Diminishing returns (DR) refers to the mechanics used to prevent bots and exploits from disrupting the economy and gaining an unfair advantage over legitimate players. There are several types of DR in the game, each of which is character-based with the exception of dungeon DR, which applies to the entire account. Although DR could affect most activities that have potential for abuse, very few players will experience it during normal play.
DR is needed for dungeons due to their large rewards and ability to be repeated quickly. Similarly, it is applied to Dynamic Events to limit players from exhaustively farming one area, reduce congestion in one particular map, and to discourage illegal activities such as botting.
- Dungeons, in which the completion rewards for an account are cut severely after the first run for each path.
- Open world:
ArenaNet has never shared the precise details of how diminishing returns is implemented in Guild Wars 2, with the exception of dungeon reward DR. From various posts by the company's staff, players have pieced together the general concepts:
- The more often a character loots from the same loot table (i.e. ~250 times from mob X).
- Once triggered, the impact of DR will increase the more you loot from that specific loot table until you won't get any loot at all anymore.
- The only way to "remove" DR is to not loot from that loot table for a specific period of time, depending on for how long your DR already has been triggered. If you just hit DR and stop farming, it takes about 15-20 minutes to remove DR. If you keep farming and stop later, it may take longer to remove DR entierly.
- You can still farm from other loot tables or do activities like dungeons, fractals or just go afk (even in the same area) until DR has vanished. Being offline or playing on another character will NOT remove DR.
- Yet another character won't be affected by DR, since DR is character bound. Altough it gets very annoying to remove DR from multiple characters, especially since there is no possibility to see if a certain character currently is or is not affected by DR.
Dungeon DR reduces the completion rewards for completing the same path more than once. Unlike other forms of DR, dungeon DR is account-based, meaning it cannot be avoided by running the same path on multiple characters. It works in two ways:
- The bonus reward (40 tokens and ~1 –3 ) is only awarded once per path per day, resetting at the same time as the dailies.
- Completing the path consecutively triggers a second type of DR, which reduces the base reward for that path by half until reaching a minimum value.
- Rapidly speedrunning different dungeon paths in succession also causes diminishing returns.
- Affected dungeon rewards
Open world DR
Open world DR affects map's areas with same mobs or same level cap[verification requested]; it triggers after 10 events( cleared or failed), doesn't matters how many times you spend to reach this limit. Rewards (experience, karma, coin and map bonus reward) and loot will often show a progressive decline after hitting this limit (map bonus rewards, for example,need to clear 3 events to get 1 reward, instead of 2 events to get 1 reward and the number of events needed raises as much as your DR increases). Unlike dungeon DR, open world DR is character-specific, so if you switch to character that hasn't DR you can still clear 10 events with max rewards but remember that the previous character's DR will not vanish (a DR afflicted character must stay afk for 30 minutes to clear his DR)[verification requested].
- Affected dynamic events rewards
- Originally, DR was character-based in dungeons. 
- ^ https://forum-en.guildwars2.com/forum/game/gw2/Let-s-Start-the-Karma-DR-Dialogue/page/5#post338355 Jon Peters, GW2 Forums
- ^ John Smith posted that, "There’s virtually no DR active on any given day."
- ^ https://forum-en.guildwars2.com/forum/game/bltc/Stealth-nerf-on-ecto-drops/first#post693957 John Smith, GW2 Forums
- ^ https://forum-en.guildwars2.com/forum/game/dungeons/Dungeon-DR-is-now-account-bound-never-got-it-before-today/first#post319465 Jon Peters, GW2 Forums