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This variant was inspired by two things:
1) It whomps if you have broken tools played on you that you don't have the cards to fix.
2) While playing The Resistance, we always enjoyed the chaos and fun that followed whenever a plot card was played which caused a player to reveal his role to another player.
So here's a Saboteur variant to fix/include these:
The Role Reveal Variant
Whenever a player has a second broken tool played on him, he may (but is not obligated to) choose to discard all the broken tools in front of him in exchange for secretly revealing his role card to only the player who played the most recent broken tool on him.
The effect should (if The Resistance is any indicator) cause lots of lying, shouting, finger-pointing and other raucous fun. We haven't play-tested this yet, so it's more a suggestion at this point. Just thought I'd throw it out there as an option.
What do y'all think?
You should try Saboteur 2.
If I recall correctly, it introduces some role reveal cards and it gives you the option to reduce your hand size by 1 in order to fix a tool (so you always have a way to fix a tool).
I think your suggestion would work OK accept that in Saboteur all plays are public so it is usually fairly hard to sow suspicion on dwarf who is clearly helping the team. Saboteur 2 is also nice in this regard, it splits the good dwarfs into two teams and add several roles that have their own motivations which all serves to make it much harder to identify exactly who is who.