Version 0.8.4: This article may not be up to date for the latest version of Isleward.
Snowflakes are a currency item used in the Merrywinter event.
Gathering gifts gives a random number of snowflakes depending on the type of gift.
Turning in quests in Fjolarok also gives snowflakes.
15 snowflakes can be given to The Winter Man for random winter items, such as the Unique Snowflake which is used for buying Merrywinter cosmetics.