How does 10% interest on SD work?

in steem •  8 years ago  (edited)

One thing I've been wondering for a while now -- where does the 10% interest on Steem Dollars come from? Who pays it? How often is interest compounded (daily, monthly, etc)? I thought I also remember hearing something about the interest rate being changeable. Does that mean there's a chance the rate could be less next year, month etc?

Appreciate any help with this and sorry if it's been asked/explained already.

Thanks! Oh and happy Steem day! :)

steem
8 years ago by

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      ·  8 years ago 

    It is printed just like all other steem dollars.
    Interest compounds monthly when your steem dollar balance changes for any reason.

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        ·  8 years ago 

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