That is just awesome! The knife looks great and so does the sheath.
Do this, take some hot water(just cool enough for you to be able to handle touching) and something smooth(you can even use your finger). Wet the edges of your sheath and rub em real good with what ever you choose and you can smooth out those edges on that leather and when it dries it will harden up a little and prevent the edges from frizzing on ya again, atleast for a while.