That's some serious and deep shit if true.

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Can't they just go for maximum transparency?

Lay the books bare, make the decision-making public, etc. I doubt donors would be upset to get more info. It sorta fits to Nostr to make it all open-source.

Seems like an easy, painless fix.

While you could make more transparent who gets which part of the money, you can't proof that there are no additional funds at play. I guess the pooled money for the grants is indeed only going to the grantees as probably the sponsors would also have an eye on that but Semisol implies that there were superior motives for doing all this. Any grant program picks winners and if sufficiently big, it also picks losers. You can't compete with a well funded product in your niche.

I suspect that something like this is or will be happening with state sponsors but nostr:npub12262qa4uhw7u8gdwlgmntqtv7aye8vdcmvszkqwgs0zchel6mz7s6cgrkj implies he knows something and I find it ironic how two weeks ago, Odell was shitting on Saylor with unsubstantiated claims and now Semisol is shitting on Odell's project in essentially the same way. And both got huge attention without substantiating anything.