APY

APY stands for Annual Percentage Yield. It measures the real rate of return on your principal token holdings by taking into account the effects of compounding interest. In the case of Gorgona, your $GORG tokens represent your principal, and additional tokens are periodically added to your balance at each rebase event — which occurs every 10 minutes.

After each rebase, your new principal is your updated $GORG balance, which includes both your previous balance and the newly added rebase amount. This total then becomes the basis for calculating your next rebase rewards.

One fascinating aspect of APY is that your balance grows exponentially rather than linearly over time. For example, with a daily compounding rate of 1.8999%, starting with just 1 $GORG on day one could grow your balance to approximately 1,025.84 $GORG after one year. That’s the true power of compounding!