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I've *heard.* (Emphasis on heard, not sure at all in any capacity.) That it gives you one or two more vanguard tokens for that specific nightfall and potentially slightly better loot or an extra loot drop.
I personally wouldnt worry about it, even just messing around in the overworld I get plenty of exotics and good legendaries. (I'm personally enjoying a swashbuckling steel auto rifle from the sundial on the only run I was allowed to do before it got DLC locked, and a OP wolves shotgun I got today within the same hour.)
Most people grinded for 200k back when there was an event where to get a masterworked item you had to get 200k+ score on a night fall. With Nightfalls you are only missing out on some legendary specfic weapons and some catas (in most cases the strike catalysts drop from normal strikes and ordeal strikes).
As for the nightfall weapon (or item since some rewards are ghost shells, a ship, and sparrows) the increased rate is barely noticeable. I've tested with NF emblems on and off. It isn't exactly worth grinding for (the 100k+).
Lots of posts talking about how they have 1-2 catalysts that even after hundreds of runs just will NOT drop. Not always the same, but always a small number with that issue. Its why I'm starting to think that Bungie is doing it on purpose. Similar to the same way EA's Anthem was screwing over people who actually played their games. Get a few really nice drops if you were new or hadn't played in a while. But the more often and longer you played, the lower the drop rate became.
I got the catalyst for the wolf shotgun literally a single strike after I obtained the shotgun from a spider bounty, lmao.