Don't know exactly, but it looks like deburring tool. Does it rotate in the handle?
Metal deburring tools have similar shape, but are smaller and blade is a blade. This looks like it would work on crumbly soft materials like wood or plastic.
Ufff. I just remembered how much fun i had in tribes ascend. Using ass-granades to get that flag steal going. And teenage-me favourite- finding a good spot near generator and just mirv granade launching it to hell.