Contraction Phase is when the time weighted average of VINYL is under the 1.00 peg to FTM.
This phase is to ensure VINYL maintains its 1:1 peg with FTM. It is perfectly normal and expected for the price to fluctuate above and below 1 FTM after the excitement of launch wears off. This is in fact the sign of a healthy, maturing protocol.
VINYL is burned in order to maintain the 1:1 FTM peg in exchange for CDs.
Yeah, don't really care for cd's either but let's face it... they made access to music more accessible than vinyl. That said, vinyl clearly always makes a pop culture resurgence! Expect the same from the tokens. Swapping VINYL for CDs helps the longevity of the protocol by assisting to maintain the peg. Plus you get some fat premiums upon redemption!

Purchasing CDs, aka Bonds

The Shop is where CDs, aka bonds, are sold and redeemed for a premium. It is open for business when the last epoch's TWAP, time weighted average price, for VINYL compared to FTM is under 1.00.
Note: an epoch is 6 hours

Redeeming CDs for VINYL

CDs can be redeemed for VINYL when the last epoch's TWAP is above 1.00 again. There is a premium for those vinyl enthusiasts that redeem CDs when the TWAP is greater than 1.1. The premium is proportional to the last epoch's TWAP above 1.1.
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Purchasing CDs, aka Bonds
Redeeming CDs for VINYL