The first thing to say is that there is no objectively-awesome way to issue badges. What works for one group of people in one context won’t necessarily work in another context. Having said that, there are some general principles which should stand you in good stead.
Second, you’ll find that it’s fairly natural for people to project their worldview into what is, after all, an open and emergent ecosystem. I’ve had people tell me that badges “will inevitably lead to X,” that “you can’t do Y with badges,” and that “Mozilla need to make sure that Z”. The great thing about the Open Badges Infrastructure (OBI) is that it’s a platform for third parties – including you – to innovate and think differently about their organisation is set up to do.
Third, there’s some criteria that are required for Open Badges and some that are optional.