You're absolutely right that it's not a coin distribution method, but it doesn't lock you into a distribution method. You could come up with one, theoretically.

You're absolutely right that it's not a coin distribution method, but it doesn't lock you into a distribution method. You could come up with one, theoretically. Heck, you could distribute the OG coins via proof-of-work if you wanted to, which is more or less what I believe Ethereum would do, as it started out as a proof-of-work chain and would swap at some point. That actually might be the best way, as you're proving that you believe the coin is worth something in the beginning by burning work, giving your initial stake consequences.