How is this coin extracted?
PoS or PoW?
Neither..it is SCP
What is that?
A new production method?
nope, it's a consensus protocol developed by some mathematician and adopted by Stellar. PoW and PoS are also consensus protocols. PoW was proposed by Satoshi. PoS ..... there are many of them. First PoS was implemented by NXT.
Look here
https://bitcointalk.org/index.php?topic=2867986.msg29448107#msg29448107 where there are relevant Q&A . BTW, do you know that every holder of XLM can receive the inflation covering coins on a weekly ground?