Backpack Exchange, a Solana-based cryptocurrency trading platform, launched its native token, BP, on Monday, detailing a token generation event (TGE) that includes a combination of user distribution, lockups, and a mechanism tied to the company’s capital.
At launch, 25% of the token’s total billion supply (around 250 million BP) will be distributed, primarily via an airdrop to existing users. The majority of that allocation is reserved for participants in Backpack’s points program, and a smaller portion is reserved for holders of its “Mad Lads NFT collection.”
The company said no tokens have been allocated to founders, team members or investors since inception, a departure from many exchange token launches. The structure allocates a greater proportion of the initial distribution to users rather than insiders.
The remaining supply will be released through a multi-phase unlocking schedule linked to the company’s growth and potential public listing plans. About 37.5% of the tokens will be unlocked over time based on operational milestones such as market expansion or product launches, while another 37.5% will remain locked in a corporate treasury until after a potential IPO.
Backpack also said that long-term interested parties could convert BP into equity in the company, which represents a portion of ownership in the company. The mechanism links the token to the company’s broader capital markets plans, rather than limiting its role to business incentives or governance.
“Backpack was founded by former FTX and Alameda Research employees and faced early scrutiny following FTX’s collapse in 2022. The company subsequently acquired the European arm of the defunct exchange and relaunched it as Backpack EU as part of its push into regulated markets.
Read more: Backpack opens regulated perpetual exchange in Europe after FTX EU acquisition
