Glossary term

Tokenomics / token economics

The discipline of managing how AI tokens are produced, distributed, consumed, priced, allocated, and optimized to create business value.

Introduced by the FinOps Foundation as a companion discipline to cloud FinOps, spanning three linked layers: production (infrastructure and energy used to generate token capacity), consumption (model choice, routing, caching, and actual token use), and monetization (whether the resulting capability creates an economically viable outcome).