The coins are distributed to people who provide data storage and data routing to the network. The issuance is not on a fixed timeline like in Bitcoin, the aim is to issue coins proportionally to the growth of the network. When all coins are issued, farmers will be rewarded with the SafeCoins that are paid to the network when people store data on the network, similar to how Bitcoin rewards for miners will in the end solely come from transaction costs. I wrote a sort of summary on these things in this thread: Lowest PUT price discovery (and new SafeCoin issuance)
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