As a part of the campaign to find and reclaim the Gidbin for the star elves, Jard has explained that the Gidbin is a sacred star elf relic. Supposedly, the knife was first used during the creation of Ilisara, being the tool with which Selune carved the slots for the gems that would be stars in the night sky. The knife was passed down to the star elves as a show of Selune's favor, and a test of their ability to maintain peace. It was given to the highest priest of her people, and protected in the most sacred of temples in Winterheart.
And there it remained, until the fall of Winterheart. Dark elves sacked the temples first, slaying the members of clan Svalbren who defended the Gidbin to the death. The worshippers of Vandun took the blade and set south to the border wall, hoping to find refuge in the dark below or in the arms of their orcish allies.
They managed to get to the wall, but they were betrayed by the orcs who found them. Slaying them on the spot, the Gidbin was passed to a high shaman of Vandun, who took the blade deep into the Sufros Jungle, and placed it in their sacred temple.
The fate of the Gidbin was tracked down by star elf trackers. They went as far as to locate the final temple's location ... but soon fell ill for unknown reasons. They managed to make it back to Arelas to send a report back, but all of them died of plague before they could make it back to the crescent islands. Their bodies were burned to prevent the plague from spreading.
Seeking to reclaim the sacred artifact, but burdened by the social upheaval of their recent conflict, the star elves sent Jard, one of their kivalti, to find the blade and bring it home.