The problem with our capitalism is our money.
Currency is a means for us to socialize debts so we can make trade more efficient. When you give Steve money, you're saying, "my people, Steve has provided me $30 of value, so please reward him in kind." Instead of having to give Steve $30 of value directly in return, we communicate that $30 debt to the rest of society with our money.
The problem with our currency is that it forces everyone to honor the debts of every other person on the planet. There are people who destroy our environment, manipulate our politics, and deceive our people in order to earn rewards, and we're all forced to reward them because we can't identify whose socialized debt we're honoring when we reward people in exchange for money.
If we always knew whose debts were being honored, any individual could refuse to honor the debts of people they believe are harming society. You could effectively turn off people's money if they're behaving poorly. No one would work for you if they think others won't honor your debts. If you don't honor the debts of polluters, polluters lose their purchasing power and go out of business. Similarly, pharmaceutical price gougers, war profiteers, and harbingers of financial crises would have powerful disincentives.
This enforcement mechanism would incentivize socially harmonious behavior without requiring consensus on what socially harmonious behavior is. We'd have a market mechanism for social behavior, which would prevent many of capitalism's failures.
We could also prevent wealth accumulation by deciding that recent value transfers are worth more than older value transfers. This is something that people actually believe, but there's no way for our money to express that the work you did twenty years ago doesn't mean as much as the work you do today. A pleasant side effect of codifying this truth is that we could avoid the zero lower bound on interest rates that's making it hard for the world to reach full employment. If unemployment is high, just increase the value of recent work so there's a bigger incentive to put people to work.
Instead of paying people based on how much money they have, you'd pay them based on their merit, calculated however you decide as an individual.
All we need to implement merit capitalism is a ledger of who has provided value for whom to replace our currencies that obfuscate that data. Blockchains give us the power to build this ledger.