A token economy is a system that uses tokens as a form of currency to reinforce desired behaviors. In this setup, individuals earn tokens for completing specific tasks or exhibiting positive behaviors, which can later be exchanged for rewards or privileges. This approach is often used in settings like schools, therapy programs, and behavior management systems. Tokens can take various forms, such as physical coins or digital points, and are designed to motivate individuals by providing immediate feedback. The effectiveness of a token economy relies on clear rules and consistent reinforcement, making it a valuable tool in behavior modification and learning environments.