What's a token?
Tokens exist because transformers don't work on bytes or words. This is because it would be too slow (bytes), the vocabulary too large (words), and some words would appear too rarely or never. The token system allows a small set of symbols to encode any input. On average you can approximate 1 token = 1 word, or 1 token = 4 chars.
So tokens are the data type of input and output, and the unit of measure for billing and context size for LLMs.