This VIP outlines a protocol-level VET buy back and burn mechanism.
At a high level the VIP proposes routing a fixed proportion of VTHO block rewards and VTHO transaction fees into a protocol burner contract which accepts VTHO and periodically, via time-weighted average price (TWAP) swaps, converts the received VTHO into VET and sends this VET to the onchain burn address, 0x000…dEaD, a quantum secure address to store inaccessible VET thus reducing the total supply of VET. This mechanism will introduce a net marginal buyer of VET and reduce the total supply overtime. See the VIP for estimates and further details.
Depends on: VIP-251, VIP-253 and VIP-254
VIP: