It will, but not for a while. Styrofoam will not dissolve completely in our lifetimes. Some say that Styrofoam will not dissolve ever in a landfill.
Styrofoam will not biodegrade or dissolve, however there are recent improvements that make styrofoam dissolve when it comes in contact with water, but are still toxic. The best solution is to purchase a material with the same consistency as styrofoam but is made with corn starch which allows it to biodegrade.
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