The problems of capitalism are well-known: economic inequality; periodically occurring financial crises; byzantine monetary policies; wage slavery; well-paid jobs only for the lucky... Behavioral research developed a model of human motivation that naturally leads to a simpler, more just and efficient economic system. Merit economy/NEO is a practical implementation of these ideas.

At the foundations of Merit economy - and NEO, its actual implementation - is the notion that scientific inquiry, search for artistic expression or engagement in economic activites are all manifestations of human behavior, directed toward common goal: to fulfill our basic psychological needs of autonomy, competence and relatedness.
 
Autonomy

Get paid for work of your choosing

Make anything you believe will be useful to others. NEO will pay for your work (with Chrons, the NEO currency ), regardless of how much it sells for. In NEO, people receive economic reward for effort, not for the value created.
Competence

Earn esteem for selling what you made

NEO will reward you with Merits (a measure of your competence) for value of your labor. Merits can't be given or sold and everybody can see how many you've got. People can also see what they were earned for. Your Merit score shows not only the level of your competence, but also in what field it was earned.
Relatedness

Profit is good ... if it is shared

People prefer reward to be allocated according to desert (see: Competence), but they also dislike economic inequality. That's why NEO rewards value generated by work unequally (with Merits) and effort equally, (with a set number of Chrons/hour). Profit and loss is also shared by all. The economically successful products pay for the losses made by the less successful ones.