It's important to understand that this card's effect activates if it's sent to the Graveyard from anywhere. This includes Tribute Summoning it, discarding it as a cost or effect, and even sending it to the Graveyard using "Foolish Burial".
Discard this card with the effect of "Drill Warrior", then add it back to your hand when it returns to the field. By repeating this process, you can generate many "Fluff Tokens".
Send this card to the Graveyard, then Summon another monster and Tribute them all for "Destiny HERO - Plasma". You can do this because even though the "Fluff Tokens" cannot be Tributed for a Tribute Summon when they are placed on the field and "Plasma" is a Special Summon.
Use this card with "Limit Reverse". During the opponent's End Phase, activate "Limit Reverse". During your next turn, switch this card to Defense Position, which will cause "Limit Reverse" to destroy itself and "Dandylion", which will activate the effect of "Dandylion".
This card can be used in a "Lightsworn" Deck; due to the tendency of such Decks to Mill cards, it is likely that this card will get sent to the Graveyard, thus producing "Fluff Tokens".
Revive this card with "Debris Dragon", then use "Dandylion" and "Debris Dragon" to Synchro Summon "Black Rose Dragon". Then use the effect of "Black Rose Dragon" to destroy the field. Afterwards you get two Tokens to set up a defense.
This card can be used as an Xyz Material while still retaining its effect, since it activates when it is sent to the Graveyard. It will therefore Special Summon 2 "Fluff Tokens" even when detached.