It compounds.. so as you're getting stake / interest, you start earning stake on that interest received.
Thanks for the reply, but that is not exactly what I ask. I want to learn how 5% stake rate applies to all coins or to only staking coins.
In above example , half of the coins will never reach to minimum stake age because of movement of them. So , they never stake (assuming continuous movement of these coins).
Then what is the number of stake coins approximately in 1 year?
2.5 m or 5m ?
If it is 2.5m then the inflation rate of this pos coin will be app. 2.5 %.
If it is 5m then the rate for staking coins will be 10% .
So , which one is valid?