I could be wrong, but iiuc Steem interest is not compounding. (authors note, i was wrong. See https://steemit.com/interest/@sigmajin/how-anonymint-and-bacchist-both-got-it-wrong)
First, let me describe what non-compounding interest is like. Assume I have 1000 dollars on deposit, at an interest rate of 10 percent monthly.
If my interest is not compounding, I would have 1100 after 1 month, 1200 after 2 months, 1300 after 3 months. That is to say, my interest would be calculated
Based upon my initial deposit, and would be a fixed amount unchanging amount every single month. My balance would increase linearly.
If my interest is compounding, I would have 1100 after 1 month, 1210 after two months 1331 after 3 months etc. In this case, my balance would increase exponentially.
NOw, lets assume I have 1M vest. Right now, that equals 224 steem.
Because of the increased conversion rate, the value of my 1M vest will increase LINEARLY from month to month.
Im not sure wher the taken from one party and given to another thing comes from. The only thing that differentiates compounding interest from non compounding interest is if the intrest is added back into the principal.
If you go to steemstats.com, its pretty clear that the interest youre earning is linear... that is to say, your week interest is 7x your day interest and your month interest is 4x (or so) your week interest and your year interest is 12x your month interest. If it were compounding your year interest would be much more than 12x your month interest.