I understand how traditional POS works. You make all the coins and then you get transaction fees from processing transactions. If everyone starts just sending coins to each other then some folks will get POS. The problem is no coins are actually being generated as far as I can see on the block chain, you are just collecting transaction fees. If 114 coins are in existance we need to be creating more coins.
112 coins were generated during POW stage, the rest 2 coins were generated by POS blocks. Take a look at this block for example:
http://abe.kashmircoin.org/block/d3da2d2cafbd2b52a390b13307dcfcdc4d671a4531f8f00bfe36600d09d15767Generated 0,05 KSC is not tx fees.
So we don't need to create wallets & send the coins to each other.