Merits are non-transferable or SoulBound in-game currency you can spend at your Guild Store. There are several ways Merits can be gained.
Earn Merits through Brawl Participation
Every brawl participant who submits teams for 75% or more of their frays earns the full amount of merits. If less than 75% of your team is submitted, then your merit reward is reduced. Rewards for brawls are calculated based on tier, guild building, and the participation of your guild brawlers.
If your opponent flees or you do not have any battles in your Fray, that still counts as you submitting your full team for the merits. Merits are the reward for individual brawl participation, while crowns are awarded to the actual Guild.
Review How do I Start Earning Crowns, Merits, and Gladiators for more detail.
Burn Gladiator Cards for Merits
Gladiator cards can be burned for merits.