We derive stringent constraints on the persistent source associated with FRB 121102: Size 0.3 < R 17.5 = (R/10 17.5 cm) < 3, age < 10 2.5 yr, energy E ≈ 10 49 (ε e /0.2 GeV) 3 erg, characteristic electron energy 0.1 ≤ ε e /1 GeV ≤ 0.5; The radiating plasma is confined by a cold plasma of mass M c < 10 −1.5 R 4 17.5 M ⊙ . These properties are inconsistent with typical "magnetar wind nebulae" model predictions. The fact that ε e ∼ m p c 2 suggests that the hot plasma was created by the ejection of a mildly relativistic, M ≈ E/c 2 ≈ 10 −5 M ⊙ shell, which propagated into an extended ambient medium or collided with a pre-ejected shell.Independent of the persistent source model, we suggest a physical mechanism for the generation of FRBs: Ejection from an underlying compact object, R s = 10 6 R s,6 cm, of highly relativistic shells, with energy E s = 10 41 E 41 erg and Lorentz factor γ s = 10 3 E 1/8 41 R −3/8 s,6 , into a surrounding e − p plasma with density n ∼ 10 −1 cm −3 (consistent with that inferred for the persistent source). For E s similar to observed FRB energies, plasma conditions appropriate for strong synchrotron maser emission at ν coh. ≈ 0.5Es,6 GHz are formed. A significant fraction of the deposited energy is converted to an FRB with duration R s /c, accompanied by ∼ 10 MeV gamma-rays carrying less energy than the FRB.The inferred energy and mass associated with the source suggest some type of a "weak stellar explosion", where a neutron star is formed with relatively low mass and energy ejection. However, the current upper limit on R does not allow one to rule out M c ∼ 1M ⊙ , or the ejection of larger mass well before the ejection of the confining shell.