The Discord Rich Presence plugin integrates Obsidian with Discord, allowing users to display their current activity in Obsidian as their Discord status. It updates details like the vault name, current file name, and time spent editing, with options for customization. Users can choose to show or hide specific information, such as file extensions or custom vault names. The plugin reconnects automatically or via a command if Discord is not open. This feature enhances collaboration and transparency, showcasing real-time work activity to friends or teams on Discord.