This centralizes decision making about the protocol, indirectly.

If there are two dev teams, and one is independently financed, whilst the other receives grants, the grant app can undercut in price until the other one goes broke and gives up.

Since implementations determine the protocol, they either have to finance every app, or they skew the protocol, involuntarily. Both of these situations distort the market and would be difficult to unwind because they cement expectations among the users.