How Does the Concentration of Hash Power in a Few Large Pools Impact Decentralization?

When a few large mining pools control a significant majority of the network's hash rate, it centralizes the decision-making power. This concentration undermines the core principle of decentralization, as these pools could theoretically collude to execute a 51% attack or censor transactions.

While the underlying miners are still distributed, the pool operators gain disproportionate influence over the protocol's governance.