I am a lower-ranking member with fewer merits to give so I choose to give the few merits I receive to lower-ranking members. Don't get me wrong, I wish I had more so I could give to high-ranking members too.
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I don't see how my choice to help users of lower ranks is bad. Maybe you can elaborate more on your point of view.
Look at it this way. Merits are supposed to be given for quality posts, no matter what rank the user has. You aren't meriting a lower ranked or higher ranked member, you are meriting the post that was made. Quality is a subjective choice, so if you feel that a post you want to merit deserves 2 merits for example, your decision to merit that post shouldn't be influenced by the rank of the user.
It sounds easier than it is and a limited merit supply definitely influences the choices you make.
A legendary user doesn't deserve more merits than a newbie just because the user is legendary.
A newbie doesn't deserve more merits than a legendary just because he is a newbie and needs to rank up.
Because the only thing to consider should be the and your personal opinion about it.