# What is APY?

**APY** stands for your percentage of earnings for the year. It measures your income from your amount in tokens using a compound percentage formula. Our automatic RAO protocol pays you $RAO tokens to your wallet <mark style="color:green;">**8%**</mark> of every transaction thanks to the **Rebase** feature.

Rewards are paid out this way, users make transactions on our network, so you get rewarded by them to your wallet.

But the best part is that your balance will constantly grow. Our payout percentage every second is <mark style="color:green;">**8%**</mark> of the commission of every transaction in the network. If you start with e.g. <mark style="color:green;">**$100**</mark> of **RAO** the first day, in exactly 1 year you will have approximately <mark style="color:green;">**$2,920.08**</mark> of RAO on your balance. Such is the power of compound interest!


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