This one is nice and easy, yay!
You are not the only one who desires this. In fact the
first ever modded item achieved exactly this and still exists:
https://github.com/MovingBlocks/Terasology/blob/develop/modules/Core/assets/prefabs/mrbarsack.prefab
"give mrbarsack" in the game console should get you this uber-axe, and the prefab is a nice and simply explanation of how to make an item do more damage
It is also usually my little secret during play tests since next to nobody remembers that item exists then gets puzzled what sort of dev hax I'm employing to be able to break blocks more easily
Alternatively for a more legit in-game system to approach this JoshariasSurvival has power tools that allow for better construction or deconstruction - but that's pretty deep in that tech tree and I'm not sure it works without console cheats due to a few broken machines (like the engine). And that's not really a free building option requiring a bunch of specific mods enabled.