It definitely needs to do more damage. Bungie said it was going to get a damage buff but so far it hasn’t happened.
It needs to go back to its D1 pre-nerf damage. It was nerfed in D1 because it could one shot guardians with 3 armour or less if you got a headshot with incendiary blade.
Incendiary blade isn’t in D2 and so throwing knives should go back to their old damage value.
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I'm a Warlock main and I think it should kill if you remove tracking. There's no reason why something as targeted as a knife throw shouldn't kill when you have mid range homing melees like shoulder charge that one shot. With all the ttk improvements it wouldn't be that bad to have a hunter put themselves at risk by lining up their shot for the chance to one shot. You could even make the damage laughable if it doesn't headshot