OK, so it's a proof-of-stake system in terms of how supply is distributed, and proof-of-work must be performed by clients as an attempt to prevent large scale s

OK, so it's a proof-of-stake system in terms of how supply is distributed, and proof-of-work must be performed by clients as an attempt to prevent large scale spam. Those with the most coin get to greatly influence the correctness of the chain when forks occur.