His “sharp circle” is a reference to his LBC crew, and brother Crooked I’s record label, Circle of Bosses. They are made up of some incredibly raw lyricists who possess the potential to be running the game today if they had more recognition.

Playing on a “stick with a sharp circle”, Julius appears to be wielding a mace.

Although he has grown slightly taller than when he was younger, Kenny is still rather small. Even so, he is still likely to snap on you at any time so don’t be fooled by his size. You know how they say big things come in small packages right? Well, fucking with Kenny might just lead to your Execution.

Kenny frequently talks about raining shots with incredible accuracy. His aim is so true, that he feels he deserves to win an award (medal) just for picking up a gun (metal).

Mister Geppetto is the creator, or “father”, of that long nose fellow we all remember from childhood, Pinocchio, whom he carved out of wood, that is known for his “growing” nose whenever he lies.

However, the long nose fellow that Kenny will be hanging out with refers to his gun.

A very similar line was used for the C.O.B Cypher 2013.

Peep the annotation here

KRS-One is a legendary MC from the South Bronx, New York. He has been steadily rapping since 1985. His name stands for “Knowledge Reigns Supreme Over Nearly Everyone”.

This is also a reference to one of his tracks, Criminal Minded.

Basically, Julius is proclaiming that Horseshoe Gang are the top artists in the game; they are #1. This means that no matter who you are, you are at best #2, meaning you are a digit behind them.

Dope wordplay!

Firstly, the direct meaning here is that he is still talking about his side chick. This would make her his number 2 girl and not his main chick (number 1).

Then it gets a bit deeper and he switches the meaning of number 1 and number 2 to refer to going to the bathroom. Typically, if someone says that have to “take a number 1”, that means they have to piss. Likewise, “number 2” means they have to shit.

Even though this girl is technically Dice’s side chick (number 2), she doesn’t mean shit to him.

Demetrius doesn’t understand how this girl thinks she has any control over their situation when she’s not even that attractive. A “10” or dime is a very attractive person.

Also notice that “you’re an 8” is a homophone for urinate.

Continuing with the established theme, Demetrius threatens to literally piss on this girl.

A cliche scare tactic in many movies nowadays.

A play on the idiom having a leg up on someone. Having a leg up on the competition means that Iceman is superior (more knowledgeable) than his peers and in a class of his own musically/lyrically. This concept is mirrored with the crane kick pose, popularly associated with the Karate Kid movie, in which you are literally on one leg.