Long ago, before the Clan Peace was established, dwarves were the most prolific race in the world. Then came the Dwarven Clan Wars. They raged for a millennia. No one really remembers why they began. If you delve deep enough (that’s a dwarf joke) each clan believes some other clan started them.
Dwarves, being notoriously hard to kill and unyieldingly stubborn, were the primary cause for the length of the war. You may yet stumble into the caves of an extinct clan who refused to surrender; though you do so at your peril. They are as often as not now home to less friendly creatures. Which is saying something considering dwarves don’t exactly give a halfling’s welcome to outsiders.
Around the 900th year, an artificer by the name of Kardin Grimsbane invented the Bloodbane Daggers. The edge and jewel were forged from dragonite and the core from the heart of a Tangleblood tree. She is largely considered to be the first dwarf to craft anything from wood and quite possibly the reason dwarves are superstitious about doing so.
You see, the Bloodbane Daggers were the reason the wars ended, but at a heavy cost. Two thirds of the Clans were wiped out. Many dwarves consider them evil and almost all the daggers were destroyed. Any dwarf struck by the dagger lost their innate racial ability to fight off poison. The wielder could sacrifice their own resistance by placing their finger in the hilt groove and making a pact with the dagger. Doing so would allow them to transfer the victim’s life force into the jewel in the hilt then draw on it as they took damage. The jewel started out silver and would become blood red when full. Interestingly, it wasn’t the dagger that did most of the damage. It was the sudden proliferation of poison in the war that ended it…. but the source of that evil is a story for another day.