How Does the Energy Efficiency of PoS Impact Its Adoption by Institutional Investors?
The significantly lower energy consumption of PoS compared to PoW makes it more attractive to institutional investors who are increasingly focused on Environmental, Social, and Governance (ESG) criteria. PoS networks align better with corporate sustainability mandates and reduce the risk of public backlash related to energy use.
This improved ESG profile can lead to greater capital allocation from large investment funds.