Most likely he is working on it. One merit for 500 good report isn't big deal for forum. I don't think new people will encourage to make report only for single merit.
Now imagine this:
-bots create 10,000 accounts
-bots start spamming "great project" with 10,000 accounts
-1000 bots start reporting the other 9000 accounts
-1000 bots turn Jr. Member and continue spamming with signature
-Mods run away screaming
I was about to post this same idea, but then decided to first read if anyone had already thought about that - and here you are (damn, it could have been me to get those 8 merit - Lol)
As a matter of principle I think there is a true value in the OP idea, this should be recognized, but the difficulty of enabling such a mechanism in the real world would range from the extremely difficult to the impossible - I'm afraid.