Please consider tying your badges into Mozilla Open Badges. - http://openbadges.org. Currently Schoology's badge system is silo-ed and can not be (easily) combined with badges from any other site. Please consider joining the Mozilla Open Badge movement and make your badges compatible with Open Badges.
The result would be that students could earn badges on other sites and be able to view them from their Schoology account (if you so desired). Badges earned at Schoology would not be "locked" to Schoology, but would be exportable to Mozilla Backpack and any other site that was compatible. Students moving on to a different district would be able to take their Schoology badges with them. If badges are to be more than a cheesy sticker, then this portability is essential.