Oh yeah I remember that sword, that was really annoying when people found out it was in the game, so please no.
As for the rebirth, I think option 1 seems the best but I would change it like this;
Rebirth 1 = 100 coins
Rebirth 2 = 75 coins
Rebirth 3 = 50 coins
Rebirth 4 = 25 coins
Or they introduce a new type of points called 'Rebirth Points' (RP) which is equal to 50 Donation Coins.