I have been seeing this misconception going around as well! Glad to see it cleared up.
All that said, SP is still pretty lucrative with simple interest. It's just not the magic bullet some people have misunderstood it to be.
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Simple interest is a term that normally applies to loan payments and it refers to paying the interest payment in full before the amount of the unpaid interest payment is added to the principle to accrue more interest in a compounded manner.
Simple interest does not at all apply to the interest paid to SP holders, which is added to their balances and accrues interest in a compounded manner.
It is not added to balances and compounded. Please do your research and stop misinforming people.
does having SP give you more SP for curating, all else being the same.
If yes, how is that not compounding?
If no, then there is a more serious misunderstanding by one of us
In my book if I get more rewards and that in turn gives me even greater awards, I call that compounding. You can call it whatever you want, that doesnt change the fact that anybody that engages with the community in anyway will get compounding.
Now if you want to talk about vests and how they dont compound for anybody that is totally inactive in the community, I could see how that case doesnt compound, but who cares about that special case for something that cant be exchanged?
That is not a fixed interest rate compounding. It is compounding due to saving your excess production and using it to invest in more production.
It does, but that's not compound interest. That's an increase in the rewards you get for participating.
If we contemplate the value of VESTS measured in STEEM units, then clearly we can see that when 9 new STEEM POWER are created for every 1 new STEEM (and given that STEEM POWER are 1:1 convertible to STEEM and the new STEEM POWER are distributed to existing SP holders), then clearly we can see that (the value that) VESTS (represents) have been transferred from STEEM holders to STEEM POWER holders. And that interest payment compounds the next time this done.
What is not added to balances and compounded? The 9 STEEM POWER is added to STEEM POWER balances each time 1 STEEM is created.
Go to my long comment and make a cogent rebuttal. I am waiting. You are misinforming everyone!