8. Punch the hole and (optionally) mark out the border
As you can see here, I have punched a hole in the center (right on where the fold will be), near the base of the sheath. This hole is about 9/16” in from the edge. After punching, a slit is cut in the leather from the hole to the outside edge. Later, when the welt is glued into place, it will be left sticking out through this slit and then trimmed off.
If you are not going to do any stamping on your sheath, you can skip the next couple of steps and move on to #11.
I like to at least stamp a border across the top of the sheath. With this particular sheath I decided to stamp a border around the whole front, just to spruce it up a bit. A drawing compass works very nicely to place a line on a sheath at a set distance in from the edge, as you can see in this image. This will make it easier to get a nice neat stamping job.
Notice that I have set the compass to leave a space more or less equal to the width of the welt. This is to ensure that there is room for the stitching to come later.