You have found one of the Deadwood furbolg's ritual totems.  The totem itself is of non-descript construction, but a palpable sense of despair emanates from it.  If there were any object that might best exemplify the corruption that the Deadwood furbolg suffer under, this item would clearly be it.$B$BOne of the furbolgs inside Timbermaw Hold may have a use for such an item... that is, if you've earned their trust enough for them to speak with you.
