From the whitepaper: VEGI is generated by running the Veggie software. The software generates VEGI by automatically solving computationally challenging problems, in a system called “proof of work”. When a Veggie  farmer’s computer solves one of these challenging problems, they are rewarded with VEGI. A bonus 25% is sent to the VEGI fund wallet, which is used to support animal welfare charities and initiatives.

- How come that some blocks generate 50 veggies (40 for the miner and 10 for the precious animals) and some only 40 (for the miner only)? Look at http://explorer.veggiecoin.io/tx/16445e3cef92084c9e82e34dc4c4296164a520387fcd88eb3bd61db1e9f55611 and http://explorer.veggiecoin.io/tx/a72cddcf150e4f1aefcf70f6f27a28b18c39afadfd94bde314949e5bcdaca69f
- And 25% from 50 is 12,5.