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Grant applications, at least in academia, I've heard take lots of time / etc away from actual work - Although if this became the norm maybe it would lower the hurdle - Alternatively, an nomination system could be used, or something based on stars / forks / etc of a repository?

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They do take time, but they are also helpful for planning purposes (I will do X and Y if given Z amount of money). There would need to be some sort of application, but it doesn't need to be as elaborate as (say) an NSF proposal. I would imagine community engagement or recommendations would also be a valid criterion to elevate a proposal's score.

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