I am curious what others do when your toys need to be retired.

Personally, I either throw them away, or offer them to somebody to try out or enjoy as a souvenir. The silicone plugs and dildos I own tend to break at the base, so once that starts, they're not usable for anyone. I've had a few items that were partially recyclable, or could be made into something else, but those are rare.
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Arizona-Based Domina and Foot Fetish Goddess
http://MistressGenesis.com