SIMPLE CHIP GUILLOTINE
This drawing is only to illustrate the concept and principle of a double leverage blade which can be used to cut round wood into small pieces or chips.
The descending curved blade rotates slightly as it shears through the fibres. The hardness of the wood will limit the diameter cut.
As only a small segment of the rotary blade is in use, it can be rotated as the cutting edge becomes blunt. It could be sharpened with a hand held whetstone block.
For a robust design, the cheek plates should be square up the back to conceal the blade, and a pyramid shape gusset plate should be welded across the back to stiffen the assembly.
The handle pivot should allow clearance of the blade in the 'up' position, and operate from say chest to waist so that body weight can be applied to the handle. A few chain links can be welded to the handle and base so it can be locked down to prevent children playing with it.