Not sure I am reading correctly....

Are you talking about 5 lead pencils??
And you give a TREAT for something that they should be doing anyway with one or two pencils over a week, instead of over a quarter??
And why can’t they sharpen their OWN pencils?!
Please don't tell me it is a food reward given either because that would be nasty.
My young class keep the same pencil for often at least two quarters. You are allowed to expect this. They can use communal pencils too or small golf pencils if they lose them temporarily..... but no way to giving rewards for anything beyond saying, "Good job, Johnny!"
Far out.