It is a good way of teaching the value of money to kids. It will also enhance their capability to manage their own finances, as they would technically “earn” the pocket money. So you can be rest assured of the fact that while spending they will never go off their limits with their own hard earned money.
There are pros and cons. Your child might go hungry if they don't "earn" enough pocket money. Also, I wouldn't reward children for house chores since I want them to take responsibility of their own home, so if I do implement this scheme, it would have to be over and on top of their normal chores.
It's a double edged sword. You want them to know the importance of working hard for money. Yet you don't want them to become too realistic they end up having a motive for everything they do. You need to manage it well and balance between responsibility and reward.
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thanks