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The Rosencrest Medallion once belonged to Zaxx and gave him his power.
When they fought over who would control all of Third Earth, Mumm-Ra managed to steal Zaxx's medallion and defeated him. Mumm-Ra then hid the medallion in a secret chamber in his pyramid.
The wearer of the medallion gains powerful armor and magical protection provided by Zaxx himself, but he also slowly transform into Zaxx.