How Does Proof of Stake Handle the Risk of Centralization?

Proof of Stake (PoS) systems handle the risk of centralization through various mechanisms. One is the use of delegation, where coin holders can delegate their stake to a validator, allowing smaller holders to participate in the consensus process.

Some PoS systems also have a limit on the amount of stake that a single validator can have. Additionally, the economic incentives of the system are designed to discourage centralization, as a single entity controlling a large portion of the stake would have a vested interest in the network's security and stability.