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I believe it was rare in the beginning but that guideline was largely abandoned.

Half the dark elf male population have wonderous goatees.

According to the original lore: Elves are able to grow a small goatee, soul patch, and the likes, except wonderful beards. Upon receiving a beard slap from Native, the great bearded elf, one would acquire the ability to grow a beard. However, that person's children will not have the ability to grow one themselves, forcing them to receive a beard slap, from Native.