We consider donor evolution and mass transfer in the microquasar V404 Cyg/GS 2023+338 .
Based on X-ray observations of its two outbursts , its average mass accretion rate is substantially lower than our model mass-loss rate from its low-mass giant donor .
A likely solution to this discrepancy is that a large fraction of the mass flowing from the donor leaves the binary in the form of outflows from the accretion disc around the accretor .
The outflow can be parameterizes by the fractions of the mass and angular momentum leaving the system .
We calculate the latter as a function of the radius of the accretion disc from which the outflow takes place .
We then perform detailed evolutionary calculations for V404 Cyg .
Given our estimated average accretion rate , > 70 per cent of the mass lost from the donor has to leave the binary .
The allowed solutions for the actual donor mass loss rate are parameterized by our two outflow parameters .
Our results are in agreement with the observed outflows from the outer disc as well as with the variable near-Eddington accretion observed during the outbursts , compatible with outflows from the vicinity of the black hole .
We then calculate the expected rate of the orbital period change .
Its future measurements can constrain the presence of an outflow in V404 Cyg and its parameters .