Backpack Participant Program

Introduction

The Backpack Participant (BP) Program rewards active $BP stakers with a range of exclusive benefits across the platform. Benefits scale with your staking tier — the larger and longer you stake, the more you unlock. Current benefits include discounted trading fees, free fiat on/off ramps, priority access to platform launches and new products, and an equity exchange program that allows active participants to use their tokens to purchase equity in Backpack from a reserved pool.

There is no requirement to participate in any specific benefit. Each benefit is independent and subject to its own eligibility requirements, which may vary by jurisdiction.

Program Benefits

Discounted Trading Fees

BP participants receive reduced maker and taker fees on spot and derivatives trading on the platform. Fee discounts scale with your staking tier and are applied automatically to your account while you maintain the required minimum stake. Current fee tiers are published on the platform and may be updated from time to time.

Free Fiat On/Off Ramps

BP participants receive reduced or waived fees on fiat deposits and withdrawals, depending on their staking tier. This includes bank transfers and other supported fiat payment methods available in your jurisdiction. Eligible assets, networks, and applicable limits are published on the platform.

Priority Access

BP participants receive priority or enhanced allocation rights for token launches, initial public offerings, and other primary distributions facilitated on or through the platform. Higher staking tiers generally unlock earlier participation windows and higher allocation caps. Allocations are not guaranteed and remain subject to availability, regulatory requirements, and Backpack's discretion.

New Products

BP participants receive early or exclusive access to new platform features, products, and services before they are made available to the general user base. This may include beta access, early rollout invitations, and priority onboarding for new trading products, yield programs, or other features launched by Backpack or its affiliates.

Equity Exchange Program

Introduction

As part of the Backpack Participant Program, Backpack is also offering an equity exchange program for active user participants staking BP.

There is no requirement to participate in the equity exchange program. It is a separate program from the token, infusing an additional utility that could be applied to not just BP, but any token. Because the equity exchange program is separate from the token, requirements change depending on jurisdiction. Because there is no precedent for this program, this document explains the feature for both Backpack participants and other projects interested in bringing an equity exchange program to their own platform.

In short, the equity exchange program allows participants to use tokens to purchase equity from a reserved pool. Only active users are eligible, subject to a minimum stake amount. The larger and longer you stake, the more equity you can exchange into.

For those interested in participating in a future IPO sale without exchanging their tokens, stay tuned for further announcements.

Base Activation and Bonus Phases

The equity exchange program can be thought of as an emission schedule. There are two phases to emissions: 1) The base phase emitting equity at a rate relative to all tokens, and 2) the bonus phase, emitting equity at a rate relative to the post-IPO token allocation, incentivizing and rewarding long term staking.

1) Base Activation Phase - The Base Activation Phase of the emission schedule requires participants to stake their $BP for one year. The emission schedule is determined by the pro rata portion of the reserved equity pool of your stake relative to the total token supply. For instance, if you stake 1% of the total token supply, then you get the right to acquire 1% of the reserved equity pool. Per day, that’s an emission of 1%/365. Although the emission schedule can be thought of daily, the Base Activation Phase is a lump sum unlocked only after staking for one year. Importantly, participants must stay staked until Backpack’s IPO (or other such equity liquidity event, although for ease of communication we will simply say IPO in this document). Unstaking resets the clock for unstaked tokens. In the event of a partial unstake, any additional tokens that remain staked are unaffected.

2) Bonus Phase - The Bonus Phase of the emission schedule is available to participants who choose to stake $BP for more than one year. The schedule is determined by the proportion of the pre-IPO token allocation relative to the post-IPO token allocation over a 3 year period. Three years is an arbitrary number approximating the time a company at our current point generally takes to go public (i.e. 4 years including the Base Activation Phase). The more pure calculation would be to use the true time it takes to IPO. However, that would make the per day emission calculation impossible and potentially less favorable in the event it takes longer. Importantly, similar to the Base Activation Phase, participants must stay staked until the IPO and unstaking resets the clock for unstaked tokens. In both cases, only active users of the Backpack product are eligible.

Calculations

The emission schedule is a piecewise function, starting from the first day of staking. The first part of the curve is the Base Activation Phase over one year. The second part of the curve is the Bonus Phase over three years. For ease of understanding, see the associated graphic, which transforms the per day emission rate into a cumulative sum. To calculate the emission schedule, i.e., the amount of equity you can purchase

1) Base Activation Phase - The per day emission function can be calculated by (your_token_quantity / full_token_suppy) * (total_equity_reserved_for_tokens / 365). In short, it’s a simple pro rata percent of the reserved equity pool with the requirement of staking for at least one year. Although emissions update daily, you will only be able to exchange after one full year of staking.

2) Bonus Phase - The per day emission function can be calculated by [your_token_quantity / pre_ipo_token_allocation) * total_equity_reserved_for_post_ipo_tokens] / (3 * 365). In short, it’s a simple pro rata percent of the post-IPO token equity, emitted over three years. As a reminder, the pre_ipo_token_allocation is 62.5% of the total token supply, so 625,000,000 tokens.

To reiterate, although the emission schedule can be visualized as a per day accrual, one cannot activate the equity purchase, until after staking for at least one year. Further note, the one year cliff is guaranteed as long as one stakes before the IPO snapshot deadline. Once Backpack goes public (or achieves another such equity liquidity event), emissions halt.

What happens after exchanging for equity?

When a participant elects to exchange their tokens for equity, the tokens get sold to the company. As a result, all token related stake and time weight is gone. Similarly, the exchanged tokens will be owned by the company and lose any future claim on equity.

Equity Dilution

Equity dilution is a fundamental concept that applies to all company cap tables. Unlike a fixed supply token like Bitcoin, when more shares in a company are issued, all existing shareholders are diluted equally. Most commonly this happens during a fundraise, where more shares are issued and sold to investors, or when employee options are created and distributed to a team member. At the time of the original announcement, February 23, and token genesis, March 23, the total shares given to the BP equity exchange program pool equates to 20% of company equity held by all existing shareholders, including unexercised equity options previously granted to current and former employees on that date. The BP equity exchange pool is fixed in share terms not percentage terms, as is the same with all founders, executives, team members, and investors. In the event of dilution from more shares being issued, it applies equally to all existing shareholders alongside the reserved equity exchange pool. All future shares issued are subject to board approval.

Forfeited equity

Forfeited equity occurs when tokens are not staked or unstaked after the staking deadline. Due to the unpredictable nature of equity liquidity events, the deadline will be announced by Backpack at an unspecified future time. The simple way to think about this deadline is that it occurs approximately when Backpack announces its intention to IPO (or any other such equity liquidity event).

Disclaimer

This website is provided for informational and illustrative purposes only and does not constitute an agreement, offer, solicitation, or commitment of any kind. The final terms and conditions governing the equity exchange program are set forth in the Terms and Conditions for the Backpack Participant Program available here, which supersede the information contained herein in all respects.

Backpack reserves the right to modify, suspend, or discontinue any aspect of the equity exchange program at any time, including to comply with applicable legal, regulatory, or operational requirements in any jurisdiction. In some jurisdictions, additional eligibility requirements may apply, which will be communicated as they are determined.

The equity exchange option is an additional benefit provided to Backpack participants, not a guaranteed right for the token itself. Nothing in this document constitutes financial, legal, or tax advice. Participants should consult their own advisors before making any decisions in connection with the BP token or the equity exchange program.