Backpack (BP)

Backpack $BP Stakers CAN NOT receive 20% of equity with one year of staking

Backpack’s Equity Exchange Program sounds generous on the surface — “stake BP and get company equity” — but the actual numbers are way less attractive than most people think.

Support docs clearly state: 1-year stakers do NOT get 20%. They get 12.5% at best.

Here's why

👇🧵1/6

Backpack’s official “Backpack Participant Program” page explains everything, but it comes with a very strong disclaimer: “This is for informational purposes only and can be changed or cancelled at any time.”

So treat it as a reference, not a contract.

2/6

Here’s the math they actually use:
Base Activation Phase (first year)Formula = (your tokens / 1,000,000,000) × (20% reserved equity / 365)

Even if every single 625M pre-IPO token (250M already unlocked + 375M still locked) is staked for a full year, you only get 12.5% of the equity pool.

It was never “1 year = 20%”.

3/6

The 375M Pre-IPO tokens are still locked and will be released gradually via milestones.
There is zero chance most of them can be continuously staked for the full 1-year during the Activation Phase.

That means a huge chunk of the 12.5% baseline is mathematically impossible to claim.

4/6

And here’s the kicker — Forfeited Equity section:
Any tokens that are not staked (or are unstaked) by the snapshot deadline are forfeited and go back to the company.

Because the 375M can’t realistically be staked for a full year, up to 7.5% of the total 20% equity pool is likely to be forfeited.

Realistic base distribution?
Closer to 5% or less.

5/6

Even if you personally stake 100M BP alone, you still only get: (100M / 1B) × 20% = 2% of the equity pool.

It’s pure pro-rata.

Number of stakers doesn’t matter.
If you’re thinking of long-term staking for equity, read the docs carefully and understand the real economics — it’s far more diluted and forfeiture-heavy than the hype suggests.

DYOR and stay safe.

6/6

Backpack gives a stake of 12.5% to a 1-year staker, which is less than the advertised 20%.

Backpack's Support Docs contain an explanation of the "Backpack Participant Program," i.e., the equity-exchange program.

Of course, there is also a disclaimer stating, "This webpage is for reference and explanatory purposes only and does not constitute a contract, offer, or solicitation," which means the information can be changed at any time; there is also a Legal section that may be altered, so please take note.

The details are quite complex, but according to the following,

👇🧵

1. The “calculation base” for the 1-year allocation is 1 billion tokens.

When Initial 250M and Pre-IPO 375M are combined, they constitute 62.5%; if all are staked, 12.5% of the 20% equity (i.e., 625M/1B) is allocated.

* It is not a structure where staking for one year yields a 20% share from the start.

In the first year, even if the entire Initial + Pre-IPO supply is staked, only a 12.5% distribution is received.
👇

2. When will the Pre-IPO tokens be released?

The Pre-IPO 375M will be unlocked sequentially through a milestone unlock mechanism, and during the 1-year Activation Phase, it is highly unlikely that the whole amount can be continuously staked for an entire year.

There is no plan yet indicating whether this quantity will be fully released within a year; even if it is, it is expected to be released gradually over several months rather than all at once.

Nonetheless, these unreleased tokens are already being counted in the staking calculation base.

This means that the quantity cannot be used for staking.
So what will happen?

3. Unstaked allocation shares are forfeited.

The Support page lists Forfeit conditions.
On the surface it states, "If you unstake before completing a year of staking, or you are not staking at the snapshot time, the shares will be forfeited," however,
the 375M amount that cannot be staked immediately will be impossible to stake for a full year during the Activation Phase.

According to the "Forfeited equity" explanation, with a base of 1 billion BP tokens, 7.5% of the 12.5% allocated to the Pre-IPO 375M would be forfeited, meaning the team does not need to distribute those shares.
Thus, even from the initial 12.5%, only about 5% is actually distributable, and since full 100% staking is unrealistic, the effective percentage would be even lower.

4. Equity distribution equation

All of this is laid out directly in the equation posted by Backpack.

Daily emission =
(your_token_quantity / full_token_suppy) * (total_equity_reserved_for_tokens / 365)

where
your_token_quantity = the amount you have staked
full_token_suppy (typo in the Docs) = Total Supply 1B
total_equity_reserved_for_tokens = 20%

Thus, even if I alone stake the full 100M,

100M * 1B * 20% = only 2%.

No matter how many stakers there are, it does not affect the share I can receive.

Anyone considering staking should keep these points in mind.