Work Hardening
Work hardening is the act of crushing and distorting the crystal lattice so that dislocation movement is impeded. I would say that shearing would work harden the edges somewhat. If you are going to forge the steel, it will re-crystalize by the time it reaches a dull red and you need not worry about it. If you are grinding it, I doubt the work-hardened edge would cause you much trouble. However, heating it to a very dull red and slow cooling would reduce the hardness considerably without the problem of scale and carbide precipitation.
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