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The Karmacoin community has created a currency that can be used to reward people for doing good. We see Karmacoin donation addresses appear in things like news articles about people who went above and beyond to be good. Soon after someone reads the article like that they will now have a way to reward the person who did good. In order build the community quickly so that there is currency for rewarding, there are larger bonuses for the first 400,000 blocks than after that. The founders are aligned with every individual - there has been no pre-mining.
Coin added by @chopcoin Team