Backpack, a cryptocurrency exchange founded by former FTX employees, has announced the upcoming launch of its native token, with a distribution strategy closely linked to the company's ambition of a U.S. initial public offering (IPO). The exchange revealed that the token will have a total supply of 1 billion.

The token distribution will occur in three phases. Initially, 25% of the total supply, equivalent to 250 million tokens, will be released at the Token Generation Event (TGE). Of this initial offering, 240 million tokens are earmarked for point holders, while 10 million will be allocated to holders of Mad Lads NFTs.

A further 37.5% of the tokens, amounting to 375 million, are designated as pre-IPO tokens. These tokens will be unlocked gradually as Backpack achieves key growth milestones, such as expansion into new regions, the launch of new products, and measurable regulatory progress.

The remaining 37.5% of the token supply, also 375 million tokens, will be placed in the company vault and locked for one year following the IPO. This strategic reserve of digital assets is intended to create long-term value.

Backpack's CEO and co-founder, Armani Ferrante, an early employee at Alameda Research, emphasized that the tokenomics are designed to prevent insiders from "dumping on retail". Ferrante stated that team members and investors will not receive direct token allocations. Instead, the team holds equity in the company, with their potential gains tied to the company's performance in the public market. Ferrante noted that no founder, executive, team member, or venture investor has been given a direct token allocation. All team tokens reside in the company treasury and are locked for at least one year post-IPO.

This approach aims to ensure that wealth creation for insiders is linked to the long-term success of the company. By tying token unlocks to IPO readiness and consumer growth, Backpack aims to combine traditional financial quality with crypto innovation.

The company is reportedly in discussions to raise $50 million at a $1 billion pre-money valuation. Backpack's focus is on building a user-friendly and compliant centralized exchange.