The way it works right now, the reigning champion does nothing until a challenger has earned the right to face him by winning a candidates tournament. Then the winner of the candidates tournament faces the reigning champion in a match for the title. Carlsen, as I understand it, would prefer that the champion take part in a tournament.
The women's championship (also played this month) does feature a tournament. 64 players were seeded, and played single-elimination two-game matches (with rapid games as tiebreakers). The final two players then faced each other in a four-game match (again with rapid games as potential tiebreakers). The final did go to tiebreaks, and was won by defending and now repeat champion Ju Wenjun.