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 balance of XAI in the on-chain staking vault will increase. This will increase the value of your svXAI because your share of the XAI in the vault has grown.

The balance of your svXAI remains the same but each share 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 shares 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 share 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 shares 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 shares each but now the shares 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 shares they hold can claim more XAI.