11 official rulings from Bandai. Straight answers to how this card actually resolves.

Can this card be included in my Digi-Egg or Main Deck?
No, Tokens cannot be included in decks.
Can I digivolve this card into [BT5-085]/[Armageddemon]?
No, tokens cannot digivolve or become digivolution cards.
What happens when this card leaves the battle area (e.g. deleted, returned to hand, deck)?
It would be removed from play instead of moving to that location.
If this card is deleted, it is removed from play instead of being sent to the trash. Does it still count as being deleted?
Yes, it still triggers you and your opponent's "when... Digimon... is deleted" effects and also triggers its <On Deletion> effects.
If this card is deleted, can it activate its <On Deletion> effects even though it is not in the trash?
Yes, it can.
If a card requires that I return a Token to my hand to perform an effect and I choose to return the Token to my hand, does that effect happen?
Yes, it does. If your token is chosen as the target to return to the hand for "By returning 1 Digimon to the hand", it will ultimately be removed from the game instead of being returned to the hand according to the rules, but it meets the "by returning 1 of your Digimon to the hand" condition. However, a card isn't actually added to the hand, therefore effects such as "when a card is added to the hand" don't trigger.
If this Token receives the effect of [BT3-109]/[Back for Revenge!]. What happens when it is deleted?
The Diaboromon token cannot be played again because it was removed from the game when it was deleted.
Can Tokens have digivolution cards, if a card tries to place a digivolution card underneath what happens?
No, they cannot. If a card attempts to target a Token to give it a digivolution card the other target will remain in the specified location.
If this Token is deleted by a card effect, it is not sent to the trash. Does that still count as deletion?
Yes, it still counts as deletion to fulfill the requirements of effects.
What happens if a card chooses to place a Token underneath another Digimon as a digivolution card?
The token will be removed from the game.
What happens if a card chooses to place a Digimon underneath a Token as a digivolution card?
Nothing will happen, as a Token cannot have digivolution cards. So the Digimon will remain in play.
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Questions and answers are Bandai's official rulings, collected and translated by the DigimonCardGame Wiki community and reused here under CC BY-SA. Card names and card text are © their respective publishers; Combalo is not affiliated with Bandai.