I mean in the literal sense of you get SP due to simply having SP. the SP is stored as vests which (ignoring any external inputs) stays the same, but the conversion rate from vests to SP keeps going up due to the 9:1 effect. So the fact that SP is actually the current conversion rate of vests using an ever increasing factor could be interpreted as vests dont compound, ie. are static. However, the issue here is that it is discussing SP and not the internal vests and the SP caculated from an ever increasing conversion rate sure looks like compounding, acts like compounding, because it is compounding.
Add to this the effect of SP*log(SP) being your allocation for curating and by any sense of the word SP is compounding, even if the underlying vests would remain static if you never did anything at all.
So, the OP should really correct the misinformation at the risk of getting downvoted should it not be corrected
The internal accounting of VESTS is irrelevant, because it is STEEM that we base the external exchange and market capitalization on. I explained this in my comment.
The point about VESTS is also irrelevant because the value of VESTS are effectively taken from STEEM holders and given to STEEM POWER holders. That is the compounded interest payment.
It is absolutely compounding. The value VESTS represent are taken from one party and given to another. An interest payment is taken from someone and given to another.
WTF ??? Is wrong with people who upvoted this blog!
I downvoted it because not only did he spread lies about me, he also downvoted my blog post.
You are welcome to provide cogent rebuttal. I haven't seen one from you yet.
I'm sorry dude, but you either do not have any idea what VESTs are and what Steem Power is... or you are blatantly lying to people trying to mislead them...
I'm am trying to be as nice as I can here, but what you're doing is just wrong.
Im kind of confused here about the "taken from one party and given to another" thing. Thats not what makes interest compound. Bacchist could have stated it better, but tbh im not sure we're working on the same definition of compounding either
I know when I read "You are welcome to provide cogent rebuttal. I haven't seen one from you yet." I know I need a TLDR
But the conversion rate is increasing linearly, no? That is to say, if i have X amount in steem power, and I don't add any more, the increase in the conversion rate will yield a fixed increase in SP every month, not a linear one. Am i missing something.
Yes, the conversion rate increases quasi-linearly as a function of time, very unlike compounding which is a geometric series that grows super-linearly. The principal, denominated in VESTS, is static. It doesn't move at all unless you are earning additional VESTS by curating or blogging, but that has nothing to do with interests.
recursive... see my other reply... the conversion rate doubles every year.... thats is compounding and thats not a linear increase... ie, the 1m vests is worth 200 now, 400 after one year, 800 after 2 years, etc... thats 100% APR compounded yearly
That is not linear. Anonymint is off on how much were going to make (i think because hes trying to calculate it compounding monthly)