The lose the gear part is a bit harsh but perhaps hold it hostage until you get a number of fragments then you could reclaim your gear. You may also add a negative effect until a number of shards are collected. Such as slower mana regen, added weaknesses or power restrictions. I think the best option would to be to remove most race powers or add weaknesses until you collect 20 or so fragments. A recommendation, You could make the race much weaker and restrict more powers early on and require fragments to upgrade things like the blade and gain flight. It seems kind of game breaking to be this powerful early on.