Does proof-of-stake create wealth concentration?

In proof-of-stake systems, staking rewards flow proportionally to existing holdings, creating a structural tendency toward wealth concentration. The more you stake, the more you earn — and those rewards compound your share of both future rewards and governance power over time with zero marginal cost. This means that holders with larger balances automatically grow their influence without any additional effort or expense. For beginners, this is an important dynamic to understand when evaluating how different consensus mechanisms distribute power and rewards across a network.