Yes, and Karlina has used Moon-cutter several times, usually for the ambiguous reference special effects. I think I might have used it for an edge augment. Moon-cutter appears on her character sheet as an ability. Is Mooncutter a magic sword? We have recently assumed so, but it's magic is rather pathetic (current rating, 15). Was it always a magic sword? The original character conception did not say: 'She has bravely carried her broad-sword, Moon-cutter, in many fights.' is all it said, it didn't even say that Moon-cutter is a superior sword.
So, it seems that Moon-cutter has changed, in the course of our story, from a merely named mundane item to a magic sword. It is a beautiful feature of HW that this can happen. If I want, I could spend more HPs on Moon-cutter to make it into something formidable. But I can do that development ONLY because Moon-cutter started as an ability, not as an item of equipment. My suggestion gives players the flexibility to do that kind of thing with all items of equipment, if they wish.
Can something become magical just be association with great people and great deeds? The Angle Saxons thought so, with their concepts of heirloom treasures (laf, mathma).
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