How does Proof-of-Stake affect wealth concentration over time?

In Proof-of-Stake, staking rewards flow proportionally to existing holdings, which creates structural wealth concentration over time. The more coins you stake, the more you earn — and those earnings compound both your share of rewards and your governance power at zero marginal cost. This means holders who start with more coins gain influence and income automatically, without any ongoing work or expense. For a beginner, this is worth understanding because it shapes who has power in a PoS network: wealth compounds passively, so the gap between large and small holders tends to widen over time.