This research explores Competency-Based Education (CBE) grading to address shortcomings in traditional grading systems. CBE emphasizes comprehensive skill mastery and offers a student-centered approach. The study implemented a CBE grading schema in a computer science course which allowed students to choose assignments aligned with their preferences and track their competence through feedback. Quantitative analysis revealed significant differences in student perceptions of interest, competence, and effort, with notable effect sizes. Qualitative data identified key challenges and successful strategies that led to design moves for improvement. Network analysis visualized correlations between student struggles, successful approaches, goal achievement, and Self-Determination Theory (SDT) principles. The study demonstrates the potential of CBE grading to enhance student autonomy and motivation while addressing traditional grading limitations. © ISLS.
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