This is one of the new cards being released for the Commander set, Commander being the new official name for the fan-made casual EDH (Elder Dragon Highlander) variant.
The card is quite interesting, it deals 1 damage to target creature or player but in return that creature's controller or the player gets a 1/1 green Squirrel creature token, ideas for how it could be used could be to finish off a large creature, sure they get another creature in return but you've successfully removed what could be a 8/8 with trample, and 1/1 isn't going to be too much of a threat.
Or perhaps you could continue to kill the 1/1 Squirrel to trigger an enchant that has an effect when a creature goes into the graveyard from the battlefield. Token creatures still go to the graveyard and trigger effects that are activated from it, only difference is once they are in the graveyard they instantly vanish, making it impossible to recover a token from your graveyard.
Another idea is to hit one of your own creatures, this could be to simply get more creatures and possibly trigger effects that go off when a creature enters the battlefield under your countrol. In Commander even though everyone starts off with more life, if you have enough creatures you could charge with them all.
There are various differnt ways this card can be used and with it being only 4 mana to play and 1 to use, it can easily go in various decks, working well with many types of cards for interesting effects.
I also quite enjoy the flavor text of the card.