A long time ago when Waterdeep was a small but growing trading post on the Sword Coast, there lived a halfling couple. Davlin and Jamya Merrycrest dwelled a mile from the coast surrounded by fields and forests. Davlin a maker of children’s toys; Jamya was renowned in the surrounding farm areas for her mutton and rabbit pies. Several times a week they would travel into the trading post to sell their wares, often making a comfortably modest living.
One day as they were preparing to load up their small cart and wagon with their toys and meat pies, a very strange creature appeared. A gnome, wearing a wide-brimmed cavalier hat, bearing three long multicolored griffin feathers approached them quickly. He was donned in a long bear skin trench coat with thick black fur around the collar and cuffs. Carrying a small pack on his pack, his face was flushed, and he was breathing heavily.
The gnome bowed briefly before them and amongst the deep breaths, introduced himself as Corver Luckycraft. Glancing nervously over his shoulder, he explained that he was being chased by brigands who were attempting to kidnap him and sell him for ransom. He pleaded with the Merrycrests for shelter within their humble home until the brigands had passed.
Davlin and Jamya, wrung their hands nervously but they knew that the Halfling Code of Hospitality prevented them from denying his request. As they prepared to respond, Corver saw the look in their eyes, smiled appreciatively and pushed his way past them into their single room home. They shrugged their shoulders and continued to load Davlin’s wooden toys, while Jamya’ pies remained inside their home, to be brought out and loaded just before the pair would leave for market.
A few minutes later the sound of galloping horses approached from the distance. Three human males wearing plate mail, that was either dented, mismatched or missing pieces rode up to the Merrycrests. One of the men gruffly demanded if they had seen a gnome matching Corver’s description. Ever the quick-witted one, Jamya announced that they had and then she proceeded to share with great detail what he looked like. Knowing that humans didn’t have the patience for the details that most halfling stories included, she went on to explain the origin of gnomes as well as their preferred diets. In fact, she took the opportunity educate them with as much lore around gnomes as she knew.
Losing their patience, they turned their horses in the direction that Jamya had pointed to. When they were out of sight, Davlin affectionately kissed his clever wife on the cheek. They then entered their home to reassure Corver that he was now safe and should leave in the opposite direction from where the men went. But as they walked through the door, Jamya let out a horrified scream.
For there, sitting at their table was Corver Luckycraft finishing off the last of the pies that were prepared for market. He smiled broadly and praised Jamya for her cooking skills as Davlin comforted his wife, knowing that they would be ruined without the selling of those pies.
Corver wiped his chin and reassured them that he was an honorable gnome and that he would repay their generosity. Although he admitted that he had only one single coin on them. Urging them to sit with him he reached into the side pouches of his pack. As he did so, several oddities fell onto the wooden table. A jewelled looking glass; a unicorn horn; and a small book, the size of fingernail.
He removed a single copper coin and showed it to the sorrowful pair who tried to console each other. Although the metal was dull, each side of the coin displayed a clear image of a dragon, wings expanded, looking forth menacingly. Corver explained that this copper coin would not only make them wealthy but also anyone around them. His eyes suddenly burned brightly, and he urged them to watch closely. Unconvinced, they reluctantly watched.
He placed the coin upright on the old table so that it sat balanced on its thin edge. And then the gnome blew on it as forcefully as he could. At first nothing happened but Davlin and Jamya did take note that the coin didn’t fall under his breath. It stood in place perfectly in place, upright until, much to their surprise, it began to spin slowly. It increased its speed a little more until it was going so fast that they could see both sides of the coin as it spun perfectly in place.
Eying Corver questioningly, the gnome let out a laugh and urged them to watch the dragon-emblazoned coin. He reached into his coat pocket and displayed a wooden flute, which he promptly brought to his lips. As he played a simple but merry tune, the coin jumped into the air, once, twice, thrice and even more. The coin bounced across the table to the rhythm of the song.
When Corver stopped playing, it landed on its side and continued to spin around.
He smiled and explained that this phenomenon would more than compensate for the loss in pies. As they asked him how this would happen, he smiled, got up and left with a bow, thanking them for their hospitality.
Once the gnome left, the couple looked at the spinning coin on the table confusingly. It was an impressive sight, but they didn’t understand how it would make them wealthy. Until the next day their neighbours, the Dapplebottoms came by with their eight children. They asked if they could come in and see this strange dragon coin that an odd gnome had told them off.
Davlin and Jamya, enjoying the company of others happily welcomed them into their small home, where the coin still spun as it had done so the previous day on their table. While in the home, the children were captivated by the coin, especially when Davlin began to sing an old halfling song. The coin bounced around as the children giggled. The parents, however, were enraptured by the aroma of Jamya’s next batch of freshly baked pies. Between the rich scent of the food and the mystical coin before them, the Dapplebottoms were bewitched. They offered to buy all of the pies, bring some wine and enjoy the afternoon with the Merrycrests. The couple embraced and wept together in joy and relief.
Soon the word spread far and wide around the outskirts of Waterdeep of Davlin and Jamy’s magic coin and their rich food. People came and they welcomed them wholeheartedly. Their guests grew so numerous that eventually the Merrycrests had to expand their living space and turn it into a tavern. As the years passed Waterdeep expanded its reach to the countryside, neighbourhoods started to form around the Merrycrest’s tavern. Buildings were constructed nearby, and businesses moved in. Soon the Merrycrests’ and their tavern were no longer in the countryside. They were now in Waterdeep proper.
The Merrycrests had children and one day, their young daughter Yomia was intently watching the dragon coin jumping across the same table that it had lived on from the first day. She asked her mother why the dragon always danced to music no matter the instrument. Jamya didn’t know how to answer but she did take note of her daughter’s observation.
And from that day on, the Merrycrests renamed their tavern to the name that it is known of to this day.
The Dancing Dragon tavern stands proudly and that coin has not stopped spinning… save for a jig, whirl and the occasional pirouette.