I think it's terrible to be honest because from what I've seen, it's not deterring spam at all, and it's getting used as a popularity meter where people who've already attained legendary are giving them to their friends for inside jokes and such. Other times, it seems to be fueling some sort of virtue-signaling handout system. By that, I mean that there's a ton of posts along the lines of "post here and I'll see if you're worthy of having these merits bestowed upon you by my holiness".
The whole thing conjures up images of a bored rich person walking into a welfare office and inspecting the crowd of unwashed peasants and taking it upon themselves to decide who deserves their pity and who doesn't, all the while filming it for everyone to see how magnanimous they are. I don't understand how anyone thought that this was a better system than the standard upvote/downvote that everyone else uses. Sure, it has it's flaws as well, but this merit system just seems like a giant leap backwards. First off, merits from what I understand, are a finite resource that decays over time, and is only created by certain crony accounts. Everyone needs them to "level up" except for the max ranked legendaries, but they're expected to be handed out by anyone who has them? Why would someone who isn't already max ranked and cares about leveling up give them away, thereby leaving themself with less of them? Secondly, why is it even possible for a max ranked account to even receive them? They have absolutely no use for them other than to use to measure their epeen. Third, just what the hell is a "good" post and what isn't? And even if you were to exactly quantify the necessary criteria that makes up said "good" post, anybody should know that it's rarely going to be used for that. Also, there seems to be a significant number of people on this board who aren't native English speakers, so even if they meant to post a well thought out and constructive post, it might not come across that way because of the language barrier. How often do you think that those posters are going to be deemed worthy of merits? Finally, if merits are meant to highlight useful or helpful posts, why even have the various boards for noncrypto-related topics? The merits given out in those sections seem about as rare as a fat vegan.