Current Iteration of XVMC protocol:
There is no one-situation-fits-all scenario and that's why Mac&Cheese will be utilizing a highly dynamical but fully transparent process of buying back and burning the tokens.
9% of the farming rewards are allocated to the developer address, as well as the deposit fees from the Pools..
At the beginning 100% of the fees collected will be used for Buybacks&Burns. Later on, a percentage of the money could be used for developer grants and as rewards for adoption.
Decentralized governance platform can be used by XVMC holders to decide on such important decisions and propose new solutions.
First priority is always to serve in the interest of the XVMC holders.
XVMC protocol upgrade:
When and if the protocol is upgraded, time-locked contracts for staking will be available. This will incentivize users to hold their XVMC tokens for longer periods, effectively removing supply from the market. The stakers will be rewarded with higher yields for doing so.
If a stake is ended pre-maturely. Prior to the expiration of the time-locked contract, the user will be penalized for failing to stick to their promise. Percentage of the penalty will be burned - creating deflationary effects for XVMC. The rest of the tokens will be available for honest stakers to earn as a "interest on their interest" in the "CheeseDip Pools".