Rules FAQ
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Bestow (1) means you can only place 1 gold on Black Balaq when he enters play. But there is no limit to how much additional gold you can place on him with card abilities (such as Unbridled Generosity).
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A defending character is any character participating in a challenge on the defending player's side.
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The value of X is continuously checked and changes any time the number of gold on Black Balaq changes.