/biz/ - Business & Finance

The key reason why PoW is superior to PoS when it comes to decentralization is because miners are forces to sell tokens to pay for electricity. This disperses tokens to many different holders over time. PoS on the other hand has terrible incentives. Due to the nature of PoS and compounding interest, stakers are incentivized to hoard tokens to get an ever-increasing share of the supply. Any validator costs are insignificant, centralizing ownership of the protocol by definition.