but how to distribute the token?
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.
If you can create and use an AI that is fair in its evaluation and can evaluate all kinds of events fairly, you would not be posting here. The impact a business idea or proposal has is based on too many inputs, the same inputs can have different weights to different humans for examples too different VCs, how do you ensure fairness and correctness unless you know the future? Eventually every single outcome would depend on public scrutiny rather than AI, and with that the person who controls the crowd gets to have his or her proposal approved.