I think this is a great idea and one that was practiced in my troop growing up. Rising through the ranks, the scouts were much more responsible with blades after on would have a corner cut so that they did not have to deal with the embarrassment of not having a perfect blade record.
Originally posted on Bryan on Scouting:
Play around with a knife, lose a corner on your Totin’ Chip. In my troop growing up, it was that simple.
If a Scout lost all four corners of his Totin’ Chip (essentially a Scout’s license to carry pocketknives, axes and saws), his blade-carrying privileges were revoked until he re-earned the card.
It’s all part of Boy Scouting’s well-reasoned approach to teaching boys to see pocketknives, axes and saws as tools, not toys.