Backpack, a company focused on building a robust crypto-based platform, has introduced an innovative approach to token staking. The plan allows users who stake their tokens for at least one year to convert them into company equity at a fixed ratio, currently representing up to 20% of the firm's equity.
This move is aimed at aligning user participation with long-term growth and creating a stronger bond between the product and its community. By offering equity conversion, Backpack seeks to provide a tangible connection between token usage and company value, addressing concerns over token governance and value creation.
Armani Ferrante, founder and CEO of Backpack, emphasized that decentralization will grow further with time. He noted that early features may be more centralized, but as the product matures, components are expected to shift towards decentralized structures. Ultimately, Ferrante envisions the crypto becoming a more encompassing type of value than a single firm can provide.