In my homebrew setting, one god gave his cultists the recipe for a special alloy, and a rival god gave to a kingdom that opposes the cultists the same recipe.
The PCs acquired a warhammer made of this alloy—called dense iron—, and it alone is sufficient to render insignificant a large number of encounters the PCs face.
The problem is that I've already equipped the cultists and the kingdom's army with dense iron armor, weapons, and shields, so the PCs will need their own dense iron weapons to defeat those foes, but I've made it so dense iron is so powerful that it makes many normal adventures now impossible.
This question's answers are on a much smaller scale. I've not introduced a lone overpowered item; I've introduced an overpowered campaign-spanning plot device.
What's the best way to reduce this alloy's power without leaving my plot in shambles and the PCs wondering Why's my dense iron hammer not working as well as before?