Ive tooled a lot of leather fresh outta the fridge, practically dripping wet, I find it handy that wet, primarily for molding; holsters, mag pouches, cell phones cases, LARP armor, etc,..its almost like clay in that state, then I'll at least begin to carve the design once I've got em clamped in place. After drying for a day or so, I'll release it from the mold templates, dampen the area where I carved my outlines and then finish the tooling. That being said I've noticed a lot of saddle & belt makers,(with WAY more experience than me) on this forum say they ONLY tool during the "damp" stage. I'm curious as to their replies to your question. I think as long as you rehydrate, (nf oil, lexol, leather balm, leather honey,etc), once your done, you should be ok. Reason I say that is I've noticed when I tool really wet leather it comes out almost crispy dry. I believe thats why they tool in the damp stage, but not positive.