What is ‘tokenomics’ and how would China gain the edge in artificial intelligence era?
SCMP Tech / 3/23/2026
💬 OpinionIdeas & Deep AnalysisIndustry & Market Moves
Key Points
- The article explains tokenomics as the AI era’s economic framework, positioning tokens as a key commodity for AI-enabled ecosystems.
- It argues that token-based models and incentives could influence how AI is developed, deployed, and financed.
- It suggests that China could gain a structural edge due to its large energy scale and potential for low-cost AI models.
- The piece treats tokenomics and China’s AI positioning as strategic considerations with broader implications for global tech leadership.
“Tokens are the new commodity,” said Nvidia CEO Jensen Huang, clad in his iconic leather jacket, at the company’s annual flagship developer conference, GTC, last week in San Jose, California.
The chip designer’s helmsman wants to recast his company not as a silicon vendor but as the architect of what he calls “AI [artificial intelligence] factories”, whose standard product is “token”.
While Nvidia is busy writing the rules of a new token economy, a parallel debate is emerging in China around the...
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