when additional tez currency is created at the end of protocol upgrade cycles to compensate developers whose protocol upgrades are adopted baker stakes are increased proportionately as an inflation adjustment 17
decisions on adopting protocol upgrades depend on voting by bakers in proportion to the size of their stakes and the changes are automatically implemented throughout the blockchain final votes require the participation of owners holding at least 81 of the current coin supply 17all network activity and governance are decentralized and the tezos foundation disclaims any role in its operations instead it supports the development of tezos infrastructure and dispenses grants and other funding to foster adoption of the network 18