Clutch of the Undercity on token magic does controller still lose 3 life rules

[Leafy]

if you use Clutch of the Undercity on a token does its controller still lose 3 life? can you use it on a token at all?

[Twanos]

Yes you can use it on a token and yes they still lose 3 life. Tokens are perms, they simply cease to exist once they leave play but not until they trigger any effects of them trying to enter the appropriate destination.