Tokenomics Redesign

Definition ∞ Tokenomics redesign involves a significant alteration to the economic model governing a cryptocurrency or blockchain project. This process includes modifying aspects such as token supply schedules, distribution mechanisms, specific utility functions, or methods for value accrual. The primary objective is often to enhance long-term sustainability, attract new users, or adjust to evolving market conditions. This strategic change aims for improved economic performance.
Context ∞ News outlets frequently report on tokenomics redesigns as projects strive to optimize their economic frameworks or address perceived shortcomings in their original models. These proposed changes often generate considerable discussion regarding their potential effects on token value, investor sentiment, and the overall health of the underlying protocol. Stakeholder consensus is often a key challenge during such transitions.