Our friends at Wiki define a token economy as behavioral modification through systematic reinforcement, which loosely means you do the right thing - you get a ‘token’ prize. A token is simply an asset that can be exchanged for something else of value - material or immaterial.
In the Blockchain & Cryptocurrency industry, we refer to tokens as digital assets within an ecosystem. Tokens are used in relation to blockchain applications & platforms, and can be programmed for specific use-cases to attain desired goals. Smart contracts govern how tokens are deployed; hence the term, ‘Programmable Money’ was born.
Economic systems based on blockchain technology are researched, designed, and implemented - and the applications inherently follow unique economic models utilizing cryptocurrencies…this, in a nutshell, is what we call “Token Economics”.