Last night I spent ten minutes looking at the “Pending Rewards” section in my wallet, then went back to the Cosmos SDK distribution module source code. The thing people usually misunderstand is not which Finality Provider to choose — it is assuming that “the rewards are already calculated” means “the funds are ready to use.”

In BABY, rewards are recorded on-chain block by block, but there is still an epoch settlement step between what is shown on paper and what can actually be moved. The official documentation says rewards are settled and distributed only at the end of each epoch. That interval is around 360 blocks, or roughly one hour.

So when you press Claim, the funds become Available. But if you want to delegate again, they still need to enter the current epoch and wait for the next execution cycle. In practical terms, moving from rewards being generated to rewards actually compounding again can take at least two epochs — roughly two hours or more.

This batch-based system, combined with Bitcoin-style timing, does help keep unbonding around two days. But it also creates a compounding gap. The APR shown in the interface is usually based on an idealized model of instant reinvestment, while real funds spend time sitting in a state that is generated but not yet effective.

If you claim manually and delegate manually, you lose time to transaction delays, fees, and missed epoch cutoffs. If you claim near the end of an epoch, you may also get pushed into the next batch, which stretches the wait even further.

For me, the key question is simple: does the interface clearly show these states, and can Claim plus Delegate be handled smoothly? That level of transparency matters more than a nice-looking APR number.
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