similar,

but instead of burning for a few weeks only and then allocating tokens,

you do burning and allocating tokens every block continuously

and also use that transaction to commit your sidechain block hash

and use burning of coins as metric for consensus mechanism instead of burning of energy/capital via proof of work.

let bitcoin handle the proof of work, no need to reinvent a wheel in less secure manner.

best part about counterparty distribution is unlike every ICO the costs couldn't be faked.