Compounding means earning yield on your yield. At 14% APY (DOT staking), ₹1 lakh becomes ₹1.93 lakh in 5 years just from compounding. No price appreciation needed.
₹1 lakh at 14% APY compounded monthly: Year 1: ₹1,14,934. Year 2: ₹1,32,098. Year 3: ₹1,51,790. Year 4: ₹1,74,406. Year 5: ₹2,00,388. Pure yield, zero price appreciation assumed. At 20% APY: ₹2,48,832 in 5 years.
ATOM staking: 16% APY, auto-compounds with Keplr wallet. DOT nomination pools: 14% APY, auto-restakes. JitoSOL: compounds automatically — the token grows in value vs SOL. Aave: click "reinvest" monthly. INJ staking: 14% APY via Keplr.
Daily compounding > monthly > annually. ATOM rewards: paid every epoch (~6 hours). Manually reinvest daily = best result. Alternatively: use Yieldmos or Restake.app which auto-compound ATOM and other Cosmos assets for free.
Each reinvested reward is a taxable income event in India. If you auto-compound ATOM daily, you have 365 taxable income events per year — each at slab rate. Use quarterly tracking tools (Koinly) to calculate the aggregate. Don't ignore this — it adds up.
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