Compounding refers to interest on interests.

All investments include some form of compounding.

When evaluating compound interest, one must be be attentive to the period of the compounding.

A bond might give out a fixed interest over a period of time. A three year bond might have a fixed interest over a three year period. So there is no compounding during that period. When the period ends, the investor might reinvest both the bond and the interest.

It is common for bank accounts to have fixed interest over a finite period of time. An account might compound monthly or even daily.

HBD interest appears to payout every 30 days. When you claim your HBD interest it goes back into your account and you start getting interest on that interest.

The rewards for HIVE and LEO come from interest on the HIVE and LEO in users accounts. The payout comes seven days after a message is posted.

When users claim and stake their HIVE and LEO, they start getting interest on their interest. So essentially HIVE and LEO compound weekly.

There is a thing called continuous compounding with involves a little bit of calculus.

When speaking of compounding, it is important for investors to know when and how the investment compounds as the period dramatically affects the return on investment.

!BEER