The "interest" for powered up Steem goes to the holder of the steem (the person doing the delegating, not the person receiving the delegating). The actual mechanism isn't strictly interest, although it can be viewed as an "effective interest rate".
Here's what really happens: when you power up, your Steem is converted to Vests. There is a ratio of Steem/Vests and it is slowing increasing over time. So when you finally power down, the amount of Steem you get back is more than the amount you originally powered up. It's a bit different from interest, though, since the gain only takes place when you finally power down.
Follow up question: so if I want more sp, I should power down, which will result in more steem, and then I would power up and get more sp than I have now?
No that is already accounted for. There is no need to power down and power back up (nor any benefit to doing so). What @blocktrades was saying is that you don't actually receive the extra STEEM until you power down, but it nevertheless accumulates in the value of your VESTS/SP. When you do eventually power down you will get the full amount, including any effect from "compound interest".
The "interest" for powered up Steem goes to the holder of the steem (the person doing the delegating, not the person receiving the delegating). The actual mechanism isn't strictly interest, although it can be viewed as an "effective interest rate".
Here's what really happens: when you power up, your Steem is converted to Vests. There is a ratio of Steem/Vests and it is slowing increasing over time. So when you finally power down, the amount of Steem you get back is more than the amount you originally powered up. It's a bit different from interest, though, since the gain only takes place when you finally power down.
Wow. I'm sure most users don't know this.
Posted using Partiko Android
Follow up question: so if I want more sp, I should power down, which will result in more steem, and then I would power up and get more sp than I have now?
Posted using Partiko Android
No that is already accounted for. There is no need to power down and power back up (nor any benefit to doing so). What @blocktrades was saying is that you don't actually receive the extra STEEM until you power down, but it nevertheless accumulates in the value of your VESTS/SP. When you do eventually power down you will get the full amount, including any effect from "compound interest".
Thanks for the clarification!
Posted using Partiko Android