XenForo's "Discourage" feature is designed to subtly deter a user from participating in the forum. When an administrator discourages a user, the software introduces inconveniences for that user. These may include increased page load times, random error messages, or difficulties in posting. The intent is to frustrate the user's experience without providing a clear indication that they have been sanctioned, which may lead them to naturally reduce their participation or leave the forum.
This feature is typically used as a less confrontational alternative to outright banning a user. However, the specifics of how the "Discourage" feature works are not extensively documented in public resources, as part of its design is to be somewhat obscure to the discouraged users. For the exact implementation details, one would typically refer to the official XenForo documentation or directly explore the forum's administrative settings if they have access.