Yeah, University of North Carolina at Chapel Hill does provide scholarships based on merit. Here are some of them:

Old Well and Founders Scholarship
Total Worth: $3,000
Eligibility: $3,000
Minimum Criteria: Based on academic performance
Separate application needed: No

College Fellows Scholarships
Total Worth: $2,500
Eligibility: $2,500
Minimum Criteria: Based on academic performance
Separate application needed: No

MacDonald Community Service Scholarships
Total Worth: $5,000
Eligibility: $5,000
Minimum Criteria: Recipients are expected to participate in community service programs through the Carolina Center for Public Service.
Separate application needed: No

University of North Carolina at Chapel Hill provides aids at an average of 17732 per student meeting 100% of students need. 100% of students with need receive financial aid at an average of 15882 need-based grant. They also provide other scholarships including James M. Johnston Awards and The Wood Family Scholars Program.