The faerie event's Background reward can be received at Illusen's Glade or Jhudora's Bluff

[aymo]

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Oh, hello there! Thanks again for all of your help at this year's Faerie Festival. Here, please take this token of my appreciation!


Swaying Willows

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Well, look who it is! Since you were shrewd enough to attend my Faerie Festival, I'd say you earned yourself a special gift.


Crystalline Stalactites

And FYI, you can get a team avatar and a trophy from the faerie festival page. There may be an additional reward for gold level participation, I believe it's a Woodland Mortog or Jhudora Particles. Those items are just only now appearing on the trading post and seem a bit bugged.

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Apparently the weapon rewards like the scythe are now rolling out but they are not particularly powerful at all.