Scourge stones can be turned in via repeatable quests for reputation but cannot be traded. Scourge stones stack in piles of 250. Once the Scourge stones are turned in, you receive an Argent Dawn Valor Token that can be activated to gain 25 reputation. Argent Dawn Valor Tokens stack up to 500. It's recommended to hold on to your Scourge stones until you're Honored with the Argent Dawn. At that point, you can no longer gain reputation by slaying most undead monsters.
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