It’s a couple reasons! Punching it down moves the air into the loaf to create smaller air pockets/a tighter crumb instead of really big bubbles. It also helps redistribute the yeast to find more places with sugar to feed on.
And the second rise with a shaped loaf also helps the bread rise in that shape to develop the air pockets and as you punch it down and reshape it you develop the gluten so it makes the loaf more stable.
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