How do you treat interest (both simple and compound) earned on cryptocurrencies?

Currently, on an exchange platform, I am pledging about 10 BCH (approx. $2800) which should earn interest p.a. of 8 % paid out every three months. The interest is paid in BCH, meaning that 8% of 10 BCH (0.8 BCH) will be paid out in four quarters. How should I account for the interest on my tax form?

For earned income, should I just state the value of the tokens that are paid out? If I compound the interest for two years, meaning that I just automatically add the interest tokens to my principal, would I pay any taxes until I access my tokens after two years?

Thank you!