D&D 5E - Magic Item Inheritance

I like the idea of a magic item, and, to keep it somewhat balanced, is to use Matthew Mercer's Vestige system, a way that is even suggested in the book. If a weapon, it starts out as just a +1, and as time goes on, the DM, getting a good understanding of the characters knowledge of the nature of the inheritance, can make it more powerful over time, so it keeps pace with other weapons. This makes it so it starts out not too OP, but lets it not quickly become useless from a statistics standpoint.
I'm open to other methods or critiques on this one. Thoughts?
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Tobi Tarwater
Update: 2024-08-18