Step 1. Precious Plunder
Wield the Hammer of Proving to pillage Cabal Gold by completing playlist strikes, Gambit, Crucible, public events, dungeons, Nightmare Hunts, or the Blind Well. The Hammer of Proving permits challenges of honorable combat to be issued, skirting the risk of total war with the Cabal. However, to be recognized as legitimate, it must be socketed with Cabal Gold.
Step 2. Gilded Conquest
Use Cabal Gold to socket a Challenger Medallion into the Hammer of Proving. Once done, you will be ready to issue a challenge. The Hammer of Proving can be found in the Quest tab of the Director.