When the Foundation first started baking, it was an important factor to ensure the stability of the chain. Now that the chain is more mature and stable, we are having ongoing discussions to determine how tez (Tezos tokens) should be used and how the Foundation should approach baking moving forward, taking into account a number of considerations. To be clear, this answer represents a snapshot of our thinking at this moment in time, but we continue to have discussions about the present and future of TF baking.
The Foundation’s first priority is to support the security and the stability of the network. To that end, all TF baking operations are conducted on Amazon Web Services with the highest level of security.
Additionally, because the Foundation abstains from voting on any proposed protocol upgrades, our baking activities have zero effect on the governance of the network, meaning that core development teams can inject protocol amendments whenever and however they see fit.
Another factor to consider is that in a PoS system, the primary incentive to bake is to retain one’s proportionate share of the total money supply. Baking in Tezos directly transfers ownership from those who don’t participate to those who do. Thus while rewards may go down as a result of TF baking, everyone still retains their proportionate share of the total money supply.
In any case, all Foundation baking rewards will be distributed back to the ecosystem to advance our mission to support the long-term success of the Tezos project. In fact, funds from TF baking are already being used to support programs like the community rewards program administered by TQ Tezos and Tezos Commons.