Aside from the generation of coins, everything remains basically the same as bitcoin.

For coins you own, these can be distributed pretty much as you choose, just as with bitcoin.

With communities (which can be, a town, village, country, the world etc) it is slightly more complicated. Here's a two part summary:

1. POW is replaced. Instead money is generated in a race by miners to evaluate the impact a business based on an innovation will have on a community. The evaluation is done by AI, then opened up for public scrutiny.
The money generated by LushCoin, it will go to a multisig address from which an incubator can draw monies to actualise the innovation, if and only if it has the agreement of the host community and the innovator.
2.  The colored coins used by the system will be produced by dedicated forms which will produce machine readable versions of the parts that get stored on bittorent. Acknowledgements of system transaction get sent to those concerned as colored coins.

Thats pretty much a summary of coin minting/distribution in LushCoin.

Great invention / innovation = great reward
Trash idea = trashcan

If a community cannot innovate, it will go out of business. With each innovation they host, community will then enjoy the jobs created, development; enhanced skills base and economy viability.