As an adjective, it means having fallen to a lower or worse state, especially in morals or quality. As a verb, it means to decline or break down over time. As a noun, it refers to a person considered to have low moral standards.
From Latin *degenerare* meaning 'to decline from one's kind or race', from *de-* ('down from') and *genus* ('race, kind, type'). The original sense was about falling below the standard of your group or origin.
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