Here are a couple of guides that I have put together to help teachers and students use the Badge tool in Moodle (built on OpenBadges)
It is a slightly convoluted process that hopefully will be simplified in coming upgrades otherwise I question whether anyone other than the most tech-savvy users will really embrace Badges, which is a shame as I think they have the potential to be a useful tool for engagement.
These guides – which you are free to modify and use for non-commercial (or educational) purposes with acknowledgement – were initially designed for our Moodle system here at CIT – eLearn. Clearly some screenshots and layouts may vary.