How Does the Shift from PoW to PoS Affect the Issuance Rate of a Cryptocurrency?

The shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS) typically leads to a significant reduction in the cryptocurrency's issuance rate. PoW requires high issuance to compensate miners for substantial energy costs and hardware investment.

PoS is more energy-efficient, requiring less inflation to incentivize validators. This reduction in supply inflation can alter the tokenomics and potentially increase the scarcity of the asset over time.