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what does this green little dagger do?

it adds luck when you kill non summon enemies with it.

waht does luck do

luck increases your chances to get gear/events of higher rarity, making things like legendaries and rares more common.   

u sure? i just got that green dagger and used it as the last hit on every enemy but almost  didnt get any rare or uncommon items. it felt like the ring of luck does a better job... is there any numbers in which amount the luck increases and how much it effects the propability to get rare items?