The Dragon hatchet is approximately 5-10% more efficient at getting logs than the Rune hatchet.
As of 17 June2013, this hatchet can be stored on the tool belt, but requires confirmation before doing so, as it cannot be removed once added.
When received with CoinShare active, the Dragon hatchet will be dropped as 120 Dragon hatchet shards split evenly among the players and sent directly to their banks. 120 shards can be combined to create this item.
The dragon hatchet has a special attack, Clobber, which requires 100% adrenaline and lowers your opponent's Defence and Magic by 4 levels. It also applies a debuff that increases the target's Affinity values by 5.
There is currently a glitch where when cutting an evil tree while the dragon hatchet is sheathed, your character will still have the hatchet sheathed on their back as well be wielding one to cut the tree.
Upon its release the dragon hatchet only needed a Woodcutting level of 41 (same as a rune hatchet) and could only cut logs at the same rate as a rune hatchet. It was simply considered a more expensive, red-coloured rune hatchet with better combat stats (which Jagex actually confirmed in the knowledge base earlier). On 22 August2006, its log cutting ability was increased to be about 5-10% faster than a rune hatchet, and its Woodcutting level was increased to 61.