Your svXAI position will remain the same unless you stake more XAI to the on-chain vault or unstake to redeem XAI from the vault.
When daily staking distributions are made, the amount of redeemable XAI in the on-chain staking vault will increase. The balance of your svXAI remains the same but the redeemable amount will be worth more XAI as rewards are deposited to the vault.
This is why the conversion rate of svXAI to XAI increases, as your portion can be redeemed for more XAI as you collect rewards.
Example:
If Alice and Bob both deposit 100 XAI into empty staking vault. The vault now has 200 XAI and they each receive 100 svXAI, representing their portion of the vault.
SideShift then deposits 200 XAI in staking rewards to the vault making the total XAI in the vault 400. Alice and Bob still hold 100 svXAI each but now those shares can be redeemed for 200 XAI instead of the 100 XAI they originally put in.
If SideShift then deposits another 200 XAI in staking rewards, there is now 600 XAI in the vault. Alice and Bob still hold 100 svXAI each but now this amount can be redeemed for 300 XAI instead of the 100 they originally put in.
As the amount of staking rewards in the vault grows, the portion they hold can claim more XAI.