Blowpipe

Blowpipe was introduced in the 1.0.5 patch. It can be found in the new above-ground Chests. These Chests are only placed in Worlds generated with the 1.0.5 patch.

Similar to a Bow or Gun, the Blowpipe requires ammunition to fire - but the ammunition it uses are Seeds. Seeds do not add to the damage that the Blowpipe deals. In addition, Seeds are context-sensitive items that will not begin appearing until you have a Blowpipe in your Inventory.

If you have a Blowpipe with you, there is a chance that any standard flower - and even the long grasses - you cut down will yield some Seeds (you still can get all the flowers from the new update but you cannot gather their seeds). Flowers growing in grass and in Clay Pots both can yield Seeds, and you typically get 4 per "drop". Seeds dropped from long grasses typically drop singly or in pairs.

The Blowpipe tends to only appear in chests within close distance to the surface.