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RE: Steem Power Interest Is Not Compound Interest!
So if I understand this correctly, interest is generated on the Steem power, just not compound interest?
So if I understand this correctly, interest is generated on the Steem power, just not compound interest?
This is actually quite dated. That was the case at the time, but now interest on Steem Power balances is quite limited. Participation and engagement are the main ways to accumulate SP and SBD. Posting, commenting, and voting.
Thank you so much for your reply. So does that mean that interest is no longer generated on Steem power? I'm trying to steer clear of interest or at least know how interest is being added on (religious reasons).
Edit: misread. So it is generated, but just at a lower rate.
It is generated, but it is less than 2% a year.
It is considered "dilution protection" more than what we typically refer to as interest. Since the STEEM supply is increasing, a bit less than 20% of the new STEEM created goes to existing Steem Power balances, to protect them against inflation.