Users who lock up their GMI tokens in farming pools with long locking periods are given higher GMI rewards in the pools. It’s always more beneficial to stake in a farming pool with a high locking period than staking in a farming pool with a low locking period and compounding the interest.
The Annual Percentage Yields (APYs) are modeled in a way that the longer lockups are incentivized more than compounding. To illustrate, if a user locks up their LP tokens for one month and claims their reward at the end of the month and then locks up for another month over the course of a year, they should not earn a higher total APY than the user who locked up for one year. One-month lockup has a lower APY after compounding as compared to a one-year lockup, as one-year lock up offers a much higher yield.