What Wallets are Compatible with Chocolate Coinucopia?
Chocolate Coinucopia requires a wallet that can interface with Web3 tools in order to take full advantage of everything the site has to offer. Chocolate Coinucopia does not provide centralization in any form. This includes account ownership. Users own their accounts on their local systems, and may interface with the Chocolate Coin platform at their discretion without discrimination or authoritative oversight.
One popular wallet compatible with the environment is MetaMask. It is available as a browser extension and mobile application, and can make full use of Chocolate Coinucopia's applications. For those interested, the following video provides an installation and use walkthrough:
Where Do Chocolate Coins Get Their Value?
The Chocolate Coin business model relies on two assumptions:
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The parties on each side of a transaction benefit from the transaction.
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The value of the spending party's Ether burned to perform a transaction is exclusively attributable to the blockchain's recordkeeping process, and not to the process of transfering value.
The first assumption is relatively intuitive, and a fundamental economic principle - no rational individual takes part in a transaction that leaves them worse off than before it occurred. The second principle is more nuanced, but just as important.
The value provided by each Ethereum node that processes and stores transactions on the block chain is strictly attributable to its storage on the blockchain, and not to the transfer of wealth. A simple method of proving this assumption is to juxtapose the official Ethereum blockchain (i.e., the Mainnet) with a test network (e.g., the Rinkeby test network).
Both the Mainnet and Rinkeby networks record transactions using the same process. The only difference between the two is that the Rinkeby network is setup to ignore other nodes, so that it can create a financially viable microcosm of the Mainnet without its unwieldy block mining difficulty level - zero redundancy, a centralized network. In every other respect (including the processing of transactions), the two networks are the same. Yet, this disparity (the Mainnet's blockchain vs. the Rinkeby blockchain) is the reason Ether is valued at thousands of US dollars, while Rinkeby Ether is available free to anyone who wants it.
Consider a fundamental component of the Ethereum transaction: "gas." Gas is a term used to quantify the stored data of the recordkeeping process in standard, measurable units. It is an unavoidable component of every transaction, and is paid for with Ether. In every transaction, an amount of Ether is transferred, and an additional amount of Ether is "burned" to cover the cost of recording the transaction. This burned Ether ceases to exist. Its value, however, is perserved in the overall value of the coins, increasing their individual value: Ether deflation. All the Ether coins receive a minor boost in their value equal to the transaction's burned Ether. The majority of this value is apportioned away from the spender, and to the general Ethereum community. In this way, the system disincentizes Ether spenders for every transaction they make.
This dilemma of local deflation is what Chocolate Coins are designed to solve. Chocolate Coins are designed with an inflation algorithm that rewards the spender with more coins for every transaction made. The value of these new Chocolate Coins produced is equal to the amount of Ether burned, preserving the spender's wealth. To explain how this works in more detail, consider a transaction where an individual sends money to theirself.
When a circular transaction is processed entirely in Ether, the transacting account is left in exactly the same position it was in before, minus some burned Ether. Nothing else changes in this scenario, and there is no value (perhaps even a negative value) in recording the transaction. No rational person would make this transaction because it would leave them worse off than before. However, when Chocolate Coins are introduced into the process the equilibrium is altered. When one transfers an amount of Chocolate Coins to theirself (a process referred to as "conching"), they end up with slightly less Ether and some Chocolate Coins. The only variables of this accounting equation are the supply and value of Ether, and the supply and value of chocolate; four factors that still find an equilibrium.
By increasing the dimensionality of this value equation (with another coin), there is, now, a range of equilibriums that will resolve it. Any value from the burned Ether that is not reabsorbed into the Ether coin's market capitalization is left to the new batch of Chocolate Coins. Keeping in mind the first assumption, an exchange of Chocolate Coins would require that both parties in the transaction receive some amount of value. Because one of those parties is the receiver of the Chocolate Coins, the Chocolate Coins must have a value greater than zero. For this reason, the equation for the value of the new Chocolate Coins is bounded between 0 and the entire value of the burned Ether:

The obvious counterpoint to this formula is that it relies on the assumption that the transaction was made by a rational actor. In this two-coin transaction, the entirety of the burned value can be preserved by the Ether coin's market capitalization, if the transacting individual is irrational. One could also argue that, given the idiosyncratic nature of each transaction (and transactor), the process of apportioning value between the two coins is arbitrary, at best; impossible otherwise. However, when one considers the transactions that are not being made due to Ether gas fee that would be eliminated by chocolate, a method of discretely allotting value presents itself.
Any transaction that occurs with chocolate that would not have occurred with Ether because of the gas fee represents an opportunity cost that Chocolate Coins eliminate - a measurable and assignable value. Keeping that in mind, one must also recognize that, because spending Chocolate Coins requires the additional transaction step of converting Ether to chocolate, it is a higher energy process than transacting in Ether directly. This means that Chocolate Coin transactions are not a natural state of the Ethereum financial system, unless they provide value to their transactors. Combining these two considerations, one can assert that Chocolate Coins are (much like Ether) a self-validating asset that have value because they are exchanged. Essentially, all transactions that occur in chocolate, rather than Ether, are done because they are more valuable than transacting in Ether, and, therefore, prove that the value of the burned Ether coins has been relocated to the Chocolate Coins, making them a delta token.
Delta Tokens (a.k.a., "Derivative Tokens," "dTokens," "dt's", etc.) are crypto tokens that derive their value from the exchange costs of another token. In the case of Chocolate Coins, they derive their value from the gas fee burned in their exchange.
How are Chocolate Coins Valued?
As delta tokens, Chocolate Coins are valued by the Ether they recycle. This is done using a transaction-based, proof-of-stake algorithm that requires two considerations before new Chocolate Coins can be created:
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Proof of Chocolate − "Conching" (i.e., the process of creating new Chocolate Coins) requires that a party is actively involved in the exchange of Chocolate Coins on the blockchain. When Chocolate Coins are transferred (by any means, to any party), the size of the transfer is aggregated with past transfers in the coin's ledger until the total reaches or exceeds the amount of one Chocolate Bar - a unique quantity for each coin version. Once that amount is reached, the coin's algorithm issues a reward to the spender that is directly proportional to the type of transfer and price of gas. Afterwards, the party's ledger value is reset to zero, and can begin accumulating, again.
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Ether to Burn and Recycle − Because Chocolate Coins must each have an underlying value, their worth is derived from the amount of Ether they recycle. During the transfer process, Ether is burned (as in any interaction with the Ethereum blockchain). However, in the case of Chocolate Coins, the reward algorithm has been paired with the destruction of Ether, so that the value of the new Chocolate Coins produced is equivalent to the Ether that was destroyed. Where, with other coins, the value of the burned Ether is returned to the market capitalization of the Ether currency, with Chocolate Coins, the value is transferred to the Chocolate Coin currency's market capitalization. This process establishes a "gold standard" for Chocolate Coins to be valued in Ether.

This gold standard approach allows the intrinsic value of all Chocolate Coins to be measured using the following formula:

(Price)
The value of each coin.
(Equity Capital)
The initial value of the coins in circulation.
(ETH Recycled)
The amount of Ether recycled since the coins' creation.
(Supply)t
The number of Chocolate Coins in circulation.
Using this formula, one can measure the impact of conching on both Ether and Chocolate Coins. Because the value of a new Chocolate Coin is designed to be worth more than a coin from the initial supply, the price of each Chocolate Coin increases. Contemporaneously, the price of Ether is unaffected. While Ether coin holders no longer benefit from deflation, they do not suffer any negative impacts from conching.

Another aspect of conching to consider is the relationship between the Chocolate Coin's potential for growth and an individual's preservation of wealth. Chocolate Coins are designed to increase in value with every transaction. In order to do this, there must be a disparity between the price of the initial supply of coins and the price of new coins produced. This difference is what allows chocolate coins to see an immense rise in value after an initial coin offering, but it also allows Chocolate Coins to achieve price stability as they develop.
Early in Chocolate Coins' existence, the gap between the initial price and terminal (a.k.a., "spot") price is at its largest. The majority of recycled Ether is redistributed throughout the suppply of coins, and coin holders as a whole benefit from the gains. However, as the porportion of new coins, tethered to the Ether gold standard, overtakes the less valuable initial supply, the share of recycled Ether that is redistributed to throughout the Chocolate Coin supply diminishes. The value of each Chocolate Coin asymptotically approaches the spot price. When the current price nears the spot price, Chocolate Coin spenders keep the majority of their recycled Ether in their newly minted Chocolate Coin rewards, and the coin's price stabilizes.

Because a portion of the value of the recycled Ether is always disseminated equally throughout the supply of existing Chocolate Coins, each gain in a coin's value is likable to a dividend payment, and can be measured using the same formulae. This allows one to consider discounted future gains from recycled Ether in the same way one would include expected dividend payments when valuing a security. When the initial value is set to zero, the formula becomes:

(ETH Recycled)0
The amount of Ether that has already been recycled.
(Supply)0
The number of Chocolate Coins currently in circulation.
(ETH Recycled)t
The amount of Ether recycled in the future at time "t."
(Supply)t
The number of Chocolate Coins in circulation in the future at time "t."
Rt
The discount rate for time "t."
What is the "+" in ERC20+?
Chocolate Coins are built on the ERC20+ standard. This means they are systematically decentralized. Like most decentralized cryptocurrencies, they trade freely on a decentralized network. Transactions are logged with super redundancy into the global blockchain in pseudo-anonymity. On the Ethereum network, all ERC20 tokens are compatible with this system, including Chocolate Coins. However, where the ERC20+ standard differs is that it is systematically decentralized.
The ERC20+ standard uses an improved transaction logging system that allows a coin's entire financial system to exist within the decentralized network. From the moment of its creation, ICO, transactions, exchange trades, analysis, etc... all system-required information is available on the blockchain. While this concept is not new to ERC20 tokens in some regards (i.e., coin offerings and transactions), it is with other areas of the financial system (i.e., exchanges and analysis).
The primary difference in ERC20+ is an advanced event logging protocol that offers better accessibility to front-end services. This protocol extends to the ancillary systems that manage market activities. The most notable of these is the decentralized exchange (a.k.a., "DEX" or the "Candy Shop"), which allows users to place and execute trade orders directly between one another. Trades are fairly and freely brokered by an algorithm embedded directly into the Ethereum blockchain, adding the safety a third-party broker provides without the third-party. In addition, the event logging performed by the DEX allows traders to stay informed on current price activity and historical trends without relying on outside sources.
One of the best examples of what the ERC20+ standard has to offer is this website, which has no backend. All the systems available on this website (the ICO sale, DEX, analysis tools, etc.) interface directly with the blockchain from a duplicatable node on a generic server, adding another layer of decntralization to the Ethereum network.
What is the Decentralized Exchange?
Chocolate Coins are built on the ERC20+ standard. This standard makes them compatible with all ERC20 systems, as well as fully decentralized systems. These fully decentralized system include the decentralized exchange (a.k.a., the "DEX" or the "Candy Shop"). The DEX operates as a broker in P2P coin trades. From a trader's perspective, using the DEX is similar to using any other exchange, with the exception that the order book offers level III access.
The life cycle of a trade transitions over the following trajectory:
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Approving the Broker (Traders #1 & #2) − The DEX is not authorized to act on the behalf of traders without their approval. For the DEX to be able to process an account's (wallet's) trades, that account must, first, approve the broker access to funds that will be involved in trading. This can be done for each trade, or once for all future trades. In addition, at any time, an account can revoke the DEX's approval, as well.
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Placing an Order (Trader #1) − Once a trader decides to place an order, they initiate an offer either via an GUI-based Chocolate Coin node (like this website) or via a CLI-based node on the Ethereum network. This process involves sharing some basic information: about the type of order (e.g., "BUY/SELL"), coins to be traded (e.g., CHOC for CC), trading price, and primary key for identification amongst the traders outstanding orders.
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A unique order ID − to identify this amongst any other outstanding orders by the trader.
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The order type (i.e., "BUY" or "SELL").
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The coins to be exchanged (e.g., "Base: CC," "Quote: CHOC").
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The exchange rate (e.g., "100,000,000 CHOC/CC").
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Funding the Order (Broker) − Once the information has been filled out, the trader submits the order to the DEX. The Dex reads the order, and calculates the funds required for Trader #1 to complete their side of the agreement. Assuming the funds have been approved, and are available, the DEX will move that amount into its own wallet in preparation of the trade. There are three considerations to be aware of with this process:
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Funding in Ether should be provided in the "value" parameter within the original order method sent out to the broker.
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The broker will not take any more coins than required to fulfill the order. Any Ether surplus will be returned to the sender.
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The order can be cancelled at any time, but only by the account/wallet that placed it originally.
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Posting the Order (Broker) − Once the DEX confirms the order details as a transaction it can complete, and receives funding, it broadcasts the order to all nodes on the Ethereum blockchain. Any interface listening for orders will receive the information, and share it with other traders. This is the phase where an order will show up in the Candy Shop Order Book, if it meets the filter criteria.
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Accepting the Offer (Trader #2) − With the order visible to other traders, looking to deal in the same coins, it waits to be accepted by a counterparty. A counterparty can accept all or a portion of the outstanding order, but only at the price posted. When a counterparty accepts the offer, the DEX checks their fund manangement approval status and ability to pay. If these conditions are met, the DEX will process the order.
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Clearing the Trade (Broker) − Trades are cleared in a matter of seconds at the same speed as any blockchain transaction. First, the DEX moves the funds of the trader accepting the offer (trader #2) to the trader who placed the order (trader #1), returning any excess to the sender (trader #2). Once, the DEX confirms the funds have been transfered, it releases the proportionate amount of funds from its wallet to the trader accepting the order (trader #2).

The information from these trades is stored in the event logs on the blockchain. This allows analysts and traders to follow trading activity and pricing trends (like with any security), so that participants can operate in an efficient market.
What is a Chocolate Node?
Chocolate coins exist on the Ethereum blockchain, and, like most ERC20 coins, enjoy all the decentralized benefits the environment provides. However, the decentralization of the Ethereum network only extends so far as the database that holds the information about the coins, and processes their transactions. Beyond this scope, many coins rely on centralized systems to interact with the Ethereum network (e.g., centralized exchanges with custodial accounts). These centralized components make up a considerable portion of Ethereum's financial system, and are vulnerable to exploitation. Centralized exchanges can be hacked, and their coins looted; their independence can be undermined by government organizations; members of the exchange can access the contents of custodial wallets without the consent of the owner. They are incongruous with the spirit of decentralized finance.
The Chocolate network is systematically decentralized. Unlike most coins, Chocolate Coins have no special founder permissions; no backdoors for administrators. Coin and wallet information is securely stored on the Ethereum blockchain. The financial platform, the graphical user interface (GUI), is open-source, and supplied by a network of independent servers. Network users (chocolatiers) privately own their wallets, and interact directly with the Ethereum blockchain using the GUI supplied from a server of their choice.
The Chocolate financial system can be depicted by three rings of delicious independence:
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The Ethereum Network − The Ethereum network is the database that holds and maintains all coin and wallet information. It securely processes the signed data (i.e., coin transactions) from wallet owners across its vast network of Ethereum nodes. This unhackable network serves as the back-end of the Chocolate financial system from which all chocolatiers interact with directly.
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The Chocolate Server Network − Chocolatiers can interact with the Ethereum network through the command line interface (CLI) of an Ethereum node, or they may use a web3 capable browser (e.g., a web browser with a MetaMask extension) to interact with the Ethereum network visually. A decentralized network of servers (Chocolate nodes) hold the open-source GUI code that a chocolatier's browser uses to access the Ethereum blockchain. Each Chocolate node has its own URL and SSL certificates. These servers provide the front-end code only, and do not play a role in the chocolatier's interaction with the Ethereum network. Chocolatiers use the code from a Chocolate node to connect their browser directly with the Ethereum network and its database. Once connected, their browsers request data from the Ethereum nodes to populate pages, and send data for any transactions made by the chocolatier.
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The Chocolatiers − Chocolatiers are the users of the Chocolate network. They privately own their Ethereum wallets and their Chocolate Coins. When they purchase coins from the initial coin offering (ICO) or place a trade on the decentralized exchange (DEX), they interact directly with smart contracts on the Ethereum network. These smart contracts accomplish the same roles of a centralized brokerage without exposing chocolatiers to the risks and fees involved with centralized financial systems. All transactions (transfers, trades, etc.) are free of any fees or costs, and the ether burned to use the Ethereum network is recycled back into the value of the Chocolate Coins.

For those interested in hosting their own Chocolate node, the code is available on GitHub. Please, click on the diagram of the Chocolate financial system above for more information.