How would it benefit the server
Knives are underused currently, and for a good reason. Since the knife only does 50 damage at the moment, people will know when they get knifed and call the Traitor out. The Traitor simply doesn't have enough time to kill the Innocents before they turn around and shoot at them, or call them out. The only times they will actually manage to pull this off is if the person doesn't notice (which in most cases they do), or if the person has no microphone or radio binds that calls the Traitor out.
Potential Issues/Exploits
None
Additional notes
You can only buy 1 knife, and if it can't give you reliable kills, it won't be used all that often. The 2-hit kill also destroys the knife's purpose of being a sneaky weapon, for reasons stated above. If this can't be added, I suggest making a throwing knife do a 1-hit kill, or let the knife do 99 damage (instead of 100 = insta-kill) instead.