What is compound interest?¶

Compounding is the process in which staking rewards are reinvested to generate additional earnings over time, what is called compound interest. This growth, occurs because your staked assets will generate earnings from both its initial delegation and the accumulated rewards from preceding periods. Compounding therefore, differs from linear growth, where only the initial delegation earns interest each period.

Check out the APR or APY to see an example of these compounding effects.