It is an APY.

You would get 12 HBD for the month of January. However, you start Fed with 1012 HBD meaning you earn 12% on that. That means your payout for Feb would be 10.12 HBD (not exactly since Feb only has 28 days).

Then you start market with 1024.12 HBD and get a payout of 12.28 in March.

As you can see, the amount paid keeps going up each month that you claim your HBD. This is the power of compounding.

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