What is APY?

APY stands for annual percentage yield. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of Karma DAO, your staked KDAO represents your principal, and the compound interest is added periodically on every epoch (48 epochs per day, rebase each 30 min) thanks to the rebase mechanism. One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 1.8999%, if you start with a balance of 1 $KDAO on day 1, after a year, your balance will grow to about 1025.84 $KDAO