Is staking compounded?

Are we only earning rewards on the original snapshot amount, or are we earning on the snapshot amount plus the total rewards? Each time I re-delegate in yoroi, while filling in the spending password, it shows my original amount as the amount to be staked. However, in the dashboard, it shows “total delegated” as the original amount plus total rewards. Which is it?

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You can only access the rewards after testing

True you will not be able to touch earnings until testing is over but the question remains.

I was not able to find a consensus on this, it seems to me that the popular opinion is that it is not compounding?

I would argue yes it is compounding though and to prove it to yourself or to disprove me take the following actions if you want to test it out, transaction fees will be incurred during the test and remember there are minimums to pay attention to when staking or making transactions.

  1. Create a new Rewards wallet in Tesnet.

  2. Retrieve a receive address for that newly created Rewards wallet.

  3. Using another Rewards wallet that is already delegated to a pool and has already earned rewards and using the send feature now send most of the contents (delegated tADA) to your newly created wallet, try leaving only 1 o 2 tADA in the old wallet and be sure it stays delegated.

  4. Be sure to delegate your stake again in the new wallet you just created cause after leaving the initial Rewards wallet it will not be delegated

  5. Now you wait for your delegations to start incurring rewards in your wallets properly and after a couple of Epochs you should see your newly created wallet receiving rewards while the initial wallet also gains rewards obviously the pool delegated to has to earn rewards to see an increase.

I personally left 1 Lovelace in a wallet that was delegated and had earned rewards so I was able to view the earned rewards gaining rewards very easily and after much confusion as to whether or not there was a bug on my local node or in the wallet cause I had believed the Tesnet would not compound staking I found enough information to support the idea that it is compounding, albeit not from official sources I neither could find anything against it from official sources.

Let me know if you receive different results than I did I would hate to think its a bug messing with my wallet.

I do wonder if people consider this when they calculate ROI instead of calculating the contents of the Reward wallet only? I think they mostly calculate ROI% wrong considering only the contents of the rewards wallet as invested yet even though the rewards are automatically invested they are at some point after testnet going to be real ADA and should be considered in those calculations (or not? thats a different subject of it being something earned and you cannot control it so your not investing it -weird thought - I do not know).

So this brings up a very valid observation, participants are very lucky to be a part of the incentivized testnet, cause although it is quirky in places it is almost like special inclusion to a private party :slightly_smiling_face:

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Wow, great experiment. I’ll consider that a confirmation of compounding, just keep us posted if your original rewards continue to earn rewards. Yes we are very fortunate to be part of this community!

Unless the code changes I expect them to keep earning :sunglasses: