Backpack Exchange, a cryptocurrency platform operating on the Solana network, announced the launch of its native token BP. The company has implemented a large-scale distribution plan for its users within the scope of the token generation event (TGE) and simultaneously different locking mechanisms in the token supply.
User-Aimed Airdrop and Lockout System
The total supply of BP token is set at 1 billion. In the first stage, 25 percent of this supply, that is, 250 million BP, was delivered to existing users via airdrop. Participants in the company’s points program received the main part of the distribution. A smaller portion was transferred to Mad Lads NFT collection owners. Another notable decision of the company was that it did not allocate any tokens to any founders, team members or investors in this initial distribution. This approach was adopted to prevent insider interests while increasing the share of users in the initial distribution.
The remaining total supply will enter the market gradually, depending on the growth of the company and the possibility of future public offerings. 37.5 percent of the supply will be unlocked and distributed upon reaching operational thresholds, such as opening the platform to new markets and launching different products. The other 37.5 percent will be kept in the company treasury and will only be included in circulation after a possible initial public offering.
New Mechanism for Conversion of Company Shares with Tokens
Another innovation brought by Backpack Exchange was an improved stock conversion system for users who hold BP tokens for the long term. With this mechanism, the company paves the way for BP owners to take part in the platform’s partnership share-based capital structure in the future. In this way, the token will not be limited to transaction or management functions only; It can also be used integrated with central capital markets.
It is emphasized that the company is designed to connect the token economy and capital market plans, not only for short-term incentive purposes, but also to provide a way to provide long-term value transfer. Once treasury tokens enter circulation after the potential initial public offering, it will be possible to integrate company ownership into token ownership.
Looking at the history of Backpack Exchange, the founders of the platform previously worked in the FTX and Alameda Research teams. With the collapse of FTX in 2022, the company attracted the attention of the market. Afterwards, it expanded its moves in the sector to the European market.
After purchasing FTX’s discontinued European arm, Backpack restructured the entity as Backpack EU and accelerated its expansion into regulated markets. This step of the company both strengthened its user base and played an important role in its compliance with the regulatory framework.
BP token differs from many platforms in the industry with its direct user-oriented distribution structure and innovative model linked to company shares. Additionally, keeping most of the token supply locked up is seen as a precaution to prevent excessive price fluctuations.
