It likely has reduced damage because it is OP for the entire mid-game since it can be gotten so early, allowing the player to be using a Legendary-tier grenade when everything else is Uncommon/Rare. If one decides to focus purely on the main quests, you can finish Transmission at about level 15, at which point this becomes available. Unlike iconic weapons, it isn't gate-kept by hundreds of components that are too scarce at that point, and acquiring 10 Tier-5 components is not too difficult, especially with crafting.
6 comments
Just getting stuff done that you want, learning by doing! : )