Token Unification

Definition ∞ Token unification describes the process of consolidating multiple distinct digital tokens into a single, standardized token, often to simplify an ecosystem or improve liquidity. This can involve migrating older tokens to a new contract or merging different governance or utility tokens into one primary asset. The goal is to streamline user experience, enhance market depth, and potentially reduce operational complexities. Token unification aims to strengthen a project’s economic model and community cohesion.
Context ∞ Token unification is a strategic move often reported in crypto news when projects seek to refine their tokenomics or simplify their multi-token structures. The current discussion frequently involves community governance proposals and the technical challenges of migrating existing token holders. Future trends suggest more projects may consider unification to optimize their economic incentives and improve overall ecosystem clarity.