May I ask what the point of the merit system is to give to legendary members? Doesn't that just reduce the supply for everyone else making it even harder?
Not at all. Merit is not given out or transferred. Only sMerit is given out (giving sMerit means that someone will get both merit and sMerit, and you will lose sMerit). The supply that matters is the sMerit supply, not the merit supply. The reason legendary members get merit is so that they meet the requirement for their rank.
And is the sMerit supply reduced to the pool of people who have no use for it? The legendary?