ESO had a not too bad compromise between tokens and RNG loot.
Each boss dropped loot for you and you only. It was random. You might get something you want or not. It also put a timer on loot you obtained. The timer was 2hrs I think. During that time you could trade loot to other players that were present when it dropped. In addition, there were dailies that would award keys. You used these keys to obtain loot from 3 different loot pools. This gear wasn't obtainable in the dungeons, but had a set bonus with gear that did.
The end result was something that was random, but allowed for player interaction. Basically each boss dropped 4 things of loot, one for each player. And then the players could trade loot at the end to get something they preferred.
I still prefer a mini-token system for dungeons though. Maybe something like each completion of a particular dungeon awards that dungeon's token. Five tokens allows you to pick a piece of loot from that dungeon. RNG is daunting for those who are unlucky. Hasn't been a good system since it was introduced 18 years ago.