I think that the scoring system works well, but unfortunately there is one important shortcoming.
Merit groups are formed, which are exchanged in exchange for financial benefits. What if they cheat others. It is important that there is money, people cheat and it is sad that the administration "does not see" it.
The question is. What will all this decentralisation do for us? From blockchain to the Stone Age? ..
You miss one important point here. Merit sources don't give merit for shitposters, so there are no "Merit groups". And those who exchanging merits for financial benefits are usual users who have some sMerits after Merit drop, but they will run out of sMerits soon.