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there's no diminishing returns for dinos or players
only armor suffers diminishing returns.
Gathering is "clamped" it goes up a certain amount based on melee, and then it won't go up anymore, there may be some diminishing return involved before hitting the hard clamp. However, you will often find that the best gather rates are when you have just barely less damage than the amount needed to 1-shot a resource, since then you can hit it again. This makes gathering have certain sweet-spots in melee % which are somewhat hard to find except through thorough testing. the damage you do to a target is still following the % modifier though.
Armor follows a very significant diminishing returns curve, 50 armor gets you 33% dmg reduction, 100 armor is 50% 200 armor is 67%, 400 armor is 80%, 800 armor is 89%, 1600 armor is 94%, etc.
"Almost any game developed implements diminishing returns to reduce overkill"... true... here is one area wildcard shows it's pretty new to developing games. I've had some fun with extreme player stat builds that would not work very well in most other games due to most games having diminishing returns.
before you doubt me though, go mindwipe, put every point into oxygen, put on your flippers, eat a lazarus chowder for stamina, and go swim a lap around the island real quick. Don't worry, if you hit a shark you'll just stop abruptly, there will be no kinetic-meat-explosion ;)
it's 2% per level, so i guess a max of 300% speed with full mindwipe at lvl 100. I have not tried this, as I think it's very likely i'd run up a small hill and fly off the far side of it due to momentum, and die from the fall back to earth... but I do plan my movement speed to defeat specific dangers in the wild.
I use 164% character movement, which from a base 892 "units" of movement speed in human sprint, gets me to 1462.88 units of movement speed in sprint. This allows me to outrun wild allosaurs which have a sprinting movement of 1404, with a small margin of error to allow for obstacles & pathing issues. the minimum to escape allo's is 160% i think.
I can't outrun wild gigas, alpha raptors, or alpha rex's (the fastest dangerous thing in the game). And now also troodons make night-time impossible to run through as well, since they're stupid-fast at night (I don't have an exact stat for their night-buffed speed).
Similarly I have 600 oxygen, which gives 6% swim speed per level (25 levels), this stacks with the 164% movement giving me 314% swimming speed (942 units of swim speed, up from the base human swim speed of 300). without flippers this is enough to move in the sea with relative safety. I can outswim mantas and sharks, and i can stay ahead of plessies and mosas well enough for a short distance to safety. with flippers... that's 2.5x942, or 2355 units of movement speed in the water. I can swim circles around plessies and mosas (literally, not figuratively) and outrun aggro'd squids (barely). alpha mosa's are silly-fast though, so i can't swim through their aggro radius unless my path to safety is quite short.
Focal chilli also gives you a consistent boost in movement speed as well. Worth mentioning, it's a 25% movement speed that is cumulative with your other movement speed stuff, it's not multiplicative. Or perhaps put more clearly, it's +25% of your base movement. Unlike flippers which are 2.5x your fully buffed movement speed in water.
I've tested this stuff out pretty thoroughly by running and swimming pre-measured distances with a stopwatch many times. As well as by outrunning the dinos I aimed to be faster than. I was surprised there were no diminishing returns.
But I have not tried 300% movement speed, i've never gone above 180%. I suppose there could be a diminishing return in there, but I strongly suspect there isn't. I'll mindwipe and try it today, I've been meaning to make some 1090% custom consumable recipies anyway, and I'll just make a few extra mind-wipe tonics to try out a full run speed build. I already planned to try some health & armor testing relative to fall damage, so a quick speed build test would be easy to add in too.