It actually works just like this, since it is meant for a daily reward, it does not carry on the next day.
After an hour, if you ever logs out in game, your time resets back to zero. You can always logout so long as you relog within an hour to continue the time count. I added this disclaimer already since i re-worked on it again, but mainly just to fix IP Address issue that affects players who live in the same roof (aka same ip address).
dailyrewards will be a MAC Address detection instead, implemented after maintenance.