I have mixed feelings about the new system. I feel that the system in general is working from the stand point of quality posts. I think we've seen many different users trying to earn merit points and are therefore now contributing to discussion much more than they have before. I think we've seen a lot more in depth and constructive posts. Certainly discussion relating to the new system there's been much discussion in the main announcement and suggestions and changes.

The main objective seems to be working and that was to improve post quality. But, I believe there are a few pitfalls and a few genuine users are going to get hurt by this system. I mentioned on the main thread that a downfall to this sort of system is that people who start the topics are going to get a lot more merits than anyone posting in existing discussion. This will likely lead to people posting new threads which are duplicates from others in attempt to earn more merits. Also, well thought out responses are getting lost a few posts in and arn't getting any merit at all. Early observations have shown that only a few posts a few pages in are getting merits.

I think another pitfall in the system is that at the moment Smerits are inconsistent. You'll see a lot of the higher ranked members and people who are generally known getting the majority of the points. I feel unless there are hundreds of sources added in the future (which theymos suggested will likely happen) people trying to rank up will struggle. Especially, when only 1 merit point is given out to a quality post. They would literally need to make hundreds of quality and informative posts and get NOTICED to rank up. I really do feel the newly ranked members are going to get shafted because a lot of the merit points are just going to be distributed between those who are well known in the community already.

Also, it seems at the moment merit points are being awarded to those already knowledgeable about Bitcoin. Not those asking questions and creating in depth discussions. I think we need to reward those who are trying to learn more by asking complex questions. Obviously, not reward questions like "What exchange" etc.

Really though it's too early to judge and we should at least allow a few months before passing judgment.

There's been several changes to how users obtain ranks. It used to be tied to post count alone which meant you could literally spam your way up to hero member in a day. A lot of people when activity was introduced lost their rank and downgraded quite a bit.