Since there aren't any restriction regarding the Token's usage, you can also use it for Tribute Summon.
You can send this card to the Graveyard as a renewable cost to activate the effect of "Darkstorm Dragon".
The equipping effects of "Paladin of Felgrand" and "Guardian of Felgrand" are excellent ways of fueling this card's Token-generating effect. As a result, the last effects of those monsters can be used to Tribute themselves and the subsequent Token to Special Summon the Dragon-Type monster they were equipped with.
Alternatively, if there's already a copy of "Divine Dragon Lord Felgrand" in your Graveyard, then it can be revived with "Call of the Haunted" and activate its effect to banish a monster. Then this card's effect can be used to destroy "Call of the Haunted", which will destroy the revived "Felgrand" and generate a Token. Then use the effect of "Paladin of Felgrand" to Tribute it and the Token to re-Summon "Felgrand" and use its effect to banish a second time. This can be done even if "Paladin of Felgrand" doesn't have a Dragon equipped to it currently.
You can combo this card with "Lord of the Red", which can destroy either a monster or a Spell/Trap card your opponent controls (once per turn each) for every time this card's effect activates.