Main highlights:
- Backpack CEO Armani Ferrante said the company will allow users to convert staked tokens into up to 20% of their company’s stock.
- This plan directly links user participation to ownership and long-term growth by creating a stronger bond between the product and its community.
- Token supply will be unlocked at stages associated with product, regulatory and market milestones.
Backpack founder and CEO Armani Ferrante announced a new plan that will allow users to participate in token staking with ownership of the company. Armani said, “The Backpack community is growing, and we will decentralize our tokens and offer new ones over time. Some will be centralized, like equity offerings, and some will be decentralized as the product evolves.” He added that users who stake their Backpack tokens for at least one year will now be able to convert their tokens into shares in the company at a fixed rate, which currently represents 20 percent of the company’s shares.
With this decision, the company is trying to align its users with the long-term growth of the platform. Ferrante said the aim is to create a stronger bond between the product and its community. He also said that more features related to cryptocurrencies will be introduced over time as the ecosystem expands and matures.
Backpack: Corporate capital for long-term token stakers
Ferrante spoke frankly about his long-term outlook for cryptocurrencies. About nine years ago, he said he entered the industry with the belief that blockchain technology could change the way the financial system works. Another point Ferrante made was that the industry itself has experienced cycles of hype, rapid profits and failure. However, he added that many of the currently available tokens rely on promises that cannot always be enforced, especially if the project is highly centralized.
I didn’t get into crypto nine years ago to launch a shitty coin.
I didn’t start virtual currency with the aim of getting rich quick.
I got into crypto because I believe it will change the world, and because I believe this industry is worth dedicating my life to.
But somewhere along the way… https://t.co/Iddz4za7i0
— Armani Ferrante (@armaniferrante) February 23, 2026
Backpack seeks to fill that void by providing a direct, tangible connection between actively used tokens and the value a company represents. The company allows users to exchange staked tokens for shares so that user participation is proportional to the amount of current ownership. Ferrante described it as a simple idea that represents a long-term commitment rather than short-term advertising. He added that over time there will be more decentralization. In the initial stages, some functions will be more centralized (e.g. equity conversion plans). As the product matures, we expect more components to move to a decentralized structure. Ferrante said he expects cryptocurrencies will eventually become a more comprehensive type of value than what a single company can offer.
Backpack’s plans follow a broader cryptocurrency distribution strategy. On February 9, the company confirmed that 25 percent of the total token supply, or 250 million tokens, will be distributed during the token generation event. Of this amount, 240 million tokens will go to point holders and 10 million tokens will be allocated to owners of the Mad Lads NFT collection.
A further 37.5 percent of the token supply, or 375 million tokens, will be unlocked ahead of the potential listing. These tokens will be released based on growth-linked milestones. These milestones include regulatory advances, product expansion, and market access. This structure aligns token releases with measurable business development rather than fixed timelines.
Ferrante said the company will continue to introduce new utility features for the token over the coming months and years. The company aims to gradually build a mechanism for users to gain value by actively participating in the ecosystem. He also said that while results cannot be guaranteed, the company is focused on maintaining its long-term commitment to its user base.
The proposal comes at a time when many crypto projects are facing increased scrutiny over the value and governance of their tokens. As the industry suffers from a cryptocurrency brain drain, investors and users have sought a model that provides a clearer link between usage, ownership, and value creation. Backpack’s equity conversion model is one attempt to address these concerns.
Additionally, Backpack’s immediate focus remains on building its product and growing its user base. The stock conversion plan is expected to play a central role in that effort.
Also read: Backpack expands access to rentals and benefits in Japan
