The Mandalorian season 3 finale took a shocking turn when Moff Gideon suddenly crushed the Darksaber with his beskar fist, and with the announcement of The Mandalorian & Grogu movie, the decision to discard the most important Mandalorian weapon makes a lot more sense. The Darksaber was first introduced to live-action in The Mandalorian season 1 finale, where Moff Gideon was seen using it to break out of his downed TIE Fighter. Gideon brought the Darksaber into live-action, so there’s a sort of poetic justice in him taking it out of live-action as well.
https://screenrant.com/star-wars-the-mandalorian-season-3-movie-darksaber-destroyed/