Lycan chain runs on Proof of Stake consensus algorithm which
requires LYC to sustain the network. Lycan chain is designed to be
regulated by 21 validators. To become a validator Alpha or
delegator Beta one has to stake LYC.
Instead of using POW of bitcoin blockchain which has high electricity consumption, POS makes consensus algorithm more economically and ecologically viable. It drives on the concept that a person can validate a block is based on how many coins he holds and is ready to stake. He is expected to work honestly as he will face a financial loss in case the blockchain is attacked by the fraudsters. Top 21 stakers become Alpha validators of the Lycan chain. The smart contract is designed in such a way that validator set will be decided at the start of every epoch based on amount of LYC staked by them.
The LYC token is ideal for sending and receiving payments thanks to the Lycan network’s high-throughput, fast finality, and low fees. On Lycan, money transfers take place within seconds and it costs much less.
LYC is used to run on-chain governance mechanisms for Lycan chain protocols. Decisions like Collateral ratio of LYC to mint Omega stable coin will be taken by the community via Lycan Governance Protocol. Likewise, it will enable users to vote on the future of Lycan. Governance will truly make Lycan a decentralized protocol.
LYC is used to pay for general network fees such as transaction fees to access and support network operations. This network fee will be the income for Validator Alphas.