The Dragon hatchet is approximately 5-10% more efficient at getting logs than the Rune hatchet.
As of 17 June 2013, this hatchet can be stored on a toolbelt, 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.
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 Aug 2006, its log cutting ability was increased to be about 5-10% faster than a rune hatchet, and its Woodcutting level was increased to 61.
Before the Evolution of Combat, the dragon hatchet was the only hatchet that had a different look among other metal hatchets of its kind. The hatchet head was very different and the dragon hatchet had a metallic handle.