on Solana, featuring a 25% airdrop and no insider distribution.

The remaining tokens are subject to long-term lockups tied to company milestones and a potential IPO.

What to know:

• Backpack introduced its BP token on Solana, distributing 25% of the total 1 billion supply to users through an airdrop, without any allocation for insiders at launch.
• The remaining tokens are subject to long-term lockups associated with company objectives and a possible IPO, with a provision enabling long-term stakers to convert tokens into equity.

Backpack Exchange, a cryptocurrency trading platform based on Solana, unveiled its native token, BP, on Monday, outlining a token generation event (TGE) that incorporates user distribution, lockups, and a mechanism related to company equity.

At the time of launch, 25% of the total supply of 1 billion tokens—approximately 250 million BP—will be distributed, mainly through an airdrop to current users. A significant portion of that allocation is designated for participants in Backpack’s points program, with a smaller amount set aside for holders of the “Mad Lads NFT collection.”

The organization stated that no tokens were allocated to founders, team members, or investors at the outset, marking a deviation from typical exchange token launches. This framework ensures a larger proportion of the initial distribution is directed towards users instead of insiders.

The leftover supply will be unveiled through a multi-phase unlocking schedule linked to company advancement and prospective public listing plans. Approximately 37.5% of tokens are planned to unlock progressively based on operational achievements, including market expansion or product launches, while another 37.5% will remain secured in a corporate treasury until after a potential IPO.

Furthermore, Backpack indicated that long-term stakers might have the opportunity to convert BP into company equity, representing a stake in the firm’s ownership. This mechanism connects the token to the company’s broader capital market strategies rather than confining its function to trading incentives or governance.

“Backpack was established by former employees of FTX and Alameda Research and faced initial scrutiny following the collapse of FTX in 2022. The company subsequently acquired the failed exchange’s European division, relaunching it as Backpack EU as part of its strategy to enter regulated markets.

Read more: Backpack Opens Regulated Perpetuals Exchange in Europe After FTX EU Acquisition