WRONG
PoS works by staking.. so if majority of coins are held in litewallets where they are custody of a exchange/wallet service. the exchange/wallet service owns them coins and so the exchange is the main block signer by having the most coins to 'stake'

by there only being a few exchanges that accept such crapcoin PoS coins and offer custodial wallets. if the exchange with the most stake also wants to change the algo. they can.. and users are subservient to follow the exchanges desires because otherwise the customers cant send coins to other people via the exchanges code, if the customers software differed from the service. so they blindly follow the services code base to stay in communication with the service
EG if they dont update their lite wallet to the exchange/custodians new protocol. they are just left abandoned unable to make payments