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The Rising Sun Badge

The badge is a special item from a Kickstarter backer who pledged enough to have a custom item in the game. These don't have any special function but are neat to find, there are a couple of them out there. The devs hope to eventually display these (and other) items in the Players room.

(source: http://www.irontowerstudio.com/forum/index.php/topic,5467.msg126615.html#msg126615)