Answer: Photosynthetic prokaryotes produced more oxygen.
Step-by-step explanation:
During the Paleozoic Era, a major milestone that allowed for greater diversity of life was the increased production of oxygen by photosynthetic prokaryotes (early forms of life like cyanobacteria). This oxygenation of the Earth's atmosphere paved the way for the development of more complex and diverse forms of life, including those that would later colonize the land and give rise to various ecosystems. This increase in oxygen levels facilitated the expansion and evolution of life during this era.