According to Buddhist beliefs, Thokchas are protective amulets against evil influences and bring good health and wealth. The legend has it that the god and goddess of the Hell Deities had vowed not to be defeated in war so that the heavenly kings would get their share of battle results (the spoils of war). And so, they decided to make an Amulet from all the precious things (Thokcha collectibles). The amulet was expected to provide sacred powers to the wearer and shield them.
However, at the same time, the god and goddess of the Hell Deities were afraid that the heavenly king might harm them with its sacred power, so they decided to make a dummy from the leftover Thokcha collectibles, which was supposed to trick those heavenly kings into believing that they were wearing the real thing.
Apart from wearing Thokchas to get sacred powers, ancient Buddhists used them in conflict resolution. When two people were in dispute and fail to come to a mutual agreement, each was to ask for a religious service from a Buddhist Lama (Priest). The Lama would then read for them his divination about their case. If necessary, he would make an image of Tibetan Thokcha made with ghee (or melted butter if ghee is not available). The Lama would place as many Thokchas as he deems necessary around the case document. He would then begin his religious service to find answers.
The result of his divination would depend on the number of Thokchas that fall from the image, mainly if it falls to the south or not. If the image falls and stays to the south, the Lama will pray for complete and total success in that dispute. However, he will pray for partial and incomplete success in that dispute if it falls and stays in any direction other than the south.