Vaksel, I like what you are saying here. So, for example, let's say I've got a course in Algebra Level I. I can then create a test in which they pass at 80% and gain proficiency at 90%.80% = basic knowledge; 90% = proficiency; 98% = mastery. Their level could then show up on their profile. Is that accurate? If not through a test, then how would you assess the knowledge level?
Also, would you embed these tests/levels in courses or would you make them separate? I guess you could do both. One person could work through the course if they wanted a more comprehensive understanding and another person could simply test-out of it by passing the test.