I love the Conservation Mechanic, and the Floofs as well, but I feel like the Tags could have another purpose besides just contributing to Floofs. In my quest to find Subterranean Pobbers and Thorny Bolarolas, I've gotten more Sunny/Spotted Tags than I know what to do with, and I don't feel like I need or want that many Floofs of the lower-rarity animals. I feel like the Extra tags could be used for extra standing like the Debt Bonds or Gems, or go towards helping acquire tags for rarer subspecies of whatever you're hunting - either as a direct exchange (like 5 Sunny Pobber Tags -> 1 Delicate Pobber Tag, 5 Delicate Pobber Tags -> 1 Subterranean Pobber Tag, etc) or by giving us a consumable to boost spawn chances for a rarer species, like trading in Sunny Pobber Tags gets bait for Delicate Pobbers to use at their spawn point, and trading in Delicate Pobber Tags gives you bait for Subterranean Pobbers or something.
