Bitcoin Forum

I landed up in the below link of Bitcoin talk:
https://bitcointalk.org/index.php?action=merit;stats=sources

Where it is stated that:

I was wanting to know these 21045 merits getting generated every 30days how are they generated? Is their generation something interesting like the generation of bitcoin? Like rate at which they are generated and their generation is halved or doubled after certain time?

Where are these generated merits go? Like the mined BTC are in Coinbase transaction and is go's to the miner.

Theymos generates as many sMerits as needed.

sMerits are not a cryptocurrency.

It's not the case, no. The amount that these users can give in a period of 30 days is increased/decreased based on how actively they give (from what I've noticed) which is manually done by the admin.

Not everything is about crypto here. sMerits/Merits are plain conventional updates made to table variables within the Bitcointalk database, with a spice of transparency that allows anyone to browse through each one’s profile and view who sent how many sMerits to whom, and for what post over the last 120 days. Additionally, the forum provided the transaction files for those that wish to track or further exploit the information through external cumulative databases.

Nothing fancy in the implementation side (no coin/token, wallets,  miners, proof of whatever algorithms, etc.), "just" a plain process running in the background updating the Merit Source allowance (values on database tables) according to the implemented algorithm.

Edit: The thread you reference does not really talk about how smerits are generated to provide the Merit Sources, which is what the OP is asking for, but rather their relation to ranking requirements (outdate for Jr. Members, since they require 1 merit now, not 0), some early stats on averages earned per rank (after only one month of having the system running), and some ranking-up projections.

Here is a thread of Bitcointalk, which is as a year old thread but, has details on the merit generation. Check this out:
https://bitcointalk.org/index.php?topic=3023545.0

Merit sources are automatically given sMerit to send to other users. The range of sMerits given to each source every 30 days varies greatly, from as low as 10 to as high as several hundred. theymos periodically adjusts/balances each source's allocation if required, and will also create new sources on occasion (and very rarely remove a source). These source sMerits regenerate exactly 30 days after they are spent. Merit sources see the following text on their merit page (https://bitcointalk.org/index.php?action=merit):

This infographics would help you understand the merit flow easily:
https://i.imgur.com/UKTARdJ.jpg

Infographic Source: https://bitcointalk.org/index.php?topic=2818350.0

Also the Bitcointalk thread I shared above has almost all the info on merits. Please do have a look.

Merits is not a crypto currency and merits is for rewarding good contributors on this forum,if you need merit you will have to earn it by creating good posts,its not something you can buy

When I wrote the post I was highly curious and hardly knew the difference between merit and sMerit as well. I had though both are same @khaled0111 your comment dragged me to explore more on the difference. The Image was self explanatory.

Thanks everyone for helping me understand better.
 

The thread you supposed is outdated, that has not yet updated with new requirement for Junior Member rank. Since , with demotion on old generation of Junior members, whom did not get at least one merit, users whom start from Brandnew have to earn at least one merit plus minimum activity point will be qualified to rank up to Junior Member.

A small explanation: This is not the total Merit number that is generated every month, but the number of sMerits obtained by the merit sources. If they spend the entire amount, there are 21045/2 new sMerits to be spent.
Also, if Merit sources do not spend their sMerits, they will not get more, but the amount that has been spent will be refilled during the month, meaning that if you do not spend any sMerit, the total will be your source of merit.

sMerit is not a token and it is not generated by any algo or mining.  :D 
Theymos can grant any amount of smerit to merit sources and all this is centralized.

Looks like we may need decentralized sMerit system for new redesigned Bitcointalk forum.  ;D

Maybe some automatic system based on machine learning.

Everything was automatic before the merit system was introduce, just an activity and your post count then you can rank up, if you have a brilliant idea in mind that is better than the current merit system, I challenge you to make a complete recommendation for that.

Don't forget that the actual potential of sMerit being generated is almost double the quoted amount. This is because the awarding of 2 merits creates another sMerit.

On another note - Bitcoin are not mined. The total number of Bitcoin has already been created. Miners create blocks, and are rewarded with Bitcoin from the available pool.

My idea about merit system is that the merits can be manually set by the admin on how many merits that theymos wants to generate and the merits are generated from this forum system. Only the admin itself can answer your question on how are the merits generated in this forum. This is how the merit system works, the merits that are sent by merit sources to a worthy forum users will be generated after 30 days starting from the day that the merit sources sent the merit. The generated merits will go to the merit sources. Let's just say that I am a merit source and the admin set the amount of merits that I can reward, e.g. I have 10 000 merits to reward and I sent/reward half of it which is 5 000 merits in total and when I give/reward the merits that I have to the forum users in this forum then it will be generated in every 30 days after I sent the merit. A total of 5 000 merits from 21045 merits generated goes to my account and the rest will also goes to another merit sources who are actively rewarding merits to worthy people in this forum.

Since theymos is the admin of this forum, he can easily create or generate those smerits.  :D

It's just another system that theymos implemented for the forum. It doesn't mean it's being generated, it should be called crypto, not all of the things here that has been created are crypto, it's for the good of our community.