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If you're referring to something like group icons, then no, I don't use them on my current board. I would only see them fit for staff members anyways, giving specific members their own badge or having an elite group would seem to be in the lines of favoritism to me.
My forum offers badges to earn by completing tasks, participating in activities, or winning contests. We stay away from award type badges as to not show favoritism.
I've been on staff on forums that have them and those that don't. I think that for it to work you need to have a reason for them and to have a way that it brings activity to your site.
With the forum I currently co-own we do have the use of badges yes. Because we run an affiliate and a partner program, we have badges for that as well as other badges such as moderator, admin, VIP. I feel that with what we are doing with the forum, the badges are a good idea and give a little more exposure to those who are say affiliate or partner.
Forum badges are just for the general aesthetic of the forum. It's something that looks good and it can equally influence members to be more active in the forum in order to earn their own badges. It's not a bad thing to implement in any forum.
I currently have trophies on my forum, though they're exactly like badges. I think they are a fun feature to have installed on a forum. I have a few posting milestone trophies but I also have a few video game related ones that members can earn if they complete video game challenges.
I love the endless possibilities that there can be with badges! The hardest find is sometimes finding the perfect "badge". Niche specific forums could so much with them as well, but general forums can also have some real fun ones!