Sr. Member, Hero and Legendary do they need a merits?

Yes.

These rank should be exempted on merits systems instead they are the one who will judge the lower ranks by giving merits.

No.

1. Newbies that work as a spam will be controlled.

No.

2. It will give an opportunity those newbies that really working hard to rank up in fair time.

If you are *really working hard to rank up*, you are doing it wrong and shouldn't be allowed to rank up to begin with.

3. Merits will be distributed fairly to the lower ranks because higher ranks will not think of their merits anymore.

No. The exact opposite will happen. If I can't receive merit, I would probably not bother giving anyone any.

Lauda and his group are already abusing the merit system.Do it the same way since they claim its ok

https://bitcointalk.org/index.php?topic=2829282.new#new