The Circlet of Vengeance was created by the god Veldoran after the fall to close of the realm of Karkien from Kalgranoon for good. As long as the circlet is unbroken the citizens of Venera will be safe from the Karkien realms threat. Only the future will tell if this object is real or not and if it truly closed off and continues to close off Karkien.
After Der'ge was possessed by the Orb. He sought to find the Circlet and destroy it. After brutally torturing Shen Rahn, Der'ge found the Circlet. He then proceeded to destroy it with various forms of magic. Eventually he succeeded, shattering the Circlet into thousands of shards, breaking the charm it had on it. Karkien was ready to be released and that's exactly what Der'ge did. Due to Karkien opening Venera began to tremble and quake.