Tools will degrade with use, which means that the tool will eventually become useless and break (disappear). With each strike of a pick axe/hammer, each stroke of a knife, and each pull of an energy collector, the tool will degrade by one. Each tool starts with a life or durability of 7,200. This will slowly decrease (roughly one point of durability every second) and the tool will eventually break.

Hammers and Pick Axes are used to mine Stones.

The Knife is used to cut Herbs.

The Energy Collector is used to collect energy.

Remember that each class has their own tools to cut, mine, or collect energy. So a Rogue Knife can not be equipped by a Knight.

Once you have the right tool, you will need to equip it in order to start gathering those precious resources. Tools are equipped in the same way that weapons are: drag the tool to the weapons slot or double click the tool in the inventory.
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Permanent & Temporary Resources:
To start harvesting, you will need to choose one of the two available choices for the resource. Each resource as a permanent source and a temporary one. Permanent sources offer a constant supply of the resource, but you will gather the resource at a slower rate. Temporary sources offer a faster gain, but they disappear when all of the resource has been harvested and will only reappear after a short amount of time has passed.