Lycan Chain is powered by a hybrid Proof-of-Stake and first-of-its-kind Proof-of-Bite (Which allows Validators-Alphas to invite Delegators-Betas by burning some LYC) consensus algorithm, that ensures low fees and high-speed transactions. The Proof of Stake (PoS) consensus states that a person can mine or validate blockchain transactions according to how many coins they hold. This means that the more LYC the miner owns, the more mining power they have. Proof of Stake (POS) is less risky in terms of the potential for miners to attack the network, as it structures compensation in a way that makes an attack less advantageous for the miner. The proof of stake (PoS) seeks to address this issue by attributing mining power to the proportion of coins held by a miner. This way, instead of utilizing energy to answer PoW puzzles, a PoS miner is limited to mining a percentage of transactions that reflects their ownership stake.
POSDAO is designed to provide a decentralized, fair, and energy efficient consensus for public chains. The algorithm works as a set of smart contracts written in Solidity. It is implemented with a general purpose BFT consensus protocol. Validators are incentivized to behave in the best interests of a network through a configurable reward structure. The algorithm provides a Sybil control mechanism for managing a set of validators, distributing rewards, and reporting and penalizing malicious validators. How it works? Participants in POS protocols stake Lycan Coins(LYCs), to protect the network and achieve agreement regarding blockchain transactions. LYC is the native coin of Lycan. LYC is used as DPOS staking coins, where coin holders can participate as validators or delegators in the consensus process on the Lycan network. They can earn rewards (either block rewards or transactional rewards) based on their participation. This provides an opportunity for coin holders to convert any number of current holdings into staking coins, which in turn earn reward-based dividends.