From Out of Reach Wiki
Update 0.25: Armor stats as well as weapon damage depends on quality/durability level of the item, which means:
- The item has its starting stats described by Damage and Durability
- The item lowers its Durability when player uses it to fight, gather etc.
- From now on, the Damage stat will also get lower along with lowered Durability
- Damage stat can drop up to 50% of its previous value