Crowns are a smithed item worn on the head as clothes, providing 0% insulation. There are three types of crowns in the game: Leaf Crown, Carrot Crown and Wolf Crown. Carrot crown can be put on a hitched wild horse, as part of the recipe for Oddity. Crowns do not decay.
First make a Crown Blank by hitting a Gold Ingot with a Smithing Hammer. Then place a Leaf, Carrot or Wolf Skin on the crown blank, and hit with the hammer to create the associated crown. Any crown or crown blank can be returned to a gold ingot by using a smithing hammer.