Modern O ring chains like on the Cb 1100 come with the lube sealed inside the rollers sealed by O rings on each side of the roller, then there are the inner and out plates to hold it all together. Primary purpose of the chain lube on the rag is to prevent rusting of the side plates. Lubing of the link is basically to keep the oring healthy. Modern chains don't require a lot of lube or maintenance. Most guys use WAY too much lube on their chains, but by all means do what you feel is best for your chain. I usually get about 30,000 miles out of an oring chain, and at just over 10,000 miles my chain has been adjusted for slack once, other than when a tire was being put on of course.
Chain maintenance is a lot like which oil to buy and how long to go between oil changes. Everyone has their own way of doing things.
Just looked this up from DID for chain maintenance on their chains
http://www.didchain.com/chainMaintenance.html
a description of modern O ring chains
The o-ring chain is a specialized type of roller chain used in the transmission of mechanical power from one sprocket to another.
Construction
The o-ring chain is named for the rubber o-rings built into the space between the outside link plate and the inside roller link plates. Chain manufacturers began to include this feature in 1971 after the application was invented by Joseph Montano while working for Whitney Chain of Hartford, Connecticut. O-rings were included as a way to improve lubrication to the links of power transmission chains, a service that is vitally important to extending their working life. These rubber fixtures form a barrier that holds factory applied lubricating grease inside of the pin and bushing wear areas. Further, the rubber o-rings prevent dirt and other contaminants from entering the inside of the chain linkages, where such particles would otherwise cause significant wear.
Applications
O-ring chains are most notably used in motorcycles, one of the most demanding applications for a metal chain. High rpm and heavy loads require bulky chains, but such engineering increases the effect of friction compared to lighter chains. So lubrication plays a vital role here, but the high rpm also make it very difficult to keep lubrication inside and on the chain. Additionally, motorcycle chains are exposed to a large volume of contaminants and particles and must be protected. O-rings, as described above, fit this application perfectly.