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As its game description states, it is a purely defensive katana; lacking damage in return for high evasion rates. It is considered the weaker version of the Hagakure Blade, which deals far more damage then the Sunrise Katana, but shares the same avoid bonuses.
Like all other Katanas, it increases the wielder's speed by 1 but decreases defense and resistance by the same amount.
Dual Wield as a Swordmaster