Smart contracts and tokenomics play a crucial role in stablecoin development. Smart contracts ensure the smooth operation of the stablecoin by automating and enforcing the rules, such as maintaining the pegged value and managing the supply. Tokenomics refers to the economic design of the stablecoin, including factors like supply mechanics, incentives, and governance. Properly designed smart contracts and tokenomics contribute to the stability, usability, and sustainability of the stablecoin.