What Are the Centralization Risks Associated with Staking Pools in PoS Systems?

Staking pools in PoS systems introduce centralization risks because they consolidate large amounts of staked assets under the control of a few operators. This can lead to a concentration of validation power, where a small number of pools control a significant portion of the network, potentially enabling censorship or collusion.

Users delegate their staking power to these pools, often sacrificing direct control for convenience and lower barriers to entry. If a major staking pool operator acts maliciously or is compromised, it could have a systemic impact on the network's health and security.