The merit system got implemented like 10 hours ago. So expect different kinds of reactions. Either negative or positive, those reactions will add to the improvements of this system.
We will see how it goes for the coming days.
How about giving incentives to an active member who is always giving his / her sMerits to quality posts. Like +1 Merit for every 50 sMerits given. So a member will not only make quality posts, he / she will also read and give sMerits to those who deserve it.
That will be very difficult to track for moderators. So far as giving Smerits is concerned, there is no point in storing the. It is mentioned that they may be nullified if not used for long term.