The merit mechanic is great. It encourages users to post well to rank up. Maybe in the future signature campaigns can pay out using Merits instead of BTC

Thats something I think merit sources could be used well for.
But right now, why don't we make every 10 merits we recieve, translate to 8 or 10 sMerit? People with current ranks become the merit sources, and the merit can be passed around while the 8 merits recieved will stop merits being too common. Besides the example above, can someone help me try to justify the need for merit sources?
We need merit sources so that there are enough sMerits on the system for helpful posters to be able to rank up.
But right now, why don't we make every 10 merits we recieve, translate to 8 or 10 sMerit?
Being able to send all the merit we receive would make it much easier to abuse. An account farmer with a few accounts could send the sMerits back and forth. With the current system they can do that only a few times until it halves to < 1. Unfortunately, I do think we need some level of centralization in order to reduce abuse. It's much easier to monitor a handful of sources than everyone.