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When (someone) said one of the uses could be to extend the handle a little for "chopping", I really didn;t envision holding on to the lanyard and wailing away at something. He can correct me if I'm wrong, but what I think he had in mind was sliding your hand down the handle a little (like maybe two fingers on the handle and the last two gripping the lanyard), thereby giving you a little more leverage. You know, I'm not sure I'd be tempted to do that but you never know what you might need to do in a situation.
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-Stretch
What you do is put the loop around your THUMB, then pass it around the BACK of your hand and then you adjust the length by twisting the lanyard until you can hold the knife with whatever number of fingers you need...
The Becker handles work VERY well with a two finger grip in this way...
You can stop the lanyard from snagging, by having the two ends threaded over a tight fitting rubber washer and then a knot placed at each end at the correct distance... You do NOT knot the ends together... When you carry it, push the washer all the way to the handle so that you have two loose ends hanging from the knife... They will not snag on everything... When you go to use the knife, slide the washer all the way to end end where it is stopped by the knots, and use it as a lanyard...
A lanyard is also useful for Scandinavian style sheaths that have only the very end of the grip exposed, so that you can get the knife out of the sheath easier...