Hi Yui,
to make a token, you must refine a bit first.
Take 5 common drop item ( example 5 scale of water serpent) and use refine option to convert it into a bit of water knight.
Then use craft option to craft 1 token from 1 bit. Ex. bit of water knight crafts into a token of water knight that can be gifted at the tavern to a water knight or elite Beisel (a water knight). Hope that helps!! (Maybe I should make a refining/crafting guide? I know the menus are kinda clunky >_<;;)