Hammer
A more expensive weapon that carries some interesting utility.
Crafted by combining two sticks and either a log, smooth stone block, iron block, gold block, or diamond block. The netherite variant is made in the same way as others, by attaching an ingot to the diamond version.
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Stats. Attack speed goes from 0.5 at wooden, to 0.8 at diamond/netherite. Damage is 1 point higher than Axes at each tier.
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Smash. The Hammer's signature ability is to strike the mob or block you are targeting, and deal damage around them in an area. When affecting blocks, it will replicate a specified amount of mining based on the tier of Hammer and the level of any Efficiency enchantment on it to things within 1 block of the primary target - if a block is not broken, the damage is very quickly reversed just like we are used to. Wooden hammers will automatically break things like glass panes, and as you get into iron, diamond, and netherite, you will be automatically breaking logs, concrete, stone, and other tougher materials with ease. Blocks broken and mobs killed by a Smash will drop their respective items.
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Enchantments. Unbreaking, Mending, Looting OR Fortune, Efficiency, Smite OR Fire Aspect, Knockback, Density OR Recoil, Quake/Fracture OR Tinker.
Fire Aspect would leave some flames in the impact zone when affecting blocks, as if a flint and steel had been used in a random pattern.
Looting and Fortune are mutually exclusive for many of the same reasons that Mending and Infinity are mutually exclusive on bows. It helps to differentiate how the player envisions using their Hammer.
Density is a fun new enchantment that may or may not have multiple ranks. If you "drop" the Hammer from your hand or inventory, it will land with a crash - dealing damage to things around it as if there had been a Smash attack. This functionality is replicated if the Hammer is shot from a dispenser, as it will fly like an arrow in cases such as this and land with showstopping force. (Not sure about this next part, but maybe the Hammer becomes a gravity-affected entity like Sand or Anvils, suffocating and damaging whatever it ever happens to fall on, especially factoring in the height it fell)
Recoil is a new enchantment (has 2 ranks) that increases the Smash recharge rate if you hit a valid target. More targets struck, and a higher enchantment rank, means faster recharge rates. This overcomes the Hammer's traditionally slow attack speed, but only if your attacks succeed.
Quake/Fracture is a new enchantment that weakens targets with a short-lived lingering Fracture effect, but only damage from punches, hammers, and falling is boosted by this fracturing. Blocks are affected such that the temporary "mining" done to them by a hammer strike or punch will stay, allowing you to chip away at an area until the blocks break if you are quick and determined (rather than seeing your mining progress disappear when the strike is done). Each of the 3 ranks increases the duration of the effect so that it is easier to work with.
Quake/Fracture and Recoil can be combined with Efficiency to make a rather effective area-mining tool, as long as you're a fan of indiscriminate rubble clearing.
Tinker is a new 4-rank enchantment that impacts your effects on constructed mobs or existing blocks. It introduces a right-click functionality to trade some Hammer durability in exchange for repairing a bit of health to Golems, anvils, and blocks in the middle of being broken (yes, so that you can prevent someone from breaking a block they've been chipping away at). Better ranks can combine with Efficiency for an improved effect.
Occurrence
Very rarely, you might find an armored Pillager carrying a non-netherite Hammer with your name on it. They would be aggressive and unperturbed by you building a fortification or hiding behind doors and walls, since they will try to smash it down to get at you.
Similarly, Pillagers might swap to a low-tier Hammer if there are too many hostiles nearby and/or they cannot escape to crossbow range.
Hammers may also be rare loot in the Nether or in Strongholds, with a decent tier and starter enchantment or books.
Lastly, if ever hostile Iron Golems are added (or Pillager-corrupted Golems), they might wield/drop Hammers when they die as a rare loot.
Hammers are on the FPS list
Because of how much I like this post, I feel the need to add a few ideas of my own.
First, a pricing change. The Netherite hammer should need an actual block, making finding it need a lot of time and effort.
Second, another enchantment: Unmaking. This would give it a small chance to 'uncraft' armor and shields of those you hit with it. Armor becomes 1 piece of the material for helmets and boots, or two for chestplates and leggings, while shields become 6 sticks and 2 iron nuggets. The chance of the item being 'uncrafted' depends on its durability, with a 0% chance at above 60% durability, after which the chance goes up rapidly. Below 20% durability, there is a 100% chance to 'uncraft'.
Third, yet another enchantment: Pulse, which comes with 5 levels and is incompatible with Efficiency. Each level increases the area of effect for block breaking by 1 block.
Finally, another way for them to appear in the world. The Giant mob was removed a long time ago. They could be added back in, spawning in the center of a 16/16 chunk devastated area. The Giant would have a Hammer of a random quality (10% wood, 40% stone, 30% iron, 10% gold, 8% diamond, 2% netherite) and high-tier enchantments. The Giant will have all the abilities of the Hammer with its attacks, and when killed, it will not directly from the hammer. Rather, a giant hammer will fall to the ground, creating a crater where it lands, and can be hit with a pickaxe (for stone and metals), axe (for wood), or hammer (for any). After taking enough damage, it will crumble, revealing a usable hammer within, at full durability, with powerful enchantments.