How does staking affect decentralization?

With staking decentralization is achieved because a delegator has a wide variety of node operators to choose from based on their staking history, credibility from the community, stability, and predetermined fee. Further, DPoS blockchains have a limit to the number of delegates that can be part of the process and all of them share the same chance of getting a reward. Compared to PoW, within the PoS ecosystem decentralization is further improved because the possibility of one user gathering 51% of the voting power is unattainable, as node operators work in turns and have a very short amount of time disposable for verifying transactions. Further, all validators have a cap on the amount that they can stake.

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