Great post, @bacchist! I feel I'm partly to blame for this misconception because I understood it as "interest" as well, and wrote a couple posts about what I was trying to understand. I know see it more accurately as share dilution over time which holding VESTS protects you from. You and I have had a number of conversations about this and I really appreciate you working it through with me. I'm glad to see you're getting a nice reward for those efforts! $1k+, baby! :)
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We're kind of conditioned to think of interest as compound interest, because our financial system relies so heavily on it. I thought of it in those terms until I spent quite a lot of time with it. The economics of Steem are not what any of us are used to!
For the 9 STEEM POWER paid as interest (for each 1 STEEM created) to not be compounding, then it would require that all STEEM balances were forward stock split by the same proportion. But the STEEM balances are not given any new STEEM.
You should apologize to me and remove your downvote from my blog post!