Diminishing returns, abbreviated DR, is anti-farm code implemented to prevent bots and exploits from disrupting the economy and gaining an unfair advantage over legitimate players. DR is character-based in all areas except dungeons, where it is account-based and shared between characters. It affects most activities that have potential for abuse. Diminishing returns on loot is not intended to affect the average player, i.e. very few players will experience it during normal play. DR accrues in "points", which will lead to decreases in the benefits for the relevant activity, such as drop rate or rewards.
 Specific activities affected by DR
Dungeons use a DR system due to their large rewards and ability to be repeated quickly. This is designed to minimally impact the speed runner or average player. DR is account-based, switching between characters does not ignore the effects of DR. DR triggers if the dungeon is completed consecutively or in under 30 minutes. DR can be though to accrue in points and affects any dungeon. Cycling between two different dungeons will not bypass DR. For each point of DR earned, potential rewards will be reduced by half, until they reach a minimum value.
- Dungeon rewards affected by DR
 Dynamic Events
Dynamic Events use a DR system in order to limit players from excessively farming one area. DR is character specific, and switching between characters will bypass the effects of DR. DR is not event specific, but rather area specific. It is designed to prevent congestion in one particular map, and to discourage illegal activities such as botting. DR triggers after the player passes a set limit of events, usually after a player has cycled through events on a map for over three hours. Potential rewards are reduced dramatically right after the player bypasses the limit.
- Dynamic Event rewards affected by DR
- 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
- ^ 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