How Does PoS Prevent Centralization despite Validators Needing Large Stakes?

Pure Proof-of-Stake attempts to prevent centralization through mechanisms like randomized validator selection, which limits the power of large stakers in any single round. Furthermore, some PoS systems enforce limits on the maximum stake that can be pooled or use complex reward distribution schemes that favor smaller stakers.

The ability for small holders to delegate their stake to a pool also increases participation and decentralization.