This papercraft is a Chitauri Scepter (aka Loki's Scepter or Loki's Staff), a scepter that utilizes a blue gem powered by the Tesseract, similar to HYDRA cannon, based on the (Marvel Comics') film The Avengers, the paper model created by PepMaster. The Chitauri Scepter was wielded by Loki Laufeyson in the Invasion on Earth. It was gifted to Loki by Thanos.
The scepter had a long golden handle and a black fitting which held a blue gem encircled with silver blades. It allowed its owner to open rifts through dimensions with the Tesseract as a gate key, fire destructive blue energy blasts and bend the wills of others by controlling their hearts. The gem's influence affected Loki's mind while he wielded it, turning his green eyes blue, which it also did to anyone whose chest he put the tip of the staff to, turning them into his servants. This meant that while the Tesseract through the scepter had a grip on Loki's mind and mainly drove his actions, raising his hatred and desire for power, he still retained his will.
Loki used the scepter to brainwash Hawkeye, Dr. Selvig and numerous S.H.I.E.L.D. agents into his followers, turning their eyes crystal blue like his. He could transform it at will from its long, fully-extended appearance to its smaller but equally deadly form the same way he transformed his own appearance with and without his full body armor and cape. He also disguised it as a cane when disguising himself as a human in lavish a suit. The scepter also functioned as a devastating close-range weapon, being able to violently impale and slash enemies and besting most in combat with ease. It was even strong enough to match Thor's mighty hammer Mjølnir in close-quarters combat, much the same way Odin's spear Gungnir had when Loki wielded it in his first duel against his adopted brother, Thor. [Source: wikia]
You can download the paper model template here: Avengers - Chitauri Scepter Free Papercraft Download [DropBox] [Box] [Gavitex]