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Open Badges are interoperable digital credentials that can contain detailed claims and web-enabled evidence. Because badges can circulate in social networks and gain additional meaning, they are ideal for Web 2.0 learning environments. This paper presents the findings of an extended study of 30 funded efforts to design Open Badge systems for a range of learning environments. The study generated seven general badge design principles and 37 more specific principles regarding recognition, assessment, and motivation. Generally, the participation-based badge systems were more successful than the inquiry-based systems, while competency-based systems were largely unsuccessful. Open Badges appear most appropriate for environments where learning and credentialing are more social and informal, and where expectations for summative assessment of individual competencies are modest.