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Backpack TGE: Everything You Need to Know
Backpack Exchange is preparing for its Token Generation Event (TGE), the moment when the Backpack token officially enters circulation.
If you have been trading on Backpack, accumulating points across the seasons or through the Epilogue redistribution, or holding Mad Lads NFTs, this article explains everything you need to know: what TGE means, how tokens are distributed, how staking tokens can earn you real company equity, and why Backpack's approach is structurally different from most crypto token launches.
What is a Token Generation Event (TGE)?
A Token Generation Event (TGE) is the moment when a blockchain project officially creates and distributes its native token for the first time.
Unlike an Initial Coin Offering, a TGE does not necessarily involve selling tokens to the public. In Backpack’s case, the TGE is strictly a distribution event. Tokens are allocated to eligible users based on their participation in the ecosystem.
Backpack TGE at a Glance
At TGE, 25% of the total token supply becomes available, and 100% of that goes directly to users. No founders, no employees, no venture investors receive tokens at TGE.
Who Gets Tokens at TGE?
1. Points Holders (24% of total supply)
Users who accumulated points through trading activity, seasonal programs, or the Epilogue redistribution are eligible to receive tokens at TGE.
A total of 240,000,000 tokens are allocated to points holders. The final conversion rate from points to tokens will be announced closer to the TGE date.
2. Mad Lads NFT Holders (1% of total supply)
Mad Lads is Backpack's flagship NFT collection built on Solana. Holders of Mad Lads NFTs receive 10,000,000 tokens at TGE as recognition of their early support for the Backpack ecosystem.
About the Backpack Points Program and Epilogue
Backpack has been running a Points program across 4 seasons, rewarding users for trading activity on the platform. Points accumulated across all seasons count toward your TGE allocation.
Epilogue is the final chapter of Backpack's points program, taking place after Season 4 and directly before TGE. It is not a new season, but a redistribution phase with a specific purpose: Backpack's sybil analysis identified over 50 million points earned through inauthentic activity. These points were confiscated from sybil accounts and are now being fairly redistributed to real, legitimate users.
Key details:
- No new points are being created, all Epilogue points come from confiscated sybil accounts
- Approximately 10,000,000 points are redistributed per week
- Epilogue runs for approximately 6 weeks total
- After Week 6, Backpack will announce the final TGE plan
How Backpack's Tokenomics Are Structured
Backpack's tokenomics are divided into three phases:
Phase 1 - TGE (25%)
250,000,000 tokens distributed to users at launch. No insider allocations.
Phase 2 - Pre-IPO Growth-Triggered Unlocks (37.5%)
An additional 375,000,000 tokens are reserved for pre-IPO distribution, but these are not unlocked on a time-based schedule. They unlock only when Backpack hits measurable growth milestones, such as:
- Regulatory approvals in new jurisdictions.
- Launch of new product verticals.
- Broader regional and market access.
Every token unlocked in this phase goes directly to users, not to insiders.
Phase 3 - Post-IPO Corporate Treasury (37.5%)
The final 375,000,000 tokens are locked in a corporate treasury until at least one year after a potential IPO. This treasury is held on Backpack's balance sheet as a long-term strategic asset.
Team members and investors do not receive direct token allocations at TGE. Any long-term token exposure is structured through equity ownership.
Token Utility: Stake to Own Real Company Equity
One of the most structurally unique aspects of the Backpack token is the ability to convert staked tokens into actual company equity — something that has never been offered by a crypto exchange before.
Users who stake the Backpack token for a minimum of one year will have the opportunity to exchange those tokens for equity at a fixed ratio, representing 20% of Backpack as a company.
This goes beyond typical exchange token utility. Rather than a governance token or a fee discount mechanism, Backpack is offering users a direct path to company ownership.
Key details about the equity staking mechanism:
- Minimum staking period: 1 year
- Equity pool: 20% of Backpack
- Exchange ratio: fixed ratio (details to be announced by Backpack)
- This is in addition to any other token utility announced at or after TGE
This mechanism directly addresses one of crypto's most persistent problems: tokens that promise utility but deliver nothing enforceable. By anchoring token value to actual company equity, Backpack aligns the long-term interests of users and the company in a way no exchange token has done before.
Why Backpack's Model Is Different
Most crypto token launches follow a familiar and problematic pattern: insiders receive large allocations early, time-based vesting creates predictable sell pressure, and retail users are left holding the bag.
Backpack inverts this model entirely:
No insider token allocations. Founders, employees, and venture investors receive zero direct token grants. Their upside is tied to company equity, not token timing.
No time-based unlocks. Supply expansion is triggered by real growth, not arbitrary schedules. If Backpack does not grow, tokens do not unlock.
User-first distribution. Every token in circulation before IPO belongs to the community. Backpack uses the token as a tool for user alignment, not value extraction.
IPO as the north star. Backpack is explicitly building toward a potential U.S. IPO and is not optimizing for a single token cycle. This creates structural discipline. The company must build durable, regulated, institutional-grade infrastructure to unlock its full economic upside.
Tokens can become real equity. Users who stake for a minimum of one year can exchange their tokens for actual company equity at a fixed ratio — 20% of the company in aggregate. This transforms the Backpack token from a promise into an enforceable ownership stake.
What Products Will the Token Support?
Backpack is not a single-product exchange. At the time of TGE, Backpack's platform includes:
- Spot trading: buy and sell crypto assets directly
- Perpetual futures (Perps): trade with leverage on BTC, ETH, SOL, and many more markets
- Spot-Margin: margin trading against spot collateral
- Borrow-Lending: earn yield or borrow against your assets
- Vaults: launching soon
- Prediction Markets: currently in beta
One of Backpack's most significant features is its unified cross-margin, cross-collateral balance, where your Vault deposits, spot holdings, perps positions, and borrow-lending activity all operate from a single balance. This level of capital efficiency is rare among crypto exchanges at any scale.
Token utility details will be announced at or after TGE.
When is the Backpack TGE?
The exact TGE date has not yet been announced. Based on current timelines:
- The Epilogue points program runs for approximately 6 weeks total.
- After Week 6, Backpack will announce the final TGE plan.
- Pre-TGE events around liquidity provisioning are being prepared.
Follow Backpack's official channels for the official announcement.
How to Prepare for TGE
Before TGE, there are a few important steps every eligible user should complete.
- Complete TGE Verification now: this is the most urgent step. Without it, you cannot claim tokens on TGE day
- Check your points balance: log in to Backpack and verify your accumulated points
- Continue trading: Epilogue redistribution is ongoing through Week 6
- Hold Mad Lads: if you own a Mad Lads NFT, ensure your wallet is connected to your Backpack account
- Follow official announcements: conversion rates and final TGE details will be announced officially
- Consider your staking strategy: users who stake tokens for a minimum of one year after TGE become eligible to exchange those tokens for real Backpack company equity. Plan accordingly.
Frequently Asked Questions
What is the Backpack token name? The token name has not yet been officially announced. Stay tuned to Backpack's official channels for the reveal.
How many tokens will I receive at TGE? Your token allocation depends on your points balance relative to the total points pool. The exact conversion rate will be announced closer to TGE.
Is the Backpack TGE a public sale? No. The TGE is a distribution event for existing users. Tokens are allocated to points holders and Mad Lads NFT holders, not sold publicly.
Do insiders get tokens at TGE? No. Founders, employees, and investors receive zero direct token allocations. All TGE tokens go to users.
What happens after TGE? Backpack will continue expanding its product suite, including Prediction Markets and additional financial products. Token supply will expand only as Backpack hits measurable growth milestones, with all new tokens going to users.
What is the total token supply? 1,000,000,000 tokens.
Can I exchange Backpack tokens for company equity? Yes. Users who stake for a minimum of one year can exchange tokens for real Backpack equity at a fixed ratio — 20% of the company is available through this mechanism.
Summary
Backpack's TGE is not a liquidity event for insiders. It is a user distribution event built around long-term structural alignment — and the foundation for something deeper: real ownership.
With 25% of supply going to users at launch, growth-triggered unlocks replacing time-based emissions, a fully locked corporate treasury until post-IPO, and the ability to stake tokens for 20% of the company's equity, Backpack's tokenomics model represents the most user-aligned approach any crypto exchange has attempted.
If you have been building points on Backpack, the TGE is the moment your participation becomes token ownership. And if you stake those tokens for a year, it becomes company ownership.
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Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Backpack. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Backpack is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice.
