What Are the Trade-Offs between Scarcity and Security in a Proof-of-Work (PoW) System?

In a PoW system, miners are incentivized with block rewards (newly minted tokens) to secure the network. High scarcity (low or no new issuance) means lower block rewards, which reduces the incentive for miners, potentially lowering the network's security budget and making it more vulnerable to a 51% attack.

The trade-off is between the deflationary benefit of scarcity and the security provided by high issuance rewards.