Token Economics
Date of Addition
17 October 2025
The cost-performance analysis framework governing enterprise LLM deployment decisions based on the computational expense of processing input and output tokens, measured in tokens per dollar and tokens per second. Token economics encompasses tradeoffs between model size, context window length, inference latency, throughput requirements, and operational budgets that determine architectural choices between proprietary APIs versus self-hosted models. This economic calculus has emerged as a primary driver of SLM adoption, prompt optimization practices, and hybrid deployment strategies as organizations confront the reality that serving costs often exceed training expenses.
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