The Precise Location Permission description, specifically states that’s what they’re doing.

That’s what the local feed is for.
I’m constantly surprised by people who don’t seem to understand what ALL means.

If they aren’t paying anyone is it advertising? I’m not sure what you’re actually talking about anymore. Maybe I never did

Should I ask them about being paid? I’ve been doing it for free all this time.

I’m not sure they do at all. There are just a bunch of Kagi users here.