Weapon Levelling for OSR Games

For every 1000 XP earned, or gold spent (and therefore xp gained) at the magic blacksmith's, a character earns 1 Weapon Point (WP).

WP may be saved and spent on the following upgrades, listed by cost, whenever the character is not in a dungeon.

X WP - Change damage die to the next highest die type only by spending X WP where X=dX of the old die type (eg: 4 WP to upgrade d4 to d6).
1 WP - Weapon can transform at wielder's will, see transformations below.
1 WP - Weapon deals +1 damage to an enemy type (beast, material, etc), this upgrade can be bought again but doubles in WP cost for each additional purchase.
1 WP - Weapon acts as a compass needle after 10 min ritual, points towards the nearest thing 1: lost, 2: deliberately hidden, 3: valuable eg treasure, 4: extraplanar in origin.
1 WP - Weapon is silvered, can affect spirits/lycanthropes/astral entities.
1 WP - Weapon becomes intelligent, can communicate with wielder telepathically at any range on the same plane, see personalities below.
1 WP - Weapon casts light, can be turned on/off or made dim/blinding at the wielder's whim.
1 WP - Wielder can choose one person or creature at a time, that target refuses to believe despite any evidence that the weapon exists.
1 WP - Weapon lives within the wielder's hand, can be summoned at will or put back inside whenever it is within the wielder's grasp.
2 WP - A command word causes the weapon to be immovably fixed in space (speak again to switch this off).
2 WP - A command word causes the weapon to teleport to the wielder's grasp, no matter its current location.
2 WP - Weapon is blessed, +2 to hit and damage against anything blasphemous to the deity.
2 WP - Fighter-type only: Weapon grants +1 AC
2 WP - Thief-type only: Weapon can shrink down and become a magically enhanced lockpick.
2 WP - Wizard-type only: Weapon contains a random spell.
3 WP - +1 to hit and damage, upgrade stacks up to +3 total if bought again.

During the upgrade process, a weapon may randomly gain a quirk (1 in 6 chance or similar):
1: Intelligent, see personalities below
2: Holder gains a different appearance while wielding the weapon
3: Secretes goo
4: Invisible
5: Too self-aware, save vs number of monsters killed each day or the weapon gives up violence
6: Is now a dog (loyal, roll your attacks and deal damage as with the normal weapon)

Transformations:
1: Tool (eg spade, hammer, quill)
2: Clothing (eg hat, cloak, garter)
3: Animal, intelligent (eg rat, toad, porcupine)
4: Other weapon type

Personalities:
1: Curmudgeonly
2: Excitable
3: Daydreamer
4: Lascivious
5: Cowardly
6: Violent
7: Curious
8: Obliging

Variant: Blood Alchemy

It is the war god's magic that turns a weapon into a Weapon, a true instrument of battle.

Each of the above upgrades corresponds to an item, a magical attachment which confers the upgrade's ability to a weapon instantly once affixed. One such attachment may be affixed to a weapon at one time: some rune, charm or totem, perhaps.

Once the weapon has dealt total damage equal to X times 100, times the WP cost of the upgrade, where X is the dX of the weapon's damage die, in righteous combat*, an alchemical ritual seals the power of the attached item into the weapon's form permanently, and a new item may be attached.

(*the scriptures differ on what counts as righteous combat, some priests even believe assassination counts, but something like finding a farm and stabbing some pigs definitely doesn't)

The player tracks total damage; if they forget, they forget. New items can be found through questing, or given as rewards.