Rest in Peace reads: 'If a card or token would be put into a graveyard from anywhere, exile it instead.' This is a replacement effect (CR 614.1), and it applies to both cards and tokens explicitly. When a token would go to the graveyard for any reason — combat damage, sacrifice, lethal damage — the replacement effect intercepts that event and redirects the token to exile instead.
Normally, a token that goes to the graveyard ceases to exist as a state-based action (CR 704.5d) immediately after it arrives there. However, because Rest in Peace replaces the 'put into graveyard' event entirely, the token never reaches the graveyard at all — it goes to exile. It still ceases to exist in exile shortly after (since tokens can't exist in zones other than the battlefield), but the key point is the replacement effect still applies and functions correctly (CR 614.1c).
This matters because some triggered abilities care about creatures dying (going to graveyard from battlefield). With Rest in Peace active, tokens that are destroyed or sacrificed are exiled instead of dying, so those 'when a creature dies' triggers will NOT fire for tokens (or for cards, for that matter).
Example: You control a 1/1 Saproling token, and Rest in Peace is on the battlefield. Your opponent blocks and destroys the Saproling in combat. Instead of going to the graveyard, the Saproling token is exiled. An ability that triggers 'whenever a creature dies' would NOT trigger, because the token never entered the graveyard.
The relevant rules are CR 614.1 (replacement effects), CR 614.1c (how replacement effects modify events), and CR 704.5d (tokens cease to exist in zones other than the battlefield).
Unofficial fan resource — not affiliated with or endorsed by Wizards of the Coast. Answers are AI-generated estimates grounded in the Comprehensive Rules and are not a substitute for an official judge. Verify anything match-critical.