Btw, don't you think there is a risk as for example in twitter - with usual #followback hashtag - that people will give undiscriminately merits to everyone, just with the aim to receive merits back?
Or that circles of friends will give a lot of merits each other?
Or someone will start to sell merits?
Two reasons this will not really work. 1) Most people start off with a limited number of sMerits to give away and will soon run out. 2) It's transparent so it will be obvious if it is happening so anyone who is a merit source being caught will probably get banned.