I'm not so sure if this will lead to an addiction to drugs. If he's only sniffing the toy, it may be because that he's very attached to the toy. I know kids who have attachments to blankies that have the same habit of sniffing the blankie or rubbing it on their face.
The only real issue that I see here is that he may develop an infection or an irritation due to the toy. See if there is a way of possibly cleaning the toy every now and then.
I have a feeling that by the time he's 12 (or even sooner), he should grow out of this.
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