Torch God's Favor

You cannot craft this or find it in a chest. It comes from surviving The Torch God, an event that triggers when you place too many ordinary torches in a cramped underground space and the game starts throwing them back at you. Surviving alone is not enough. A large number of torches has to be fired before the event ends, so a fight that finishes too quickly leaves you with nothing to show for it. The game also refuses to start the event while you are carrying one of these, used or not, which is what blocks farming spares for other characters. The trash slot is not counted as inventory for that check, and that is the one loophole.

It is a one time consumable in the same family as the Demon Heart and Advanced Combat Techniques, so a second one does nothing. Once used you stop carrying six kinds of torch. Place ordinary Torches or Campfires anywhere and the matching biome variant goes down instead, keeping your torch luck positive with no inventory management at all. The swap sticks: mine a placed torch back up and you get the biome version, not the plain one you put down. A toggle beside the inventory turns the whole thing off when a build needs a specific look.

• The Dungeon gets Bone Torches, which do nothing for luck there. Carry those to the Underworld, where they actually help.
• Demon Torches go down in the Underworld and contribute nothing to luck anywhere.
• The Aether gets Aether Torches, also for no luck benefit.
• The Ocean keeps plain torches even though a Coral Torch exists.
• Ice Torches outrank Jungle and Mushroom Torches, which is backwards from how biome priority works for fishing and spawns.

The biome priority list for campfires is not the same as the one for torches, so a spot that gives you one biome's torch can hand you a different biome's campfire. It rarely matters in practice, but it does surprise people building where two biomes overlap.

Buying cheap torches from the Merchant, converting them to Demon Torches in the Underworld and selling them back turns a small profit on each one. It genuinely works, but by the time you are comfortable enough down there to spend an hour on it, almost anything else you could be doing pays better. Using the favor also unlocks the Torch God's Bestiary entry, which is the only way to get it.