When they get too small they use to ask, "What do I do with it now?". Several years ago I gave these pencils purpose, I created my art room's "Tiny Pencil Museum".
( Every white rip mark represents a stolen pencil. It is no problem to hot glue replacements. When it gets too ugly we start over).
As long as there are more pencils there will be more tiny pencils.
Kid's know value and the planet's littlest pencil often disappears. When it does, its is easily replaced, much like The World's Oldest Person (another popular subject for elementary school students. "Why", they ask, "do they stop at 117?").
I thought we might be doing something original until I stopped by a Wynwood art gallery last year. There I was humbled by an artist who really has a pencil thing going.
Inspired, we are now collecting these small pieces of threaded wood for our next pencil project.