Rare and Legendary Encounters

These are all very good ideas! I especially like the idea of more types of loot. The issue I see is the kraken (excluding the tentacle with a ship on it), as there is only supposed to be one kraken, meaning other types would be against the game. However, perhaps throwing things could work for it as well. It could throw loose rocks it has found if it is in the Devil's Roar, and it could maybe take a mast from a ship as throw it or just swing it (probably breaking it). That would be very interesting.

I'd love to see a Kraken tentacle throw something, even a player, or his boat... outside the radius of its ink. Would be creepy to see a tentacle and ink patch move through the water like a shark fin too.

@timeoftheyear Those skeletons were never confirmed to be krakens, and they appear to be more similar to the giant birds commonly seen in the paintings in the Ancient Isles. Also, the story told through Shipwreck Bay tells of the captain of the Blackwyche, who was turned into the kraken by a curse. The island making the theory of multiple krakens is most likely Kraken's Fall, which is actually named after a ship which wrecked there, rather than the skeletons found there.

@straw-hat-blake According to the Shipwreck Bay lore it isn't natural to the environment, it is a person cursed into that form. It shouldn't be able to have children. As for the skeletons, I don't know what they are, but they are far too small to be the remains of other krakens, or at least not ones equal to what we see now.

@straw-hat-blake No, it's on the actual island. If you look at the main wreckage, it bears the name Blackwyche, which is a ship from an old game made by the company which would become Rare, the makers of Sea of Thieves. In this game, you played as the captain of the Blackwyche, and fought off your crew after they became monsters. The way they became this way was from looking at a cursed book, which turned you into the thing you saw in the pictures. The captain was the sole survivor. All of this is from that game (which was also called Blackwyche). With not nearly enough crew, the ship crashed, and became the wreck which now rests on Shipwreck Bay. The cursed book remains on board, open to a page depicting a kraken. This suggests that the captain found the book, and for whatever reason, ended up seeing part of it. He was turned into the kraken we know today. This also can be supported by the wreck itself. The middle is almost completely destroyed, and the remaining pieces are spayed outwards, suggesting that something pushed them outwards with a significant amount of force. Given the proximity to the shore, the new kraken would have easily slid into the ocean, taking ships nearby, and giving the island it's reputation and name. (almost) Every island in the Sea of Thieves has a story, you just have to look close enough.

@timeoftheyear I don't see how whatever we fight off in game is going to die from getting shot a few times in each tentacle. We never see the body, which we should have to kill to kill it (having the vital parts of itself in the only part is exposed to damage is a major weakness for it's survival, whether it is natural or artificial), and it doesn't go limp like the megalodons (although the megalodon's eyes still move after they 'die', so they may just be unconscious). It visibly retreats, diving back into the water and ceasing production of the ink until it is safely away. Some dialogue, writing, and other things in the lore implies that there is multiple (saying krakens), and some implies there being one (the kraken). I don't think the people or even the creatures of the Sea of Thieves know if there is one or multiple (to be fair, anyone who looked close enough to find out probably wouldn't survive). If you look at the art book concept art for the kraken, it does look slightly birdlike, but I don't know if it should have bones (the tentacles would most likely have bones too, but we never see that for one reason or another)

A 'kraken slayer' would be someone dedicated to hunting down and defeating the beast, whether by driving it away or actually killing it. There could easily be multiple people doing that. Some people like Sandra of Dagger Tooth tell of "one of them krakens out there", but again, no one has probably gotten close enough to see and lived to tell the tale.