Merrow Lanes

If you want ideas for a merfolk deck, you could look at my merfolk deck. I'll link it at the end of this comment to make it easier for you to find. It's a midrange aggro deck, though. I'm not sure what this deck is supposed to be, it it's mill, I also have a merfolk mill deck on my profile (I love merfolks :D) but I do not own any of the cards from the mill deck and thus can't tell you if it's good or not.
For the aggro deck, I own (almost) all of the cards listed there. (Just missing the Door of Destinies, 2 merrow reejereys, Stonybrook Banneret and Halimar depths mostly.) and it's been working out great this far! Even if I am missing some cards to make it stronger. I might change it a bit to fit my playstyle (I currently have ponder in the deck and some sejiri merfolks to make up for the cards I don't have). If you have any question on merfolk decks, though, you can always ask me whatever you want to know!
http://www.mtgvault.com/lankeonluck/decks/high-tide-merfolk-aggro/
http://www.mtgvault.com/lankeonluck/decks/whirlpool-merfolk-mill/

There's also a couple of cards that I don't like in this deck. They are the following:
Deepchannel Mentor. You'd want some islandwalk lords if you want your stuff to be unblockable. This only makes roughly half of your creatures unblockable. Also, if you're going for merfolk mill, you'd not want to attack anyways, so it's only ever going to become a 2/2 for 6 at best. There's no reason for you to try and kill the enemy in two different ways, it's usually just better to attempt one since merfolks don't have any mill aggro cards like Jece's Phantasm.
Fallowsage. It's a 2/2 for 4 (which is pretty bad) and although he does give you a card when he gets tapped, you don't have a good way to constantly play those cards. If you really like him and want to run him, you'd want Merrow Reejerey (which is, btw, a great addition to ANY merfolk deck! It's a lord that gives you control over permanents. you could untap your lands or creatures, tap the enemy creatures or lands, or in multiplayer, you could untap your allies lands/creatures!)

I'd also consider removing the drowner initiate completely and changing the Aquitect's Will for spreading seas. Spreading seas makes a land permanently an island, so it can't be used for anything else that is not an island. If you're playing against a 2 colored deck, you'd wait for them to drop their 3rd land and just use the seas on their land that they have the least of. This way, they might end up not be able to play anythign at all! (has happened 70% of times that I've done it) although, you'd want to sideboard the Aquitect's Will against enchantment hate and single colored decks.
Add some Wanderwine Hubs. They're waaaay cheaper than the fountain that you currently have, and the only drawback is revealing a merfolk card in hand (woop-dee-doo).

The point of the deck is almost a spam that can kill through damage OR mill. And my spells cost a lot less due to Stonybrook Banneret. So before you hate on some of my best cards, consider what they do in combo before making your decision as to whether or not they are good enough. I use this deck and consistently i pull out over 100 merfolk before destroying my enemies. Lullmage helps along with Merrow Commerce because I can mill then cancel as many times as i want. Ps. All MERFOLK spells include tribal and also Banneret makes merfolk AND wizard spells cost 1 less meaning 2 less for a merfolk wizard. So that 4cmc? Nope, he's a 2 cmc now.

actually, it doesn't Stonybrook Banneret doesn't actually reduce 2 cmc if they're bot merfolk and wizard.
http://gatherer.wizards.com/pages/card/details.aspx?name=stonybrook%20banneret
expand and read the rulings on the bottom of this page. Get your facts straight before going all defensive on me.

Since you didn't know such simeple things as that, I might as well tell you some strategies that you could use with your current deck, though I highly suggest that you go for either mill or running people over, not both.

Merrow Commerce will be put on the stack at end of turn, so first you can mill them, then they get untapped. But if you have two, you could mill them, let one of the commerces untap your dudes, mill them again and then have them untap once again.

Merrow Commerce can be tapped as part of the Lulmage Mentor's tap ability to counter a spell.

IF you decide to get the Merrow Reejerey, you can choose to play Summon the School with the reduced cost from Stonybrook Schoolmaster (let's say you have 3 of them to reduce the cost to 1 mana). You play the Summon the school, paying 1 mana for it. After that, with Merrow Reejerey's ability (let's say you have three of them as well) you untap the land that you paid summon the school's cost with and two of your creatures. You tap 4 creatures to get it back to hand (tapping the 2 merfolks summoned with it too) you pay the cost, get 2 merfolk and untap 2 of the merfolks created this way. It creates an infinite combo that gives you infinite number of tokens that can all be tapped to completely mill your enemy down.

If you have Wanderwine Prophets and Stonybrook Schoolmaster, you can attack with Wanderwine Prophets (assuming you have some way of making him unblockable) and somehow get the schoolmaster tapped that turn (either by attacking and having him not die or some other way. You figure it out) and deal damage with the Prophets. Now, you sac the merfolk you get from the schoolmaster and get an extra turn. Next turn, you attack with Wanderwine Prophets once again, get the schoolmaster tapped and sac the spawned merfolk again. This also creates an infinite loop, giving you an infinite amount of turns.

Im not an idiot first of all. This deck is meant to be a spam. And frankly, your superior attitude annoys me. do not condescend. i know all of this.

Ok

Seems pretty legit! DO IT!!