Your proposal is not only incomplete but it is also NOT an *implementation* proposal.
The Merit system is not "incomplete". If (you) feel that there is a need for more merits in the system that is fixed either by adding more merit sources or by increasing their merit airdrop.
There is a reason why for one Merit received you only get one Smerit to give and that is precisely to decay merit "cycling" between "regular" users. OTOH, merit sources are somewhat more screened and more appropriate to handle any additional airdrop of merits IF there was really a need to introduce more merits into the system... which is very arguable but a reasonable concern.
And everyone is free to apply as a merit source.
of course to users who would be juged to deserve it better
How is that any different than merit sources?