Board Thread:Boruto Discussions/@comment-25547449-20170314234629/@comment-734582-20170315102922

There are a few things going on, and i think the confusion stems from not really differentiating.

The Otsutsuki possess some sort of method or power that allows them to turn chakra to pills. It seems that in stead of eating their shinju fruit, they processed it into pills and had a bunch of people running around with chakra.

The thing Momoshiki is talking about specifically however is the passing on of power: Rather than how Shinobi do it (where people pass chakra on genetically and roll the dice on all stats including KKG), the Otsutsuki tightly controlled who had chakra. In the event that a person can no longer exert their power, they are simply processed into an edible and consumed by the next "heir" of that power.