I wouldn’t think about retroactive grands as a way to shower already profitable projects with additional Algo, but as a platform entities that proved their impact can turn to for additional funding for e.g. milestones or to bridge difficult times with subsidies because of insufficient liquidity in the ecosystem. Especially in times like these, those allocations might prove very handy especially in supporting projects with importance and impact but lacking in sustainability, like e.g. Algoexplorer/NFTexplorer.
Proactively funding projects solely on monetary incentives (grant-farming) on an illiquid chain doesn’t magically improve liquidity and the sustainability of said projects. In my mind, the only way to safeguard against this and improve liquidity is to target entities that not solely rely on Algorand itself for the sake of it, but who’s target is to leverage Algorand to improve or innovate on their existing goods and services, e.g. real world assets - or make them accessible to us indirectly, like cross-chain projects.