Good question :) Of course the delegation increases over time so for example: after you buy 100 LHP, some time later it give 100.1 HP delegation. When you buy additional 5 LHP, the delegation will be 105.1 HP and it will continue to grow over time.
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What happens in the case one sells LHP and how would the reduction be calculated?
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When selling you remove delegated HP proportionally to the amount of sold LHP - so not all inflated HP delegation is removed.