Yes, that is it.
But in that process, when does that happen?
Does it only happen when the coins are old enough, which is after the 1 week wait time, or when the coins can create a valid PoS block.
I think when the wallet detect a valid POS block it launch this process ....
The problem is not the quantity here it is the separation of the old transaction into two new transactions. It works on paper but not in real time.
It was I think originally conceived to improve flow on the blockchain with a small amount of open wallet.....