Bashiok (Link)

We're continuing to refine the badge/emblem and PvP point systems in Cataclysm and we'd like to share some of those changes with you today. Please enjoy!

Our primary goal when approaching badges in Cataclysm is to address a lot of the confusion that comes with these currency systems. To that end we're changing badges to a more straightforward point system, similar to the ones we've used for a while for Arenas and Battlegrounds. There will be a total of four types of points you can earn in Cataclysm (two for PvE and two for PvP), and these will remain the same even as we introduce new content.

Here's the breakdown:

PvE
Hero Points -- Low-tier, easier-to-get PVE points. Maximum cap to how many you can own, but no cap to how quickly you can earn them. Earned from most dungeons. (most like the current Emblem of Triumph)
Valor Points -- High-tier, harder-to-get PvE points. Maximum cap to how many you can own, as well as a cap to how many you can earn per week. Earned from Dungeon Finder daily Heroic and from raids. (most like the current Emblem of Frost)

PvP
Honor Points -- Low-tier, easier-to-get PVP points. There will be a maximum cap to how many you can own, but no cap to how quickly you can earn them. Earned from most PvP activities.
Conquest Points -- High-tier, harder-to-get PvP points. There will be a maximum cap to how many you can own, and a cap to how many you can earn per week. Earned from winning Rated Battlegrounds or Arenas. (currently called Arena Points)

When a new tier of raiding gear is released or a new PvP season begins, your higher tier of points will be converted into the lower tier. For instance, if a new tier of raid gear is released, your Valor points will be converted to Hero points, and similarly if a new PvP season begins your Conquest points will be converted to Honor points. Of course that means with these new releases you'll always begin without any of the higher tier of points, and thus be unable to stockpile them.

As noted for Conquest points, the Rated Battlegrounds and Arenas will be sharing this same point type. Because of that, it will in fact be possible to get the best PvP items without setting foot in Arena; however, more powerful armor and weapons will of course require more Conquest points, so players who win their matches more often will still gear up faster. We're removing personal rating requirements on almost all items; they're definitely removed for weapons. We might offer a few items to the absolute best players based on personal rating, largely as cosmetic or 'bragging rights' type items. And you'll have the option of purchasing the previous season’s gear with the more readily available Honor points.

We do plan to have a way to convert Honor points (PvP) into Hero points (PvE), and vice versa, at a loss. The conversions will be possible, but it won't be a 1:1 rate, and you'll have fewer points after the conversion process. We won't allow the higher tiers to be exchanged for each other, however.

To explain the reasoning for the weekly cap on points for the higher tiers, this is to provide flexibility in how players choose to earn the points without feeling like they have to do all of the content as often as it is available. If your Valor income from raiding is sufficient, you may not feel the need to run Dungeon Finder every night, or perhaps even at all. Likewise, a PvP player could choose to participate in a lot of Rated Battlegrounds but no Arenas, or focus on both, and still be able to earn the points they want.

We realize that with any changes to progression pathways there are going to be questions. We're eagerly awaiting any that we may have left unanswered. To the comments!