Thanks fungal! When i run "%sudo -u uksmd uksmd" command I get output of: capabilities: CAP_SYS_PTRACE required.

Also no instance in htop. Hmm wonder why I can only run it as root from terminal.
Same error you get running it as user, right?

So when it is run as root, what does it do? Or what is it expected to do?

Because %sudo uksmd runs fine, and if you run it twice it run as two processes ..
Yes , same error. When I run it as root it seens to run as it is supposed to- helping to reduce memory duplicates or something along those lines in background& no errors.

Yes& it can run as two processes.
after the read of his code, it seems that daemon is an systemd OS specific one because it can run with an user different than root without setting a namespace (which is linux specific). Nothing to comment here, it's a dev choice to be not portable.
So forget about running it with uksmd user account.
Now, you are able to run it as root on a terminal but not as a service!?!
try this
[main]
@ type = longrun
@ version = 0.0.1
@ description = "Userspace KSM helper daemon"
@ user = ( root )
@ options = ( log )

[start]
@ execute = ( s6-fghack /usr/bin/uksmd )
Personaly, this kind of daemon will not see the tail of my system :p
Yes!!! That worked! Good to know :D

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