50% of the blocks are being mined by PoW.

The other 50% get mined by PoS.  PoS type coins are generated from coins already created.  

1st year is 100% (to help prevent selling immediately after PoW) so 1 year from now, 1 coins becomes 2 coins.
This is really high.  Most new PoS coins with brief PoW periods get dumped so the 100% is meant to prevent this.  

2nd year and thereafter is 2%, so each coin you have becomes 1.02.