Dynamic categories are meta-categories of a second order with the ability to alter the meaning of the categories on the level below. The dynamic categories are a result of a complexification process where challenges in the environment introduce new variety. With additional variety, possible new connections increase exponentially. A category as a stable set of constraints on variety gives meaning for a particular environment. As the system is exposed to a more complex set of environments, different stable configurations of constraints may be possible. It may even be required in order to serve and maintain the function of the system. The same category may have slightly different configurations, and thereby meaning, dependent on the environment. The Coevolution of categories will seek out new variations of constraints on variety; i.e. changing the internal structure of constraints.