How Does the PoS Transition Affect the Issuance Rate and Overall Supply of the Cryptocurrency?

The transition to Proof-of-Stake typically leads to a dramatic reduction in the cryptocurrency's issuance rate. In PoW, high issuance is needed to cover miners' operational costs.

In PoS, validators' rewards are much lower, as they only need to cover capital opportunity cost. This lower issuance often leads to a deflationary or near-zero inflation environment, reducing the overall supply pressure on the market.