Spell it out please.
Assume a coin, we'll call it Xcoin.
Say the cost (research + equipment + electricity) to mine 1 Xcoin is 0.8 Xcoin.
I'm using a random figure for cost in this example. In a perfect market costs will tend towards 1.0 (this is not the case with BTC since increasing barriers to entry are creating mining monopolies*), except during early adoption periods when costs are very low** thus driving investment.
For BTC the money is being spent on:
paying mining equipment manufacturers (highly centralized, have incentive to hoard BTC rather than spend them)
energy companies (inefficient, wasteful, do not use or spend BTC).
So instead for Xcoin - design it so that as much as possible of the cost of 'mining' is gradually and increasingly diverted to be spent on things that work towards increased circulation - e.g. a fund that gives out 0% loans, or that invests in new Xcoin based business, or direct transfers to people with the stipulation that they must spend the money within x period of time etc.
* In a mature market, counteracting specialized mining equipment will therefore lower average profit. The only time when non specialized equipment can be used to extract excess profits is when the market is new. The best way to maintain incentive to mine is therefore probably to fix the rate of profit (while gradually decreasing it over time using an algorithm).
**technically, when expressed using the same denomination costs will be infinity (since the coin at this stage is worth nothing), but in terms of resource expenditure costs will be very low.
