That causes a certain amount of shrinkage doesnt it?How about hot-waxing it?
How did you do it?I've only done a couple of sheaths - a helle eggen and a brusletto balder. I didn't notice any shrinkage, The process did make the leather very hard and rigid. Both have had quite a bit of use in something like 12 or 15 years and are holding up well. One advantage is you can warm the sheath up until the wax is soft then easily form the sheath for a really good fit.
Oh - almost forgot - it does darken the leather considerably too.