Proof of Burn is a mix between PoW and PoS, but more inclined to PoS. I tend to think that PoB is like PoS where you are continuously unstaking.
It is like Proof of Stake because:
- You burn koins to get VHP (stake).
- Each time you produce a block part of this VHP is converted back to Koin plus a reward (unstake + reward for block production).
- If you don't want to run a node you can send your VHP to a mining pool (stake in a pool).
- The more VHP you have the more blocks you can produce (same as PoS).
It is like Proof of Work because:
- You burn koins to get Virtual Hash Power (symbolism of investing in hardware to mine).
- You get back Koin only when you produce blocks (in PoW you have to mine to get back the investment plus rewards).
- Your VHP is losing value when you procude blocks (like consumption of electricity plus hardware getting obsolete)
- You can sell your Virtual Hash Power (like selling your hardware).
- You can send your Virtual Hash Power to a mining pool (like attaching your hardware to a PoW mining pool).
- The more VHP you have the more blocks you can produce (like in PoW).