On most of my sheaths I round and burnish the edge-welt . A square edge is very easy and quick to do and you will find most production sheaths are like that for cost reasons . I don't sell my sheaths so extra time taken finishing the edge isn't an issue . For example the rounding and burnishing of the edge on that Leatherman sheath is probably 2 - 3 hours of work ( The photos dont really show it off very well , it is mirror smooth ) . Most people wouldn't be prepared to pay the extra cost of that on a production sheath .
Ken
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