Give these guys 10 badges each:
"Badge Masters":
Armada(special badge with crown), Mango, Dr.PP, HBOX, M2K
Its general consensus that these are the top 5.
Give these guys 30 badges
"Badge Keepers":
KK, Axe, Shroomed, Hax, Unknown522, Wobbles, (Jman, S2J, Westballz, etc.)
These are arguable, it can be based on opinion or if they want to participate, obviously the guy who attends more often to nationals gets priority.
Make it 8 guys total.
You play 5$MM duels (BO5) with these "Badge Keepers" whenever you see them. If you win you get the badge, if they win they get 5$, this will encourage these 8 guys to keep playing and make it more possible to get the badges for the participants.
Once you get the 8 different badges now you get the title of "badge keeper" and the guy who had less badges at the moment of these 8 badge keepers gets out of the list.
Now that you are a Badge Keeper you can 10$MM duel the top 5(same ruleset as above).
Same thing, if you get the 5 badges of these top 5 you rise to the title of "Badge Master" and the guy with least badges from top 5 goes down to "badge keeper".
If the guy who got out wants the title back they can participate, but has to get all badges again.
Between the top 5 they can play 50$ duel MM with the "Crown keeper", that's just a battle for the crown. If the "crown keeper" loses he just hands the crown but remains on top 5.
Obviously getting the badges will be pretty freakin hard, but it will encourage those players who want recognition to keep participating and getting better.
I think this is the easiest system and is really hype.