The baking rewards are collected by the Madfish team and they are used to fund the development and maintenance of the Quipu platform. The rewards are not lost, as they are still used to support the project. The rewards are also used to reward holders of the Quipu tokens, who in turn can use them to purchase goods and services on the platform. This helps to ensure that the platform remains secure and up to date. Ultimately, the rewards are used to benefit the users of the platform, ensuring that it continues to be a successful and rewarding platform for all.