Damage types:

• Damage from mundane  (being whacked with a club or cut by a sword)
• Damage from magic
  • Fire damage
  • Ice Damage
  • Mystical Damage
  • Electrical Damage
• Armor / shields that protect from mundane
• Protection from magic
  • Protection from fire
  • Protection from ice
  • protection from mystical
  • protection from electrical

Players can mine crystals which can be used to create enchantment kits that are then enchanted at the time the player trains the unit. The mana is taken from the player’s mana pool.

You don’t research “magic swords” but instead would take a mundane sword and equip a fire magic kit with it. Players can equip multiple kits with their unit to make them increasingly lethal (but expensive) or defend against fire damage by using a defensive fire magic kit.

Update:

Based on the comments, it's clear some people are reading way way way too much into these journal posts.

It should also be noted that, like the research system, we reserve the right to toss out any system we want if we don't think it's fun. Any system, once implemented, will go through the beta process.