Every game is a grind. The only fix to this is having so many different things to do that you can switch when you get bored. The issue lies in making all of these things fundamentally different, which I have yet to ever see. Typically, when a game has mining and woodcutting, they are actually the same thing.
Honestly, I am having trouble imaging any Blockland RPG not involving grinding. Especially, because even if there is a variety of things to do, people will still grind at one. The reality is, at least one person will grind, then they will get ahead and use their advantage to be awesome and have a better time than other players. Other players will realize the success of grinding and grind as well, a necessary chore to succeed. You could potentially add a ridiculous amount of things to do, and make the max level on each low and easy to reach, but that would just be confusing.
The only method I could conceive that would remove grinding is to penalize players for it. You gain a couple levels of something in a row and the amount of resources/experience you get begins to slope down until you get nothing. Players would be forced to do other things.
EDIT: Also, there needs to be building integration.