How PNG compression works at this target
PNG is lossless — the file format cannot discard image data. To hit small size targets, the compressor has to either (a) reduce the colour palette from 24-bit truecolor to indexed 8-bit (256 colours) or 4-bit (16 colours), which cuts size 40-70% but flattens gradients and can dither smooth areas, or (b) switch encoding to lossy JPG entirely (giving up PNG's transparency and lossless guarantees). For screenshots, diagrams, and logos with limited colours, palette reduction works cleanly. For photographic content saved as PNG, JPG conversion usually gives the best quality-per-kilobyte at this target.