Nice work theymos, I was redirected here by Lutpin. Maybe you can also post this update on the news tab at the top of forum page?
What about rank up?
If user ranked up, do he take a new sendable merit?
Base on what I read there's no addition of Smerit when he ranks up, Lutpin explained it very well as quoted by stompix too.
You have Merits, those you cannot send.
You also have sMerits, those you can only send, they have no other purpose.
When someone gives Merit to you they lose sMerit of the amount transfered and you gain Merit as well as sMerit (which in case you can send again).
Example: Should I send 10 Merit to you for a post, my sMerit would decrease by 10.
Your Merit would increase by 10 and your sMerit would increase by 5.
Merits are exclusively earned, but the sMerit part you also get keeps the circulation flowing.
(Ignoring merit sources here, for the sake of making an easy example.)