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THE LINUX FOUNDATION PROJECTS
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A Linux Foundation Project

Tokenomics Foundation

Defining the best practices and primitives of the token economy

What is Tokenomics?

AI Token Economics is the practice of managing the production (i.e., token factory effectiveness), consumption (i.e., Finops for AI) and monetization (i.e., AI value) of token based AI to generate business outcomes and value.

Tokens are the atomic unit of the AI economy. They are simultaneously the unit of cognition the model produces, the unit of compute the data center serves, the unit of price the lab charges, and the unit of value the enterprise extracts.

Tokens account for only a portion of AI spend. But they are the most visible and most easily metered layer, which has led to a common conflation in industry discourse where “AI cost” and “token cost” are used interchangeably.

The Tokenomics Foundation will bring together large token consumers with hardware providers, frontier model providers, neoclouds, hyperscalers, inference companies, consulting companies, platform companies, etc to build the primitives of tokenomics. It will cover token production (i.e., token factory effectiveness), consumption (i.e., FinOps for AI) and monetization (i.e., AI value) and help tie AI use to business value and outcomes. Read more…

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