This obviously part of a larger stream of information. The question always comes up, where do you break off things into discrete posts. If you have a society of wizards that carries glass daggers filled with poison, do you make a post just for the glass daggers? Maybe this should be just folded into a discussion of the cat people. If not this bare bones list of facts should be developed to really be a whole image of how battlesteeds work and interact with Catpeople (Furrys). There is obviously a culture that goes with the battlesteed breeding.
Perhaps a love story, a battle steed has an arranged mating with another battlesteed, it all seems perfect, their children will add strength to the Catfolk (Furrys) fur generations. But instead, the battlesteed falls for donkey.
Or what if the battle steed fall for his Catfolk (Furry) master, Robert Silverberg handled that one.
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This is very good, I like the three scenes you have painted in the description of this God or event. But it also a very ambitious work (to tell short story or relay a fact by presenting the information as myths and heresay from different sources). I like everything you done, but when if I use this I will rewrite it give the presentation of this information a stronger central thread. A over arching narrative to the smaller narratives.
For a holy item crafted by the members of a theocracy the moral compass of the gods and the relationship of the divine to the item rarely comes into this story. I dislike the focus on "spells" when discussing divine intervention, but I get the idea behind the item,
"it improves the wizard who wields it but makes the wizard vulnerable to the divine powers of the gods. " For an item that puts game mechanics first and foremost, it is just okay, not worthy of "fabled place in history"