Oh, and to quote from the DH Book a bit, here's the GM guidance around this. You'll note it presents a range of possibility here, and things beyond character-POV or background bits are "a step further."
"ASK QUESTIONS AND INCORPORATE THEANSWERS
In Daggerheart, the GM doesn’t have to do all the heavy lifting in terms of worldbuilding; we encourage you to share narrative authority with the players. Many players will be drawn more fully into the story when you empower them to add their own touches and details to your shared world.
When the party enters a character’s hometown, you might invite that player to describe the local market. Rather than narrating a character’s deadly blow on a critical success, you can ask the player to take the spotlight and detail their triumph. In dramatic or even commonplace moments, you might ask questions about a character’s motivations, emotions, and history, then connect the answers to the current moment.
Some groups may want to go even further, closing the gap in narrative authority between players and GM by letting players take authorship over entire regions or nations. Your players’ involvement shows their interest in the story—do your best to respect their investment and fold their contributions into the tale. As the GM, it’s your job to maintain the integrity of the world and make adjustments when needed, but ensuring that the players’ ideas are included results in a narrative that supports the whole group’s creativity."
Edit, and to
@Reynard 's statements in here multiple times:
"HOLD ON GENTLY
Improvisational storytelling isn’t always perfect, and that’s okay. Hold on gently to the fiction, enough so that you don’t lose the pieces that matter, but not so tightly that the narrative has no room to breathe. Let yourself make mistakes and make changes. Smooth the edges and shape them to fit the story. You’ll be the final arbiter and editor, but don’t worry if you need to go back and revisit or retroactively change something that came before."
This is, at its core, a game about heroic and dramatic joint-storytelling.